Member Info for Padmaster

So the most realistic outcome Italian, is for CGP shareholders to accept the share offer from Solg resulting in Solg getting 100% of ENSA/Cascabel and CGP shareholders getting a share of all of the Solg spoils?

I've been trying to find typical industry offtake terms for Zinc. The best I've found is copied below from a presentation of a company called Nyrstar, a leading global zinc and lead processor.

https://www.nyrstar.com/~/media/Files/N/Nyrstar/investor-toolkit/modeling-nyrstar.pdf&ved=2ahUKEwiI0uizvcvlAhWQQUEAHQc7CVIQFjAIegQIBhAB&usg=AOvVaw0XontsGD20udn77gRRjOrA&cshid=1572696268631

Typical pricing terms

Zinc Concentrate
Zn Metal Paid 85%
? Zinc Smelters typically pay for 85% of the zinc
contained in zinc concentrates (typically 56% Zn)
valued at LME price averaged over the Quotation
Period (QP)1
? In addition, the zinc smelter will pay for Ag and other
minor metals content in concentrate if it exceeds
certain threshold
Deductions
? Treatment Charges
? Penalties2 and/or Allowances

Galileo and Jubilee are close, notwithstanding the directorships of CB.

Illustrated by me just having signed up with Galileo for their email news alert service and received a welcome email from Jubilee Metals lol.

GLA

https://www.afr.com/companies/mining/newcrest-upbeat-on-png-ecuador-turbulence-20191029-p535g7

"Newcrest also has early stage copper and gold projects in Ecuador, including through its status as the biggest shareholder in London listed SolGold, which also counts BHP as a top three shareholder.
Asked whether the halving of SolGold shares over the past five months was due to mass protests in Ecuador or underwhelming exploration results, Mike Nossal, chief development officer at Newcrest, said most explorers were finding it tough to attract investors.
''We are not in a great exploration market, this is not a market where people are throwing money at exploration companies, it is quite hard to raise money and exploration companies that aren't generating cashflow are generally valued in cyclical terms, we are at a low part of that cycle," he said.
''When you overlay that with people realising there are long timeframes for development of some of these deeper projects, ... you have a situation in Ecuador which is concerning.
''We think generally the political situation, it needed to go through what it went through in the last month or so, the question now is can the current government bring things back to where they were, and the signs look quite good on that."
Mr Nossal said mining companies working in Ecuador had re-organised the chamber of mines in Ecuador in a bid to make it a more effective champion for the industry.
Mr Nossal said Newcrest was not bound by the sort of standstill agreements that were temporarily preventing BHP from increasing its stake in SolGold, but there was no plan to acquire more of the company any time soon.
''We are happy with our position for the time being, this is a long game for SolGold ... there is some time for this to play out," he said."

SolGold set to soar as flagship copper mine strikes gold.

https://www.cityam.com/solgold-set-to-soar-as-flagship-copper-mine-strikes-gold/

Another NM classic:-
"Not only is this orebody big, with a rich high-grade starter core, but it appears to be metallurgically beautiful."

Todays RNS's are trailers for a forthcoming monster of monsters MRE3 upgrade within the next 9 weeks.

GLA

Mining and Ecuador are a good fit.
Ecuador has plentiful deposits of the
copper and gold that miners need.
Meanwhile the industry can provide the
macroeconomic stability, jobs, taxes
and technology that Ecuador requires.
Mining will transform Ecuador and
create wealth both for its people and
the investors who risk their capital to
launch the country’s large-scale mining
sector. UK mining firms are strong
in neighbouring Peru and Colombia
- now it’s time for them to look for
opportunities in Ecuador.

There's loads more about the government, investment, financing in Ecuador earthling.

