Silvercorp, Salazar reach key milestone in Ecuador
Silvercorp Metals Inc. [SVM-TSX, NYSE American] and Salazar Resources Ltd. [SLR-TSXV, SRLZF-OTCQB] on Tuesday said the Government of Ecuador’s Ministry of Energy and Mines has issued a Resolution of Change of Phase for the El Domo-Curipamba Project.
The Resolution of Change of Phase advances the legal status of the Project from the Economic Evaluation Phase to the Exploitation Phase and allows for the start of construction and subsequent operation of the mine. The Change of Phase for a medium-scale project, such as El Domo – Curipamba, is the equivalent of the Exploitation Agreement for large-scale mines in Ecuador such as Fruta del Norte and Mirador.
“The Resolution of Change of Phase is the final major approval required for full stage construction to start for the El Domo-Curipamba Project,’’ said Silvercorp Chairman and CEO Dr. Rui Feng. “With the achievement of this important milestone, we reaffirm our commitment to modern, responsible development that will benefit the communities where we operate and the Country of Ecuador as a whole.’’
The announcement comes after Silvercorp recently completed a previously announced acquisition of Adventus Mining Corp., a company that has already earned a 75% stake in the El Domo-Curipamba project, by way of a plan of arrangement worth $200 million.
The project hosts a proven and probable mineral reserve (open pit) of 6.5 million tonnes at 193% copper, 2.52 g/t gold, 46 g/t silver, 2.49% zinc and 0.2% lead.
Total measured and indicated resources (open pit and underground) stand at 9.0 million tonnes of grade 2.11% copper, 2.36 g/t gold, 45 g/t silver, 2.59% zinc and 0.24% lead.
Silvercorp is a Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China.
The transaction was designed to create a combined company that aimed lead the advancement of the El Domo-Curipamba copper-gold project towards production and consolidate a large and prospective gold-copper development and exploration portfolio in Ecuador covering over 135,000 hectares, including the preliminary economic-stage (PEA) Condor gold-copper project.
The 98.7%-owned Condor project is adjacent to Lundin Gold Inc’s [LUG-TSX] Fruta del Norte and Tongling/China Rail’s Mirador project.
Salazar says it has a wholly-owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm out non core assets. The company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar has a 25% stake fully carried through to production. At two copper-gold porphyry projects, Pijili and Santiago, the company has a 20% stake fully carried through to a construction decision.
On Tuesday, Silvercorp shares eased 3.9% or 18 cents to $4.39 on volume of 132,020. The shares are currently trading in a 52-week range of $5.98 and $2.88.
Salazar shares were unchanged at $0.08 and currently trade in a 52-week range of 12 cents and $0.045.