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Investors

Ecuador Mining Legislation

In 2015 the government of Ecuador established a stand-alone Mining Ministry to regulate all mining activities in Ecuador. 

Current Ecuadorian mining regulations distinguish between small, medium and large scale operations. The Mining Law provides that operations mining up to 300 tonnes of mined material per day underground, and up to 1,000 tonnes of mined material per day via open pit on any individual concession may be categorized as a Small Scale Operation and are required to pay a fixed royalty of 3%. Operations mining between 301 and 1,000 tonnes of mined material per day underground and up to 2,000 tonnes of mined material per day via open pit on any individual concession may be categorized as a Medium Scale Operation and are required to pay a fixed royalty of 4%. Operations mining in excess of 1,000 tonnes of mined material per day underground and in excess of 2,000 tonnes of mined material per day via open pit on any individual concession are categorized as Large Scale Operations and are required to enter into a negotiated exploitation contract with the government which sets out specific terms and conditions of the particular operation, including a royalty between 5% and 8% and the application of a windfall tax.

To date, five concessions at the Company’s Zaruma Gold Project and four concessions at the Company's Dynasty Goldfield project were qualified as and granted small scale mining licenses. This means that the Company is now able to mine 300 tonnes per day from each of these concessions via underground mining, or up to 1,000 tonnes per day via open pit mining, subject to a fixed 3% royalty and no windfall tax.

Ecuador was awarded Country of the Year at the Mines and Money Americas 2017 Awards. 

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