“Early works will take place from November to the end of the year with construction expected to start after the rainy season in the area, towards the second quarter,” Salazar Resources president and chief executive, Fredy Salazar, told BNamericas on Wednesday.
Construction of the project has been delayed in various occasions due to mining rules changes in the Andean country, legal challenges, and the takeover of one of the project’s owners — Adventus Mining.
Located about 150 km northeast of Guayaquil, the Curipamba-El Domo asset spans seven concessions over 21,500 hectares. It was originally owned by Salazar in partnership with Adventus Mining, which was acquired by Silvercorp Metals (TSX: SVM) (NYSE: SVM) in July.
Construction will be fully funded from Silvercorp’s existing cash balance combined with a $175.5 million streaming deal Adventus had signed with Wheaton Precious Metals in 2022.
The mine is considered one of the highest grade and lowest capital intensity copper-gold projects globally, and the next big mine in Ecuador after Mirador, run by China-backed Ecuacorriente, and Lundin Gold’s (TSX: LUG) Fruta del Norte gold mine.
The $250-million project is protected by an investment contract with the Ecuadorian government that grants it several incentives, such as reductions in income tax, exemption of import duties and tax stability until March 2033.
The country’s government anticipates generating over $4 billion in annual mining exports by 2025, with four new operations coming online before the end of President Guillermo Lasso’s term, including the Cascabel copper-gold project operated by Australia’s SolGold (LON, TSX: SOLG).