LATIN AMERICA — Canuc to mine in Ecuador

Toronto-based junior Canuc Resources (CANC-C) has signed an agreement with various Ecuadoran groups that will allow the company more secure access to its conflict-ridden Nambija gold property in southeastern Ecuador.

Signatories to the agreement include the Ecuadoran ministries of defense and mines, as well as six dissident groups representing local artisanal miners.

Canuc is to be granted four months of unhindered access to its property to carry out mining and exploration, after which time the company will begin buying roughly 100 houses on the property for an expected total expense of US$100,000.

After a second 4-month period, the company will be required to buy the remaining mining rights and tunnels it does not already own.

With the Ecuadoran military protecting the company’s operations, Canuc expects it will soon be mining at a rate of only about 300 oz. per month.

Two years ago, Placer Dome (PDG-T) was exploring the Nambija concession under option from Canuc in search of a large gold-copper porphyry system at depth (T.N.M., Oct. 27/97).