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Collective drilling to grow to 10Moz
Collective Mining (TSX:CNL) aims to grow its Guayabales Au-Cu project in Caldas, Colombia, to 10Moz AuEq in 2025 and will undertake a minimum of 40,000m of drilling this year to do so, executive chair Aris Sussman told CGS. “That is the number that gets the large miners over the line. It is hard to sell a large company on a 4Moz deposit. There's no question we already have that if we stop today and there's nothing else to find. Our goal is to take it to that major scale. 10Moz is an arbitrary number, and I hope it's a lot more than that. Look at our former company, Continental Gold, we drilled off over 11Moz and sold it to one of the largest mining companies in the world [Zijin Mining], and that really needs to be our goal,” said Sussman. Sussman said that by drilling the project hard this year and having some luck, it could be approaching the 10Moz resource figure by year-end. “Our goal is to have the market believe there's a chance at 10Moz plus here. There's no question Apollo itself is already a multimillion-ounce system. It needs a lot of infilling to go to a mineral resource estimate, but I don't think it's the only one. We need to show the market that Apollo is one of a string of carrots stemming from Marmato [Aris Gold’s (TSX:ARIS) nearby underground mine development], which is almost 9Moz next door. This 5km-by-5km area is just impregnated with different styles of mineralisation. It's pretty remarkable, so we need to get the market to wake up to this potential. This year, we're going to wake everyone up with a drill,” he said.
In addition to Apollo, the company expects to get drill results from holes it put into the Olympus and Trap targets at the end of 2023, which, if positive, will see drilling resume there in the near future. CNL also plans to drill two new targets this year, Target X and Tower. The Apollo porphyry system now measures 520m in strike by 395m wide by 1,070m vertical. “Target X looks like an Apollo dead ringer. It has got the same surface geochemical signature, and we see both porphyry mineralisation, a Cu-Mo signature overprinted by late-stage high-grade veins, the same ones that are at Marmato, the same ones that are Apollo,” said Sussman. Plutus is another target the company will drill again this year after completing an airborne geophysical survey to better target drill holes. “After announcing a discovery at Plutus we made the rational decision that it is so big and vast that we better do airborne geophysics to try and help define where to drill better and not blow our brains out with gambling on hole [locations],” said Sussman. CNL is ramping up drilling following the year-end break, and expects to be working with four drill rigs within a matter of weeks, and potentially going up to six rigs later in the year.
Cordoba seeks Alacran build decision in 2024
Cordoba Minerals (TSX:CDB) hopes to be able to conclude the permitting process and make a construction decision for its Alacran Cu-Au project in Cordona, Colombia, by year-end, chief executive Sarah Armstrong-Montoya told CGS. Detailed mine engineering and design work is underway, with CDB recently receiving a second US$40M payment from strategic partner JCHX Mining Management. The company completed a FS and filed the EIA on the project as 2023 drew to a close to produce more than 53Mlb/y Cu in addition to Au & Ag from a conventional open pit mine over 14.2 years following an initial capital investment of $420M. The final numbers were similar to those produced by the 2022 PFS. “During these processes, the numbers actually often go down quite dramatically between the [preliminary economic assessment] and the PFS, and then the feasibility study. We were able to do some more optimisation. We are now going to be at 17,600tpd production, which was previously 22,000tpd, which seems to be the sweet spot and gives us a 14.2-year life of mine. We still have our satellite pits, which can be bought into this project, which would extend on the life-of-mine by another three years,” said Armstrong-Montoya.
On the environmental side, CDBs plan features the use of thickened tailings that will be co-disposed with waste rock, which has a smaller footprint, reduced closure costs and other benefits, particularly as regards water impacts, which is a key concern of environmental regulator ANLA, the National Environmental Licensing Agency. “We've been extremely fortunate to have ongoing roundtables with the technical team at ANLA so that we could familiarise them with our project ahead of filing the EIA. This is particularly important in our case, because we're using thickened tailings and commingling of waste rock, which is the first time that's been used in Colombia. We have already had an initial meeting with them following the filing of the EIA, and we have had tremendous support from them. I am optimistic that given our relationship with them, the amount of work that's gone into this and the ongoing roundtables, we will have the EIA approved this year,” said Armstrong-Montoya.
