With a successful ESIA consultation, Adventus Mining and Salazar Resources go forward with the El Domo-Curipamba project.

 

The first phase of consultation activities for the environmental and social impact assessment (ESIA) of their jointly held El Domo – Curipamba copper-gold project in Ecuador has been completed, marking a key milestone for Adventus Mining (TSXV: ADZN) and Salazar Resources (TSXV: SRL).

According to Adventus, the project’s majority owner, the ESIA consultation procedure, which is supervised by the Ecuadorian government, follows the technical approval of the ESIA in May 2022 and complies with the new environmental consultation regulatory decree that the President of Ecuador signed in 2023.

The final step of the ESIA clearance process, which was started in June 2023, is halfway through the first phase of consultation. The final round of consultation activities will come when the Ministry of Environment and Water (MAATE) issues a public summary report, which is anticipated to be published in August.

Project Background and Expected Development

In the second half of 2023, Adventus and Salazar Resources anticipate that the Ecuadorian government will accept the El Domo environmental license. Construction is expected to start during this time after this approval and final finance arrangements.

Adventus views the El Domo-Curipamba project as Ecuador’s contemporary mine of the future, leveraging its low capital intensity in comparison to international standards and excellent copper-gold grades. El Domo is a high-grade deposit situated 150 kilometers northeast of Guayaquil, a significant port city in central Ecuador, and is part of the roughly 21,500-hectare Curipamba property.

Adventus and Salazar signed a deal in 2017 that allowed Adventus to acquire a controlling stake in the Curipamba project in exchange for $25 million in exploration over five years and fulfillment of certain development requirements, such as conducting a feasibility study for the development of the El Domo deposit.

Until its 2017 investments are paid back, Adventus will finance production capital expenses and receive 95% of free cash flows. Following that, project cash flows will be distributed to Adventus at a ratio of 75% to Adventus and 25% to Salazar. Adventus acquired the controlling stake in the Curipamba project by completing its earn-in option around the end of 2021.

The El Domo deposit’s proved and probable mineral reserves were estimated by the feasibility study finished in 2021 to be 6.5 million tonnes at 1.93% copper and 2.52 grams of gold per tonne. For initial open-pit development only, the study calculated a net present value (at an 8% discount rate) of $259 million assuming a 10-year mine life and a 32% post-tax internal rate of return. With a possible underground mining option in years 10 to 14, the initial capital cost was estimated to be $248 million, with the potential for an additional $49 million to the NPV.