Lumina Gold

Primary ticker: TSXV:LUM
Stage of development: Development
Commodity: Gold, Copper
Project to promote: Cangrejos
Project location: Ecuador
Company presentation: Click here
Company video: Click here

Live financials

Cash: 6.2M

Major shareholders:
Ross Beaty – 19.9%
Management and Board – 9.6%
Michel Deller – 9%
Route One – 6.4%
Management ownership – 29.5%

Lumina Gold is advancing and de-risking its Cangrejos gold-copper project in southwest Ecuador. Cangrejos has a 17Moz gold resource along with over 2Blbs of copper (80% gold / 20% copper). The 2018 PEA outlined a 16 year mine life with over 370koz of gold production per year and a US$920M NPV at US$1,300 gold. The company is currently working on an updated economic study to bring in the additional resources announced last November. This study will have a substantially longer mine life and will integrate numerous engineering and design improvements.

Management Profile

Marshall Koval, CEO

Experienced mining executive who has worked at all of the Lumina Group’s companies since the early 2000’s. Mr. Koval holds a BSc. in Geology from the University of Missouri and is a registered professional geologist. He is currently also on the board of Equinox Gold.

Scott Hicks, VP Corp. Dev.

10 years of investment banking experience at BMO and RBC. Has been with the Lumina Group since 2017. He is also the CEO of Strategic Resources.



What is your rationale for attending 121 Mining Investment?

Acquiring new shareholders and updating existing ones.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Updated economic study.

12 Months:
Looking to monetize and sell the company or advancing the project to a PFS.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Current valuations for developers as well as valuations in Ecuador. We hope to continue educating people on Ecuador and the benefits of working there.

What do you think makes your company such a compelling investment?

A world class resource size (top 40 gold resource) that will interest major mining companies in a compelling location with substantial infrastructure.

Analyst Insight – provided by Independent Investment Research

Lumina Gold is a TSX-V-listed company that is advancing and de-risking its Cangrejos gold-copper project in southwest Ecuador.

Cangrejos is located in the Andean foothills of El Oro province, in southwestern Ecuador. El Oro province has a long established history of mining. In 1994 Lumina (formerly Odin Mining) identified the Cangrejos area as the source of the Biron alluvial gold deposit that yielded 69,000 ounces of gold. A joint venture was formed with Newmont and during the period 1994 to 2001, geophysical and geochemical surveys were completed and anomalies were tested by diamond drilling. The Cangrejos zone was discovered by hole CC-99-14, which intersected 1.57 g/t Au over 192m.

At Cangrejos, porphyry style gold-copper mineralization is associated with a sequence of intercalated porphyritic dioritic intrusions and hydrothermal breccias. Better gold grades correlate with potassic alteration and chalcopyrite-bornite occurring as fine disseminations and in quartz veins. This northeast trending zone was discovered by Newmont in 1999 and tested by three Odin drill-holes in 2011.

Cangrejos hosts an inferred gold and copper resource of 8.5Moz and 1Blbs. The 2018 PEA outlined a 16-year mine life with over 370koz of gold production per year and a US$920M NPV at US$1,300 gold.

During September 2019 the company announced that it had received positive results from the latest metallurgical test program, which continue to demonstrate that the mineralized material can be processed by conventional industrial techniques.

The company is currently drilling with four rigs and will update its resource estimate during 2019. The new resource estimate will include Gran Bestia, a satellite deposit less than 1km away that is not included in the current resource. The resource update will also include other step-out and infill drilling, which should transition a substantial amount of the inferred to indicated. Cangrejos will advance to its next phase of economic study post its 2019 resource update.