Adventus and Salazar receive ESIA approval for Ecuador project
The Ecuador government has approved the environmental and social impact assessment (ESIA) for the Curipamba-El Domo project, paving the way for the citizen participation process, final environmental licence issuance and formal construction decision in the second half of the year.
The ESIA technical approval is the culmination of about $5-million of expenditure that funded a multi-year programme of environmental and community work, says Adventus Mining CEO Christian Kargl-Simard.
Ecuador has identified El Domo, which is owned by Adventus and Salazar Resources, as a strategic project that will provide economic investment opportunities for the country. The project will create employment for about 400 people. An estimated total of $376-million in taxes and royalties is expected to be paid to the government over a ten-year mine life.
The feasibility study shows that El Domo can be a low-cost supplier of copper, gold and zinc, generating cash flows after taxation of $449-million over the initial six years of production, and delivering an internal rate of return of 32% with a payback of less than three years.
Adventus reports that the El Domo optimisation and pre-construction activities remain on track towards a timeline of initial production in the second half of 2024.
Detailed engineering is under way and is expected to continue into 2023, which will be sufficiently advanced to update capital cost estimates prior to the award of major contracts for construction.
A previously planned supplemental geotechnical drilling programme will start this month to provide additional information to support the final engineering design.
Pre-construction work on infrastructure upgrades is expected to start in the fourth quarter of 2022, with full-scale construction expected to commence in the second quarter of 2023.
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