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Brazil strikes 136 MT gold in Amazon mine
RIO DE JANEIRO. Feb 2: Brazil has made its biggest gold strike — a mine with 150 tons (136 metric tons) — in the mountains of the eastern Amazon. the government says, reports AP.
The state mining company Vale do Rio Doce discovered the underground mine in Cu-ruionpolis. 1.860 miles (2,993 kilometers) northeast of Rio in the jungle state of Fara, It holds an estimated dlrs 1.6 billion of fine gold, aid Mining and Energy Minister Raimundo Brito said Thursday.
The reserve is expected to boost Brazil's annual gold output by 25 per cent when extraction begins in 1999. he said.
"It's possible that the gold reserves are even bigger." said Brito. "Vale only tested to a depth of 430 meters (yards). But we are going to go . deeper, to a depth of 1.500 meters (yard).”
Vale do Rio Doce spent 5 million dollars in exploration, and will spend another dlrs 10 million during the next three years in underground testing, said company President Francisco Schettino.
About 15 tons (13.6 metric tons) of gold a year will lie extracted over lO'years. The
operation will be completely mechanized and the gold separated by electronchemical processing, he said.
The idea is to avoid disturbances like those at the Serra Pelada mine, a mile (1,6 kilometer) away, where tens of thousands of migrant prospectors dug for gold manually in the 1980s to sell on the spot to special government offices.
In 1984. army troops had to be called in to stop riots at Serra Pelada. a mud-caked mountain, with 90 tons (81.6 metric tons) of gold, when the government decided to mechanize the mine and re-dmte the number of prospectors.,
The announcement was made at 5 pm. after the Rio and Sao Paulo stock markets closed. Observers expect Vale do Rio Doce's share prices to soar when trading opens again Friday.
Until now, the largest known deposit of gold in Latin American was located 35 mites (56 kilometres) north of Curionopolis at Carajas. also the site of huge iron ore deposits. Vale do Riuo Doce has been producing 10 tons (9.1 metric tons) ol gold at Carlas.
Brazil ranks sixth among
the world's largest gold producers behind South Africa. Russia, the United States. Canada and Australia.
Last year. Brazil's official gold production was 63 tons. lown from its output during I he boom years of the late 1980s when official output reached 90 tons a year.
But a huge amount of gold is also lifted and smuggled out of the country by an estimated 1 million wildcat miners who flock to the Amazon and prospect at hundreds of illegal camps.
The gold is shipped secretly on boats or small planes that take advantage of the lack of radar monitoring to fly undetected through the 2 million square-mile (5.2 million square-kilometer) rain forest.
Official statistics show Brazil earned dlrs 358.3 million from gold exports of 31.8 tons last year. In 1994, ft sold 16.4 tons (14.9 metric tons) of the precious metal for revenues of dlrs 202.6 million.
Officials say Latin America's largest country has known reserves of about 1.000 tons of gold, but local mining federations estimate total reserves to reach 30.000 tons.