so if i am reading this correctly, the company has all of the permits it needs to begin drilling, and is just waiting for final approval from the mmp, not for the new mining law, should that ever be finished.
all things considered, these are excellent results. revenues up, costs down, profits and dividends up. the only negative is that guidance on total 2009 production was revised downward a bit due to delays in the expansion of paracatu.
my other concern is that they seem determined to advance cerro casale, and who knows what the capex will be on that project. we should find out next month, but i can predict it will be a very big number. i'd much prefer they focus on lobo-marte instead, but i think we will see some equity financing and dilution ahead.
Fruta del Norte
During the second quarter the Company continued to advance the Fruta del Norte project (FDN). Fieldwork at the site focused on preparation for the resumption of geologic definition drilling activities. The preparatory work included environmental baseline studies and the installation of water treatment plants, health and safety training and upgraded support facilities. Other project-related activities during the quarter included strategic land acquisition, engineering and metallurgical studies, and updated geological interpretation and modeling.
The Company continued to work in cooperation with Ecuadorian government authorities to acquire the approvals necessary to recommence the infill drilling program at FDN. During the quarter, the Company’s Environment Management Plan for the program was submitted to, and approved by, the Ministry of the Environment. In addition, on August 7, 2009, the regional Loja office of the national Water Secretariat recognized and re-confirmed an industrial water usage permit that had been obtained by the Company in December 2008, prior to the passage of the new Mining Law. With these two approvals now in-hand, the Company is awaiting final approval from the Ministry of Mines and Petroleum (MMP) to re-commence infill drilling activities in order to complete a pre-feasibility study for the project.
The regulations to be promulgated pursuant to the new Mining Law had not been published by the end of the second quarter and are expected to be issued later in the year.
