Aurelian and Corriente Shares Up on Meeting with Ecuadorian President

Investors jumped back into Aurelian Resources Inc. (AUREF.PK) on Friday morning, and took the stock back above C$4 for the first time in a week.

The spike was brought on by news that Aurelian Resources Inc. and seven other mining companies met with Ecuador's President Correa on Thursday afternoon to discuss the future of mining in the South American country, as well as the new mining mandate issued earlier this month that immediately suspended mining activities for the next 180 days.

The mandate also limits mining companies to holding a maximum of three concessions. For Aurelian, that means retaining title to the single concession containing the Fruta del Norte epithermal gold-silver deposit, as well as two others that Aurelian believes contain the most prospective geology for additional epithermal discoveries.

The companies at the meeting said in a joint statement that they welcomed President Correa's repeated statements that responsible mining will go ahead in Ecuador.

Mr. Correa said that the purpose of the mining mandate was to allow the government time to draft and implement a new mining law so that responsible mining can proceed. Mr. Correa invited the mining companies to meet with the ministry to help formulate the new mining law starting this coming Monday, April 28.

Mining stocks with interests in Ecuador fell like a rock when the new mandate was announced, wiping out more than half the share value in several companies, including Aurelian, Dynasty Metals and Mining Inc. [DMM/TSX] and Corriente Resources Inc. (ETQ), in just two days of trading.

Both Dynasty and Corriente also climbed higher Friday morning, rising 20% and 14%, respectively.

Comments

[User 92184]

The stock symbol listed here for Dynasty Minerals should be DMM/TSX, the symbol listed here is for Northern Dynasty Minerals which has no association with Ecuador as far as I know.

[User 103670]

the mining ban must be lifted before anything can be done

[Dr. Jonah]

We believe we will all be very pleased with the new Ecuadorian Mining laws. These laws will not only serve to protect the environment for future generations, they will also impliment a plan to boost the economies of the local villages to improve their historic plight.

More concessions will become availalbe for the legitimate Mining Companies and foreign investment will soar as more metals are required in the global emerging markets.

Silver, Gold, Copper, Platinum and other minerals will be needed in the next few years to assist China and India and others to grow successfully.

We believe the 180 day moritorium will allow Mining Companies to complete their current economic and environmental impact studies and allow the country to share in the successes of the foreign investors. We see the three concession maximum to dissolve as more responsible and necessary investments are made in beautiful Ecuador.

[WAKEUP]

The Ecuadorian government's Mining Mandate wording ought to give some concern to investors that there may be some "social" bumps in the road, along the way to getting the gold. The Mandate specifically frets over such things as "...{the need to reduce} negative impacts on the environment caused by mining activities"; governmental concerns about "...legitimate mechanisms for territorial order"; and providing "labor and social protection." Moreover, the Mandate goes on to state that the existing "...institutional legal framework (presently) in force is insufficient and does not respond to national interests." In other words, the Ecuadorian government not only does not trust the mining companies to protect the environment, nor to protect the welfare (or, apparently,even the safety) of workers engaged in mining operations; the government does not even trust its own laws, to take care of these things, as the laws are presently written. This whole thing seems like an almost insurmountable array of obstacles, OR a $moke$creen for some kind of "negotiated $ettlement" with gov't official$, to ea$e the way to overcoming the$e obstacle$. This could get awfully expen$ive, and there is nothing to stop the gov't from calling for additional $weetner, as time goe$ on . . .