Name of the Project
Loma Larga gold project.

Location
Ecuador.

Project Owner/s
TSX-listed INV Metals.

Project Description
A feasibility study has reaffirmed the project’s viability, demonstrating the strong profitability and economics of the Loma Larga gold/copper/silver deposit.

The project has total proven and probable reserves of 13.9-million tonnes grading 4.91 g/t gold, 29.6 g/t silver and 0.29% copper. Measured and indicated resources, including mineral reserves, are estimated at 24.1-million tonnes grading 3.76 g/t gold, 24.8 g/t silver and 0.22% copper.

The project has a life-of-mine of 12 years.

The underground mine will be accessed by a 1.2-km-long ramp into the deposit. The ramp will serve as the access to the mine for personnel and materials, the haulage of waste and ore, and for ventilation. Owing to the high-grade nature of the orebody and the positive geotechnical conditions, the deposit will be primarily mined using long-hole stoping methods, with 20-m-wide, 25-m-high and 20-m-long stope sizes. Certain zones will use the drift-and-fill method.

The initial mining rate is estimated at 3 000 t/d in the first four years. From Year 5, average ore production of 3 400 t/d is planned to be achieved through plant optimisation.

Average yearly mined production is forecast at 223 000 gold equivalent ounces, with an average of 289 000 gold equivalent ounces mined during the first four full years of production.

Ore will be processed using primary and secon­dary crushing, a ball mill and a two-stage seque­ntial flotation circuit to recover gold, silver and copper into two separate saleable concentrates, which will be trucked to the port for export.

Potential Job Creation
The project is expected to create about 875 jobs during construction and about 450 jobs once the mine is in production.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $783-million and an internal rate of return of 40%, with a payback of two years.

Capital Expenditure
Initial preproduction capital expenditure is estimated at $315.5-million.

Planned Start/End Date
Not stated.

Latest Developments
INV Metals has submitted the environmental-impact study (EIS) for its Loma Larga gold/silver/copper project.

The EIS is the culmination of a collaboration of work by the company, various consultants and local universities based on many years of baseline data collection and study.

INV is looking forward to the EIS technical review and the subsequent citizen participation and consultation process, which are the next important steps in support of the company’s goal of obtaining the environmental licence for the project’s development.

INV is also working closely with the Ministry of Energy and Natural Non-renewable Resources, and the Ministry of Production, Exterior Commerce, Investments and Fisheries to advance the project towards exploitation.

The submission of the EIS is the first major milestone in the well-defined permitting process for large-scale mining projects in Ecuador. The process provides for timely technical review and comment by the Ministry of Environment and Water (MEW), followed by timely responses to comments by the company.

Subsequent to the completion of the technical review of the EIS by the MEW, the company will start the citizen participation and consultation phase.

Meanwhile,  INV is actively pursuing several possible capital financing scenarios – concurrent to the permitting process – for Loma Larga, including debt, equity and a stream or royalty, to secure the capital requirements for construction before the receipt of the environmental licence.

The company is also preparing the EIS of the proposed 69 kV powerline, which is expected to be completed within the next few months. The registration of the environmental regularisation process for the powerline is complete and the various reports requiring approval before EIS submission are under review by the MEW.

Key Contracts, Suppliers and Consultants
DRA Americas (feasibility study).

Contact Details for Project Information
INV Metals, tel +1416703 8416 or email questions@invmetals.com.