TORONTO, Nov. 18, 2021 /CNW/ - Adventus Mining
Corporation ("Adventus") (TSXV: ADZN) (OTCQX:
ADVZF) and Salazar Resources Limited
("Salazar") (TSXV: SRL) (collectively the
"Partners") are pleased to announce that the Environmental and
Social Impact Assessment ("ESIA") for the Curipamba copper-gold
project located in central Ecuador
("Curipamba") has been completed and the environmental licensing
process has been initiated with the Ecuadorian Ministry of Water,
Environment and Ecological Transition (the "Ministry"). The
completed ESIA is the culmination of over two years of
environmental, community, and engineering activities led by the
Partners, with the assistance of several internationally recognized
and Ecuador-experienced consulting
firms. Importantly, the ESIA includes all technical design and
project scope parameters detailed in the recently completed
Curipamba feasibility study ("Feasibility Study" – see news release
dated October 26, 2021). The Partners
expect to work closely with the Ministry during the ESIA review
period as approval is required for the construction decision on the
Curipamba project.
President and CEO of Adventus, Christian
Kargl-Simard stated: "After completing thorough baseline
studies, we are very pleased to announce the completion of the
Curipamba ESIA and the start of the environmental licensing
process. Officially starting the ESIA review process is a key
milestone in our goal of having Curipamba as the next mine built in
Ecuador. This has been a
collaborative effort between the Partners and our team of
internationally and locally recognized consultants. We have also
been working very closely with the government to ensure our design
complies with all Ecuadorian standards and regulations. We look
forward to continued collaboration with the appropriate government
ministries as we go through the permitting and approval process and
advance the Curipamba project towards future operations."
President and CEO of Salazar, Fredy
Salazar stated: "We have been working in the Curipamba
district for over ten years and are excited to see the project
moving to this next stage of development. This is an excellent
project, and we are proud to formalise the great work that has been
done in environmental management and community relations. We look
forward to working with government authorities and local
stakeholders in the next phase of the ESIA review to ensure the
highest standard of environmental protection and that community
benefits are maximized."
ESIA Highlights
Key components of the completed ESIA include:
- Description of the Curipamba project as defined by the
Feasibility Study
- Detailed characterization of the physical and biotic
environment
- Description of the socioeconomic environment, including
communities and key stakeholders, as well as archaeology and
culture
- Assessment of project environmental and socioeconomic
impacts
- Mitigation, monitoring, and management plans
The ESIA includes a comprehensive monitoring and management plan
that details the mitigation offered by the Curipamba project to
avoid or reduce impacts to acceptable levels. This includes the use
of rainwater for make-up requirements, which forgoes the need to
develop surface water intake structures. Ongoing monitoring for the
life of the project will confirm environmental and social
commitments. The Curipamba project design completed in the
Feasibility Study incorporates maximum water reuse and recycle, and
treatment of any required discharge. Likewise, geochemically active
waste rock was identified through independent testing and provided
management prescriptions to ensure acid drainage is avoided. The
Curipamba project is in an area that has been largely disturbed
previously by farming and human occupation. Where remnant forest
patches occur that may offer habitat to important biodiversity, the
ESIA includes programs to rescue and propagate flora and fauna
species where effects of the project are predicted.
Other highlights include:
- The Curipamba project will not require surface water intake as
only rainwater will be used in the process plant
- All contact water will be treated to meet Ecuadorian regulatory
standards prior to discharge
- The tailings and waste rock storage facilities have been
designed by engineering firm Klohn Crippen Berger, to the highest
international standards as detailed in the Feasibility Study
- Cardno Entrix was responsible for ESIA preparation in
compliance with Ecuadorian regulations – the same group that
recently led the ESIA licensing processes for two major mines in
Ecuador (Fruta del Norte and
Mirador)
- Engineering firm Knight Piésold provided technical oversight
and support in preparation of the baseline studies and the ESIA
report – building on engineering and technical design contributions
in the Feasibility Study
- Key benefits for Ecuador and
the local communities are expected to include:
-
- Up to 800 temporary employment opportunities during
construction and 400 permanent jobs during operations
- Training and education programs to be developed in
collaboration with local universities and other institutions
- Priority hiring for communities within the direct area of
influence
- Partnership and capacity building opportunities to maximize
participation of local businesses
- Economic diversification of the local economy as a result of
indirect employment and business opportunities
- Life-of-mine royalties to the government estimated to
be $59M, value added taxes ("VAT") estimated to
be $65M, while additional state taxes
of $105M and income taxes of $147M – for an
estimated total of $376 million in taxes and
royalties to the government of Ecuador over the 10-year
mine life. Note that estimates are based on the long-term consensus
metal price forecasts referenced in the Feasibility Study, and the
10-year mine life does not include the potential for additional
underground mining operations.
