Hochschild’s Mara Rosa gold mine reaches commercial production

Hochschild Mining’s (LSE: HOC; US-OTC: HCHDF) Mara Rosa gold mine in Brazil has  reached commercial production a couple of weeks early.

In a release Tuesday, the London-based miner said Mara Rosa, which made its first pour in February, is on track to produce somewhere between 83,000 and 93,000 oz. gold this year. The mine, located in the state of Goias, is the company’s first Brazilian operation.

“Achieving commercial production at Mara Rosa is a significant milestone for Hochschild and has been delivered ahead of our end H1 2024 forecast. This brings a new jurisdiction to the company and provides a springboard for further low-cost growth in Brazil,” Eduardo Landin, Hochschild’s CEO, said.

So far this month, the Mara Rosa plant has operated at about 90% of its nameplate capacity of 7,000 tonnes per day and exceeded 80% average recoveries. Production is expected to increase during the second half of the year as ramp-up continues.

Mara Rosa became a part of Hochschild’s portfolio through its US$135-million purchase of Amarillo Gold in late 2021. At the time, the company cited the combination of low-cost and near-term production potential at Mara Rosa, and began construction right away after completing the deal.

Recently, Hochschild expanded its presence in Brazil by optioning the Monte Do Carmo project in Tocantins from Cerrado Gold (TSXV: CERT). A 2023 feasibility study on Monte Do Carmo outlined a nine-year mine that can produce 95,000 gold ounces annually.

Prior to entering Brazil, the miner had been focused on other jurisdictions in the Americas. It currently owns and operates the Inmaculada mine in southern Peru and has a 51% stake in the San Jose mine in Argentina. Both are underground gold-silver mines that together produced nearly 220,000 oz. gold and 10 million oz. of silver last year. Hochschild also has the Pallancata operation in Peru that was put on care and maintenance late 2024.