This timeline should dovetail with completing the detailed engineering design phase, enabling the partners to make a construction decision. CDB and JCHX entered into a strategic agreement on December 8 for the joint development of Alacran, with JCHX purchasing a 50% ownership interest in the project for $100M to be paid upon completion of certain milestones. To date, it has made two $40M payments. The project will be financed through the JV company and not necessarily with a 50:50 split. “This project can support debt, and we are looking at what is the best structure to finance this project? How much debt can it support? Debt is expensive right now, and perhaps there is a combination of royalties or royalty and streaming, [as well as debt],” said Armstrong-Montoya. A modest environmental impact, including the site's clean-up of a historical tailings dam and access to hydroelectric power, means Alacran should produce Cu with a low carbon footprint, which could open the door to sustainability financing products. “That is something else we're evaluating. I think we're in a good position to see different types of financing and look to the likes of World Bank and other large organisations. We expect that process to run throughout this year,” said Armstrong-Montoya.
Armstrong-Montoya said CDB is also putting a lot of effort into its community engagement, particularly with the community of El Alacran, where some relocation will be required. She said she is watching how the situation unfolds at South32’s nearby Cerro Matoso Ni mine, 20km away, where two communities blocked access in December 2023, which resulted in the company declaring force majeure on shipments. “Working and living with the communities within the same area means it is effectively a partnership. It's not always easy, and it is a big learning curve for both sides. It is a pro-mining, and many local communities understand what mining is, the benefits of that, and what comes along with it. Whilst [the blockade] didn't have any impact on us we need to learn from that and look at what is affecting the community and what their position is as the project develops so we don't encounter the same situation. Key to this is ensuring there is constant communication and that we're listening to what the community say. We have a mobile office in addition to having a fixed office, that goes daily between the communities so that we're not only hearing from community leaders, but actual community members,” said Armstrong-Montoya.
Noboa declares “state of war” in Ecuador
Ecuador’s president Daniel Naboa declared a state of war due to a growing security crisis which has seen the country’s two main criminal organisations, the Los Choneros and Los Lobos, undertake a series of attacks, including car bombings, gunmen taking hostages at a television studio during a live broadcast by the TC channel in Guayaquil, and at the University of Guayaquil, and firing indiscriminately on police vehicles. Guayaquil mayor Aquiles Álvarez said at least eight people were killed during the day’s events, reported El Financiero. Naboa, two months into his presidential term, issued a decree Tuesday acknowledging the existence of an internal armed conflict and ordered the country’s armed forces to take action, including the use of lethal force. The decree states that “these acts configure as a terrorist threat against the pillars of state sovereignty and territorial integrity.” "I have signed the executive decree declaring an Internal Armed Conflict" and "I have ordered the Armed Forces to carry out military operations to neutralise these groups," said president Naboa, reported El Tiempo. Naboa was elected in 2023 on a ticket to improve security in a presidential election marked by the killing of anti-corruption candidate Fernando Villavicencio. He named 20 other terrorist organisations in the decree. The US State Department has offered assistance to Ecuador to face the violence the country is suffering from.
The Los Choneros and Los Lobos have been fighting each other for control of lucrative drug trafficking routes and control of the country’s prisons. They are also extending their activities into criminal gold mining. With Naboa, looking to improve the security situation in the country, they are seeking to derail his plans. “The new president is planning major security reforms and a referendum to get public buy-in. That referendum was supposed to be an opportunity for the president to build on his election victory and keep momentum,” said Latin America risk analyst James Bosworth of Hxagon. Recent days have seen leaders of both the main criminal groups escape from prison, Adolfo Macías, alias Fito, head of Los Choneros, and Fabricio Colón, alias the savage, of Los Lobos. Bosworth said the government faces a complicated situation because multiple criminal groups are fighting each other and the government. “Any action the government takes against one criminal strengthens someone else. It's harder to de-escalate the situation because this isn't just about two sides backing down. If the government backs down against one group, they risk attacks by another,” he said. The situation has similarities to the decades of internal armed conflict experienced by Ecuador’s neighbour, Colombia, during which the government was combating the FARC and ELN guerilla which, following the 2016 peace agreement with the FARC, has modified into the government combating FARC dissidents and criminal gangs.