Regards
P

Indeed, Mather is conscious that
Solgold’s projects must meet Ecuador’s
economic needs “The most important
reason why investors in Solgold can be
sanguine about the political risk of our
project is that we are partnering the
country. If you look at our development
plan, we’re not looking to high-grade
the deposit and leave with big profits.
We’ve designed it to maximise the
lifecycle, which means more revenues
for the government and employment
for Ecuadorians… We’ve aligned our
goals with the Ecuadorian people,
which makes it politically sustainable in
the long run.”
Mauricio Núñez, Vice President of Legal
Affairs at Ecuacorriente, the Chinese-
backed firm that started production
at the Mirador copper mine this July,
notes the project will continue to
benefit for Ecuador for many years.
“We have already invested $1.25billion,
paid $140million in taxes and paid
$85million in advanced royalties. But
there is plenty more to come. We
estimate that Mirador will generate
$4.2billion of production throughout
the life of the mine, which will give
the Ecuadorian economy a significant
boost.”

Ecuador’s mineral riches
means it has the potential to become a
global mining powerhouse. Hochstein,
believes mining can reshape Ecuador’s
economy. “Ecuador has an incredible
geological endowment and with the
right conditions we could see mining
grow to be around 20% of GDP like in
Peru.”
w Mather, CEO of Solgold, a copper
and gold explorer that is developing
a copper-gold mine in Ecuador and
has a string of further concessions to
be developed in the future, believes
Ecuador can become a significant player
in world mining. “Our ambitious plan
could eventually help turn Ecuador into
the second-largest copper producer
on earth, creating opportunities for
smelting, refining and manufacturing.”

Ecuador needed to
maintain the dollar. But the subsequent
oil price fall demonstrated the danger of
depending on one volatile commodity
and raised the spectre of Ecuador
having to ditch the dollar.
That’s why, in its final years, the
government of Rafael Correa turned to
mining. Correa may have been a populist
but he also has an economics PhD and
realised that the industry could diversify
Ecuador’s export earnings, attract
Brave New World
Ecuador is starting a large-scale mining sector from scratch and it will
transform the country...
foreign direct investment and thereby
increase the country’s macroeconomic
stability. The dollar is incredibly popular
in Ecuador and trying to switch back
to the sucre would be political suicide.
Yet that could be forced on Ecuadorians
by a prolonged period of low oil prices
in the future. Now, thanks to mining,
Ecuador’s dollarized economy is a lot
more sustainable.
This international investment isn’t some
abstract economic theory - it’s already
happening. In 2018 FDI to Ecuador
increased by 126% to $1.4billion. More
than half of that money, 53%, came
from mining. It’s estimated that mining
will lead to $2.7billion of further FDI
between now and 2021. All of the
international investment is also helping
with Ecuador’s two other big problems
– jobs and government spending.

Just before this magazine went to
print, those in favour of modern,
responsible mining received a huge
boost from the Constitutional Court’s
decision to throw out two requests for
mining referendums. Ecuador’s mining
industry had been nervously awaiting
the decision, as the referendums could
have meant that huge swathes of the
country’s mineral resources would be
off limits to new mining projects. In
theory the court ruling should never
have been in doubt, says Robalino.
“My legal interpretation is that the
Constitutional Court should continue
rejecting these referenda requests as
mining, just like water, oil or telecoms,
is a strategic sector subject to central
government policy.”
That doubt was like a Sword of
Damocles hanging over the industry
and its removal is a positive step for
both mining and Ecuador in general.
“Mining is permitted in the constitution.
It cannot be banned.”
The decision was a vindication for
the likes of Lundin Gold and Solgold
that believed in the country from the
beginning. Ward, who has lived in
Ecuador since 2013, when Solgold came
to the country, feels his company’s faith
has been rewarded. Now, notes Ward,
Ecuador “is the focus of a modern gold
rush with many of the world’s largest
mining companies already setting up
offices here. As an early mover, we’re
happy to see more of the industry
realise that this is the place to be.
We’ve got the best projects and the
influx of new companies should help
broaden the industry’s position in the
country.”
Lots of the most famous successful
trades - think Soros shorting the pound
or the hedge funds that spotted the
US subprime crisis brewing – involve
identifying an anomaly that isn’t
sustainable in the long run. There are
country-specific reasons why Ecuador
didn’t develop a large-scale mining
industry in the 20th century. But it
seems unlikely that its citizens would
have been content in the 21st had their
country continued to miss out on the
economic and social development
mining has brought to their neighbours.
With tens of billions of dollars pouring
into projects along the Andes it was
only a matter of time before Ecuador
opened up to international miners.
The early movers may be reaping the
advantages now but the sheer scale of
Ecuador’s opportunities mean there is
plenty more to come for new investors.
LatAm INVESTOR readers should take
a closer look at the country.

