IKN

a plague o both your houses

Adventus Mining (ADZN.v) and Salazar Resources (SRL.v) laying it on thick…

…in the type of NR that gave your humble scribe one of those coffee-over-screen moments this morning. So this time, instead of the Ottotrans at the bottom, let’s do the background here: The recent bridge collapse near the Fruta del Norte mine, caused by the over-use of Lundin Gold (LUG.to) trucks (almost certainly carrying more than their permitted tonnages) meant LUG needed to build a replacement quickly. LUG did so, and part of that process was the purchase of a modular camp which was set up next to the works site. Normal stuff, so now the emergency bridge job was complete they’ve sold it on to another company. Also normal and happens all the time, as anyone who has spent nights in 30 year old third and fourth-hand half-pipe camp modulars can tell you. It so happens that Adventus and Salazar paid a few thousand for the kit (a reasonable decision) and once they take delivery, will put it in store while they continue on track with their FS for El Domo as a standalone mine. That is due done by the end of 2021, after which they will have to go through the fun and frolics of permitting and funding their plan. At some point after that, the modular housing can be taken out of storage and erected on site, a quick job that takes a week max.

Somehow, those rather plain vanilla facts became this NR:

In anticipation of the El Domo feasibility study completion in the fourth quarter of 2021 (the “Feasibility Study”), the Partners are continuing to advance detailed planning for the final engineering design and mine construction commencement beginning in 2022. The opportunity to advance-purchase construction camp facilities aligns with the El Domo development strategy and will provide housing for personnel during the construction and commissioning phases of the mine. The camp is a previously-owned facility, having most recently been used for the construction of a bridge near the Fruta del Norte mine in southeastern Ecuador.

The El Domo Feasibility Study continues to progress on budget and on schedule for completion in the fourth quarter of 2021. Adventus’ Vice President of Projects, Dustin Small, commented, “We are very encouraged by the work completed on the Feasibility Study to date, and look forward to sharing the final results later this year. We are putting in significant effort now to enable Adventus to be in a position to immediately proceed with the execution phase of the project upon successful completion of the study.”

Following finalization of the purchase contract expected in July, the camp facilities will be disassembled and warehoused in Quito until such time as it is required for the construction of the mine. The labour strategy for the construction phase of the project is to maximize the employment of skills and labour in the communities surrounding the El Domo deposit and greater Curipamba project area in central Ecuador. This approach was chosen to develop and support the local economy, and also provides logistical benefits to the project such as minimizing the camp size required to house non-local members of the workforce.

All quite wonderful. Buy some pre-fabs, continue on track with a study due in six months, and not one but two junior mining companies grab the chance to publish truly Olympian level of BS. This desk particularly enjoying “…in a position to immediately proceed with the execution phase of the project…”, which means after a wait of three to five years for permits (if lucky), so here’s hoping those pre-fab walls don’t get musty. Also fun was, “The labour strategy for the construction phase of the project is to maximize the employment of skills and labour in the communities surrounding the El Domo deposit and greater Curipamba project area in central Ecuador” what with that “strategy” being mandated by law, but let’s not tell the gringos that. So now you know ADZN’s and SRL’s target audience are the Twitter Morons who’ll believe anything, feel free to join them by owning a Made-In-Vancouver pump job yourself.

3 Comments

    I believe it is a made in Toronto story, not Vancouver.

    Reply

    With all the cash ADZN has it can pay the insiders (I believe the top three execs extract over $1m a year in salary and bonuses) for eons while doing very little at the project.

    Share price is the same as it was 4 years ago with higher Cu prices etc.

    Yeah for lifestyle companies!

    Reply

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