The London and Brisbane-based mining company SolGold (TSX: SOLG) (LSE: SOLG) has successfully renewed the permit for its copper-gold mining operation in Ecuador for another quarter-century.
The company announced receiving the Cascabel project’s term renewal from the Government of Ecuador’s Ministry of Energy and Mines on Monday. The project has been ongoing since 2012 and will continue operating until 2048 with the possibility of future term renewals.
Cascabel is now 100 per cent owned by SolGold following the company acquiring Cornerstone Capital Resources in February, the project’s former joint venture partner and a now wholly-owned subsidiary.
The project contains an estimated 12.6 million tonnes of copper, 26.7 million ounces of gold and 92.2 million ounces of silver. It has an after-tax net present value of US$2.9 billion and is expected to have a 26-year initial project lifespan utilizing only 21 per cent of the site’s measured and indicated resources.
SolGold believes the discovery of the Alpala deposit at Cascabel is one of the most important copper-gold discoveries of the past decade and it is currently the company’s number one target. The deposit is 900 metres high and 500 metres on strike.
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The site takes approximately three hours to drive to from the country’s capital city, Quito.
“The 25-year term renewal should give all stakeholders confidence in the ability of current management to move forward with our plans for Cascabel and the company,” said SolGold’s President and CEO Scott Caldwell.
Montreal’s Osisko Gold Royalties Ltd (TSX: OR) (NYSE: OR) announced in November last year that it was investing $50 million in the Cascabel project in exchange for a 0.6 per cent net smelter return royalty.
The value of Ecuador’s mining exports grew by 32.6 per cent year-over-year in 2022, totalling US$2.7 billion.
Other copper and gold mining companies operating in Ecuador include Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF), owner of the Fruta del Norte gold mine in southeast Ecuador; Adventus Mining Corporation (TSX-V: ADZN) (OTCQX: ADVZF), which is focused on the Curipamba, Pijili and Santiago projects in the country; and Dundee Precious Metals Inc. (TSX: DPM), owner of the Loma Larga gold project in Ecuador’s Azuay province.
SolGold shares rose by 1.75 per cent Monday to $0.29 on the Toronto Stock Exchange.
rowan@mugglehead.com
