No - Papercorp is now not participating in the JV. Their only possibility to benefit from EVG's presence in the area (along with Pinglio) is possible toll treatment down the track iF EVG have spare capacity... and it will cost them for this option :)
EVG has decided to go it alone (and a good decision IMO).
The term "Azuay" now refers to the cluster of 4 underground mines that are currently producing gold right now on the San Gerardo property (numbered 2,3,4 and 5 in the diagram).
These underground mines are expected to produce enough ore to produce 100k oz from 300ktpa.
Now EVG will have 100% ownership and not have to deal with slippery, problematic minority partners that are always trying to change the contractual terms, do side deals, drag their feet, not contribute capital, etc, etc. Much safer IMO for EVG take 100% control of this project.
The "San Gerardo" term should be considered the opportunity to expand the operation to 200-250k oz pa (i.e. an additional 100-150k oz pa) from the potential open pit prospects on the San Gerardo property (shown as black cross hatched hydrothermal breccia areas).
There is also an identified sulphide mineralised area and a Au/Cu/Mo prospect.
EVG will drill a concentrated cluster of drill holes around 2,3,4, and 5 mines to confirm the grade and size of the resource and, based on the results, make a development decision - personally, I am confident.
The mines are operational and have a ready labour force, familiar with the existing mines. The sub-leases expire to coincide with the timing of EVG's option maturity and thus, EVG would own these operating mines upon Option exercise and transfer a skilled workforce across to the EVG payroll.
EVG's plan is to ramp up production significantly from these existing mines, both in ore mined but also in process efficiency via the construction of a state-of-the-art processing facility (shown as the Red Star in the diagram).
Also note 1, 6 and 7 being three additional operational, underground mines on the property.
You will also see in the bottom centre of the diagram a 'cut out' area that represents another claim. This is a further underground mine with a portal right up against the boundary of EVG's optioned property. It is highly likely that this gold vein runs into the San Gerardo lease.
I'm pleased that EVG has learned from its Grimston World minority partner problems at LL and nipped a potential problem in the bud here in Ecuador... and did you notice the improved NPV !
Also, just to whet your appetite on what is happening in the gold market just as LL comes into production, this from Zerohedge today is well worth your time:
