Rain stalled a gold mine build in Ecuador — now its owner is drilling for more
Salazar Resources says unusually heavy rain slowed construction at its El Domo project, even as work advanced and a new drilling program began nearby.
Heavy rain in what is usually Ecuador's dry season has slowed construction at a gold and copper project in which Canadian junior miner Salazar Resources holds a minority stake, according to a company update carried by Yahoo Finance.
A wet season that would not stop
The project is Curipamba-El Domo, operated by Silvercorp Metals. Salazar holds a 25% interest that, the company said, is fully carried through to commercial production — meaning Salazar does not have to fund the construction work itself.
Even so, the weather hit the schedule. Rainfall during the quarter ran far above the recent average, the update said, and construction was suspended on dozens of rainy days. Finished work was repeatedly damaged and had to be repaired, particularly at the tailings storage facility, and extra water-management work was built beyond the original design. Open-pit preparation was slowed as well.
The company said it will report an updated schedule when the operator provides one, and pointed readers to Silvercorp's own quarterly report for the full construction picture.
Progress despite the delays
The update was not all setback. According to the company, roughly a million cubic metres of excavation and preparation work was completed during the quarter, foundations for the process plant and its main equipment were finished, and structural steel for the plant had shipped from the factory. The first batch of major long-lead equipment had arrived at port in Ecuador, work on the site substation and the external power line had begun, and generator sets were ready to ship to site as an independent power supply.
That mix — real progress, but behind the pace the weather allowed — is the central tension in the update. A carried interest shields Salazar from construction bills, but it does not shield the project from a delayed start to production, and shareholders are left waiting on the operator's revised timetable.
Drilling begins elsewhere
Separately, Salazar said drilling has started at the Yumi gold-silver veins on its wholly owned Tarqui project, the first time those veins have been drill-tested. The first phase covers about 1,500 metres across five holes, the company said, with a possible follow-up program at a copper-gold target planned for early 2027, subject to access and permits.
The company also said it has engaged two investor-relations and communications firms — one in Toronto and one in Ireland — to broaden its shareholder base while construction continues at El Domo. Both engagements remain subject to stock-exchange acceptance, according to the update.
Taken together, the announcement reads as a junior miner managing two timelines at once: a large project it does not control, delayed by weather it cannot control, and a smaller exploration program it does control, now under way. For investors, the next concrete milestone is not another update, but the operator's revised construction schedule.
Written by the BidAsk Newsroom. Based on reporting from the sources below.
