Jan 2015 | STRACON GyM commences development of the Shahuindo Project

STRACON GyM, a subsidiary of Grana y Montero Group is pleased to announce that it has received a Letter of Intent from Rio Alto Mining to establish and undertake open pit mining operations at the Shahuindo Project, located in the province of Cajabamba, department of Cajamarca, Peru.

According to the document signed on October 2, 2014, the two companies, Rio Alto and STRACON GyM, will enter into an agreement based on the successful alliance currently in place for the development of the La Arena gold project in the department of La Libertad .

During the first months of 2015, STRACON GyM will begin bulk earthworks activities for the construction of the mine operational facilities, prior to commencement of mining operations during 2016. Operational synergies will be created between the Shahuindo and La Arena projects.

Rio Alto estimates that Shahuindo will produce 100,000 ounces of gold per year, with a plant processing capacity of 10,000 tonnes per day. Rio Alto plans to expand this processing capacity significantly in the future.

STRACON GyM is committed to continue serving Rio Alto with the provision of high quality bulk earthworks and mining services which are efficient, safe and with minimal impact on the environment and local communities.

We thank Rio Alto for your continued confidence as its partner in the development of the Shahuindo Project.