Name of the Project
Curipamba copper/gold project.

Location
Central Ecuador.

Project Owner/s
Salazar Resources has a farm-out with Adventus Mining with regard to El Domo, the Curipamba volcanic massive sulphide discovery.

Adventus may earn a 75% ownership interest in the Curipamba project, with a preferential 95% payback of future cash flows until its investment has been fully repaid.

Project Description
The proposed Curipamba project comprises an openpit and underground mine.

The Curipamba openpit feasibility study covers the first ten years of mine life and is based on only openpit mineral reserves comprising 6.48-million tonnes grading 1.93% copper, 0.2% lead, 2.49% zinc, 2.52 g/t gold and 46 g/t silver.

The feasibility study envisages annual payable production of 11 000 t of copper, 26 000 oz of gold, 12 000 t of zinc, 488 000 oz of silver and 5 000 t of lead. Copper equivalent is estimated at 23 000 t.

The openpit will be mined using a traditional truck-and-shovel operation, with a contractor mining fleet comprising drills, shovels, front-end loaders and 40 t haul trucks.

The openpit will be developed in four stages and operate for about ten years of production. The mine design comprises a single pit with a mining sequence to maximise grade, but also provides suitable construction material for the project infrastructure and waste management facilities during construction.

The 666 000 t/y processing plant includes a comminution circuit consisting of a two-stage crushing circuit followed by ball milling, and sequential flotation circuits producing copper, zinc, and lead concentrates.

The process plant will also be used for the underground operation, and the tailings storage facility has sufficient excess capacity to support the underground operation.

The preliminary economic assessment (PEA) on the separate underground mine covers years 10 to 14.

The underground mine plan comprises diluted indicated resources of two-million tonnes at 2.48% copper, 2.18% zinc, 1.25 g/t gold, 28.1 g/t silver, and 0.13% lead. Diluted inferred resources comprise 800 000 t at 2.13% copper, 2.46% zinc, 1.60 g/t gold, 26.4 g/t silver and 0.09% lead.

The PEA envisages payable production of 14 000 t of copper and 20 000 t of copper equivalent.

The El Domo underground deposit is amenable to drift-and-fill mining and can supply the mill with 1 850 t/d. A 20 m pillar composed primarily of waste rock will separate the mined out openpit from the underground mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the openpit feasibility study estimates an after-tax net present value, at an 8% discount rate, of $259-million and an internal rate of return of 32%, with a payback of 2.6 years.

In the base case, the underground PEA estimates an after-tax net present value, at an 8% discount rate, of $49-million.

Capital Expenditure
Initial capital costs for the openpit are estimated at $248-million.

Total development capital for the underground project is estimated at $42-million.

Planned Start/End Date
Openpit mining is expected to begin within 18 months of the start of preproduction waste movement.

Latest Developments
Adventus Mining and Salazar Resources have secured $235.5-million to advance, and following a construction decision, build the Curipamba project.

The companies have secured $180.5-million from precious metals streaming and royalty firm Wheaton, of which $175.5-million is an upfront cash consideration. The companies have earmarked $13-million for preconstruction activities and $500 000 for local community development initiatives as part of the Curipamba project before production.

Wheaton will also provide up to $5-million in equity to Adventus Mining.

Wheaton will buy 50% of the payable gold production for up to 150 000 oz having been delivered, dropping thereafter to 33% of payable gold production for the life-of-mine (LoM), and 75% of the payable silver production until 4.6-million ounces have been delivered, thereafter 50% for the LoM.

Trafigura will provide Adventus with a facility of $45-million, $5-million of which can be paid on an early deposit basis for preconstruction activities.

Key Contracts and Suppliers
DRA Americas (feasibility study and PEA).

Contact Details for Project Information
Salazar Resources, tel +1 604 685 9316 or email ir@salazarresources.com.
Adventus Mining, tel +1 416 306 8201 or email info@adventusmining.com.