TORONTO, Dec. 2, 2020 /CNW/ - Adventus Mining
Corporation ("Adventus") (TSXV: ADZN) (OTCQX:
ADVZF) and Salazar Resources Limited
("Salazar") (TSXV: SRL) (collectively the
"Partners") are pleased to provide a progress update on work
completed during the first five months of the feasibility study for
the development of the El Domo copper-gold deposit within the
greater 21,537-hectare Curipamba project in Ecuador ("Feasibility Study"). Results to date
include some significant findings from initial engineering and a
number of trade-off studies that are expected to materially enhance
the project's already robust economics as detailed in the NI 43-101
Technical Report and preliminary economic assessment published in
June 2019 ("PEA").
Highlights:
- Process and cost optimization through metallurgical test
work – Recent metallurgical test work results intended to
optimize process parameters have indicated that a larger primary
grind size, and lower collector (reagent) dosage are possible
without significant impact to performance, which is expected to
lower power requirements, reagent consumptions, and associated
capital and operating costs. The ongoing process optimization work
is being consolidated with a geo-metallurgical model as part of the
Feasibility Study and in support of mineral reserve estimation.
- Improved quality and marketability of copper and zinc
concentrates – Recent work has concluded that the production of
a standalone lead concentrate improves the quality of the copper
and zinc concentrates, which results in a measurable increase to
concentrate marketability and an additional revenue stream for a
saleable lead concentrate by-product.
- Mine planning and throughput being optimized – Ongoing
optimization work is progressing with focus on mining and
processing strategies which will determine the optimal throughput
scenario that maximizes value for future operations. The mill
throughput capacity is currently expected to range between 1,750 to
1,975 tonnes per day. The Feasibility Study is focusing on the
open-pit development of the El Domo deposit with an optimized mine
life of approximately 10 years, while the underground development
options outlined in the PEA will be examined in future studies with
additional infill drilling expected to be funded by cashflows from
future operations.
- Material cost reductions from trade-off studies – A
total of 18 trade-off studies have been completed or are currently
in progress on various engineering aspects of the process plant,
project execution strategy, and infrastructure. Positive outcomes
on a number of these trade-offs are expected to lower capital and
operating costs and help identify risk mitigation measures to be
incorporated in the Feasibility Study.
- Elimination of water pump station on nearby river –
Confirmation of the project's positive water balance combined with
a water storage strategy to provide sufficient construction and
process start-up water eliminates the need to draw water from the
nearby Runayacu river. This finding allows the removal of the
previously planned river pump station from the engineering design
for cost savings and reductions to the project's environmental
footprint.
- Completion of a geochemical characterization study confirms
significant non-acid generating material – Approximately
two-thirds of the proposed pit volume has been determined by
independent consultants to be non-acid generating material, with
the remainder being only potentially acid generating. Potential
technical and cost advantages are being examined as part of the
Feasibility Study.
- Infill drilling – A two rig infill and step-out drill
program is underway at El Domo which is expected to cover 44 holes
that have been optimally targeted to maximize conversion of mineral
resources to reserves as part of the Feasibility Study. The first
batch of drill results are expected in December 2020.
- The Feasibility Study remains on track for completion in the
fourth quarter of 2021 – After the completion of the
Feasibility Study, the Partners plan to make a construction
decision in early 2022.
Since July 2020, DRA Americas
Inc., a wholly owned subsidiary of DRA Global Ltd. ("DRA"), and a
team of internationally recognized technical consultants have been
engaged in work on the El Domo Feasibility Study (see June 22, 2020 news release). The initial five
months of the study have focused on further enhancement of the
project through additional metallurgical test work, trade-off
studies, and advancement of various engineering designs. The
constructive progress and positive results to date will serve as a
solid baseline from which the balance of the study will proceed to
completion in the fourth quarter of 2021. Other regulatory and
project risk mitigation activities in 2021 are expected to include
submission of the draft environmental and social impact assessment
("ESIA") to authorities in Ecuador, negotiation of a formal investment
agreement with the government of Ecuador, upgrade of the existing Curipamba
mining permits from small to medium scale categories, additional
surface rights acquisitions, and project financing discussions.
Metallurgical Test Work and Process
Optimization
Building on the metallurgical test work
completed earlier this year (see February
20, 2020 news release), a further test work program was
developed and has been underway at Base Metallurgical Laboratories
in Kamloops, British Columbia,
Canada since August 2020 with a focus
on the refinement of the process flow sheet, enhancement of the
quality and marketability of the concentrates, and work to confirm
the selection and sizing of process equipment.
