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Australia-based Crusader Resources (ASX: CAS) will invest 400mn reais (US$196mn) in its wholly owned Borborema gold project in the mineral province of Currais Novos, in Brazil's northeastern Rio Grande do Norte state, the company's managing director Robert Smakman told BNamericas.
"The announced figure will be used to build a processing plant, preparation works for mine operations and mining equipment, among other needs," Smakman said.
In December 2011 the company reported a resource of 68Mt at 1.06g/t for 2.31Moz of gold, according to its website. A further resource update is expected to be completed in the first half of 2012.
"The company is currently making a detailed feasibility study," the executive said, adding: "We are working to start operations in 1H14. Assuming that we will have a positive result about the new study, we are working to increase the volume of financial resources and to obtain all necessary permits to begin operations that year."
"Our goal is to keep extraction costs below US$700/oz," Smakman said.
The project has planned production capacity of 5t/y of gold for a 10-year period, equivalent to 150,000oz/y.
The company also owns the Posse iron ore project, the Tarantula tungsten project and the Ouro Belo tin-indium project, all in Brazil.