Australia-based copper-gold mining company SolGold completed a new Pre-Feasibility Study (PFS), that supports a Phased Block Cave Mine at the Cascabel Project in Ecuador.
SolGold fully owns the Cascabel project through its Ecuadorian subsidiary Exploraciones Novomining (ENSA).
The new PFS shows excellent economic viability for a phased approach block cave mine at Cascabel, with over $1bn initial capital expenditure savings compared to previous estimates.
The study also shows potential for advanced cash flow and project development.
The current mine plan for Cascabel indicates the exploitation of only 18% of the Alpala measured and indicated mineral resources through a mine life of 28 years.
Furthermore, the PFS recommends responsible and sustainable mining practices, including the use of renewable energy and an environmentally conscious reduction of project footprint.
SolGold CEO and SolGold Ecuador president Scott Caldwell said: “Cascabel is not just a mining project; it`s a promise of responsible mining, lasting value for all stakeholders and a sustainable legacy for the planet.
“With reduced capital needs and lower risk compared to previous approaches, together with our ongoing commitment to sustainability and responsible mining, Cascabel is more than copper and gold.
“It`s a story of innovation, collaboration and a vision for a greener and more prosperous tomorrow for the people of Ecuador. This Study was conducted with the best outcomes for all our stakeholders in mind.”
According to SolGold, the Phased Approach Block Cave Mine would significantly reduce the initial capital expenditure to develop Cascabel, compared to previous development scenarios.
Upon completion of a ramp-up period of around two years, the initial block cave will start production at a rate of 12 million tonnes per annum (Mtpa).
The initial cave will extract high-grade ore, averaging around 1.45% CuEq for the first ten years of production, and the second phase expansion will be fully funded from project cash flow.
The phased approach allows for scaling other capital items over time, effectively managing costs, and reducing technical and financial risk.
It provides an opportunity to implement and fine-tune mining and processing methodologies, providing an effective and stable production process.
SolGold said that it is committed to responsible and sustainable mining practices, and is dedicated to environmental, social and governance (ESG) standards.
The company will continue to prioritise Cascabel development by minimising environmental impact, promoting community engagement, and following ethical practices.
