Tucano Gold to take over Great Panther’s Tucano mine in Brazil

Tucano Gold has entered into a definitive deal to acquire the subsidiaries of Great Panther Mining, Mina Tucano and Tucano Resources Mineração, for consideration of BRL1.00 (US20¢) per share, along with undisclosed proposed payments to Mina Tucano’s creditors.

In a media statement, Tucano Gold said that if the plan is approved and confirmed by the court, operations at Mina Tucano could restart before the end of the year. The mine is located in Brazil’s northeastern state of Amapá. 

The gold and silver mine was placed on care and maintenance in September 2022 by cash-strapped Great Panther while its local subsidiary underwent a court-supervised arrangement with its creditors. 

The Tucano mine is hosted on a 1,973 sq. km land package on the highly prospective Vila Nova Greenstone Belt of the Guyana Shield. The operation includes a 3.5-million-tonne-a-year carbon-in-leach plant and has produced more than 1.5 million oz. of gold since it was opened in 2005. 

Great Panther published an updated 43-101 report in June 2022, with proven and probable reserves of 12.9 million tonnes grading 1.59 gram gold per tonne for 656,000 ounces. Measured, indicated and inferred resources totalled 1.8 million gold ounces.

“We are pleased to be working with Mina Tucano’s team led by Julio Carneiro and Joter Siqueria who have our full support to reopen operations in Q4. We expect Mina Tucano to gradually increase annual production towards 100,000 ounces over the medium term,” Tucano Gold said in a statement. “Having successfully established Pilar Gold Inc and Laiva Gold Inc, the Tucano Gold team has gained a wealth of experience, giving Mina Tucano access to greater sources of funding and shared technical expertise.”

Tucano Gold says it is on track to achieve 300,000 oz. of annual gold production from Tucano Gold, Laiva Gold and Pilar Gold by 2025, with a combined mill capacity of 7.3 million tonnes per year.

Tucano Gold’s management says the timing is right to buy a large, long-life gold mine like Mina Tucano before the next upward cycle in gold in 2024.