Dynasty Metals & Mining has selected Green Oil to serve as contractor for the development of specific mining concessions within Goldfield project in southern Ecuador.
Under the terms of the three-year agreement, Green Oil will be responsible for surface excavation of mineralized material on three of Dynasty’s mining concessions within the project.
In particular, the firm will excavate a minimum of 400t per day and 750t per day after two months of commencement of mining activities.
Dynasty Metals & Mining CEO Robert Washer said: "This project has a mineral resource of approximately 1.1 million ounces of gold in the measured and indicated categories contained in nearly 7 million tons.
"Mineralization breaches the surface so beginning with a number of small to medium sized open pits is a prudent and efficient method to begin working this project.
"Green Oil has both the earth moving expertise as well as the appropriate equipment required to allow this project to begin generating cash, which may be used for future expansion and working capital."
Green Oil can mine open pitable surface material to 1,000 tons per concession per day while Dynasty has the right to explore and develop any and all underground mineralization on the three concessions.
Construction of two roads connecting the project area to a main transportation route will be subject to securing government approval.
The company will also be responsible for transportation of mineralized material from the point of excavation to the Zaruma processing plant located about 180km away.
Dynasty expects to provide compensation to Green Oil based on the cash equivalent of 35% of refined gold sales and 10% of refined silver sales from the considered concessions.