Curipamba Copper-Gold Project & ESIA Background
The Curipamba copper-gold project is located in central
Ecuador and contains the near
surface El Domo volcanogenic massive sulphide deposit. The recently
completed Curipamba Feasibility Study details the engineering
design and future construction of an open-pit mine and facilities
at El Domo to produce concentrates of copper, zinc, and lead with
significant gold and silver credits over a 10-year mine life. In
addition, a preliminary economic assessment was completed on an
underground mine development option which is envisioned to extend
the mine-life for an additional five years. Detailed engineering
for Curipamba project development is expected to begin in the first
quarter of 2022.
Environmental baseline studies have been ongoing since 2019,
including the following key components: terrestrial and aquatic
biotic studies, installation of two local climate stations, monthly
surface water quality monitoring, installation of hydrometric data
stations, installation of groundwater monitoring wells, evaluation
of baseline air quality, noise and vibration levels, archaeology
study, soil study, and a socioeconomic study including cultural
heritage. The ESIA was prepared by Cardno Entrix Ecuador, an
international consultancy with offices in Ecuador. Technical support was further
provided to the Partners by Knight Piésold. ESIA community meetings
were initiated by the Partners in March
2021 to introduce the specifics of the Curipamba project to
local stakeholders and will continue through 2022. This new set of
community meetings builds on over ten years of community engagement
focused on exploration and site activities.
Regulatory Process
The environmental licensing process commences with a formal
review of the ESIA by the Ministry of Water, Environment and
Ecological Transition ("MAATE" or "Ministry"). The first step is a
technical review by the Ministry of the information presented, and
the issuance of observations for comment and clarification by the
Partners. Once the Ministry has technically accepted the ESIA, the
public consultation process will begin. According to Ecuadorian
legislation, this consultation process will be led by the Ministry
and supported by the proponent (Partners). Following public
consultation, feedback will be incorporated into the ESIA for final
approval by the Ministry and the issuance of the Environmental
License which allows for submission and approval of relevant
sectoral permits prior to the start of construction. In parallel,
the Partners will continue with community meetings and stakeholder
engagement throughout 2022.
Other Key Permits & Approvals
In parallel with the ESIA process, the Partners are continuing
discussions with relevant government authorities to progress other
key permits and approvals for the Curipamba project, including:
- Ministry of Energy and Non-Renewal Resources (MERNNR) for
review and approval of the tailings storage facility design
- Ministry of Transportation and Public Works (MTOP) for upgrades
to existing access roads and construction of a new main access
road
- National Corporation of Electricity (CNEL) for the design and
construction of a 69kv power line that will be constructed prior to
the start of operations
- Ministry of Foreign Trade, Investment and Fisheries
(COMEX) for signing of an investment protection agreement and
an exploitation agreement
About Adventus
Adventus Mining Corporation is an Ecuador focused copper-gold exploration and
development company. Its strategic shareholders include Altius
Minerals Corporation, Greenstone Resources LP, Wheaton Precious
Metals Corp., and the Nobis Group of Ecuador. Adventus is advancing the Curipamba
copper-gold project through a feasibility study, while continuing
to explore the broader 215 square kilometre district. In addition,
Adventus is engaged in a country-wide exploration alliance with its
partners in Ecuador, which has
incorporated the Pijili and Santiago copper-gold porphyry projects to
date. Adventus also controls an exploration project portfolio in
Ireland with South32 Limited as
funding partner. Adventus is based in Toronto, Canada, and is listed on the TSX
Venture Exchange under the symbol ADZN and trades on the OTCQX
under the symbol
ADVZF.
