Jupiter Gold had initially carried out an exploratory drilling campaign for the Paracatu gold project with six drill holes spaced 100m apart
Jupiter Gold says it has received an initial mining license for its Paracatu gold project in the state of Minas Gerais, Brazil.
The company said that the Brazilian government official gazette Diário Oficial da União has published in its July 29, 2019 edition the granting of the mining license to the Brazilian subsidiary of Jupiter Gold.
The government of Brazil has issued the license with respect to Paracatu project, permitting commercial mining for gold in up to 50,000 tonnes per year for three years.
Jupiter Gold said that the licensing can be renewed or expanded, and its subsidiary holds the title of the mineral right.
Fully owned by Jupiter Gold, the Paracatu project holds a 312.66 hectare (773 acre) mineral right located within the municipality of Paracatu, which has been known for gold since 1722.
This mineral right contains an alluvial plain along the Córrego do Rico, which drains the gold deposit located 4miles (6km) upstream known as Morro do Ouro, an ore body of 16,000,000 ounces of gold according to publicly available reports.
According to published reports, Kinross Gold currently owns and operates the Morro do Ouro open-sky mine and produces more than 500,000 ounces of gold per annum.
Exploratory drilling campaign of Jupiter Gold on the project
Jupiter Gold said that it had initially planned for an exploratory drilling campaign for the Paracatu gold project with six drill holes spaced 100m apart.
With the initial drilling in several holes that resulted in the immediate visualisation of fine gold, the company has decided to expand the exploratory drilling to a detailed drilling campaign.
Jupiter Gold said that a total of 23 holes spaced 25m-30m were drilling using a Banka 4-inch percussion rotary drill. Gold was visualised in 18 out of 23 drill holes, with fine gold observed within gravel at depths varying from 0.5m to 7.8m.
Samples were submitted to the SGS-Geosol laboratory unit in Belo Horizonte, Brazil for geochemical analysis, which confirmed 18 of 23 drill holes positive for gold.