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VANCOUVER, Sept. 5, 2012 /CNW/ - Ecuador Gold & Copper Corp. (TSX-V: EGX), formerly Enterprise Capital
Corporation, (the "Company") is pleased to announce that its Ecuador subsidiary Condormining
Corporation S.A. ("Condormining") has entered into a Letter of Intent with Guangshou Group Co. Ltd. ("Guangshou") to form a Joint Venture for exploration development of the
Chinapintza deposit (the "Chinapintza Deposit") at its Condor Gold Project in southeast Ecuador ("Chinapintza JV") for up to 300 tonnes per day of gold mineral extraction.
Guangshou is an approximately 16% shareholder of the Company and is an
international Chinese mining company operating a number of mines in
China and Southeast Asia.
Chinapintza Joint Venture
Details of the Chinapintza JV are being finalized between the parties.
At this stage, plans are to proceed with exploration development of up
to 300 tonnes per day of gold mineral extraction at the Chinapintza
Deposit pursuant to the "Small Scale Mining Regime" under Ecuador law.
All legal and environmental requirements will be completed in
accordance with Ecuadorian laws and regulations. The development will
involve underground gold mineral extraction operations with gold
processing and tailings disposal facilities.
Guangshou will be the majority holder in the Chinapintza JV and will be
responsible for supplying the funds for the construction and
development of the contemplated development operations for the
The Chinapintza JV will create numerous employment and development
opportunities in the southeast Ecuador region surrounding the proposed
gold exploration development operations.
10,000 Meter Phase I Drill Program
As previously announced, drilling commenced on 14th August, 2012 in the Santa Barbara porphyry gold deposit in the Condor
Gold Project and the first hole is nearing completion.
The drill rig will be moved to the Los Cuyes deposit in the Condor Gold
Project in early September to drill the second hole of a 20 hole,
10,000 meter Phase I drill program.
The Company has not completed a preliminary economic assessment or
feasibility study of the Condor Gold Project or the Chinapintza Deposit
under National Instrument 43-101, and there is no assurance that the
exploration development operations of the Chinapintza JV will be
economically or technically viable.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Ecuador Gold and Copper Corp.
For further information:
Vice-President, Corporate Development
Telephone: (604) 569-0721