Dynasty Metals' Zaruma pours first modern Ecuadorian gold

Canada's Dynasty Metals & Mining says it has become the first modern mining company to pour gold doré in Ecuador after a new mining law was enacted earlier this year.

RENO, NV - 

Vancouver-based junior Dynasty Metals & Mining (TSX: DMM) has poured its first gold at its recently commissioned gold processing plant at the Zaruma Gold Project in Ecuador, the first large scale modern mining operation in recent memory.

In a news release Monday, Dynasty President and CEO Robert Washer called it a significant moment "for the development of a modern mining industry in Ecuador. We would like to thank the government of Ecuador for its ongoing support for the development of Zaruma Gold Project, which is the first large scale modern mining operation in Ecuador's history."

The total doré bars poured by the company contained 320 ounces of gold and 1,600 ounces of silver.

The Zaruma Gold Project includes 46 concessions located in the El Oro Province of southwestern Ecuador. Dynasty Metals & Mining has mine development and plant operating permits to mine and process materials from several concessions. The company plans to apply for additional mining permits as new resources are identified.

The company's current target for commercial production is 300,000 tonnes per annum, although the capacity of the crushing and conveying section is in excess of one million tpa, the capacity of the mill is 800,000 tpa, and the capacity of the carbon absorption and carbon stripping section is 400,000 tpa.

Washer said the Zaruma gold plant "is a world class processing facility, which was constructed on a budget in a country that lacks an infrastructure for large scale mining and a familiarity with modern plant construction. We are extremely proud of this achievement."

Ecuador passed a new mining law in January and in May enacted transitional regulations to expedite resuming large scale mining and exploration activities after they were halted by the Ecuadorian Government in April 2008.

Indigenous groups claim the new mining law violates the country's new constitutional environmental laws. While the new law states indigenous peoples must be consulted regarding mining activities, they cannot actually veto a concession.

The Associated Press reported Monday that hundreds of Indians blocked Ecuador's American High in several provinces to protest new water, mining and oil laws. However, the leaders suspended the protest last Monday, saying the government had promised to talk about their objections.

SUBSCRIBE to Mineweb.com's free daily newsletter now.

Disclaimer

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning,  and concluding, 24 hours later,  in the Vancouver evening.  If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Editor in Chief in Johannesburg, and we will include you in our editing and expanding on our stories. Email him at alechogg@gmail.com

Print story      Email story      Subscribe to free newsletter

Back

 

responses to this article

Name
Subject
Comment