Interesting readGranted I think they have a typo in the year (they have it as 2010 instead of 2011). Below is an excerpt from:
https://www.e-mj.com/index.php/features/850-brazil-mining.html?start=4
Specialist exploration firm Colossus Minerals is unique in Brazil in that thecompany has negotiated a cooperative working alongside the Garimperos’ unionCOOMIGASP in order to complete underground exploration of the Mina Nova SerraPelada site. “The Nova Serra Pelada is located on 100 hectares very close to thepit where the largest garimpo in the world is operated,” said Colossus DirectorLuis Celaro. “During the 1990s, the Brazilian government decided to shut downthe garimperos due to security reasons. Since then, panners organized in acooperative known as Coomigasp which developed the dream of once again miningore in that region. With the support of the Brazilian government, Coomigaspcarried out a process to select a mining company that would perform undergroundexploration, in order to confirm the existence of a commercially exploitabledeposit. The cooperative holds the mining rights to operate at the site, inaccordance with a document issued by the federal government. Colossus, using itsBrazilian technical staff, studied the situation and recommended to themanagement of the company in Canada that it study the possibility of submittinga proposal for a commercial partnership with Coomigasp, which took place in2007.
“Having been the only one to make a formal proposal, Colossus was selected byCoomigasp. Beginning at that time, Colossus conducted a series of geologicalstudies in the area of 100 hectares and concluded the deposit could yield aneconomically viable amount of precious metals, including gold, platinum andpalladium. Given these findings, we both formed a joint venture, Serra PeladaCompanhia de Desenvolvimento Mineral (SPCDM), who became the holder of themining rights and is responsible for administration of the Nova Serra Peladaproject,” said Celaro.
“This was an important step in the history of Colossus. Up until this time,we had only been dedicated to the mineral exploration phase. The implementationof a mining project is a very promising challenge. The geological explorationindicates an ore body in the area of 100 hectares which could produce 3.5 mt ofprecious metals per year. The first extraction of ores is expected for themiddle of 2010. At the moment, SPCDM is progressing with the excavation of thedecline and the implantation of the industrial facilities for the beneficiationof ore in that area. Gold, platinum and palladium will be transformed into barsby industrial process in Serra Pelada, something totally unprecedented in thatregion,” said Celaro.
Despite being a very new entrant into Brazil’s precious metals industry,Colossus has been quick to embrace Brazil’s tradition of investing in thecommunities. “The Vila de Serra Pelada is a collection of houses made of wood,where sanitation and paved sidewalks exist. The community displays high indicesof HIV and child prostitution. Trash collection does not exist, public equipmentis damaged and there are no hospitals. When we arrived at the place with aproposal to once again extract ores that could become wealth, Colossus could notignore the local neediness, so we decided to take an attitude together withregional governments,” said Celaro. “The arrival of Colossus in Serra Pelada wasconsidered a milestone in the history of that region and not just because of thefuture extraction of gold, platinum and palladium, but for the contribution tothe restoration of citizenship for these thousands of people.”