What's Happening?
Solaris Resources has published a pre-feasibility study (PFS) for the Warintza Project, a copper-gold porphyry deposit located in southeastern Ecuador. The study outlines a projected mine life of 22 years with an initial capital expenditure of $3.7 billion. The project is expected to produce over 300,000 tonnes of copper equivalent annually in its first five years, decreasing to 240,000 tonnes over the first 15 years. The Warintza Project, entirely owned by Solaris Resources and its subsidiary Lowell Mineral Exploration Ecuador, is situated in the Morona Santiago province, approximately 235 kilometers southeast of Quito. The site comprises nine metallic mineral concessions covering 26,773 hectares. Solaris has also signed an option agreement
to acquire additional concessions with copper and gold potential. The company aims to make a final investment decision by the end of 2026, with production potentially starting by 2030.
Why It's Important?
The development of the Warintza Project is significant for both Solaris Resources and Ecuador's mining sector. The project promises substantial economic benefits, including job creation and increased export revenues from copper and gold. For Solaris, the project represents a major investment opportunity with the potential for significant returns, given the high demand for copper, a critical component in renewable energy technologies and electric vehicles. The project's success could also enhance Ecuador's reputation as a viable destination for mining investments, potentially attracting further international interest and investment in the country's mineral resources.
What's Next?
Solaris Resources plans to proceed with the final investment decision by the end of 2026. The company will continue to work on securing necessary permits and completing technical evaluations. Additionally, Solaris has arranged a $200 million financing deal with RGLD Gold, a Royal Gold subsidiary, to support the project's development. This financing includes a gold streaming and net smelter return royalty arrangement, providing Solaris with the funds needed to advance the project to the next stages. The company will also focus on completing environmental and social impact assessments to ensure compliance with regulatory requirements.
