Salazar Resources was involved in the discovery of the largest deposits in Ecuador. Could you tell our readers more about your history and expertise in the country?

FES: Founded in 2007, Salazar Resources specializes in generating exploration projects. We are geologists with extensive experience in prospecting and exploration, and have been involved in some of the most significant discoveries in Ecuador, including Fruta del Norte, Loma Larga and Cangrejos, and we know well the country's geology, as well as its social, environmental, and political aspects.  

Our origins are closely tied to the discovery of Fruta del Norte, today the country’s largest mine, operated by Lundin Gold. Our geologists brought Aurelian Resources to the site and negotiated the deal for the concession package with the original owner. After the discovery of Fruta del Norte in 2005, we listed on the TSX and with the funding from the IPO, we hit another exploration success through the discovery of El Domo (Curipamba project), a high-grade VMS-style copper-gold deposit, in which Salazar holds a 25% stake, the remaining 75% being held by Silvercorp Metals. 

Could you elaborate on the attractiveness of El Domo?

FES: El Domo was discovered in 2008, but due to a mining ban in Ecuador, we were unable to advance the project for three years. In 2011, we resumed exploration and in 2017 made an earn-in agreement with Adventus, which acquired a 75% majority stake, investing US$60 million to bring the project into production. Following the acquisition of Adventus Mining by Silvercorp, SIlvercorp is now the majority owner and operator. 

El Domo has a resource of approximately 10 million t at 5% CuEq, including reserves of 6.5 million t at more than 5% CuEq on its open pit portion according to the 2021 Feasibility Study. As with most VMS projects, this is not a large-scale deposit, but its high grade and its quick timeline to production attracted international attention. El Domo contains a valuable mix of metals: 50% copper, along with gold, lead, zin, and silver. El Domo is a highly profitable deposit, generating an estimated free cash flow of around US$500 million. 

The construction phase is expected to last 18 months, with a target completion date of August 10, 2026. After that, the commissioning phase will begin, aiming to start production by the end of 2026. 

Salazar also has an exploration portfolio of five 100%-owned projects. Could you provide an overview of your exploration targets? 

FDS: We currently have five exploration projects, two of which particularly stand out: Santiago, a copper-gold porphyry with promising intersections that we aim to revisit and expand, and Macará, which is located on the border with Peru and shares the same geological basin as Tambo Grande; the largest massive sulfide deposit discovered on the planet. The area also shows signs of copper and gold porphyries, so we are expanding our exploration plans in the region. Another project is Tarqui, where drilling has been completed and hit intersections of up to 600 meters with 0.2% Cu. However, further exploration is needed to identify an area with economically viable grades.

Out of these, Santiago is the most interesting, having the potential to become a new Warintza (developed by Solaris Resources), showing the characteristics of a large-scale porphyry system. 

Could you walk us through your financial strategy as you prepare to become a cash-generating company?

FDS: We currently have US$1 million in cash and we likely raise equity over this period to advance our exploration activities. When Curipamba (El Domo) enters production, we plan to reinvest our 25% share of profit proceeds in exploration and strategic growth. We would also like to complement our strategy with a Project Development model by bringing in partners to advance the projects in our portfolio, in the same way we have successfully done with Adventus. This model helps subsidize exploration costs and ensure the maximum returns for our shareholders, who have been extremely committed and patient. 

What message do you have for companies looking to invest in Ecuador? 

FES: Operating costs in Ecuador are extremely attractive, with players like Lundin Gold producing at an AISC under US$900/oz. However, like many emerging markets, Ecuador faces challenges. Mining is a recurring topic in political debates and is often used as an easy tool during electoral campaigns.