The process was developed by Central America Nickel for the exctraction of energy metals such as nickel, cobalt, vanadium, scandium, manganese and copper. It uses no pressure or heat.
It has already been applied to Auxico's gold and silver samples at the Zamora project in Mexico. In that test, the process extracted 90% gold and more than 80% silver in less than an hour.
For gold production at any deposit worldwide that uses the technology, Central America Nickel will receive a 2% net royalty from Auxico. Montreal-based Auxico can buy back 50% of the royalty at any time by issuing 2 million common shares.
The company has also inked a memorandum of understanding with the government of the department of Bolivar, Colombia, to implement the technology. It will oversee financing and construction of gold producing operations in the country and the management of gold and/or gold concentrate export.
The government agency will provide the property for the gold production as well as physical security for the gold production operations. It will also help with the permitting process and serve as a liaison with local miners.
"The Minamata Convention, whose objective is to end the use of mercury by artisanal miners, has been signed by 128 countries," Auxico officials said. "The Auxico process is expected to provide an economic industrial alternative to the use of mercury while generating a much smaller environmental footprint."