Solgold, don’t have a negative social
or environmental impact. “From the
very beginning we realised that we
had to be a model company. That’s
because we are going to be one of the
first major mining projects in Ecuador,
so it’s vital that we prove the industry
can be responsible and sustainable.
But also, because we have many more
targets in the country, so Cascabel is
our way of showing other communities
that we can deliver economic and
social development.”
The problem, says Ward, is that
much of the country doesn’t really
understand modern, responsible
mining. “Most mining in Ecuador up
to now has been informal and set a
bad precedent.” It’s a point echoed
by Carlos Pérez, Minister for Energy
and Non-Renewable Resources. “We
have to show a different face of mining
industry to the Ecuadorian people
because the bad examples they have
seen so far have triggered opposition
from environmental and social groups.
As a government we are attracting
international companies, with best
practises that will bring responsible
mining to the country. Our challenge
is to make the protestors realise that.”
The government recently cracked down
on 10,000 illegal miners in Buenos
Aires, Imbabura province. Investigation
revealed the mining operations were
linked to organised crime groups from
Ecuador, Venezuela and Colombia.
Anti-mining movement
“I think if you take a bell curve of
society’s perception of mining you will
find small amounts of people at either
end who are intensely in favour or
opposed to the industry and will never
change their opinion”, says Ward, “and
a big majority in the middle who are
open to learning about its impact.
We have been appealing to rational
Ecuadorians and showing them the
massive benefits that a modern,
responsible mining industry can bring.
I would say that every year since 2013
the overall attitude towards mining has
improved slightly.”
Choosing, modern, responsible
mining instead of illegal, unsafe
extraction would seem a no-brainer.
But communities don’t always
understand the difference. Moreover,
internationally-funded, anti-mining
NGOs, that are opposed to any
form of the industry, often spread
misinformation and fake news about
the new projects to stoke local
opposition. In some cases, the protest
leaders have even been found to have
links to the illegal miners.
Javier Robalino Orellana, Managing
Partner of Ferrere, Quito’s leading
corporate law firm and a specialist in
mining, believes the sector needs more
support. “it’s important that the State
continues sending a strong message
in favour of large-scale responsible
mining. I feel that’s been missing
recently.”

SolGold first entered
Ecuador in early 2013,
and has since established
Alpala as a Tier 1 copper-
gold project. The resource
at the Alpala deposit
boasts a high grade
core which will target
early cashflow and an
accelerated payback of
initial capital.
SolGold is currently
investigating development and
financing options to bring the
project through to feasibility
stage.
The geology and mining
industry of Ecuador has been
endorsed by a number of major
companies investing in the
country.
SolGold is the largest tenement
holder in Ecuador. SolGold used
its successful and cost efficient
blueprint established at Alpala,
to explore for additional world
class copper and gold projects
across Ecuador.
SolGold is strategically applying
its exploration blueprint across
its pipeline of potential world
class projects, to ultimately
develop its vision to come a
copper gold major in Ecuador.
SolGold’s 100-year vision for
the Ecuadorean mining industry
has been built on strong
foundations, with sustainability
and responsible mining at the
heart of all activities.
SolGold employs a staff of
over 650, 98% of which are
Ecuadorean. We expect this
number to grow significantly as
the operations at Alpala, and
across the country expand.

