Canadian gold miner gets environmental approval for Peruvian gold mine

Peru's Ministry of Energy and Mines has given the green thumbs up on Canadian-based miner Sulliden Gold's (TSX:SUE) Shahuindo project.

Sulliden announced on Wednesday that the Ministry approved the firm's Environmental Impact Assessment (EIA) submitted in December 2012 after 18 months of technical studies.

The company says this is the "single most important step in the permitting process."

"The approval of the EIA is the key milestone in the advancement of the project towards the construction phase," Sulliden noted in a press release

The company owns 100% of the Shahuindo project which is located in northern Peru in close proximity to Barrick Gold’s Lagunas Norte Mine and the Yanacocha Mine operated by Newmont.

According to a September 2012 feasibility study, the mine should produce about 3.65 million tonnes annually –  approximately 90,000 of gold equivalent ounces for 10.4 years at cash operating costs of $552 per ounce. The study only takes into account 40% of the gold ounces from the total oxide mineral resource and Sulliden plans on expanding operations once production begins.

Despite the announcement, the miner was down 0.94% – trading at $1.05 – on the Toronto Exchange by late afternoon Wednesday. Year-to-date, Sulliden's share price has risen by nearly 14%.

Images from Sulliden Gold Corporation