Salazar Resources is Ecuador’s proven and trusted exploration company, focused on creating value and positive change through discovery, exploration and development. Its carried and wholly owned work programs present multiple significant growth catalysts.
Salazar Resources has a 25% stake in Curimining S.A, which is the local operating company developing El Domo, Curipamba, Ecuador. The mine is planned to start in 2024, with average annual production of 10,463 tpa copper and 21,390 tpa copper equivalent over the life-of-mine. A 2021 Feasibility Study indicated an IRR of 32% and NPV8% of US$259 million for initial open-pit development only. The study also estimated All-In-Sustaining-Costs of US$1.26/lb copper equivalent. El Domo is fully financed to production with the start-up capital expenditure being met with funding by Wheaton Precious Metals, Trafigura and Adventus Mining.
The Feasibility Study for the open pit is based on Proven and Probable Mineral Reserves of 6.5 M tonnes at 1.93% Cu, 2.49% Zn, 2.52 g/t Au, 45.7 g/t Ag, 0.25% Pb. Mineral reserves were estimated at a gold price of $1,630/oz, a silver price of $21.00/oz, a lead price of $0.92/lb, a zinc price of $1.16/lb, and a copper price of $3.31/lb; they include modifying factors related to mining cost, dilution, mine recovery, process recoveries and costs, G&A, royalties, and rehabilitation costs.
In parallel to the open pit Feasibility Study, a Preliminary Economic Assessment (PEA) for an underground mine development was carried out. The underground mine plan consists of 2.0 million tonnes at 2.48% Cu, 2.18% Zn, 1.25 g/t Au, 28.1 g/t Ag, 0.13% Pb of diluted Indicated Resources, and 0.8 million tonnes at 2.13% Cu, 2.46% Zn, 1.60 g/t Au, 26.4 g/t Ag, 0.09% Pb, of diluted Inferred Resources. The PEA indicated an NPV8% of US$49 million.
In addition to the interest in Curimining, Salazar has a portfolio of wholly-owned properties and a carried 20% stake in two exploration projects, Pijili and Santiago.