Ecuador extends Lumina Gold’s Cangrejos concession to 2049
Lumina Gold Corp. [LUM-TSXV, LMGDF-OTCQX] said the Ministry of Energy and Mines of Ecuador has extended the company’s 100%-owned Cangrejos gold-copper mining concession until 2049. This decision by the government of Ecuador creates positive conditions to continue the investment plans for Cangrejos, Lumina said in a press release. The company can apply for another 25-year extension beyond 2049.
Meanwhile, Lumina said it continues to execute its plans to advance the Cangrejos project to a fully permitted, ready to construct project with projected milestones that include:
- Completion of the feasibility study in the second quarter of 2025.
- Submission of the environmental impact study for permitting in the second quarter of 2025.
- Signing of the exploitation contract in the second half of 2025.
Lumina said it continues to advance specific components of the feasibility study, including advancement of an updated resource estimate and mine plan design, which it said is near completion. Advancement of final site plans, plant design and receipt of vendor quotes for all major equipment required to generate capital and operating cost estimates for the feasibility study are being undertaken by Ausenco Engineering Canada ULC.
In 2023, Lumina completed a pre-feasibility study for Cangrejos, which ranks as the largest primary gold deposit in Ecuador.
The PFS envisages, life-of-mine average annual gold equivalent production of 469,000 ounces of gold equivalent (AuEq) over a lifespan to 26 years. The AuEq estimate includes 371,000 ounces of payable gold production annually. It also forsees 41 million pounds of copper production during the mine’s lifespan.
Other PFS highlights include a 30,000 tonnes per-day processing operation from years one to three, with an expansion to 60,000 tonnes in year four and 80,000 tonnes in year seven.
The initial capital cost is pegged at US$925 million, including working capital, excluding refundable value added tax.
The PFS is based on probable gold reserves of 11.6 million ounces, and an indicated gold mineral resource of 16.8 million ounces.
The Cangrejos project covers 6,374 hectares in the Andean foothills and is located in El Oro province, 30 kilometres southeast of the provincial capital of Machala and the Pan American Highway. It is also situated 40 kilometres from the deep-water commercial port of Puerto Bolivar. The property is accessible via paved and eight kilometres of gravel roads.
“Cangrejos is an exceptional gold deposit and one of the few of this scale that is 100% controlled by an independent developer,’’ the company has said. “Ecuador has made substantial progress in its mining sector with the successful commissioning of the Fruta del Norte and Mirador [mines]. Now the country will turn its focus to the next generation of development projects,’’ Lumina has said.
Lumina shares eased 1.0% or $0.005 to 49.5 cents, Friday. The shares trade in a 52-week range of 63 cents and 31.5 cents.