Collective make Olympus Deeps discovery
Collective Mining (TSX:CNL) has discovered a new gold system named Olympus Deeps at its Guayabales Au-Cu project in Caldas, Colombia. Olympus Deeps is interpreted to be the initial intercept into a Au-related brecciated porphyry intrusion system located about 500m from its flagship Apollo porphyry system. A directional drill hole 958.35m in length returned 202.35m @ 2.16g/t AuEq at the end of the hole, preceded by 497.35m @ 1.8g/t in Apollo, which was the original target for the hole. The Olympus Deeps discovery has grown the Olympus target area to 600m by 400m by more than 1km vertical. “Once we exited Apollo, we stayed in favourable rocks and decided to continue the hole and after almost 200m of a dead zone, we went into another porphyry unit, which we're calling Olympus Deeps. [The intercept] was almost all Au, it doesn't have Cu like we do at Apollo, and the Ag was very low. The mineralisation is quite different than what we see at Apollo, with about four times the amount of Mo. We are going to get back and start drilling Olympus, which we haven't done since 2022,” executive chair Ari Sussman told CGS.
CNL believes the Olympus target is similar to the multi-million-ounce Marmato mine 2.5km to the SE, which spans more than a vertical kilometre. “Marmato has an upper-level sheeted vein system with a deeper gold-rich porphyry below. We are with something similar although geologically our porphyry is different and at a different elevation, is an upper-level sheeted vein system with a porphyry below,” said Sussman. CNL plans to dedicate more of its planned 40,000m of drilling this year to define Olympus Deeps further. Collective continues to drill at its recent Trap discovery, some 3.5km away, with the next round of results due in March. “With ongoing exploration success and discoveries supportive of NAV accretion through the drill bit, we highlight the Olympus Deeps and recently announced Trap discovery remain unaccounted for in our valuation, therefore presenting upside and optionality to our base case outlook for the project,” said PI Financial analyst Phil Ker in a research note. Ker has a BUY rating with a C$8.30 target price on CNL.
Mayaniquel targets 4Mtpa after restart
Mayaniquel aims to return to production within six months after lifting US sanctions on Guatamala’s nickel industry. Earlier in January, the US government withdrew the sanctions, having recognised there was no basis for them. Mayaniquel suspended its operations 14 months ago when the sanctions were imposed. Mayniquel expects it will take five or six months to return to its 2Mtpa production capacity. “The lifting of sanctions means we have a green light to restart operations. We have inventory that we can sell, and we now have to re-hire our workforce, reengage with local contractors, invest in fixing and repairing the public roads we use that the government has not maintained, and continue our engagement with local communities, which we did not stop,” Mayaniquel director of corporate affairs Estuardo Asturias told CGS.
MayaNiquel undertakes no refining and directly exports nickel ore from an Atlantic port. The company subsequently aims to increase its production capacity to 4Mtpy. The stoppage saw the company release 1500 workers whose family subsistence depended on the mine. The impact of the closure on the local economy saw many join the mass migrations north to the USA. “The limitation is the number of trucks and excavators in the country. We would need to source our own or help our local contractors to get more, as well as invest in infrastructure to load this amount of ore in the Atlantic port,” said Asturias.
In November 2022, the USA implemented sanctions against Dmitry Kudryakov and Iryna Litviniuk, who ran the Guatemalan subsidiaries of Solway Investment, which acquired the FeNix ferronickel operations in El Estor, Izabal, from Hudbay Minerals in 2011. Kudryakov was the president of Compañía Guatemalteca de Níquel (CGN). “Mayaniquel was wrongly identified as a subsidiary of Solway. We think some negative actors may have misguided the US government that MayaNiquel was part of Solway,” said Asturias.
Asturias said the company welcomes the review of all mining licenses announced by the recently appointed mining minister Victor Hugo Ventura to investigate complaints about bribes and other corruption. “We have open arms and see it as positive that he will check everything surrounding the mining licenses granted in the past. We hope this extends to the applications that have been in process for the last 10-15 years, although he declared that he believes the new government will not issue any new mining licenses during this four-year term,” said Asturias.
