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I am sure that more deposits will be discovered and SolGold will show investors, citizens and the government excellence in technological, economic, environmental and social management”, he concludes.
The study has been received with expectation by all market players. The government has indicated its great interest in the project and the company is already processing the permits and authorizations it must obtain to begin construction of the mine.
This work, says Dr. Tauton, will be carried out taking into account national legislation and the best practices developed in world-class operations. The best standards will be taken into account to protect the richness of the ecosystems that will be impacted by the works.
“The company understands that the area is very rich from the point of view of biodiversity and we are going to exceed the government's expectations,” he says.
He also recalls that day by day, at the international level, standards become stricter and that the number of investors who want to see that wherever they put their money is complying with the best standards increases.
With them, the next phase of the project is already being worked on, which consists of raising funds that, according to the study, must be 2.7 billion dollars to start production. In this regard, SolGold's goal is to put the mine into production in the shortest possible time... and in the best way...
Relations with local authorities and the community are excellent. With the mayor's office, a project for the management of the garbage generated in two cantons is implemented and a series of activities are coordinated in the fields of agriculture, education, health and in those that require the support of the mining company.
The issue of tailings, for example, will be resolved taking into account not only the Australian standard but also the best of all international protocols.
"We have close ties and we do everything together to share improvements for everyone," emphasizes the executive.
Vice President Tauton remarks that Ecuador has the great advantage that the projects have been demonstrating the quality of the mineralization that extends from Chile.
It has also been thought to reuse that water and the energy that the project will demand, for which talks are planned with generators in the area already willing to meet the new demand.
The slurry pipeline will only be used for the concentrates that will come out of Cascabel, explains Tauton; and it will arrive at the port of Esmeraldas, which will have the capacity to receive the deep-draft ships that will be in charge of transporting the concentrate to the refineries.
"The technical issues regarding the drying process of the concentrate and the way it is shipped to the ships' holds are issues that will be seen in due course, but the concentrate goes as bulk," says SolGold's vice president.
Tauton highlights the importance of the figures shown in the preliminary study, since they offer investors the profile of the economic value of the mine and, mainly, they show that the recovery of the investment will occur in a very short period of time.
Those numbers are also important for the government, since it gives it an idea of ??what it will receive in the coming years as payment for the various taxes that he considers the current economic scheme of mining contracts.
And for the authorities of the area, the pre-feasibility study offers them an overview of the resources that will be available to local governments for works that are considered a priority.
There is also a project that consists of generating its own processes for taking advantage of technologies that allow an exchange at that level with other operations, which could benefit from the experience developed in the operation of the future copper and gold mine in northern Ecuador.
The Cascabel mine is still a concept. A few days ago, the preliminary study was presented that indicates what is known about the deposit, explains the design that can be applied and demonstrates that it is feasible, from an economic and technical point of view, to extract the ore that nature has placed there, process it and transport it to the port of Esmeraldas for export.
Tauton specifies that the study presented defines the size of the activity of the future mine and shows that the estimated costs for this underground operation -which will use the method known as block caving- greatly benefit from the price of gold and contribute to reducing the operating costs of copper extraction.
He points out that it has been foreseen that the mine and the facilities for the first production will require an investment of US$ 2.7 billion dollars, the same that will be used in the construction of the mine, the plant, the tailings area, the mineral pipeline from the mine to the port of Esmeraldas and a small infrastructure that will be used to filter the water from the concentrate and ship it dry.
May 1, 2022.- The Cascabel mine, which could produce its first ton of copper concentrate within seven years, would be the first mining operation in the country to use autonomous or remote-controlled vehicles as part of an ideal that wants to have the most advanced technology to have the best mine of its time in Ecuador.
“What are the advances that science will have achieved when the mine starts production? It is impossible to know, but it can be said that we will do everything possible to have the best to make Cascabel the best mine in Ecuador”, says SolGold's vice president, Andrew Tauton.
The idea of ??using the most advanced goes hand in hand with a concern that has only now begun to be resolved. It is about shortening the distance between the training of local students and the amount of knowledge required to handle highly sophisticated equipment.
For this reason, it is stated, training programs on technical issues are being considered for the young residents of the communities settled in the vicinity of the project, so that their incorporation into the mining activity is not in the form of workers who perform elementary functions, but rather that they enter as qualified technicians capable of putting the most complicated machines to work.
Should be good for SolGOLD...
But gold down over 1%...copper down to a 4 month low...
Equities tanking (lucky UK not open)...S&P to a 1 year low...
Could be a challenging week...
Damers - Spot on about the ESIA. It was noticeable at the PFS presentation that whenever DC was asked by one of the assembled audience about likely 1st production he kept bringing it back to the timeline of the ESIA. And then right on cue Lasso changes his Mining Minister with a view to accelerating the move towards mining in Ecuador. Maybe DC playing a bit of gamesmanship with Lasso basically saying completion of the ESIA will determine how quickly we get to production so over to you Mr President
20th April:
We had the PFS presentation where it was stated that: ‘what drives the critical path for the overall project is the ESIA’.
The timeline shows this as a duration of 2 ½ yrs. It was repeatedly noted at presentation that the ESIA (Environmental, Social, Impact Assessment) is on the critical path. The ESIA will also include Tandayama feasibility.
30th April:
Move forward just 10 days and……….’Ecuador Cabinet changes reflects the Government wants to accelerate results’
https://www.bnamericas.com/en/analysis/ecuador-cabinet-changes-put-spotlight-on-strategic-sectors
(compliments of DBW).
