Australian gold major Newcrest has notified Canadian junior Cornerstone Capital Resources of its intention to withdraw from the option and farm-in agreement over the Caña Brava and Tioloma properties in Ecuador.
The properties target epithermal gold/silver and porphyry gold/copper deposits.
Cornerstone president and CEO Brooke Macdonald said that the company was disappointed that Newcrest had withdrawn from the project, noting that the major had spent about $2.9-million on the project to date.
“They have told us their withdrawal is as a result of the delays related to permitting, and the need to prioritise other projects where they can get drilling started sooner,” said Macdonald.
Cornerstone said the project would be wound down until it could secure another funding partner.
“Cornerstone remains optimistic about the still untested geological potential of the project and appreciates the strong support received from the Gualel community.
Newcrest continues its involvement at Cornerstone’s Miocene gold project in Chile where drilling is ongoing.