Komir to sue Panama over copper mine
South Korean state company Korea Mine Rehabilitation and Mineral Resources (Komir) is to sue Panama for 1T won (US$747.1M) under the FTA between South Korea and Panama that came into force in 2021 over expected losses from the closure of the Cobre Panama mine in late 2023. Komir acquired a 10% stake in Minera Panamá, First Quantum Minerals (TSX:FM), the Panamanian subsidiary that owns the mine, in 2009. FM, which owns 90% of Minera Panama, filed an International Chamber of Commerce (ICC) claim against Panama in November to recover its $10B investment in the country. FMs claim will be heard in Miami, Florida, USA under the arbitration clause contained in the 2023 contract FM signed with the government of Panama, which was subsequently ratified as Law 406 by the National Assembly, before the Supreme Court declared the contract unconstitutional. Commercial production at Cobre Panama was achieved in September 2019, and its output grew to more than 350kt of copper in 2022, about 1.5% of global production. FM aimed to increase this to 350-380kt in 2023, and with some 3.1Bt in proven and probable reserves, it saw decades of production ahead.
Exploration News
Collective Mining (TSX:CNL)
Made a discovery at the Trap target at its Guayabales project in Caldas, Colombia, where two diamond drill holes are interpreted to have intercepted the upper portions of a porphyry system overprinted by late-stage carbonate base metal (CBM) sheeted vein zones. Drilling intersected 646m @ 0.81g/t AuEq, including 301.5m @ 1.01g/t from 19.5m downhole depth. Trap is about 3.5km along a Mo soil trend NE of the Apollo porphyry system and is the second porphyry discovery made at Guayabales. It has been traced by rock and soil sampling over 2km by 2km. “When one steps back and thinks about the multiple discoveries we have made at our Guayabales project and the geological relationship to the multi-million ounce Marmato mine next door, it is clear that we are onto a new emerging large-scale metals district and must remain aggressive with exploration. It is not every day that a company drills such significant intercepts from the surface into a newly generated target,” said Collective Mining executive chair, Ari Sussman.
CNL also announced assays for six drill holes into Apollo, including the deepest and most westerly mineralisation in brecciated porphyry to date, with hole D5 cutting 527.4m @ 1g/t AuEq at up to 1,070m below surface. Apollo has been expanded to 520m strike by 395m width by 1,070m vertical. CNL plans to embark on its largest drill programme to date, with a minimum 40,000m planned for 2024. “Today’s results clearly demonstrate that Apollo continues to display remarkable continuity over intercepts measuring hundreds of metres in length,” said executive chair Ari Sussman.
Aris Mining (TSX:ARIS)
Produced 226,151oz Au from its two operations in Colombia in 2023, within its guidance range of 220-240koz. ARIS is building the Marmato Lower Mine, with the first Au pour expected in late 2025. The company plans to spend US$21M on exploration this year. “In 2023, our Segovia Operations achieved full-year production of 202,940oz. We also achieved substantial growth in mineral resources and reserves at Segovia, supporting our plan to expand the processing facilities. … Looking ahead to 2024, we expect total Au production of 220- 240koz. We are expanding the Segovia processing facility by 50% to 3,000tpd, with completion expected by early 2025,” said CEO Neil Woodyer.
Colombia to declare temporary environmental reserves
Colombia’s Ministry of Environmental and Sustainable Development has issued Decree 44 of 2024, giving it the power to declare temporary environmental strategic reserve areas, with the aim of protecting water, or other environmental resources, with a five-year timeline, extendable to 10 years. The decree states that where such a temporary environmental strategic reserve area includes a mining title or concession contract, the authorities will initiate administrative processes towards the definitive closure of the mining operations. The lack of criteria against which the ministry may declare such areas produced an immediate protest from the mining sector, which fears the decree will be used arbitrarily to close legal mining operations and exploration projects. “This is a decree that goes beyond legal and constitutional norms and that can be used arbitrarily and subjectively to prevent the development of new activities mining, taking into account that it allows the declaration of natural resource reserve areas and the suspension of mining in said areas, without prior studies, nor technical criteria; relying solely on a precautionary principle that today according to jurisprudence, it should not be understood that way,” said Juan Camilo Nariño, president of the Colombian Mining Association. Colombia has a chequered record regarding temporary reserve areas, which tend to become permanent. In 2012, it passed a resolution to declare temporary strategic mineral reserves over 17.6M hectares with potential to host minerals such as Cu, U, Fe, Pt and Co. This also had a five-year mandated timeline for the government to package them into blocks to auction via a tender process, which sailed past and was continually extended. The first auction was held in 2021 for areas with potential for Cu, which was largely unsuccessful.