About Salazar
Salazar Resources Limited is focused on creating value and
positive change through discovery, exploration, and development in
Ecuador. The team has an
unrivalled understanding of the geology in-country and has played
an integral role in the discovery of many of the major projects in
Ecuador, including the two newest
operating gold and copper mines. Salazar Resources has a wholly
owned pipeline of copper-gold exploration projects across
Ecuador with a strategy to make
another commercial discovery and farm-out non-core assets. The
Company actively engages with Ecuadorian communities and together
with the Salazar family it co-founded The Salazar Foundation, an
independent non-profit organization dedicated to sustainable
progress through economic development. The Company already
has carried interests in three projects. At its maiden discovery,
Curipamba, Salazar Resources has a 25% stake fully carried through
to production. At two copper-gold porphyry projects, Pijili
and Santiago, the Company has a
20% stake fully carried through to a construction decision.
About Klohn Crippen Berger
Klohn Crippen Berger (KCB) is involved in some of the largest,
most complex engineering and geoscience projects around the world.
We are proud that our client relationships have spanned decades and
last as long as our structures. Our client relationships begin with
thorough exploratory work, solid design, and an unwavering
commitment to implementing the right solution for every project. As
a leading engineering, geoscience, and environmental consulting
firm, we have confidence in our work because our professionals
balance their technical acumen with practical solutions, and an eye
towards innovation – and our clients in the hydropower, mining,
transportation, infrastructure, and energy sectors continue to see
the benefits. (https://www.klohn.com/)
About Knight Piésold
Knight Piésold focuses on what we do best to create value for
our clients through all stages of mine development. Our mining
expertise has been applied to hundreds of surface and underground
mining projects worldwide, from early exploration, through
environmental and engineering studies, and on to construction,
operations, and closure. Through quality and environmentally sound
engineering and science, our clients trust us to successfully move
their projects forward. Celebrating 100 years, Knight Piésold has a
900-strong team operating from 27 offices across 15 countries,
supporting the mining, power, water resources, and infrastructure
industries.
(www.knightpiesold.com)
About Cardno
The Cardno Latin America Group provides social, environmental,
and engineering services for the improvement and delivery of
sustainable infrastructure in local and international communities.
Our team and their respective departments work together to provide
interdisciplinary assessments and analyses based on a solid
understanding of the geographic, socioeconomic, physical, and legal
contexts. Cardno is one of the world's leading environmental
consultants. Our work and expertise in natural systems assessment
and management, environmental impact assessment and monitoring,
agricultural development, climate change management, conservation
and rehabilitation is unrivaled. (https://www.cardno.com/)
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
This press release contains "forward -looking information"
within the meaning of applicable Canadian securities laws.
Forward-looking statements are based on the beliefs, expectations,
and opinions of the management of the Partners as of the date the
statement is published, and the Partners assumes no obligation to
update any forward-looking statement, except as required by law. In
certain cases, forward–looking statements can be identified by the
use of words such as "plans", "expects", "outlook", "guidance",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "believes", or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might", "will be taken", "occur" or "be
achieved" or the negative of these terms or comparable
terminology.
Forward-looking statements relate to future events or future
performance and reflect management's expectations or beliefs
regarding future events including, but not limited to, statements
and information related to the results of the Feasibility Study
and updated Mineral Reserves for El Domo, including the forecasted
economics of the Curipamba project, expected gold, silver,
copper and zinc production (and the grade of such gold, silver,
copper and zinc production) from the Curipamba project and
projected operating and capital costs associated with the
Company's planned operations at the Curipamba project, the Proven
and Probable reserves of gold, silver, copper and zinc, the
capacity of tailings facility with regard to significant reserve
additions, process optimization resulting from the addition of a
lead concentrate circuit providing a third saleable product and
allowing for the production of clean copper and zinc concentrates
with minimal Pb penalties, and the self-sufficiency of water
requirements through the use of rainfall/surface water on site;
statements and information related to the results of the PEA,
including the forecasted economics of the Underground PEA, the
commencement of the Underground PEA upon the exhaustion of the
open-pit reserves in year 10, the development capital being
deployed with respect to the Underground PEA in year 9, the
additional indicated and inferred gold, silver, copper and zinc
resources, the plan to upgrade underground resources to a reserve
by means of additional drilling and test-work supporting a separate
feasibility study costing approximately US$8M over 2.5 years; statements and information
relating to the mining process; the projected taxes and LOM
royalties to the Ecuadorian government within the exploitation
agreement; the 2% NSR royalty payable to Altius Mining Corporation;
statements and information relating to the ESIA, including the
expectation the ESIA will be submitted to the Ecuadorian
government in November, 2021, expectation approval will be
received by October 2022, and the
permitting and approval process for the main access road and power
lines having been initiated and the community consultations for
the El Domo project; statements and information relating to the
discussions regarding the up to US$240M non-equity financing; the progression of
various workstreams which are anticipate to cost US$25M to complete; filing the Technical Report
summarizing the results of the Feasibility Study by the Partners
with 45 days of the disclosure of this news release; the
estimated mine life of the Curipamba project; gold, silver,
copper and nickel price assumptions; exchange rate
assumptions; the merits of the Curipamba project; and
other statements regarding future plans, expectations, guidance,
projections, objectives, estimates and forecasts, as well as
statements as to management's expectations with respect to such
matters.
