The Canadian company says that this concession will be the 26th largest primary gold asset in the world.
The Cangrejos mining project (Ecuador), by the Canadian company Lumina Gold, is in the feasibility study phase, which is expected to be completed in the second quarter of 2025. In the meantime, economic negotiation tables are being held with the Government of Daniel Noboa.
The Ecuadorian Ministry of Energy and Mines is currently in the process of negotiating with the Canadian company. On Tuesday, August 13, the Vice Minister of Mines, Diego Ocampo, met with representatives of Lumina Gold to discuss various issues, such as the benefits and economic returns of the project for the Andean country.
The Ministry expects to conclude negotiations within three weeks to define the environmental and social commitments and royalties to be paid by the project.
In this regard, the Ministry of State indicated that the objective of these economic negotiation tables is to reach fair agreements that ensure sustainable benefits for Ecuador through the promotion and development of communities directly affected by the project, which will be located in the province of El Oro.
CRABS MINING PROJECT
The Cangrejos mining project is a gold and copper project in the feasibility study stage, located in the Ecuadorian province of El Oro, 30 kilometers (km) southeast of Machala, belonging to the company Lumina Gold, formerly called Odin Mining.
The mining project site is 6,374 hectares, located 40 km from the commercial port of Bolívar. It is also located in a sparsely populated area, according to Lumina Gold. They also assure that they maintain constructive and ongoing relations with the local community.
According to the mining company's updated mineral reserve and resource estimate in April 2023, the indicated mineral resource increased to 16.8 million ounces (Moz) of gold (Au) from 10.4 Moz. As well as the ounces of gold contained in the mine plan, which increased to 11.6 Moz, ensuring that the expansion of mineral resources makes Cangrejos the 26th largest primary gold asset worldwide.
Additionally, Lumina Gold reported the project's net present value (NPV) (5%) of US$2.2 billion over a 26-year mine life, producing 371,000 ounces of gold per year and 41 million pounds of copper per year.
When it was Odin Mining, it began operations in Ecuador in 1987; and during the 1990s, with several alluvial gold operations, it produced 175,000 ounces of gold. The Cangrejos zone was discovered by hole CC-99-14, which intercepted 1.57 g/t Au (grams of gold per tonne of material) over 192 m. Odin retained some of the concessions and resumed exploration in 2011.
On the other hand, the mining company considers that Ausenco, the working group of consultants and the teams carrying out the field work in Cangrejos, have achieved the necessary milestones to complete the feasibility study in the second quarter of 2025.
In 2023, the company completed a pre-feasibility study for Cangrejos.