Lundin Gold (TSX:LUG)
Produced 481,274oz Au in 2023 from its Fruta del Norte Au mine in Ecuador in line with the high end of its revised guidance of 450-485koz. “2024 will be an exciting year at FDN, with the expansion of plant throughput to 5,000tpd and the installation of new flotation technology to improve recoveries. In addition, we will be undertaking the largest ever exploration programme on our extensive land package,” said president & CEO Ron Hochstein.
Adventus Mining (TSXV:ADZN)
And Salazar Resources (TSXV:SLR) received the environmental permit from Ecuador’s Ministry of Environment, Water, and Energy Transition (MAATE) for the construction and operation of the El Domo-Curipamba project polymetallic project. Receipt of the permit will allow the joint venture partners to commence construction of the project. “This approval will allow the construction and operation of El Domo, which will provide a new generation of opportunities for the people of central Ecuador,” said Salazar Resources president & CEO Fredy Salazar.
MAATE issued technical approval of the joint venture’s environmental and social impact assessment (ESIA) and environmental management plan (EMP) in May 2022. An environmental consultation was then carried out with communities in the direct area of influence of the project between July and December 2023, which the partners said overwhelmingly supported it with a 98% approval rating. ADZN confirmed its prior guidance on the start of construction. The partners seek to produce 10,463tpa Cu & 21,390tpy CuEq over the life-of-mine at a C1 cash cost of US$1.14/lb. El Domo has reserves of 6.5Mt @ 5% CuEq. SLR has a 25% fully-carried interest in Curipamba through to production. Wheaton Precious Metals (TSX:WPM) will provide US$175.5M in financing in return for a stream on 50% of the Au and 75% of the Ag, some 12% of the project revenues, while Trafigura will provide a five-year $45M senior debt facility at an 8% interest rate.
MEM, in conjunction with the Agency of Regulation and Control for Non-renewable Natural Resources of Ecuador, also issued a permit for the design, construction, operation, and maintenance of the El Domo-Curipamba TSF. The start of TSF construction is a key condition precedent to draw from the financing package arranged with WPM. The TSF design meets the requirements of the Canadian Dam Association guidelines. The construction method will be downstream, using rock-fill, the safest tailings dam configuration method.
Bluestone Resources (TSXV:BSR)
Obtained an environmental permit amendment to change the mining method for the Cerro Blanco Au project in Guatemala from the existing permitted underground development to surface mining development. The Ministry of Energy and Mines has also updated the project’s approved mining license to reflect the environmental permit amendment and the change to the surface mining method. “After dedicating over two years to obtaining the environmental permit amendment, we are pleased with the Ministry of Environment and Natural Resources’ (MARN) decision to approve the permit for the Cerro Blanco project as a surface mining operation. … We will continue with our strategic review, and having the environmental permit in hand helps de-risk the project,” said chair & CEO Peter Hemstead. The approval marks a turning point for BSR, which has seen its share price lose 90% of its value over the past two years since filing its environmental permit amendment application in late 2021 after deciding to pivot from an underground mine development to an open pit concept. BSR has a strategic review underway to explore and evaluate potential alternatives to further advance Cerro Blanco and the adjacent Mita Geothermal project, including the sale of part or all of the assets or a sale or merger of the company. A February 2022 FS detailed production of 197koz/y following an initial capital investment of US$572M from reserves of 2.8Moz Au & 12.6Moz Ag contained in 53.9Mt @ 1.6gpt Au & 7.3g/t Ag. The waiting time for the permit was arguably a factor in former chief executive Jack Lundin leaving the company in December 2022 to take on a larger role in Lundin Mining (TSX:LUM), where he became CEO in December 2023. Lundin had moved to BSR in 2020 fresh from helping to build Lundin Gold’s (TSX:LUG) Fruta del Norte Au mine in Ecuador, to build Cerro Blanco.
