Perth-based Beadell Resources Ltd is set to commence a feasibility study on its Tucano gold and iron ore project in Brazil.

Beadell has appointed Ausenco to conduct the Definitive Feasibility Study (DFS) with specialist technical input from SRK Consulting.

DFS will focus on converting the existing Heap Leach operation, currently on Care and Maintenance, into a conventional CIL plant based on a mine production rate of around 2.5 million tonnes per annum of gold ore for an anticipated 110,000 - 130,000 ounces of gold poured per annum.

Beadell managing director Peter Bowler said the company is pleased to have engaged the services of Ausenco.

"Their extensive in country experience when coupled with the world class existing infrastructure and four years of operating data, will lead to a very thorough and expedited study," said Bowler.

The Tucano gold project, formerly known as Amapari, has been renamed to reflect the transition from the former Heap Leach operation to a new Carbon in Leach (CIL) phase.

Currently, there are three diamond drill rigs operating on site at the Tucano gold project. The 20,000m drilling program will be completed within a 4 month period in line with the DFS requirements.

DFS is expected to be completed by 27 November 2010.