If the Government is wanting to push the subject forward (which it clearly is) then the sooner a bid WILL land.
PFS Presentation:
https://www.youtube.com/watch?v=1cbttbDjKjs
19:10 – Caves 2, 3 & 4 @ Alpala (as previously discussed)
25:18 – Timeline
39:36 – ESIA critical path
40:20 – ‘what drives the critical path for the overall project is the ESIA’
Damers.
https://fortune.com/2022/04/28/global-gold-demand-soared-first-quarter-safe-haven-assets-inflation/
Solgold has it, get an early start for the gold rich area first which can finance the ongoing mining operations, no brainer really
Atb
https://investingnews.com/copper-supply-heading-for-deficit/
Hardly any name calling (unintelligent, moron, ignorant etc.) off topic comments or other extraneous waffle.
Just pleasant informative debate from various posters.
Keep it up chaps.
Alpala starts producing, just as we hit the sweet spot for supply shortages .
So we have Ecuador who wants to help speed up mining in many ways, the government wants to get things up and running for the financial reward it will bring, then employment of it’s people who will have money to spend in the local communities, win win for Ecuador.
Solgold have a tier 1 which has a minimum life of mine of 50+ years, gold, silver and copper
Then there is the other tenements that are showing promise, it has to break soon, someone or some consortium whatever is going to make a move soon in my opinion.
Just reading quite a few studies on the metals that will be in demand is an eye opener, paper after paper describing what will be needed volume wise, mind boggling really
Anyway it’s a bank holiday so I’m going to chill out knowing the futures bright, future is electric lol
Atb
https://www.mining.com/europes-green-deal-requires-massive-amounts-of-battery-metals-study/
Those are entirely valid points Jerry and I think these huge numbers speak for themselves...
I appreciate all the posts over the last two days. Good stuff.
RK, don’t you have to take the ownership down to 84% after the 1% royalty that FN have?
Plus shouldn’t you write back in all the money that CGP owe for being financed through the development? Or is this factored in to Solgolds cash flow projections?
Smallish details I realise.
makes sense Lunch. Good to know you agree that the current NPV is just a small percentage of true value.
All things considered SOLG must be worth £2 a share!! :-)
have a good weekend matey.
tnx DBW.
Alberto Acosta Burneo, an analyst at local consultancy Grupo Spurrier, tells BNamericas. "This change reflects that the government wants to accelerate results."
Great input from Red, Lunch, DBW & others this week tks - having far less sector & trading knowledge the posts are really appreciated.
A few wee points I wish to add to the subject:
The PFS covers just 21% of Alpala M&I resources (38% of contained metal) from Cave 1. It has been stated that the infrastructure (shafts/ access/ crushers/ process plant etc, etc) costed in the PFS can be used for further Caves at Alpala (2 more?).
Say for instance 70% of the contained metal @ Alpala can be extracted, this would have a HUGE positive baring on the overall value of Cascabel.
It was also stated that the PFS addendum (which will give up to $1.8 billion in upside opportunities) only covers Cave 1 & Tanday – NOT Caves 2 & 3 @ Alpala.
If you take into account the above points you can literally tear up the PFS & multiply the value of the resource, which the majors will be fully aware of.
This raises the question as to why the full Alpala resource was not measured in a PFS – the answer being time.
Darryl did state that investors just wanted the PFS released in quick time. It is very possible that a major stated that they would look at making an offer, but not until PFS is released (covering their position from shareholders).
This ties in with the poor timing with the release of PFS (over Easter with little media about). It simply may not have mattered a jot as SOLG aware of an imminent bid which would get all investors full attention.
Damers.
Morning DBW, nice read, thanks for posting.
Reshuffle to increase focus on mining
https://www.bnamericas.com/en/analysis/ecuador-cabinet-changes-put-spotlight-on-strategic-sectors
I appreciate that a black swan event might not last for ever...but I also remember the lockdown days that took us to near 10p...I was a buyer there,,,(top up),,,,,Sure there are a few that are seeing a 50% to 90% drop in main indices... I think that's ott but it has to be of concern that the dow is 11.5% down in the last 4 months and the nasdaq 14%...and the FTSE 100 was more or less the same as today in 1999...22 years ago ffs.
and Red I'm investing in PXC which will do Capex (on Paper) paid off in 9 months and Idaho advantage and great exploration prospects ....even SOLG "sister Co."?? ALL with Piedmont funding to production...and an IRR of 194% and growing and Capex capability of being paid off in under a year...sure I'm here too....but with Macro risks.... and better plays....I'm investing in SOLG in a more junior way these days.....yes we could be taken out big style but I think our buyer/s will be very much aware of the "Black swan event" likely ....and will pounce when we're only too glad to get a low ball offer....anything back will be icing....all perception based on a painful year ahead.....and Dow is down 3% today? what if it goes down 2% every day for a month.....sell in may?
Eish yeah my allotment bone dry!!!
Red, thanks you for your in-put today with all those facts and figures (explained!). Put's one's mind at rest why some of us PI's have hung in here through thick and thin. Often, more on a gut feeling, asking ourselves: "Why are so undervalued, is this worth the risk and stress to wait for delivery of a fair sp". Be it forward to production or preferred option, a bid from somebody. Have a Great Weekend off all of you and may we please have some rain soon! Cheers, Eish!
Fantastic end to a tough week there is some real strength in the stock now and hopefully a new base before the next leg up. Don’t waste your time indulging certain posters here. But enjoy the long BH weekend refreshed for Tuesday ; o ))