A simplified table of the sodium metabisulphite ("SMBS") scheme
locked cycle test ("LCT") results presented in February are
reproduced here in Table 1 for reference.
Table 1: SMBS Scheme Locked Cycle Test results
|
Copper
(Cu)
|
Gold
(Au)
|
Silver
(Ag)
|
Zinc
(Zn)
|
Lead
(Pb)
|
|
Grade
(%)
|
Recovery
(%)
|
Grade
(g/t)
|
Recovery
(%)
|
Grade
(g/t)
|
Recovery
(%)
|
Grade
(%)
|
Recovery
(%)
|
Grade
(%)
|
Recovery
(%)
|
Cu con.
1
|
25.9
|
78.6
|
10.8
|
21.3
|
237
|
32.4
|
7.9
|
15.9
|
0.8
|
17.4
|
Zn con.
2
|
1.4
|
4.3
|
13.4
|
22.9
|
261
|
31.0
|
56.1
|
81.4
|
0.7
|
11.1
|
Pb con.
2
|
9.6
|
3.3
|
32.8
|
6.0
|
466
|
6.3
|
9.9
|
1.6
|
38.6
|
58.8
|
|
1 LCT results are adjusted
by a weighted average of composites 1, 2, and 3 (58.7%, 28.6%, and
12.7% respectively)
|
2 LCT results are adjusted
by a weighted average of composites 1 and 2 (67.2% and 32.8%
respectively)
|
Process optimization work undertaken as part of the current test
work program has focused primarily on primary grind size and
reagent use. Two positive results have been realized, which may
serve to further bolster the project's economics and reliability by
means of reduced capital and operating costs:
- Primary grind size (bulk flotation feed) can be increased to a
P80 of 125 microns which is beneficial in reducing ball
milling circuit power requirements, and has the potential to
improve settling of the bulk cleaner tailings, and;
- Collector (SIPX) consumption in the bulk rougher flotation
circuit can be reduced by 10% without compromising of the bulk
concentrate grades and metal recoveries.
The production of a standalone lead concentrate will be
incorporated into the Feasibility Study process flowsheet supported
by previously proven test work and a recent marketing study.
Further test work to improve lead concentrate grade is planned for
the first quarter of 2021 using fresh ore samples from the current
drilling program. While an additional lead concentrate revenue
stream will provide a marginal economic benefit to the project, the
primary impact is in the quality improvements to the copper and
zinc concentrates which is expected to result in measurable
benefits to marketability. A preliminary marketability report
completed and applied with the current understanding of
metallurgical recoveries, indicates that penalties for future El
Domo copper and zinc concentrates are expected to be negligible.
The Partners believe the improvements to the process and
concentrate quality as part of the Feasibility Study will
materially improve the economics of the project by increasing metal
payability, decreasing transportation charges, reducing power costs
and reagent requirements, and by creating high-quality
concentrates.
The comminution test work program has expanded on the work
completed in the PEA to confirm ore competency, hardness, and
abrasiveness for purposes of equipment selection, selection of
appropriate wear materials and determination of power consumptions.
SMC and Bond test work was conducted on five samples from the
northern part of the deposit, and the results are presented in
Table 2.
Table 2: Comminution Test Work Results
Sample
|
DWi
kWh/m3
|
Mia
kWh/t
|
Mih
kWh/t
|
Mic
kWh/t
|
A x
b
|
ta
|
SCSE
kWh/t
|
SG
|
BWi
kWh/t
|
Ai
|
Comp-
etency
|
Hardness
|
Abrasivity
|
BX-4
|
3.1
|
10.7
|
6.7
|
3.5
|
86.0
|
0.8
|
7.2
|
2.7
|
14.6
|
0.2
|
low
|
medium-hard
|
medium
|
Falla-3
|
2.1
|
6.2
|
3.7
|
1.9
|
159.0
|
1.3
|
6.0
|
3.3
|
14.0
|
0.1
|
very low
|
medium
|
low
|
Falla-Gr-5
|
2.8
|
9.5
|
5.9
|
3.1
|
98.0
|
0.9
|
6.9
|
2.8
|
14.6
|
0.1
|
low
|
medium-hard
|
low
|
SMS-2
|
2.9
|
7.9
|
5.0
|
2.6
|
117.0
|
0.9
|
6.7
|
3.4
|
13.3
|
0.3
|
low
|
medium
|
medium
|
VMS-1
|
2.7
|
6.4
|
3.9
|
2.0
|
148.0
|
1.0
|
5.8
|
4.0
|
11.6
|
0.1
|
very low
|
medium
|
low
|
Comminution results demonstrate similar ore Bond hardness
compared to the samples tested during the PEA. The ore is of low to
very low competency and of medium to low abrasion. The absence of
hard or highly competent ore is beneficial to the project from the
perspective of lower power requirements and lower wear on equipment
components. Based on these results, it is anticipated that a single
13' x 17' EGL ball mill drawing 1,200 kW will be suitable for the
grinding circuit.
