Spirit Exploration, Inc. signed a letter of intent to joint venture a project with Franzosi S.A., an exploration company based in Quito, Ecuador. The project is called Maria Olivia, and the company has planned a four phase outline in order to extract minerals from the mine. Phase 1 commences startup exploration, Phase 2 the company will put its drill program into place, Phase 3 the company will begin underground extraction (mining), and in the final Phase 4, the company will begin construction of a 200 ton plant and mining extraction.
The other project that the company is currently working on is the Muluncay Project; an acquisition of three mines and a flotation processing plant in Southern Ecuador. The mines are already producing gold, and while they have produced their first shipment of concentrate, it has become evident that the company will have to make several upgrades to produce the best results from the mines.
Spirit Exploration, Inc. is a mineral exploration and development company. Primarily working in Ecuador, the company identifies and acquires lucrative mineral resource properties and mines located in the region. Up until October 19, 2007, the company has gained 2,050 hectares inside the Regional Mining District of Azuay, and ten days later they acquired 13,503 hectares of land through their subsidiary, ECUADORGOLDCORP, S.A., which is a natural resource exploration company with an objective of acquiring, exploring, and when applicable, developing natural resource properties.
Southern Ecuador has ultimately become a very attractive region for mineral exploration companies. With unexplored areas or under explored areas, a stable mining code, opportunistic labor pool, few restrictions on capital flows, and good infrastructure, the country is an inviting area for exploration. Ecuador is mineral rich with the same geological framework and mineral potential as its neighbors, Peru, Chile, and Colombia although it remains under-explored compared to those countries.
Spirit’s business strategy includes acquiring rapidly positive cash-flow mining sites, using local networking to acquire premium land packages, structuring acquisitions to avoid upfront costs, and using local mining talent to minimize technical costs while joint-venturing to minimize exploration and development expenses. With advantageous procurement terms already in place, Spirit will be able to better manage its finances while fully evaluating optioned properties. Ecuador’s readily accessible mineral deposits combined with relatively unexplored terrain and modern mining techniques, make mineral extraction in Southern Ecuador a financially attractive proposition.
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