Junin Mineral Property: Local Resources & Infrastructure

The area is principally drained by the Rio Guayllabamba and Rio Mira, which later join the Rio Esmeraldas that drains to the coast to the west. A secondary drainage system follows the principal north-south, northeast-southwest and northwest-southeast structural orientations occupied by the Rio Junin, and the Fortuna, Limonita and Crisocola tributaries. These would provide for a supply of potable water, and, by use of a dam, would probably provide water as needed for a mining and processing operation.

At present there is no source of electrical power at the property site, although a 110 volt supply exists at the nearby settlements of Chalguayacu Alto, Junin, and Chontal Alto. Power for project development is most likely to be self generated. Although the topography is rugged, suitable areas for tailings disposal, processing plant site, and waste disposal have been identified within or adjacent to the project area.

There is no recent history of mining, and so the specialized personnel required for such an operation would most likely be expatriates from within South America, although sourcing within Ecuador is Ascendant’s preference.

Under the Mining Law of Ecuador, Ascendant, as concession holder, has the first right to purchase any government surface lands within a concession as well as the right to explore and conduct mining activities on the Golden 1, Golden 2 and Magdalena 1 concessions comprising the Junin project. The Mining Law requires that Ascendant attempt to negotiate purchase of surface rights with any legal landowner within a concession where Ascendant needs such rights for its planned development activities, but, should such acquisition not be achievable for whatever reason, provides that the concession holder can obtain such needed surface through application to the Regional Director of Mines. Ascendant is currently contacting and negotiating with surface owners, where such private landowners exist, for purchase of surface rights.

Climate

The climate in the area of the project is tropical with medium high humidity. Annual temperature ranges from 10°C to 24°C with humidity reaching more than 75%. The annual rainfall is between 450 mm and 3,000 mm. During the rainy season from December to April monthly rainfall reaches 400 mm, while during the dry season from May to November rainfall falls to a minimum of 10 mm per month. Operations can continue on the property all year.