The Ecuadorian canton in which IVN Metals had planned to establish the gold processing and tailings facility for its Loma Larga project has said no to mining activities in this weekend's referendum, forcing the TSX-listed project developer to adjust its plans for the gold operation.
IVN Metals announced on Monday that it would relocate its proposed gold plant from the Giron canton to the adjacent region where its mineral resources and reserves are located.
The company also said that it would seek further legal clarification on the result of the March 24 referendum and its potential implications.
The Loma Largo gold/copper/silver project is intended as a 3 000 t/d operation initially, focusing on the high-grade areas and producing 267 000 oz/y of gold in the first four years.
Total production in a mine life of 12 years will be 2.6-million ounces of gold equivalent, at a cash cost of $540/oz, an all-in sustaining cost of $609/oz and an all-in cost of $768/oz.
Loma Larga is one of the five so-called strategic mining projects of Ecuador, which aims to boost its mining exports from $270-million in 2018 to $3.66-billion in 2021. However, international investors are complaining that they face difficulties in the country.