Other Projects
Telimbela Project
The wholly owned Telimbela Project concession area (San Pablo 1) covers a surface area of 4,200 hectares. In May 2006, Ecuador Gold S.A. ("EG") entered into Letter of Intent (the "LOI") with Ascendant Copper Corporation ("ACC"), a Toronto Stock Exchange listed company, on the Telimbela Project. ACC paid EG $US50,000 on signing the LOI. The parties agreed to sign a formal Purchase Option Agreement (the "Agreement"),which was signed by the parties with an effective date of July 4, 2006, whereby ACC would be required to expend US$250,000 in Year 1 on qualified exploration expenditures. If ACC decided to proceed with the Agreement after Year 1, ACC would be required to pay EG an additional US$50,000 and to expend US$750,000 on qualified exploration expenditures in Year 2. ACC has the option to acquire 100% of the Telimbela Project after Year 2 by paying EG US$100,000. In addition, should ACC exercise the option, EG would retain a 2% Net Smelter Returns Royalty on any metal produced.
ACC advised EG of its intention to proceed with the Year 2 exploration program and has paid EG US$50,000. On April 18, 2008, the Ecuador Constituent Assembly passed a Mining Mandate, which, among other provisions, provided for the suspension of exploration activities for 180 days, or until a new Mining Law is enacted. As a result, ACC has not been able to complete its Year 2 exploration program.
The mineralization at Telimbela corresponds to a copper-molybdenum-gold porphyry deposit related to I type intrusive rocks. It is located on the western flank of the Western Cordillera of the Andes in the Bolivar Province, Ecuador. The regional geology is characterized by the presence of the Palaeocene-Eocene island arc volcano-sediments of the Macuchi Unit, which was intruded by a Miocene tonalitic batholith.