The definitive feasibility study (DFS) for the Cascabel copper/gold project will be delayed to consider the potential positive impact of the evolving capital cost environment and numerous value-enhancing aspects being studied, developer SolGold reported on Tuesday.

The company initially aimed to complete the DFS in the second half of 2022, having completed a prefeasibility study (PFS) in April this year, outlining plans for a multi-decade mine that could help establish Ecuador as the next copper frontier.  

SolGold, which is now headed by former CEO Scott Caldwell on an interim basis following the resignation of Darryl Cuzzubo this month, is “rigorously” reviewing opportunities to derisk the project, reduce costs and further improve economics.

“Our top priority is to allocate our human and capital resources efficiently to unlock shareholder value. We are curtailing spend that is not aligned with our value maximisation objectives, including advancing nonessential studies in this market environment that do not materially increase value,” said Caldwell.

He stressed, however, that SolGold continued to progress critical work streams that were required to advance and derisk the Cascabel project.

SolGold will also delay the preliminary economic assessment for the Porvenir project, which lies about 100 km south of the Fruta Ddel Norte deposit.

Further, given exploration success has been a key driver of unlocking shareholder value, SolGold would take a disciplined approach to continue to advance the highest priority exploration targets at Cascabel and across the broader portfolio applying the company’s blueprint and proven exploration methodology.

SolGold discovered and defined the resources at Cascabel for less then $0.01/lb of copper-equivalent or less than $3/oz of gold-equivalent.

“This new approach is a clear shift in direction and is in alignment with feedback received from a number of shareholders, and we look forward to continued engagement with all stakeholders. I will ensure the SolGold team works tirelessly to ensure all shareholders are rewarded for funding this world class discovery in Cascabel and I would like to personally thank our shareholders for their patience and support,” said Caldwell.

Meanwhile, SolGold said the previously announced $50-million royalty investment of Osisko Gold Royalties added a fresh strategic endorsement of the company and a testament to the world-class nature of Cascabel.

The Osisko investment represented a “very attractive and accretive financing solution”, the firm insisted, stating that it would close imminently.