The 67km-long 138 kilovolt power line will connect Posse with the Porangatu substation and supply all of the electricity needed for the project. Amarillo is overseeing the engineering and permitting process, assisted by Enel. Construction of the $36 million Reais (C$9 million) line can start once the permit is received. The build is expected to take about 12 months.
"Once complete, this power line will be a much-needed lasting legacy, enhancing the power grid infrastructure of the communities in and around Mara Rosa," said Amarillo Gold's country manager Arao Portugal.
Amarillo is waiting to receive the licence to install from the state regulators to be able to proceed with the mine build. Posse is one of two new mining projects set for construction in the state, and the only gold project.
Meanwhile, the company is working to secure a financing package. Amarillo's current cash balance is $52.4 million, with which it can meet its short-term obligations, place long lead time orders and complete a $3.5 million exploration programme at its two properties in 2021.
An induced polarization survey is currently underway at Mara Rosa, and an 8,500m drilling programme is planned in the first quarter to follow up and test exploration targets along the Posse North Trend. Gold anomalies have been found up to 8km northeast of Posse which will be drilled with a view to expand the company's reserves and mine life.
Posse is due to have an initial mine life of 10 years with initial gold production of 104,000 ounces per year.
Shares in Amarillo Gold are trading at 29c, valuing the company at $113 million.