Investment Highlights
- Fully Funded Restart: C$98 million equity commitment secures full funding for restart and expansion of the Tucano Gold Mine.
- Proven Infrastructure: 10,000 tpd plant (3.5 million tpa CIL) with over 1.5 million ounces of historical production and an estimated replacement value of over C$600 million.
- Large Resource & Exploration Potential: 1.8 million oz gold (measured, indicated & inferred) and 656,000 oz reserves; target: expansion to over 3 million oz through ongoing exploration.
- Growth Strategy: Medium-term 100,000 oz Au p. a. at AISC of approximately US$1,400/oz; expansion potential to up to 200,000 oz p. a.
- Socio-economic Significance: Again the largest employer in the Brazilian state of Amapá with approximately 1,000 employees by mid-2024.
- Experienced Management: Management team with international mining, finance and M&A experience, including at Morgan Stanley, Credit Suisse, K92 Mining and Chancery Asset Management.
Company & Strategy
Tucano Gold Inc. is a private Canadian mining company that acquired the Brazilian companies Mina Tucano Ltda. and Tucano Resources Mineração Ltda. in October 2023. The goal is to resume gold mining in the Amapá region of northern Brazil and to further develop existing deposits and exploration targets.
After an intensive phase of consolidation and technical planning, production is scheduled to restart in the first quarter of 2025. The company is leveraging the existing, modern infrastructure and experienced local team to rapidly increase the project’s profitability.
The corporate strategy focuses on three core objectives:
- Rapid production start-up by utilizing existing facilities and resources.
- Long-term growth through exploration programs in the extensive 1,973 km² license area.
- Sustainable value creation through efficient operations, local employment and ESG-oriented actions.
Market Environment
The Gold Market
Gold remains a central store of value and hedging commodity in the global commodity market. In an environment of macroeconomic uncertainty, high inflation rates and geopolitical tensions, the demand for physical gold and gold mining stocks is gaining importance. Brazil is one of the most important gold producers in the Western Hemisphere, with well-developed infrastructure and stable legal frameworks for mining.
Location Advantage: Guiana Shield
The Mina Tucano is located on the Vila Nova Greenstone Belt, part of the geologically significant Guiana Shield. This region, which extends over several countries in South America, is known for its high-grade gold deposits. The geological structure is similar to productive gold belts in West Africa, offering exceptional exploration potential.
Fig. 1: Location of projects in the state of Amapá, Brazil
Project Portfolio
Mina Tucano – the Core Project
The Mina Tucano mine is a large-scale gold complex with a 10,000 tpd CIL processing plant, eight open-pit mines and planned underground expansions. Since commissioning in 2005, over 1.5 million ounces of gold have been mined.
Until 2020, annual production was approximately 120,000 ounces of gold with ore grades of 1.2 to 1.4 g/t. With the planned restart, Tucano Gold is aiming for annual production of
The existing infrastructure includes:
- 10,000 t/day processing plant with high recovery rates of 92–93 %.
- Tailings Storage Facility (TSF) with sufficient reserve capacity.
- Airstrip, 200-man camp and complete mechanical facilities for ongoing operations.
Fig. 2: Overview of the infrastructure of the Mina Tucano complex
Geology and Resource Estimation
The license area extends over almost 2,000 km² and includes a number of highly promising structures. The current resource amounts to
Urucum North – the Next Growth Step
A key component of the medium-term growth strategy is the start of underground mining at the Urucum North project, which impresses with higher ore grades of 4–5 g/t Au. The existing geological and technical studies, including
The high-grade underground operation is expected to significantly increase annual gold production while improving the economics of the plant, as higher-grade ore can be used as feed for the CIL plant.
Fig. 3: Aerial view of the Mina Tucano complex
Tucano Green Iron – Sustainable Diversification
In addition to gold, Tucano Gold is pursuing a complementary project in the area of iron ore recycling: the “Tucano Green Iron” project. An iron ore processing plant was built back in 2012 under the then operator
The iron content is between 20% and 40% Fe, making the project a potentially profitable contribution to the sustainable use of existing resources. This initiative also contributes to improving the ESG balance sheet, as legacy burdens are reduced and materials are recycled.
Financing and Capital Structure
On February 20, 2025, Tucano Gold announced the conclusion of a binding letter of intent for C$98 million in equity financing with a leading private equity group. This capital covers the entire financing requirement for the restart and acceleration of development and exploration activities.
The investment will be made in two tranches of C$49 million each, based on a price of C$0.70 per unit including half a warrant (exercise price C$1.00, term two years). The investor has extensive experience in the Brazilian mining sector and was previously involved in the successful reactivation and IPO preparation of Ero Copper Corp..
According to President Charles Chebry, this financing commitment is a “transformative event” that fully secures the restart of production and accelerates future growth opportunities.
Management
Jeremy Gray – Chief Executive Officer & Director
Co-founder of Chancery Asset Management and experienced investment banker with positions at Morgan Stanley, Credit Suisse and Standard Chartered. Former co-founder and investor at K92 Mining, a successful gold producer in Papua New Guinea.
Thomas Puppendahl – Director & Legal Counsel
Co-Founder of Chancery AM and also an early founding member of K92 Mining Inc.. Experience in M&A at Merrill Lynch, Ermgassen & Co and the Monitor Group.
Charles Chebry – President & Director
BSc, CPA. Led several companies listed on the TSX Venture Exchange. Many years of experience in the international commodities sector.
Richard Crew – Country Manager (Brazil)
Over 30 years of experience in senior positions at publicly traded mining companies worldwide, including more than 20 years in Brazil. Expert in precious and base metals, fluent in Portuguese.
Max Beck – Head of Investor Relations
Three decades of experience in the field of business development and corporate finance, including at PwC and Tetra Tech. Development of investor networks in Europe, Africa and America.
Edward Balme – IR Manager
Over 15 years of experience in exploration, fundraising and investor relations in Australia and Brazil. Bilingual (Portuguese/Spanish) with a technical background in drilling and exploration.
Fig. 5: Management team of Tucano Gold
Outlook
With full funding, proven infrastructure and an experienced team, Tucano Gold Inc. is on the verge of taking the decisive step towards resuming gold production. The restart in 2025 is expected to mark the beginning of a new growth phase – both for the company and for the local economy in Amapá.
At the same time, exploration is to be intensified in order to identify additional resources and secure the mine’s lifespan in the long term. The planned start of underground mining at Urucum North and the Green Iron project form central elements of a diversified and sustainable growth strategy.
Conclusion
Tucano Gold Inc. offers investors access to an advanced gold project with existing major infrastructure, secured financing and significant expansion potential. The combination of experienced management, a strong capital partner, a growth-oriented strategy and socio-economic importance in a stable mining region creates a solid starting point for long-term value appreciation.
With the planned start of production in 2025, cost-efficient operations and an additional ESG focus, Tucano Gold is positioning itself as a potentially significant player in the Brazilian gold sector – and as an attractive investment in the growing precious metals market.
