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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 Chinapintza JV.
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
E-mail: [email protected]