Water Management Strategy
A positive water balance has
been confirmed for the project site. Rainfall exceeds evaporation
by a ratio of approximately 3:1 before considering subsurface water
contributions. Once in operation, 100% of the project's process
water requirements will be met through a combination of reclaimed
tailings facility water and rainfall within the project boundaries.
Potable and emergency water supply will be from a suitably located
borehole within the project site. As a result, a decision was made
by the Partners to eliminate the previously planned make-up water
pump station on the nearby Runayacu river to minimize the potential
impact to the nearby environment and communities as well as to
realize cost savings.
Construction water and initial process start-up water
requirements will be satisfied by means of a temporary water
control and storage ponds constructed on the plant site as part of
the early site-works program. The El Domo project is expected to be
100% self sufficient from a process water perspective during
construction, start-up, and operations.
Trade-off Study Results
As of the date of this news
release, a total of 18 trade-off studies were conducted or are
currently in progress as part of the Feasibility Study with the
objective of providing a clear and optimized definition of the
project scope and baseline. The scope of these trade-offs were
related to various aspects of the mine, process plant, project
execution strategy, and infrastructure. The Partners have reviewed
the results of these studies and have made decisions based on these
results which are expected to lower cost, reduce risks, and/or
improve the overall project economics.
Trade-off study results are highlighted as follows:
- Modular vs. Traditional Crushing Facility: The El Domo crushing
circuit consists of 2-stage crushing with primary and secondary
crushing operations. This study traded-off the merits of a
traditional facility with crushers and ancillary equipment
installed in a permanent structural steel and concrete structure
vs. a modular crushing plant that would be pre-fabricated at a
vendor facility and be skid or trailer-mounted. Estimated net
present cost ("NPC") at an 8% discount rate was US$8.7M for the traditional facility vs.
US$3.6M for the modular facility,
resulting in a net benefit of approximately US$5.1M (prior to indirect costs and contingency)
in favour of the modular approach. The Partners have therefore
decided to proceed with a modular crushing plant design. The
equipment will be ordered in advance of the construction period,
which will allow for its use to provide a reliable source of
aggregate for construction.
- Mill Feed: The throughput and El Domo process plant
characteristics make it amenable to alternate mill feed strategies.
Considered in this study was a traditional stockpile and
underground reclaim tunnel design, vs. mill feed via a front-end
loader ("FEL") to a small feed hopper. The minimal infrastructure
required for the FEL approach results in an expected reduced
initial capital cost of approximately US$2M (prior to indirect costs and contingency)
when compared to a traditional reclaim tunnel feed. Operating cost
for the FEL is higher due to the requirement for a continuous
operator, diesel fuel, and higher maintenance. Over the life of
mine the estimated NPC of both options is very similar, but the
reduced initial capital of the FEL option reduces risk, and the
Partners have therefore decided to proceed with this approach.
- Process Plant Location: A total of seven potential process
plant locations were considered from a safety, cost, and impact on
the community perspective. Of key interest to the Partners was the
selection of an appropriate site that would allow for a low initial
cost of construction, low operating cost by means of short haul
routes from the pit to the crusher installation and waste rock
facilities, low tailings and reclaim water pumping costs, and a
site which would minimize the effect on communities near the El
Domo deposit. The ultimate site selected was not the lowest cost,
but had the lowest potential effect on nearby communities, as this
site is completely surrounded by higher-elevation hills and
vegetation in all directions which will serve to minimize noise and
dust transmission as well as other forms of disturbance. The
overall project impact area is also minimized by maintaining a
compact footprint near the mine pit.
