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Cascabel Project

The Alpala deposit at Cascabel, our flagship project, has produced some of the greatest drill hole intercepts in porphyry copper-gold exploration history.

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Regional Projects

The Company is applying its exploration blueprint of systematically evaluating its exploration assets and has identified several high priority copper and gold resource targets.

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Mining in Ecuador

Mining is on track to become the 2nd pillar of Ecuador’s economy.

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Sustainability

SolGold is committed to minimising the environmental and social impact of its operations.

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Phase 1

Initial Exploration

4 Years

Phase 2 50x50

Phase 2

Advanced Exploration

4 Years

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Phase 3

Economic Evaluation

4 Years

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Phase 4

Exploitation

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Mining in Ecuador

Environmental Considerations

Exploration and mining activities in Ecuador adhere to the regulations outlined in the Mining Act of 2009 (Ley de Minería). Mining license holders must obtain and submit environmental studies to address and mitigate their activities’ environmental and social impact. The Ministry of Environment, Water, and Ecological Transition is responsible for approving the environmental studies.

Based on the Environmental Regulation for Mining Activities (Reglamento Ambiental para Actividades Mineras), environmental registration is required for medium-sized and large-scale mining projects during the initial exploration phase. An environmental license is necessary for advanced exploration, exploitation, and subsequent phases.

In August 2013, the Ecuadorean Ministry of Environment issued an Environmental License for advanced exploration, including drilling, for the Cascabel concession. SolGold has acquired landholdings in the Cascabel project area in anticipation of project development. As of November 30, 2018, SolGold has purchased 686 hectares, with ongoing negotiations for other properties. There are no existing environmental liabilities on the property.

Mineral Rights in Ecuador

Mining in Ecuador is regulated by the Mining Act (MA) issued on January 29, 2009, and the General Regulation of the Mining Act (GRMA) issued on November 16, 2009. These regulations classify mining activities based on production levels: large-scale mining, medium-scale mining, small-scale mining, and artisanal mining.

To conduct exploration in Ecuador, a mining license must be granted by the Ministry of Mining and registered with the Agency for Regulation and Control of Mining (ARCOM). The initial term of a mining license is 25 years, renewable upon request. During the four-year initial exploration period, exploration activities are allowed. Afterward, a further four-year period can be requested for advanced exploration, subject to meeting investment commitments and submitting an activity plan.

Taxes and Royalties

License holders are subject to various taxes, payments, and contributions, including:

  • Income Tax: 25% of profits
  • Labour Profit-Sharing Tax: 15% (12% to the State and 3% to employees for large-scale mining)
  • Value Added Tax: 12%
  • Municipal taxes, contributions, and social security contributions
  • Annual conservation fee based on the mining hectare, ranging from 2.5% to 10% depending on the exploration stage
  • Royalty rates between 3% and 8% determined by the mining law in force

Specific taxes, duties, and levies applicable to future mining operations depend on the mining exploitation contract and the laws in force at that time.

Surface Rights

Mining license holders have easements over the surface land to exercise their mining rights. These easements include rights for constructions, waterways, railways, transport belts, and electrical installations. The easement must be registered with ARCOM.

Surface landowners receive payment for the granted easements. If no agreement is reached, ARCOM can order the creation of the easement and determine mandatory payments.

Concessions for the use and consumption of industrial water have been granted for the Cascabel Project’s advanced exploration activities, allowing extraction from a maximum of 14 points or water sources with an authorized flow rate of 1.5 l/s for each point.

Please note that mining regulations may be subject to change, and it’s essential to refer to the latest laws and guidelines for accurate and up-to-date information.