US$300 Million Deal Validates Scale of Cangrejos Project in Ecuador, Lumina Gold CEO Says

“Very few projects have the scale of the Cangrejos project, which will produce about 371,000 ounces of gold a year over a 26 year mine life,” said Lumina Gold President and CEO Marshall Koval.

Lumina Gold’s (TSXV:LUM,OTCQX:LMGDF) recently signed precious metals purchase agreement with Wheaton Precious Metals (TSX:WPM,NYSE:WPM) will help advance Lumina’s 100 percent owned Cangrejos project in Ecuador, according to Marshall Koval, the company’s president and CEO.

“This is a fantastic deal for Wheaton, for Lumina Group, Lumina Gold and for the country of Ecuador. It really gives us third-party verification that the project is on the path toward development,” Koval said.

Under the deal, Wheaton will be putting US$300 million into the project. “There's US$48 million that'll help take us through the feasibility study stage and permitting stage. And then there's US$252 million for the construction of the project once the construction decision is made. And basically, what we're doing is we're streaming 6.6 percent of the gold production with Wheaton,” Koval said.

“It's quite a large project. We've scaled it initially at 30,000 tonnes per day throughput. And then in year four it will go to 60,000, and by year seven it'll go to 80,000.”

In April, Lumina Gold announced a positive prefeasibility study for Cangrejos that indicates a US$2.2 billion net present value, 26 year mine life and production of 371,000 ounces of gold and 41 million pounds of copper per year.

Watch the full interview with Lumina Gold President and CEO Marshall Koval above.

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