BRAZIL ATLAS COPCO has won the contract to supply underground equipment for the Jacobina gold mine, which is reopening in the Bahia region. Mine owner DESERT SUN MINING of Toronto has ordered three Scooptram 1520 loaders, two RD282 Rocket boomers and two M6C Simba in-the-hole drills. The order is worth US$3.8 million. Atlas Copco has agreed to finance the purchase of its equipment over a 24-month period.
The Jacobina mine produced 670,000 oz of gold between 1983 and 1998. Desert Sun is dewatering the mine and refurbishing the mill based on an estimate of measured and indicated resources totalling 14.8 million tonnes averaging 2.86 g/t Au. Beginning in 2005, the mine is expected to yield 102,500 oz of gold annually at a cash cost of US$189/oz. Capital cost of the project is in the neighbourhood of US$30.7 million.
Details of the feasibility study as well as photos and maps of the project are available at www.DesertSunMining.com.