Forward-looking statements are necessarily based upon estimates
and assumptions, which are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond the Partners' control and many of which,
regarding future business decisions, are subject to change.
Assumptions underlying the Partners' expectations regarding
forward-looking statements or information contained in this press
release include, but are not limited to, the Partners will be able
to accomplish its plans and objectives with respect to the
Feasibility Study, PEA, ESIA and the Curipamba project on the
expected timeline; market fundamentals will accord with the
estimates and assumptions contained in the Feasibility Study and
PEA; the receipt of any necessary approvals and consents in
connection with the development of the Curipamba project in a
timely manner; that the cost estimates presented in the
Feasibility Study and PEA are representative of the actual costs
associated with the development, operation and closure of the
Curipamba project; sustained commodity prices such that the Project
remains economically viable; and that the geology of the
Curipamba project accords with the expectations and projections
presented in the Feasibility Study and PEA and that the Partners
will be able to mine at the Curipamba project in accordance
with the specifications set out in the Feasibility Study and
PEA.
By their very nature, forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Partners to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to
the ability of the Partners to accomplish its plans and objectives
with respect to the Feasibility Study, PEA and the Project within
the expected timing or at all, including the ability of the
Partners to improve the economics and finance-ability and de-risk
the Curipamba project; the timing and receipt of certain approvals
and the risk that certain necessary approvals may never be
received; changes in commodity and power prices; changes in
interest and currency exchange rates; that the cost estimates
presented in the Feasibility Study and PEA may not be
representatives of the actual development, construction,
operational and closure costs associated with the Curipamba
project; risks inherent in exploration estimates and results; the
timing and success of the development of the Curipamba project
is not guaranteed and the Partners may not construct and operate
the Curipamba project on the timelines or in the manner presented
in the Feasibility Study or PEA, or at all; that the Partners may
be unable to conclude the US$240M
non-equity financing and may be required to pursue other methods
of financing the Curipamba project, or may be unsuccessful in
financing the Curipamba project; inaccurate geological, mining,
and metallurgical assumptions (including with respect to size,
grade and recoverability estimates, estimates of mineral reserves
and resources and mine life estimates); changes in development or
mining plans due to changes in logistical, technical or other
factors; unanticipated operational difficulties (including
failure of plant, equipment or processes to operate in accordance
with specifications, cost escalation, unavailability of materials,
equipment and third party contractors, delays in the receipt of
government approvals, industrial disturbances or other job action,
and unanticipated events related to health, safety and
environmental matters); that the Partners may not be able to
increase expected mine life or expected gold production through
resource conversion, project extension and exploration; political
risk; social unrest; changes in general economic conditions or
conditions in the financial markets; and other risks and
uncertainties that are more fully described in the Partners'
respective most recent annual information form, interim and
annual consolidated financial statements and management's
discussion and analysis of those statements, all of which are
filed and available for review under the Partners' respective
profiles on SEDAR at www.sedar.com . Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements. In addition,
there can be no assurance regarding the achievement or timing of
the Partners' exploration, development, construction or commercial
production objectives. Although the Partners has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. The Partners provides no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events may differ from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
SOURCE Adventus Mining Corporation