- Electric Power: While the project has access to a nearby 69 kV
national power grid, the Partners have decided to minimize schedule
and start-up risks by leasing and operating a small-scale on-site
diesel power generation plant. On-site self-generated power also
offers improved control over power availability and
reliability.
- Accommodation Strategy: The Partners reviewed several different
options for future personnel accommodations during both
construction and operations phases, on-site, and off-site. The
Partners are committed to maximizing economic benefits to local
communities from El Domo development. As such, the accommodations
strategy will promote local spending and commerce to the maximum
extent possible. The current strategy encourages the hiring of
permanent employees from local communities as top priority, and
will provide relocation assistance where suitable candidates are
only available elsewhere to encourage those individuals to relocate
to the area with their families. The construction period will
follow a similar approach with most personnel sourced from and
housed in local communities. The size of the temporary on-site camp
will be minimized to the extent possible to house remotely based
skilled workers.
- Access Road: Six potential access road options are currently
under consideration, which include the upgrades of three existing
road routes to the El Domo deposit. The Partners are working to
select an optimal route that provides safe, reliable access to the
project site that is cost-effective, while minimizing the effect on
nearby communities. The options being considered include new
routes, upgrades to existing roads, and combinations thereof. Some
of the options are much shorter than the 10 km route used as the
basis for site access in the PEA.
Geochemical Characterization Results
The geochemical
characterization study (see February
20 news release) has now been completed and results have
been received by the Partners. A geochemical characterization of
the rock units that comprise the host strata of the El Domo deposit
was undertaken to determine the acid rock drainage and metal
leaching potential. This was undertaken to guide waste management
plans and aid in engineering studies. The program focused on
potential waste rock and metallurgical tailings from the proposed
open pit.
A total of 170 drill core samples were selected from across the
deposit to represent key waste rock types and spatial distribution
in the proposed open pit. Geochemical testing of the selected
samples included acid-base accounting, trace element analysis,
mineralogy, and leach extractions, as well as laboratory kinetic
tests (humidity cell testing). Analysis was performed by Bureau
Veritas in Burnaby, British
Columbia, Canada.
Two rock units were identified as non-acid generating: andesite
and rhyolite tuff. In aggregate, it is estimated that these two
units comprise 23% of the proposed pit. Another two units had more
than 95% of samples classified as non-acid generating: tuff and
lapilli tuff. These represent an estimated additional 43% of the
proposed pit. Combined, these four rock units represent 66% of the
proposed pit. Eight other lithologies had between 30% to 100% of
samples classified as potentially acid generating. Detailed
quantification of non-acid generating and potentially acid
generating waste will be conducted as the Feasibility Study
advances.
Schedule
With the completion of the initial project
definition phase of the Feasibility Study and the expected
availability of fresh ore samples for use in further metallurgical
test work in the first quarter of 2021, the study team is expected
to ramp-up on schedule early in 2021. The Feasibility Study is
expected to be completed in the fourth quarter of 2021, well ahead
of the Partners' revised earn-in requirement by April 2022.
Completion of the groundwater monitoring wells on schedule will
enable baseline water data collection to be conducted throughout
the balance of the rainy season, enabling the ESIA application to
be completed and submitted in the third quarter of 2021.
The Partners expect to make a construction decision in early
2022 based on the Feasibility Study results and regulatory
approvals, and if positive, will plan to immediately proceed with
detailed engineering and the start of infrastructure upgrades and
early earth works during 2022.
Adventus Specific Matters
- Engagement of Swiss Resource Capital: Adventus announces that
it will engage SRC Swiss Resource Capital AG ("SRC") to provide
investor relations and communication services in Europe to increase exposure and awareness to
investors in the German speaking financial community, Europe and worldwide through their unique
Commodity-TV & Rohstoff-TV IPTV channels. The Engagement is for
an initial term of twelve months and continuing on a quarter to
quarter basis thereafter. SRC will assist the efforts of Adventus
to grow investor awareness and to expand exposure to retail and
institutional investors, including by providing news dissemination
and marketing services in German. The engagement is subject to
certain approvals, including approval of the TSX Venture Exchange,
at a cost of 60,000 CH for the initial 12-month period. SRC owns
20,000 shares in Adventus.
