RE: Nice post from klf30s: Ecuador/PDACThanks for sharing Nikolai.
89. The Council for Responsible Mining (Consejo de Minería Responsable – CONMIN) is a non-profit group made up the main Canadian mining companies in Ecuador (Kinross-Aurelian, Iamgold Ecuador S.A, International Minerals Corporation – IMC, Ecuacorriente S.A.,
Ecometals and Curimining).
Ecometals belongs to a few companies which is taken serious by the government (Mr. Pinto) incl. permission for large scale mining in Ecuador.
see page 34
https://www.ichrdd.ca/site/_PDF/publications/Equateur_UK-LD.pdf
(Marketwire) -- 02/16/11
Fruta del Norte
Kinross has prepared a pre-feasibility study and technical report forFruta del Norte (FDN), incorporating reserve and resource information asof year-end 2010. Proven and probable mineral reserves are estimated at6.8 million ounces of gold and 9.1 million ounces of silver. The studyis based on a mine life of approximately 16 years, with life of minegold production of 6.3 million ounces and silver production of 6.7million ounces.
Annual production is expected to average approximately 410,000 goldequivalent ounces per annum over the life of mine. The average goldgrade is expected to be 8.07 g/t, and the average silver grade isexpected to be 10.89 g/t, with an expected average recovery rate of 93%for gold and 74% for silver. The average cost of sales is estimated tobe approximately $370 per gold equivalent ounce.
Plant commissioning is expected to begin at a rate of approximately2,500 tonnes per day, processing non-refractory ore, and is expected toramp up over a period of three years to a rate of 5,000 tonnes per daywith the addition of a pressure oxidation (POX) circuit, 18 months aftercommissioning, which will allow the processing of refractory ore. Theinitial capital cost for Phase I is expected to be approximately $700million, with additional capital expenditures of approximately $400million expected in Phase 2 with the addition of the POX circuit.
The Company obtained a number of permits to advance work on FDN in 2010.In addition, in early January 2011, Kinross obtained its environmentallicence to construct the underground exploration decline at La Zarza,the location of the FDN orebody. Construction of the decline is expectedto commence in the second quarter of 2011 with surface preparatory workcommencing in the first quarter. Future drilling at FDN will target anextension of the ore body at depth and along strike and upgradingexisting resources.
The Company expects to submit EIAs to build and operate the mine andprocessing facilities by mid-2011. Kinross expects to complete afeasibility study in the second half of 2011, and is targeting start upin late 2014.
Throughout 2010, the Company maintained informal dialogue with theEcuadorian government authorities respecting the negotiation process forthe FDN exploitation contract. Formal contract negotiations areexpected to begin in the first half of 2011, following the agreement ofthe Company and government to enter into the economic evaluation phaseof the project.