in Ecuador
Striking Gold
WRITTEN BY Laura Watling PROJECT DIRECTED BY Gary Smith Scott Hicks, VP Corporate Development & Communications, Luminex Resources 2 Issue 107 · Business Enquirer Magazine
Across the Condor site, around 135,000 meters of drilling has been undertaken (as of Q2 2021). This has defined five deposits and has outlined various high priority target areas.
The project is drilling four priority targets this year - Los Cuyes high-grade, Shallow Camp highgrade, El Hito North and Prometedor to comple ment its existing 6.6-million-ounce gold resource. In addition, it has two copper projects that are being earned-in on and six other concession packages around the Condor Cordillera belt.
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“Luminex’s team is working with its third govern ment administration since Ecuador opened up the mining industry in 2014. The sector has continued to expand and improve over the last 9 years,” ex plained Mr Hicks, “our business model is to derisk early-stage projects such as Condor, so that larger mining companies can acquire and build them in the future”.
Part of the Lumina Group, Luminex Resources is a Canadian based precious and base metals exploration and development company. Its current focus is the Condor Au-Cu project in Ecuador. With continual development of the project, it’s an exciting time for both Luminex and its investors. Vice President Corporate Development and Communications, Scott Hicks, discusses the project with Business Enquirer.
The current resource has 2.3Moz of indicated gold resource, with a further 4.2Moz of inferred resource. In addition to gold, the area has a sub stantial amount of silver and copper by-products.
“The goal of the 2022 Condor North drilling is to enhance the existing PEA area,” said Mr Hicks, “our plans are to expand the mineable resource by stepping out on the shallow Camp high-grade and Los Cuyes high-grade underground targets”. Discoveries in the Los Cuyes area are particular ly meaningful for Luminex. High grade gold and silver mineralisation were found in a previously untested area in the middle of where the 2021 PEA was completed.
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EcuadorGoldStrikingin
The main mining and exploration proj ect, Condor, managed by Luminex Re sources, spans a large swath of the Zamora-Chinchipe province in Ecua dor, South America. Luminex is exploring for additional gold and copper on the 10,000-hect are land package.
Developing communities Luminex owns 98.7% of Condor, with the re maining 1.3% owned by the pension fund for Ec uador’s armed forces personnel.
“The higher-grade Camp underground deposit de pletes by year eight of the 12-year mine plan out lined in the 2021 PEA. The potential addition of a second higher grade underground deposit around Los Cuyes could maintain a higher rate of pro duction and extend the overall mine life” said Mr Hicks, referencing CEO Marshall Koval.
JOGMEC (the Japanese Oil, Gas and Metals Na tional Corporation) is drilling five holes for 2,500m at Orquideas. Upon completion of a $7 million work commitment, JOGMEC can earn 70% ownership of the site.
“CSR is crucial within our sector, to ensure mining is a responsible industry,” said Mr Hicks, “Luminex’ has numerous local access agreements, which pro vide benefits to the communities and provides us with the required social license to operate”.
World-class partners Luminex’ business model relies on having strong relationships with its key mining partners. “We have two, world-class partners operating across our two earn-in copper projects - Pegasus and Orquideas,” shared Mr Hicks, “This partner ship strategy has seen over $35 million invested by our partners since 2018”. Mining heavyweight Anglo American has a $50 million work agreement on Pegasus A and B, over seven years. On completion, Anglo Ameri can will own 60% of the site, with the opportu nity to increase its ownership if it invests more capital to take the project to a construction de cision. This is an expansive project, with eight copper porphyry targets already developed on only half of the land package.
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Marshall Koval, CEO, Luminex Resources
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Perishable and non perishable food supply chain management for mining camps
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Luminex’ CSR is underpinned by four pil lars - Employment, Sustainable Development, Health, and Education. “In 2020-2021 we created over 130 local rotational jobs, and we have 44 per manent employees hired from local communities,” shared Mr Hicks.
The organisation also plays a role in education in the community, working in collaboration with Ecuador’s Ministry of Agriculture to pro vide technical training to local young people.
Rental of dump trucks and tractor trucks to transport materials Unique in the rental of 4x4 ambulances with certifications
A dynamic team Luminex has a lean Canadian operation, with eight employees over the three businesses of the Lumina Group: Luminex Resources, Lumina Gold and Strategic Resources. “Within the Canadian operation, we have col leagues with a range of mostly corporate experi ence,” explained Mr Hicks, “for example, I have a banking background, so I see business from a financial analysis and capital markets perspec tive. Founder Ross Beaty brings strategic thinking and substantial financial backing, whilst Marshall Koval (CEO) and Leo Hathaway (Senior Geologist) have years of technical project de-risking experi ence and geological experience, respectively. It’s an interesting daily dynamic”. Operations on the ground, however, are led by President, Diego Benalcazar, whom Mr Hicks pays considerable mention to. Mr Benalcazar has over 25 years’ experience in mineral exploration, mining property evalua tion and acquisitions throughout Latin America and the Caribbean. Previously, he held the po sition of President and member of the Board of Directors of the Ecuadorian Chamber of Mines, and has actively represented the mining indus try in discussions with Government authorities. “Not only is Diego incredibly experienced in the in dustry, as an Ecuadorian he understands the com munities in which we work - both from a cultural and environmental perspective. His knowledge is invaluable,” explained Mr Hicks.
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In addition, Luminex keeps its supply chain local where possible. “We purchase goods and services from more than 150 local companies, including locally man ufactured PPE during the pandemic,” said Mr Hicks. Despite the challenges of COVID-19, it offered Luminex the opportunity to provide vital sup port within its health pillar, providing COVID-19 aid. “We also worked with the Ecuadorian Ministry of Health for the roll out of COVID-19 vaccinations for our workforce,” Mr Hicks continued. As part of its project, Luminex has made signifi cant investment into local infrastructure. “We’ve supported the local community by improving water supply and distribution systems as well as making improvements to access roads,” shared Mr Hicks.
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- Rental of 4x4 trucks equipped for the mining and oil sector
The exploration and development of Condor is an exciting time for Luminex; however, it doesn’t come without its challenges.
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Exciting opportunities on both sides
Mr Hicks highlighted that the Ecuadorian gov ernment’s relationship with the mining industry has improved dramatically over the last decade.
“In the next few years we will undertake addition al studies, look to de-risk key technical items and work on new discoveries. It really is an exciting time to invest,” concluded Mr Hicks. team at Camp Condor
Luminex continues to make interesting discov eries in the region, with potential for large-scale future mining projects.
“With responsible mining now a vital part of the economy, the government is far more supportive and keen for investment”
The
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“Much like the rest of the world, Ecuador is facing a cost-of-living crisis. The government is working to improve the lives of all citizens by increasing in vestment in the country while supporting the most affected communities” shared Mr Hicks, “our challenge in the capital markets is to demonstrate that Ecuador is a country serious about bringing in business and investment that will support the country over the longer-term”.
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