- Grant of Restricted Share Units and Stock Options: Adventus
announces award of an aggregate of 275,000 restricted share units
("RSUs") under its share compensation plan to all officers and
independent directors. Each RSU represents a right to receive one
common share of Adventus, following the vesting of such restricted
share units afterr a two-year period. Adventus has also granted an
aggregate of 550,000 incentive stock options (the "Options") under
its share compensation plan to all officers and independent
directors of Adventus with an exercise price of C$1.27 per Option, exercisable for a period of
five years from the date of grant and vesting over a three-year
period.
Qualified Persons
Volodymyr Liskovych, PhD, P.Eng.,
Principal Process Engineer for DRA Americas Inc. is the Independent
Qualified Person for the process optimization and metallurgical
information contained in this news release. Mr. Liskovych, PhD,
P.Eng., has been directly involved in the planning, implementation,
laboratory work, and reporting of all results.
Philip De Weerdt, Pr.Eng., MBA,
Project Manager for DRA Americas Inc. is the Independent Qualified
Person for the water management, trade-off study, and mine
optimization information contained in this news release. Mr. De
Weerdt, Pr.Eng., MBA, has been directly involved in the planning,
implementation, and reporting of all results.
Shannon Shaw, P.Geo., President
and Principal Geochemist for pHase Geochemistry Inc. is the
Independent Qualified Person for the geochemical characterization
and acid-rock drainage information contained in this news release.
Ms. Shaw, P.Geo., has been directly involved in the planning,
implementation, interpretation of laboratory work, and reporting of
all results.
The technical and scientific information of this news release
has been reviewed and approved as accurate by Mr. Dustin Small, P.Eng., Vice President of Projects
for Adventus, a non-Independent Qualified Person, as defined by NI
43-101.
The previously published NI 43-101 Technical Report summarizing
the results of the El Domo PEA is available on SEDAR with an
effective date of June 14, 2019. A
summary of the PEA results is also available in a news release
dated May 2, 2019.
About Adventus
Adventus Mining Corporation is a unique
copper-gold exploration and development company, focused primarily
on Ecuador. Its strategic
shareholders include Altius Minerals Corporation, Greenstone
Resources LP, Wheaton Precious Metals Corp., and the Nobis Group of
Ecuador. Adventus is leading the
exploration and engineering advancement of the Curipamba
copper-gold project in Ecuador as
part of an earn-in agreement to obtain a 75% ownership interest. In
addition, Adventus is engaged in a country-wide exploration
alliance with its partners in Ecuador, which has incorporated the Pijili and
Santiago copper-gold projects to
date. Adventus also controls an exploration project portfolio in
Ireland with South32 as funding
partner as well as an investment portfolio of equities in several
junior exploration companies. Adventus is based in Toronto, Canada, and is listed on the TSX
Venture Exchange under the symbol ADZN and trades on the OTCQX
under the symbol ADVZF.
About Salazar
Salazar Resources (SRL.V) (CCG.F) is
focused on creating value and positive change through discovery,
exploration and development in Ecuador. The team has an unrivalled
understanding of the geology in-country, and has played an integral
role in the discovery of many of the major projects in Ecuador, including the two newest operating
gold and copper mines. Salazar Resources has a wholly-owned
pipeline of copper-gold exploration projects across Ecuador with a strategy to make another
commercial discovery and farm-out non-core assets. The Company
actively engages with Ecuadorian communities and together with the
Salazar family it co-founded The Salazar Foundation, an independent
non-profit organization dedicated to sustainable progress through
economic development. The Company already has carried
interests in three projects. At its maiden discovery, Curipamba,
Salazar Resources has a 25% stake fully carried through to
production. At two copper-gold porphyry projects, Pijili and
Santiago, the Company has a 20%
stake fully carried through to a construction decision.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
This press release contains "forward -looking information"
within the meaning of applicable Canadian securities laws. Any
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
identified by words or phrases such as "believes", "anticipates",
"expects", "is expected", "scheduled", "estimates", "pending",
"intends", "plans", "forecasts", "targets", or "hopes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "will",
"should" "might", "will be taken", or "occur" and similar
expressions) are not statements of historical fact and may be
forward-looking statements.
Forward-looking information herein includes, but is not limited
to, statements that address activities, events or developments that
Adventus and Salazar expect or anticipate will or may occur in the
future. Although Adventus and Salazar have attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. Adventus and Salazar undertake to
update any forward-looking information except in accordance with
applicable securities laws.
SOURCE Adventus Mining Corporation