Canada-based gold production company Cerrado Gold has secured the preliminary licence (LP) for its fully owned Monte Do Carmo gold project (MDC project) in Tocatins, Brazil.

The LP has been granted by the Tocantins state environmental regulatory authority Instituto Natureza do Tocantins (NATURATINS).

It is the first of the three-stage mine permitting process to bring the Monte Do Carmo project into production.

Cerrado Gold said that the LP lays forth all the basic parameters of the project to be accepted by all parties, including the local community and relevant regulatory authorities.

The gold production company expects to receive the second licence, which is the installation licence, within the coming three to four months.

Upon the receipt of the installation licence, Cerrado Gold plans to begin the construction activities at the Monte Do Carmo gold project.

The final licence for the gold project, which is the licence to operate, is expected to be granted to the company following the completion of construction and at the start of operations.

Cerrado Gold chairman and CEO Mark Brennan said: “The award of the LP is a significant milestone for the MDC project and reflects the great work done by our Brazilian team and represents a significant endorsement from the community and regulators for the development of the project.

“As previously announced, discussions for Project Financing are ongoing, and we look forward to the completion of the FS in the coming weeks as we work to bring the Monte Do Carmo project into production.”

The Monte Do Carmo project, which is expected to produce an average of 131,000 ounces of gold per year, has claims totalling 82,541 hectares of concessions.

In March 2023, Cerrado Gold agreed to acquire Voyager Metals, a mineral exploration company based in Canada. Recently, Voyager Metals’ shareholders and option holders approved the completion of the business combination with Cerrado Gold through a plan of arrangement.