Green Oil has agreed to serve as contractor for development of specific mine concessions within Dynasty Metals & Mining’s Goldfield project in southern Ecuador.
Under the three-year agreement, Green Oil’s focus will be on surface excavation of mineralised material on three of Dynasty’s mining concessions within the project.
The company is required to excavate a minimum of 400t per day initially, and 750t daily by the beginning of the third month of starting of mining activities.
Green Oil can mine open pitable surface material ,and Dynasty has the right to explore and develop all underground mineralisation on the three concessions.
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 seven million tonnes.
"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."
After securing government approval, Green Oil is set to begin construction of two roads connecting the project area to a main transportation route.
The company will also be responsible for transportation of mineralised material from the point of excavation to the Zaruma processing plant 180km away.
The compensation for Green Oil will be based on the cash equivalent of 35% of refined gold sales and 10% of refined silver sales from the concessions defined under the agreement.