Echo Energy and Boku Resources join forces to boost mining in Peru.

The British company Echo Energy PLC has taken a significant step in its foray into the Peruvian mining market by signing a joint venture agreement with the founding partners of Boku Resources SAC in Peru. The main objective of this alliance is the development of projects in the mining sector, specifically in the extraction of gold and silver in Arequipa, as well as the cleanup of tailings deposits in Huaraz. Through this joint venture, Echo Energy secures 50% of the production and potential resources of Boku Resources, committing to invest a total of US$750,000 over a period of 18 months. This agreement is in line with the legislation governing artisanal and small-scale mining in Peru and will operate through a BTA trust, thereby complying with all current regulations in the country. Boku owns the Tesoro gold concession in Arequipa, with all necessary permits to start operations in the Nazca-Ocona gold corridor. Their short-term plan is to commence production in the fourth quarter of 2024, with an initial estimate of 67,500 ounces of gold. This operation will be carried out through the formalization of artisanal and small-scale mining, with the potential to scale up production in the future. In addition to the extraction of gold and silver in Arequipa, the joint venture will also focus on the cleanup of tailings deposits in Huaraz. These tailings contain varying amounts of gold and silver and pose an environmental problem that must be urgently addressed. It is estimated that this project could yield up to 243,000 equivalent ounces of gold, with a processing lifespan of up to 40 years. To carry out the tailings cleanup, a series of additional studies, analyses, and resource estimates will be conducted in accordance with NI 43-101 regulations. Production at the initial sites is expected to commence in 2025, once the Final Investment Decision has been reached. This project not only represents a business opportunity for the involved companies but also a commitment to sustainability and environmental responsibility in the region. Echo Energy's entry into the Peruvian mining market through this joint venture signifies a vote of confidence in the country's mining potential and the feasibility of developing projects in a sustainable and responsible manner. This alliance will not only benefit the participating companies but also have a positive impact on the local economy, generating employment and contributing to the growth of the mining sector in Peru. In a context where foreign investment is crucial for the country's economic development, agreements like the one signed by Echo Energy and Boku Resources are essential for boosting the Peruvian mining industry and promoting practices that prioritize environmental care and the well-being of local communities. Undoubtedly, this joint project will mark a milestone in the relationship between foreign companies and the Peruvian mining sector, setting a precedent for future collaborations for mutual benefit.