Name of the Project
Loma Larga gold project.

Location
Ecuador.

Project Owner/s
INV Metals.

Project Description
A feasibility study has reaffirmed the project’s viability, demonstrating the strong profitability and economics of the Loma Larga gold/copper/silver deposit.

The project has total proven and probable reserves of 13.9-million tonnes grading 4.91 g/t gold, 29.6 g/t silver and 0.29% copper. Measured and indicated resources, including mineral reserves, are estimated at 24.1-million tonnes grading 3.76 g/t gold, 24.8 g/t silver and 0.22% copper.

The project has a life-of-mine of 12 years.

The underground mine will be accessed by a 1.2-km-long ramp into the deposit. The ramp will serve as the access to the mine for personnel and materials, the haulage of waste and ore, and for ventilation. Owing to the high-grade nature of the orebody and the positive geotechnical conditions, the deposit will be primarily mined using long-hole stoping methods, with 20-m-wide, 25-m-high and 20-m-long stope sizes. Certain zones will use the drift-and-fill method.

The initial mining rate is estimated at 3 000 t/d in the first four years. From Year 5, average ore production of 3 400 t/d is planned to be achieved through plant optimisation.

Average yearly mined production is forecast at 223 000 gold equivalent ounces, with an average of 289 000 gold equivalent ounces mined during the first four full years of production.

Ore will be processed using primary and secon­dary crushing, a ball mill and a two-stage seque­ntial flotation circuit to recover gold, silver and copper into two separate saleable concentrates, which will be trucked to the port for export.

Potential Job Creation
The project is expected to create about 875 jobs during construction and about 450 jobs once the mine is in production.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $783-million and an internal rate of return of 40%, with a payback of two years.

Capital Expenditure
Initial preproduction capital expenditure is estimated at $315.5-million.

Planned Start/End Date
Not stated.

Latest Developments
INV has completed the environmental-impact study (EIS) for the Loma Larga project and is working with the Ministry of Environment and Water to submit the EIS for review and comment.  

The EIS is the culmination of a collaboration of work by the company, various consultants and local universities, based on many years of baseline data collection and study.  

INV is focused on the permitting and financing of the project to start the development of Loma Larga in 2021, and is advancing discussions with finance providers, including debt and stream providers.  

A comprehensive communication programme within the local and Cuenca region has started and will be conducted over the next few months.

Key Contracts and Suppliers
DRA Americas (feasibility study).

Contact Details for Project Information
INV Metals, tel +1416703 8416 or email questions@invmetals.com.