http://www.foxbusiness.com/news/2012/05/15/ecuador-sees-progress-in-talks-with-kinross-for-fruta-del-norte/

Ecuador Sees Progress In Talks With Kinross For Fruta del Norte

QUITO – Ecuador's undersecretary of mines said Tuesday that there has been progress in negotiations between the Ecuadorian government and Canadian gold mining company Kinross Gold Corp. (KGC, K.T) over the Fruta del Norte gold deposit.

"There is progress. I think we will succeed. Both parts, the government and the company, are doing all to sign the contract," Federico Auquilla said in an interview with Dow Jones Newswires, although he declined to give details.

Officials from Kinross weren't available to comment.

According to Auquilla, if the contract is signed the company will take about two years to build production facilities to mine Fruta del Norte.

Fruta del Norte is the largest gold deposit in Ecuador.

Minister of Nonrenewable Natural Resources Wilson Pastor has said if negotiations fail the government could call a tender for Fruta del Norte or award it to state-run mining company Empresa Nacional de Mineria, or Enami EP, for development with a foreign state-owned company.

Kinross and the government reached an agreement for Fruta del Norte last December, but in February the government announced that the company wanted to renegotiate.

Fruta del Norte has proven and probable mineral reserves estimated at 6.8 million ounces of gold and 9.1 million ounces of silver.

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