Adventus Mining Corp. [ADVN-TSXV; ADVZF-OTCQX] on Thursday May 2 announced an updated mineral resource estimate and results of a preliminary economic assessment (PEA) for the El Domo volcanogenic massive sulphide deposit, which is located on the Curipamba Project in Ecuador.
Under an option agreement with Salazar Resources Ltd. [SRL-TSXV; SRLZF-OTC], Adventus can earn a 75% interest in the 21,500-hectare Curipamba Project, leaving Salazar with 25%. The PEA envisages a total capital cost of US$289 million. Average annual production over a 14-year lifespan is expected to be 8,495 tonnes of copper, 24,433 ounces of gold, 10,831 tonnes of zinc, 558,160 ounces of silver, 564 tonnes of lead, amounting to 19,000 tonnes of copper equivalent.
As part of the PEA, a mineral resource estimate has been completed for El Domo, to include all recent infill drilling completed in 2018. The updated, open pit constrained mineral resource estimate for El Domo has an effective date of May 2, 2019 and is supported by data from 309 bore holes, totaling 60,449 metres, completed between 2007 and 2018.
Measured resources for El Domo currently stand at 1.4 million tonnes grading 1.92% copper, 0.37% lead, 3.52% zinc, 3.75 g/t gold, and 58 g/t silver. On top of that is an indicated resource of 7.5 million tonnes grading 2.02% copper, 0.26% lead, 2.81% zinc, 2.33 g/t gold and 49 g/t silver. The inferred resource for El Domo is 1.3 million tonnes grading 1.52% copper, 0.20% lead, 2.25% zinc, 1.83 g/t gold and 42 g/t silver.
As a requirement for the earn-in agreement with Salazar, Adventus aims to commission and commence a detailed feasibility study later in 2019. However, there is no assurance that the results of the feasibility study will result in the development of El Domo.
Meanwhile, Adventus will continue to conduct exploration with Salazar within the Curipamba Project. The objective of continuing regional exploration is to develop and assess targets that could further maximize Adventus’s flexibility with respect to future development decisions on the El Domo, Curipamba Project.
Adventus is a unique company that is focused on copper-related metals exploration and development, particularly in Ecuador. The junior can earn the 75% stake in the Curipamba Project by spending US$25 million over five years.
Adventus is engaged in an exploration alliance with Salazar Resources, a company headed by Fredy Salazar, one of the most successful explorers in Ecuador. He was instrumental in the discovery of the Fruta del Norte gold mine.
On Thursday, Adventus shares eased 2.17% or $0.02 to 90 cents. The shares trade in a 52-week range of 66 cents and $1.16.
The company’s key shareholders include Altius Minerals Corp. [ALS-TSX, ATUSF-OTCQX], Resource Capital Funds, and Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE).
On Thursday, Salazar shares fell 10.8% or $0.02 to 16.5 cents. The 52-week range is 10 cents and 19 cents.