|By Marketwired .||
|December 3, 2013 08:30 AM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/03/13 -- Salazar Resources Ltd. (TSX VENTURE: SRL)(FRANKFURT : CCG) (the "Company") is pleased to provide the following update from Fredy Salazar, President and CEO:
I want to express my many thanks to the Company's shareholders for their invaluable assistance and support to the Company in these complicated times for the mining industry. Without the continued support and loyalty of our shareholders we would not have been able to continue advancing Salazar from an exploration company to a mine development and production company.
Salazar has not been immune to the many difficulties which junior resource companies are facing in this current market environment, but fortunately despite these difficult circumstances, the Company has been able to continue working diligently towards achieving its objective of continuing to progress and develop its El Domo project towards a production decision.
Earlier this year the Company finalized a strategic investment agreement with Union Mining International BV, (a wholly owned subsidiary of Trafigura Beheer B.V.) to help advance the Curipamba project towards a mine development stage. The agreement, amongst other things, provided for the necessary funding for the completion of a Preliminary Economic Assessment ("PEA") at the El Domo deposit within the Curipamba project. The PEA is nearing completion and is expected to be finalized in January 2014.
As part of the completion of the PEA significant work is being completed on several aspects of the El Domo project, including:
-- An update of the current resource estimate at El Domo incorporating the results of the most recent drilling campaign; -- Metallurgical studies to determine the best recovery methods for the existing metals at El Domo; and -- Design alternatives for both open pit and underground mining methods.
The Company looks forward to presenting the results of the PEA in the coming month to its shareholders.
The Government of Ecuador in recent months presented changes to the Mining Law and has introduced a new medium-sized mining category. The government approval process for production capacity up to 1,000 tonnes of ore per day for underground operations, and up to 2,000 tonnes per day for open pit operations, has been significantly simplified, and will be governed by the Mining Law versus having to negotiate taxation and royalty terms with the Government as is the case for larger scale projects. This is of significant importance as these medium sized mining companies will no longer be required to sign a Production Contract with the State, and therefore will not be subject to windfall taxes but rather have a fixed 4 percent royalty rate. The El Domo scale of operations will fall within this range and therefore be classified as a medium sized mining company and significantly benefit from reduced tax rates. At the present time, the Ministry of Nonrenewable Natural Resources is drafting the regulations allowing for an immediate application of these reforms. We are confident the regulations will confirm the rules and provide encouragement for mining development in Ecuador.
We await the results of the updated resource estimates and more advanced metallurgical testing and once received, the Company will be providing a further update.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO, Salazar Resources Limited
About Salazar Resources Limited
Salazar Resources Ltd. is a publicly-listed (TSX VENTURE: SRL)(FRANKFURT: CCG) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake, Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador. Being based in Ecuador, thus have thorough knowledge of local human and environmental issues, gives the company a strategic advantage, enabling it to complete exploration at a rapid pace. With an excellent property portfolio (3 projects- 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.
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 news release.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the successful completion of the PEA and the timing of completion of the PEA. Such forward-looking information is based on a number of material factors and assumptions, including that contracted parties provide services on the agreed timeframes and that laboratory and other related services are available and perform as contracted. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.