Name of the Project
Loma Larga gold/copper/silver project.

Location
Ecuador.

Client
INV Metals.

Project Description
A feasibility study has confirmed the viability of the Loma Larga gold/copper/silver project, and has demonstrated its strong profitability and economics.

The project has total proven and probable reserves of 13.9-million tonnes grading

4.9 g/t gold, 29.6 g/t silver and 0.29% copper. Measured and indicated resources are estimated at 19.8-million tonnes grading
4.25 g/t gold, 27.8 g/t silver and 0.25% copper. Inferred resources have been esti­mated at 4.7-million tonnes grading 2.22 g/t gold, 29.7 g/t silver and 0.25% copper.

The feasibility study envisages the construction of an underground mine accessed by a 1.2-km-long ramp into the deposit. The ramp will be used as access point to the mine for personnel and materials, to haul ore and for ventilation. Owing to the high-grade nature of the orebody and the positive geotechnical conditions, the deposit will primarily be mined using the long-hole stoping method, with 20-m-wide, 25-m-high and 20-m-long stope sizes. Certain zones will use the drift-and-fill method where appropriate.

During the projected 12-year mine life, 2.6-million gold equivalent ounces are forecast to be mined, with an average of 227 000 gold equivalent ounces mined a year and an aver­age of 294 000 gold equivalent ounces mined during the first four full years.

Initial daily ore production of 3 000 t/d is planned from primary and secondary stopes for the first four years, generating about 1.1-million tonnes of ore a year. From Year 5, average ore production of 3 400 t/d is planned through plant optimisation, generating 1.24-million tonnes of ore a year. Ore will be trucked about 3.5 km to the process facilities.

Potential Job Creation
During construction, Loma Larga will employ 875 people and, once in production, about 450 people.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $621-million and an internal rate of return of 35.1%, with a payback of 2.2 years.

Value
The project will about $279.1-million to implement.

Duration
IVN aims to break ground in early 2020 and aims to produce first concentrate from Loma Larga in late 2021.

Latest Developments
None stated.

Key Contracts and Suppliers
DRA Americas (feasibility study and mine planning, mineral reserve estimation, metallurgy, processing and economic esti­mation); RPA (mineral resource estimation); Mine Design Engineering (geotechnical design), Itasca Denver (hydrogeology and water quality); Environmental Resources Management (social and environmental studies); NewFields (tailings design; Paterson & Cooke Canada (paste backfill); and SGS Canada (metallurgical testwork).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
INV Metals, tel +1 416 703 8416 or email questions@invmetals.com.