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Registered Office:
Suite 4, Level 2
7 Havelock Street
West Perth
Western Australia 6005
Head Office:
Level 2, 12 O'Connell Street
Sydney
New South Wales 2000
Australia
Tel: 61 2 4801 0685
Fax: 61 2 4861 7665
Email: admin@envirogold.com
ABN: 48 008 031 034
VIA: WWW.ASX.ONLINE.COM
12 November 2009
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 10, 20 Bond Street
SYDNEY NSW 2000
SUBJECT:
NEW MINING LAW IN ECUADOR REINFORCES ENVIROGOLD'S
INTEREST IN THE GOLD RICH COUNTRY
Mr Brian Johnson, Executive Chairman of EnviroGold Limited (ASX Code "EVG"), advises
that President Raphael Correa of Ecuador this week signed the country's New Mining Law
which will provide a framework for exploration and mine development in the future.
Mr Johnson said that the new regulations have been circulated in draft form for some time but
their enactment will bring a much higher level of certainty to investment by international
mining companies in the gold rich country.
Canadian companies including Kinross, Iamgold and Corriente Resources are all planning
new and substantial gold/silver and copper mines with an expected renewal of interest in the
country, where the Government is encouraging investment by foreign mining companies.
Mr Johnson said that he expected drilling to commence next month at the adjoining Pinglio
and Papercorp gold mines in Azuay Province, where the Company is earning a 65% interest
in the small scale mines and highly prospective concessions, by the progressive expenditure
of US$6.5 million.
EnviroGold advised the ASX on 21 October 2009 that its Canadian consultants had
concluded:
"that the mining target for the two concessions is between 3.0 million and 4.0 million
tonnes grading in excess of 10g/t Au, which indicates a potential target resource in
excess of 1 million oz Au."
and
"a realistic estimate of the overall mining potential for the concessions is 3mt to 4mt with
a diluted grade of 5.0g/t Au to 20.0g/t Au".
and
"EnviroGold's objective of establishing a number of headings to mine around 300,000
tonnes of ore per year grading at least 10g/t Au and producing 100,000 oz Au per year
for a minimum of 10 years, appears realistic."
The Consultants also reported advice from the existing mine operators that:
"the grades mined over ten years have been consistently in excess of 10g/t Au."
Mr Johnson said that he hoped to have initial drilling results early next year.
Yours sincerely
EnviroGold Limited
Ingrid Laudzevics
Company Secretary
Enquires:
Mr Brian Johnson
Mr James Tyers
Executive
Chairman
Executive Director
Email: brianjohnson@envirogold.com
Email: jamestyers@envirogold.com
Ph:
+61 2 4801 0685
Ph:
+61 2 4801 0685
Fax:
+61 2 4861 7665
Fax:
+61 2 4861 7665
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COMPETENT PERSON STATEMENT
The information in the report that relates to results of underground sampling is based on information
compiled by Mr Dale Schultz, Managing Director of Buscore Consulting Ltd, which is a consultant to
the EnviroGold Group, is a member of the Association of Professional Engineers and Geoscientists of
Saskatchewan (APEGS) which is a Recognised Overseas Professional Organisation ("ROPO")
accepted for the purpose of reporting in accordance with Appendix 5A of the ASX listing rules. Mr
Schultz has sufficient experience relevant to the style of mineralization and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined
in the 2004 edition of the `Australian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'. Mr Schultz consents to the inclusion of the matters in the report based on information in
the form and context in which it appears."
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