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Adventus Mining (TSXV: ADZN) and Salazar Resources (TSXV: SRL) have successfully completed the first of two phase of consultation activities regarding the environmental and social impact assessment (ESIA) for their jointly owned El Domo – Curipamba copper-gold project in Ecuador.
The ESIA consultation process for the El Domo project — managed and overseen by the government of Ecuador — follows the technical approval of the ESIA in May 2022 and is in compliance with the new environmental consultation regulation decree signed by the President of Ecuador in 2023, said Adventus, the project’s majority owner.
This official information phase of the consultation process is the culmination of many months of planning by the government ministry of environment (known as MAATE), the company said.
Completion of the first phase represents the midway point for the final stage in the ESIA approval process started in June 2023. The next step is for MAATE to issue a public summary report, which is expected to be released in August, followed by a final phase of consultation activities.
The project partners are expecting the El Domo environmental licence to be approved by the government of Ecuador in the second half of 2023. Subject to this approval and final funding arrangements, construction activities are also expected to start during this period.
The El Domo – Curipamba project is viewed by Adventus as the next modern mine in Ecuador, leveraging one of highest copper-gold grades and lowest capital intensities globally.
El Domo is the name of the high-grade deposit hosted within the approximately 21,500 ha Curipamba property, located 150 km northeast of the major port city of Guayaquil in central Ecuador.
In 2017, Adventus entered into an agreement with Salazar whereby it may earn a majority interest in the Curipamba project by spending $25 million on exploration over five years and meeting certain development obligations, including a feasibility study for the development of the El Domo deposit.
Adventus would fund capital costs to production and receive 95% of the free cashflows until all of its investments since 2017 are repaid, after which the project cashflows will be shared 75% to Adventus and 25% to Salazar. In late 2021, Adventus completed its earn-in option to obtain majority ownership of the Curipamba project.
In the same year, the company submitted a detailed ESIA as part of the formal stakeholder consultation and environmental licensing process with the government of Ecuador for future construction and operation of the project.
The 2021 feasibility study completed by Adventus included the first estimate of mineral reserves (proven and probable) for the El Domo deposit, containing 6.5 million tonnes at 1.93% copper and 2.52 grams per tonne gold.
The study put the project at an after-tax internal rate of return of 32% and net present value (at 8% discount) of $259 million for initial open-pit development only, with a mine life of 10 years. Its initial capital cost is estimated at $248 million.
A separate underground mine option is being contemplated in years 10 to 14, potentially adding another $49 million to the NPV.
