Hochschild Mining (LSE:HOC), a London-based mining company, is celebrating a significant milestone in its expansion to South America. The company’s Mara Rosa gold mine in Brazil has achieved commercial production ahead of schedule, exceeding expectations and positioning Hochschild for further growth in the region.
Early Success at Mara Rosa
Located in Goiás, Brazil, the Mara Rosa mine commenced operations in February 2024. Despite being a new project, the mine has surpassed initial forecasts. Current projections indicate Mara Rosa is on track to produce between 83,000 and 93,000 ounces of gold by the end of the year. This achievement comes ahead of Hochschild’s initial target of reaching commercial production by the second quarter of 2024.
The Mara Rosa processing plant is exceeding expectations. On average, the plant is operating at around 90% of its daily capacity of 7,000 tonnes. Additionally, recovery rates have consistently surpassed 80%. Hochschild anticipates production to climb even higher in the latter half of 2024 as the mine completes its ramp-up phase.
Commenting on the achievement, Hochschild CEO Eduardo Landin emphasized the significance of the Mara Rosa mine. “Reaching commercial production at Mara Rosa is a major milestone for Hochschild,” Landin said in a press release. “This accomplishment not only broadens our presence into a new jurisdiction but also provides a springboard for further low-cost growth opportunities in Brazil.”
Acquisition and Continued Expansion
Hochschild acquired the Mara Rosa project in late 2021 through a C$135 million deal with Amarillo Gold. The company was particularly interested in Mara Rosa’s potential for near-term, low-cost gold production. Construction began immediately following the acquisition to capitalize on this opportunity. Hochschild has further solidified its presence in Brazil by securing an option on the Monte Do Carmo gold project in Tocantins from Cerrado Gold (TSXV: CERT). A 2023 feasibility study indicated that Monte Do Carmo has the potential to be a nine-year mine producing 95,000 ounces of gold annually.
Prior to its expansion into Brazil, Hochschild’s operations were concentrated in other parts of the Americas. The company currently owns and operates the Inmaculada mine in southern Peru and holds a 51% stake in Argentina’s San Jose mine. Both Inmaculada and San Jose are underground gold-silver mines that collectively produced nearly 220,000 ounces of gold and 10 million ounces of silver in 2023. Hochschild also owns the Pallancata mine in Peru, which was placed on care and maintenance in late 2024.
The early success of the Mara Rosa mine positions Hochschild for significant growth in Brazil. The mine’s strong performance and potential for expansion solidify the company’s presence in the South American market. With additional projects like Monte Do Carmo on the horizon, Hochschild appears well-positioned to become a major player in the Brazilian gold mining industry.
Source: Mining.com
