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Energy
KINROSS AURELIAN
Dominic Channer
VP and General Manager
Av. Amazonas N37-29 and UNP
Edif. Eurocenter, 5th floor, Quito
Telephone: +593 2 2996 400
Fax: +593 2 2772 072
www.kinross.com
Area of activity: Mining
Employees: 5000
Kinross is a Canadian-based gold mining company
with mines in the United States, Brazil, Russia and
Chile. With approximately 5,000 employees worldwide,
Kinross’ strategic focus is to maximize net asset value
and cash flow per share through a four-point plan built
upon: generating growth from core operations; expand-
ing capacity for the future; attracting and retaining the
best people in the industry and driving new opportuni-
ties through exploration and acquisition.
Aurelian Resources Inc. is a publicly-listed (TSX: ARU)
company engaged in exploring, discovering and devel-
oping mineral wealth in Ecuador.
Aurelian is committed to working with the government
and the people of Ecuador to achieve a modern, sus-
tainable mining industry, which will play an important
role in the future growth of the country.
The Fruta del Norte (FDN) project is located within a
95,000 hectare land package in southeastern Ecuador,
in the province of Zamora-Chinchipe. Kinross acquired
100% of the project on September 30, 2008, through
the acquisition of Aurelian Resources Inc.
The Condor project is about 80 kilometres northeast of
Loja, one of the largest cities in southern Ecuador. Due
to its proximity to the equator and elevation of approxi-
mately 1,400 metres, the climate around FDN is tropical
rain forest, and the temperature hovers between 21 to
24 degrees Celsius year round.
FDN is a high grade, intermediate sulphidation epith-
ermal gold-silver system, hosted in andesitic volcanics.
The FDN discovery drill hole was reported on April 5,
2006.
Kinross has prepared a pre-feasibility study and techni-
cal report for FDN, incorporating reserve and resource
information as of year-end 2010. Proven and probable
mineral reserves are estimated at 6.8 million ounces
of gold and 9.1 million ounces of silver. The study is
based on a mine life of approximately 16 years, with
life of mine gold production of 6.3 million ounces and
silver production of 6.7 million ounces. Annual produc-
tion is expected to average approximately 410,000 gold
equivalent ounces per annum over the life of mine.
On January 29, 2009, a new Mining Law was published
in the official record of the Ecuadorian government
which came into force in 2010. On 10 November 2009,
Kinross received approval from the Ecuadorian govern-
ment to resume exploration in FDN and they then con-
tinued with an 18,000 metre deep drilling campaign in
the hope of finding new resources.
OCP (Oleoducto de Crudos Pesados)
Andrés Mendizabal
General Manager
Av. Amazonas 1014 and Naciones Unidas
Edif. Banco La Previsora, Torre A, 3rd floor, Quito
PBX +593 2 297 3200
www.ocpecuador.com
Area of activity: Crude Oil Transport
Date of creation: 2003
Annual turnover: $264 million USD
OCP SA Ecuador is a private company that has been
in operation since 2003. The OCP is the second main
heavy crude pipeline in Ecuador to transport oil from the
Amazon to the Coast.
This project was entirely funded by private investment
without any financial participation of the State.
The OCP will be transferred to the Ecuadorian State, at
no cost, after 20 years since the start of its operation in
November 2003.
The pipeline was originally designed for a capacity of
310 thousand barrels per day. At the request of the
Ecuadorian government it was extended to 450 thou-
sand barrels per day. The cost was audited by the Audit
Management Unit and the OCP (UAF) of the Ministry
of Mines and Petroleum as well as international ac-
counting firms like PriceWaterhouseCoopers, Moores
Rowland and Ernst & Young. The SRI verified this cost.
In Ecuador’s history, no single project has ever received
the same strict and rigorous level of external and inter-
nal control and monitoring than the OCP. All govern-
ment institutions that are related to environmental man-
agement and energy have been involved in the project
to ensure its success.
The OCP is the second pipeline operating in Ecuador
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