Vancouver-based Lumina Gold announced Tuesday that the ongoing feasibility study for its Cangrejos gold-copper project in southwestern Ecuador will be completed in the second quarter of 2025. This study, launched in January, marks a breakthrough significant for the company, which considers Cangrejos among the 26 main gold assets under development worldwide.
Since the launch of the study, Lumina has made significant progress, including increasing the plant’s initial processing capacity to 40,000 tonnes per day, up from the 30,000 tonnes per day outlined in the 2023 pre-feasibility study (PFS). It will not only streamline the construction process, but also accelerate future expansions and increase gold and copper production.
Mining Plan Optimization
Lumina has revised the mining plan to prioritize the extraction of higher grade ore from the Cangrejos deposit before commencing operations at Gran Bestia. Additionally, more than 300 million tons of waste rock will be deposited at the Cangrejos pit, reducing the need for waste storage space and transportation distance.
The company has moved the waste storage facility to land it owns, increasing the distance from nearby communities. Additionally, access roads will be redirected to avoid populated areas. Field crews are drilling test holes and two drill rigs will begin drilling geotechnical holes in late May to determine the location of the facility.
Investment Protection and Future Commitments
Lumina Gold plans to implement a Complementary Investment Protection Agreement (CIPA), which will allow it to allocate a total of $721 million from 2025 to 2031 for construction and pre-production operations. Any investment above this agreed amount will also receive protection under CIPA.
The company plans to complete the design of the site’s infrastructure by the end of June and will hire a consultant approved by the Ecuadorian government to begin the environmental and social impact assessment process required by law. This phase is expected to last around 18 months.
Mining Potential in Ecuador
Despite Ecuador’s vast mineral reserves, the country has lagged behind regional neighbors such as Peru and Chile in the development of large-scale mining. However, the Cangrejos project represents a potential change, positioning Ecuador as a major player in the global mining industry.
Based on last year’s PFS, the Capex to develop Cangrejos stands at $925 million. The mine is expected to produce an average of 469,000 ounces of gold equivalent over a 26-year mine life.
Lumina Gold’s progress with the Cangrejos project not only highlights its commitment to sustainable development, but also underlines Ecuador’s potential to attract significant investment in the mining sector. This project could be a catalyst for economic growth and job creation in the region, highlighting the benefits of responsible and well-managed mining.
Optimization and Future of the Cangrejos Project
Lumina’s focus on optimizing the mining plan and minimizing environmental impact reflects its commitment to best practices in the industry. The company is taking proactive measures to ensure that the Cangrejos project is not only economically viable, but also socially and environmentally responsible. With the support of the Ecuadorian government and the implementation of investment protection agreements, Lumina is well positioned to bring this project to fruition.
The completion of the feasibility study and the beginning of the environmental and social impact assessments will be key milestones in the development of the project. As Lumina moves forward, the Cangrejos project could become a model for how responsible mining can contribute to sustainable development, benefiting both the company and local communities.
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