Silvercorp and Salazar are set to commence construction on their mine in Ecuador in the early part of 2025

Silvercorp Metals (TSX, NYSE: SVM) and Salazar Resources (TSX-V: SRL) are preparing to initiate the construction of their Curipamba-El Domo copper-gold mine in Ecuador in the first quarter of 2025.

Following the receipt of the final permit in August, the Canadian firms have concentrated on preparing for initial works, with an anticipated first production by the end of 2026.

Fredy Salazar, president and CEO of Salazar Resources, informed BNamericas on Wednesday that early works will commence from November until the end of the year, with construction expected to begin after the rainy season in the region, towards the second quarter.

The project's construction has faced numerous delays due to changes in mining regulations in the Andean country, legal disputes, and the acquisition of one of the project's owners, Adventus Mining.

The Curipamba-El Domo asset, situated approximately 150 kilometers northeast of Guayaquil, spans seven concessions covering 21,500 hectares. It was initially owned by Salazar in partnership with Adventus Mining, which Silvercorp Metals acquired in July.

Construction will be fully funded from Silvercorp's existing cash balance, combined with a $175.5 million streaming deal that Adventus signed with Wheaton Precious Metals in 2022.

The mine is regarded as one of the highest-grade and lowest capital-intensive copper-gold projects globally and is expected to be the next significant mine in Ecuador after Mirador, operated by China-backed Ecuacorriente, and Lundin Gold's (TSX: LUG) Fruta del Norte.

The $250 million project is safeguarded by an investment contract with the Ecuadorian government, granting it several incentives, including income tax reductions, exemption from import duties, and tax stability until March 2033.

The government of Ecuador anticipates generating over $4 billion in annual mining exports by 2025, with four new operations becoming operational before the end of President Guillermo Lasso's term, including the Cascabel copper-gold project operated by Australia's SolGold (LON, TSX: SOLG).