Paraiso-Pambil Mine

Paraiso-Pambil Mine, a significant discovery

Paraiso-Pambil mine is located on a concession approximately 1,350 hectares or 13,5 km2, about 20 km east of the Pacific Coast, in the Province of Azuay, and 60 km north-east of the city of Machala, in the Province of el Oro, south-western Ecuador. The gold silvercopper vein type deposit is situated between 70 m and 1,130 m above sea-level, located along the west side of the Cordillera Mollopongo.

The property includes an underground mine with two surface access locations at level 1 and level 4, six developed levels (1, 2, 4, 5, 6 and 7) and about 10 km of drift. Surface installation includes 2 mills (Paraiso and Pambil), tailings ponds, waste pile, air compressors, generator, various workshop, bunk house and facility to accommodate a workforce of about 275 workers.

MINELPARSA, a company owned by David Andrès Machuca Granda, has the required authorization to operate the mine and CPMABR (Cooperativa de Produccion Minera Aurifera Bella Rica), the owner of the mining concession, shall respect the current regulation. Under the current regulation, an environmental audit was realized for the Pambil mill in 2006-2007 although no major concerns were identified a series of non conformities were identified and corrections should be done in 2007-2008.

MINELPARSA has been actively mining gold since 1983 and has reported a total historical production of more than 244,000 ounces of gold over the last 17 years of operation (Rhon-Davila, 2007) including an average production of 25,000 gold ounces from 2002 to 2006. The mining operations can be described as low tonnage underground operation using artisan mining methods. The mining operations are performed through extensive surface and underground infrastructures, including 10 km of well-maintained secondary roads linking the mining site to the national highway, electricity through access to the national power grid, labour force, underground mine equipment, mill and mine buildings.

Paraiso-Pambil has over 20 km of underground workings on six levels with at least 6 veins identified within a 600 m long cross-cut. The total length of the vein systems covers a minimum of 3 km, with only 3 of the veins being developed since 1983. The Paraiso Vein mined underground extends 1.2 km in length and 500 m in vertical height and has had an average mill grade over 43 g/t gold over the 25 years of operation.

Exploration work by the vendor has outlined an additional 6 veins on surface for a total of 12 veins. Gold mineralization is linked to millimetric and metric wide quartz veins containing visible gold, silver, pyrrhotite, pyrite and marcasite (iron sulphides), chalcopyrite (copper sulphide) and sphalerite (zinc sulphide). The mining method is selective: barren rock and ore are mined separately

The Bella Rica concession offers an excellent precious and base metals potential in the short term, based on the field observations, assay results, the mineralization model and potential. Based on the size of individual gold bearing veins, the Bella Rica Property has many unexplored targets that provide important opportunities to increase the gold potential without accounting for silver, copper and zinc credits.

C2C has filed on SEDAR (www.sedar.com) a Technical Report, titled «BELLA RICA PROPERTY, ECUADOR NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT». The Report was prepared in accordance with the requirements of National Instrument 43-101, Standards of Disclosure for Mineral Projects and Form 43-101F1, by Mr. François Chabot, Ing. Geol.

> Click here to access 43-101 technical report of Bella Rica in PDF format

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