http://www.harrisgold.com/ Harris Exploration Inc. is involved in the acquisition, exploration and development of prospective gold and VMS style base metal properties throughout Ecuador and other South America locations. The Company is positioning itself to become a major producer in this market by acquiring mineral bearing properties and mineral rights in these regions.
OTC Pink Symbol: HXPN
Frankfurt Stock Exchange: TBA
Ecuador's current economy began with the country's severe economic and financial crisis of 1999, which led to heavy borrowing from the IMF and the World Bank in 2000 and then to adoption of the US dollar as the official currency in 2001. This final step of "dollarization" was necessary for the government to restore stability in the national economy and attract foreign direct investment, which was a key component of Ecuador's ability to continue to meet its external obligations. This dollarization in Ecuador has been primarily supported by income from petroleum exports, foreign direct investment, remittances from immigrants, and private sector external debt. The impact of these economic circumstances on the institutional structure of the mining sector in Ecuador was readily evident. As a part of the bailout agreement in 2000, the World Bank recommended development of the mining sector, which resulted in major modifications to Ecuador's 1991 mining law and the passing of an almost completely new set of mining regulations by April 17, 2001 (a copy is available through the Manager). In 2002, these new regulations provided safeguards for mining title holders and streamlined the title transfer process from exploration to mining through a new title registry, which the Direcion Nacional de Minera ("DINAMI") was responsible for enforcing.
The new regulations have encouraged investment by:
- increasing the terms of concessions to 30 years and making them renewable;
- eliminating a 3% mineral royalty payable to the government;
- streamlining the granting of title transfer from exploration to exploitation;
- allowing foreigners to hold concessions without Ecuadorian partners; and,
- legalizing guarantees that secure the right to mine once a positive feasibility study has been completed.
Structure of the Mineral Industry in Ecuador
Because of the geologic similarity with the gold producing regions of Chile and Peru and the high value of a potential discovery, gold exploration and production by small-scale private companies continued to be an important activity in the gold districts of Ecuador. The following map is a visual presentation of areas where various minerals are available, as determined by the US Geological Survey of the US Department of the Interior:
Estimates of actual gold production in Ecuador are unreliable for any given year, but Ecuador's official gold production was reportedly 4,819 kg in 2003.
Confirmed 12.12.12 by T/A
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