Overview
AndeanGold has been active in Ecuador since the date of the Company's incorporation. The Company controls, through wholly owned subsidiaries, a 100 percent interest in 13 granted concessions, comprising eight distinct projects, in Ecuador, covering more than 34,000 hectares. In addition, AndeanGold has made applications with the Ministry of Mines and Petroleum ("MMP") for 23 additional concessions, covering approximately 65,000 hectares.
On April 18, 2008, the Ecuador Constituent Assembly passed a Mining Mandate (the "Mandate"), which, among other provisions, provided for the suspension of exploration activities for 180 days, or until a new Mining Law is enacted; the revocation of mineral concessions in protected areas; and the cancellation of all mineral concession applications in process. To date, the Company has not received any formal notice regarding any of the provisions of the Mandate as it may relate to the 13 granted concessions. Many of the Mandate's provisions require further government implementation, and as such, the full potential impact of the Mandate is not entirely known at present.
In June 2008, the Company was notified by the MMP that all of the Company's concession applications were cancelled, pursuant to the provisions of the Mandate. The cancellations were neither predicated on the Company's failure to pay concession or application fees nor to a failure to submit requisite preliminary environmental impact assessment reports. The Company has appealed this decision to the regional MMP offices and was recently informed that the appeals have been submitted to the MMP in Quito for resolution.
The majority of AndeanGold's concessions are located in southern Ecuador, a highly prospective region that is currently host to a number of projects. These include, among others, Aurelian Resources' Condor Project, IAMGOLD's Quimsacocha Project, International Minerals' Rio Blanco and Gaby Projects and Dynasty Metals & Mining's Copper-Gold Belt, Jerusalem and Zamora Projects.
AndeanGold's principal properties in Ecuador are the Curiplaya Project, a gold-copper porphyry system, the Molleturo Project, a high-grade polymetallic vein system, the San Bartolomé Project, a high-grade polymetallic vein system, and the Curiacu Project, a copper porphyry prospective target. NI 43-101 Reports were prepared for the Curiplaya and Molleturo Projects with AndeanGold's TSX Venture Exchange listing on January 12, 2007.