supportive of mining. We are starting
to see established mining countries,
such as Canada and Australia, reject
projects because they are wealthy
countries. Here Ecuador is just at the
beginning of the journey and wants
to use mining to have the economic
growth that Canada and Australia have
enjoyed. If you respect the laws here
and act like a model company, you will
get support.”
Miners already operating in the
country also praise this government’s
willingness to learn from its own
mistakes. Ecuacorriente is the local
company of two behemoth Chinese
conglomerates that have built, a
$1.5billion copper project that became
Ecuador’s first modern, large-scale
mining operation when it entered into
production in July 2019.
Mauricio Núñez, Ecuacorriente’s Vice
President of Legal Affairs, hails the
government’s willingness to listen.
“They changed the sales tax structure,
which allowed us to reclaim VAT once
exports started. That helped boost the
country’s competitiveness. They also
removed the windfall tax, which was a
real disincentive to investment.
Núñez’s positive assessment is
backed up by the facts. EcuaCorriente
signed its investment contract with
the government in 2013 and by 2019
had built the mine plus a processing
plant capable of 60,000 tonnes of
ore per day. Meanwhile Lundin began
construction in July 2017 and was
already producing by the fourth
quarter in 2019. That shows that,
despite the country’s reputation for
stifling bureaucracy, mining projects
can be developed quickly in Ecuador.
Ecuador also has several infrastructure
advantages, says Mather. “It’s a small,
compact country, packed with great
mining targets. For Alpala we will have
to build just 30 km of road to connect
the mine to the country’s excellent
highways. In other countries you have
to build hundreds of kilometres of road
to connect mines. The same goes for
water supplies, which are abundant,
and the electricity matrix, which is
cheap, reliable and very renewable.”

Indeed, we’ve seen more
mineral finds in Ecuador in recent years
than anywhere else on earth.”
That bullish view is shared by
international mining firms. Jason
Ward is the Country Manager of
Solgold (LSE:SOLG), an Australian
headquartered, Ecuador-focused
London-listed, copper and gold miner.
“The incredible scale and richness of
Ecuador’s mineral deposits allow you
to make ambitious plays that wouldn’t
be possible elsewhere. If you look at us,
we have 12 more targets to test which
will likely result in more discoveries. I
can’t see other countries with that type
of scale and growth potential. Ecuador
has not been explored compared to its
neighbours and has multi-billion tonne
deposits that can be turned into multi-
generational deposits.”
But it’s not just that Ecuador has lots
of metal, explains Nicholas Mather,
Solgold’s CEO. It has the right metals.
“Solgold is a porphyry copper-gold
exploration specialist. We like those
targets because they contain two of
the commodities that the world has
an inexorably increasing demand
for: copper and gold. The former will
benefit from the move to renewable
energy and electric cars, while the
latter is the ultimate form of money.”
Solgold’s prolific series of discoveries
show that Ecuador is rich in both
copper and gold. “Cascabel is the first
[target] that will be developed”, says
Ward. “The MRE 2 showed 10.9 million
tonnes of copper and 24 million ounces
of gold, with another resource upgrade

https://www.afr.com/companies/mining/bhp-revs-up-green-push-at-chilean-copper-mines-20191019-p5326s

October 21st "....copper is set to become one of BHP's most promising businesses, given the likely surge in demand associated with accelerating decarbonisation and the shift to copper-intensive renewable energy sources. BHP is exploring greenfield copper opportunities in Ecuador"

Note the reference to a drill here Jerry.

Interesting article focussing on mining and relationships (very much Solg) and effect on locals.

https://www.planv.com.ec/historias/sociedad/carchi-se-exige-que-la-mineria-no-la-espalda-comunidades

Within it, one local says "A drill is already installed in El Cielito. From the road you see a tent as if it were a circus."

Which I presume is a Solg concession?

Great job coldcut - thanks

One interesting comment by NM is that "only" 30 km of road is required to be built to connect Alpala to the main highway.

Too much to copy/paste but here's a flavour:

Mather is conscious that
Solgold’s projects must meet Ecuador’s
economic needs “The most important
reason why investors in Solgold can be
sanguine about the political risk of our
project is that we are partnering the
country. If you look at our development
plan, we’re not looking to high-grade
the deposit and leave with big profits.
We’ve designed it to maximise the
lifecycle, which means more revenues
for the government and employment
for Ecuadorians… We’ve aligned our
goals with the Ecuadorian people,
which makes it politically sustainable in
the long run.”