EXPLORATION & PRODUCTION

MAJOR METAL DEPOSITS IN ECUADOR AT THE FRONT OF THE NEW WAVE OF MINES ARE SET TO DRAMATICALLY INCREASE PRODUCTION.

A new wave of mining discoveries are set to enter production, including world-class deposits of silver, gold, and copper

THAT THE CONDOR RANGE IS metal-rich has been well documented. It had not been exploited before largely because it sits along the border with Peru, and until 1999, there was no commonly agreed border. What was a game changer was the mammoth SolGold discovery in the northwestern Andes. This is one of the three major metal deposits at the front of the new wave of mines. Another three are expected to start production in 2024.

The Alpala mineral deposit, regarded as a choice section of SolGold’s Cascabel concession, is believed to “become the largest underground silver, third-largest gold, and sixth-largest copper mine in the world,” according to the Ministry of Energy and Non-Renewable Natural Resources. Cascabel has mineral reserves of 10.9 million MT of copper and more than 23 million oz of gold. It is estimated to be able to function for 49-66 years using underground mining operations. During its first 25 years, it will have an annual production of around 207,000MT of copper, 438oz of gold, and 1.4 million oz of silver. At current prices, that is USD1.2 billion a year in copper exports. As for the gold sub-product, exports at USD645 million a year would be significantly higher than those of Fruta del Norte and for a longer period. Cascabel has yet to be explored in full, and all its neighborhood has been concessioned.

South of Cascabel in Imbabura province lies Llurimagua, a copper and molybdenum deposit, with estimated copper reserves of 7.65 million MT. Ecuador’s state-owned ENAMI EP is to explore and develop it with Codelco.

Lumina Gold has the Cangrejos gold project in El Oro province in the southwestern Andes. It has indicated mineral resource of 568 million MT of 0.73g per ton gold equivalent, with 10.4 million oz and 1.4 billion pounds of copper. ✖