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Growth in Ecuador

by Fraser Palamara

cuador’s mining exports nearly doubled to $US2.09 billion
Ein 2021 from the year prior, showing improvement for a
government seeking to achieve $US4 billion in resource exports
by 2025.
The Government, headed by President Guillermo Lasso who
is Ecuador’s first centre-right leader in more than 20 years, is
looking to improve mining’s contribution to GDP through foreign
investments and by bringing major projects into production.
Ecuador is known for its gold and copper porphyries, earning a
reputation as the jurisdiction best reserved for cash-equipped Sunstone workers handling core at the Bramaderos project
majors to bring large-scale projects into production. in Ecuador
But Lasso’s “business-friendly” approach also offers a bridge
for junior explorers to join Ecuador’s exploration wanderlust. “I’ve been going in and out of Ecuador since 2008…Ecuador
In March, Australian explorer Sunstone Metals Ltd confirmed is very prospective and the geology speaks for itself. There’s
high-grade mineralisation at its Alba gold-copper porphyry at going to be a lot of discoveries made there over the next 5-10
the Bramaderos project in Ecuador’s south. years.
Assays included 60.7m @ 1.01 g/t gold and 0.19% copper from “[Lasso] is very much focused on building the economy and he
136m within 137.4m @ 0.75 g/t gold and 0.17% copper from doesn’t have a lot of levers to pull but he does see mining as
135m, and within a broad interval of 223.7m @ 0.58 g/t gold and one of those levers to make a more significant contribution to
0.13% copper from 107.6m. GDP growth.”
The porphyry was first discovered while Sunstone was wrapping Although slow growth compared to neighbours Peru and Chile,
up drilling at the nearby Brama prospect and a target caught the Ecuador has made steps in growing its mining industry.
exploration team’s eye. Canadian companies Dundee Precious Metals Inc, Atico Mining
“We drilled some porphyry mineralisation and it’s a much higher Corp and Adventus Mining Corp are aiming for production in
grade than what we’ve got at Brama,” Sunstone managing 2023, while SolGold plc could join them two years later.
director Malcolm Norris told GMJ. “From the geology, we can Two major projects came into production over the last three
tell that we’re actually at the very top of a porphyry system. years as well, including the Chinese CRCC-Tongguan Mirador
“We’re now throwing a lot of rigs at it to try and bring it up to the copper mine and Lundin Gold Inc’s Fruta del Norte gold mine.
stage where we can incorporate it into a resource estimate for Ecuador Mining Chamber Executive President María Eulalia
Brama and Alba together.” Silva urged the Government to award new concessions to
That resource estimate is likely to come in Q4 after three months enable more discoveries.
of metallurgy work. “There is very interesting mineralogical potential,” she said.
“Alba has high-grade gold, twice the average for porphyry “[But] less than 8% of Ecuador’s territory has been given over
deposits at the top of the system, so that means we should have in concessions and without concessions, there is no mining
a very significant vertical extent,” Norris said. exploration.”
That hunch proved right when the company later confirmed the Norris holds the same sentiment and said the Government’s
porphyry ran 1km deep. Sunstone will now increase the number priority should be reopening the cadastre, which manages
of rigs at Alba to three to accelerate the maiden resource applications for ground.
estimate. “It was closed a couple of years ago while they rebuilt the system
Norris said securing drill rigs in Ecuador was easy, but the and they’ve been talking about reopening it. There’s talk now
hurdle is sourcing workers. about having it reopened for October this year,” he said. “[The
“Most people ask, ‘can we source the rigs?’ and we definitely Government] really needs to stick to that timetable because
can source the machinery, but it is the people operating them that’s a very important part of the industry growing. Unless you
that is more of a challenge,” he said. have exploration, you’re not going to have growth.”
“We have been able to [source workers], we’ve got a long- Ecuador’s Government is currently undertaking a nationwide
standing relationship with our drill contractor and we give them survey to assess the prospectivity of tenements not yet pegged.
some notice about what’s ahead and they manage to put crews The cadastre remains on track for an October reopening.
together.

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