Calibre Mining (TSX:CXB)
Reported a record year of production for 2023 of 283,494oz Au, beating its guidance, from operations in Nicaragua and Nevada, USA. The December quarter of 2023 saw the company achieve its fifth consecutive record quarterly production, with 75,482oz. Operations in Nicaragua produced 242,109oz in 2023 and Nevada 41,385oz. CXB has increased its guidance for 2024 to 275-300koz at an AISC of US$1275-$1375/oz. It has budgeted growth capital of $45-$55M and exploration capital of $25-$30M. “Looking ahead to 2024, we foresee another robust year demonstrated by an annual gold production guidance increase. Throughout 2023, we accomplished numerous milestones as we continue to execute our corporate strategy of transitioning into a mid-tier Au producer,” said president & CEO Darren Hall. The company ended 2023 with a cash balance of $86M, a 52% increase over 2022, after investing C$40M into Marathon Gold, a company it is acquiring for its Valentine Au development project in Newfoundland and Labrador, Canada. This acquisition should see the company grow its production to more than 500koz/y.
CXB also announced additional results from its 2023 exploration and delineation drilling programme at the Panteon VTEM Au corridor at the Limon Mine Complex in Nicaragua. Previous results led to the discovery of the Panteon North deposit, which yielded over 240koz of reserves (944kt @ 9.4g/t). The continued high-grade success within the Limon Complex continues to confirm the potential for resource expansion in the region. Highlights included 4.1m @ 111.92 g/t in hole 4866. “The latest results are impressive and show a combination of new high grades and broad widths, which should prove beneficial for future production, providing further opportunity to leverage the surplus processing capacity at our Libertad mill,” said president & CEO Daren Hall.
Mineros (TSX:MSA)
Achieved its 2023 production guidance and produced 250,769oz Au, within its guidance of 239-262koz. MSA has guided a 13% fall in production for 2024 to 209-229koz, as a result of the sale of the Gualcamayo property in San Juan, Argentina in September 2023. Its 2024 AISC is expected to decrease to US$1,430-1,530/oz.
Soma Gold (TSXV:SOMA)
Produced 32,340oz AuEq at its El Bagre Au operations in Antioquia, Colombia in 2023, a 40% increase over 2022. For 2024, SOMA anticipates the production of an additional 750–1,000oz/m from the El Limon mill, which is scheduled to restart production in 1H24. An updated mine plan is expected in January, incorporating the extensive definition drilling conducted during 2023. "Our team in Colombia has done an outstanding job managing production and safety and achieving our goals for the year despite some delays and mechanical and social issues. We anticipate that our production plan for 2024, including the additional production from El Limon, will result in another production record in 2024,” said former president & CEO Javier Cordova.
Atico Mining (TSXV:ATY)
Produced 13.24Mlb Cu & 10,149oz Au in concentrates from its El Roble mine in Choco, Colombia in 2023. “The company had a challenging 1H23. The team turned things around in 3Q23 and continued improving all metrics to finish the year delivering under our production guidance. At the same time, we saw very prospective drill results from our El Roble mine vicinity drill programme which could point towards an extension of the current life of mine,” said CEO Fernando Ganoza.
ATY also said the Ministry of Energy and Mines of Ecuador authorised the extension period for the La Plata mining concession until 2049. A further 25-year extension is possible. La Plata is in the last stage of its environmental licensing, and ATY is looking forward to completing this milestone within the upcoming months.
Mako Mining (TSXV:MKO)
Produced a record 11,567oz Au in 4Q23 from its San Albino mine in Nicaragua and anticipates reporting its lowest-ever AISC when its financials are published. The company repaid US$7.1M of debt during the quarter, eliminating the remaining Wexford principal balance. A further C$600k was spent repurchasing shares.
MKO also announced further results from a RC drill programme at its newest mining area, Las Conchitas, immediately S of Its San Albino Au mine in Nicaragua. In 2023, MKO completed 11,738m in 262 RC holes in the ongoing resource expansion programme. Highlights in the southern portion of Las Conchitas, support the potential for expanded, high grade, low strip ratio, minable material within the currently defined open pit, and included 4m @ 51.78g/t Au & 37.8g/t Ag in the El Limon vein. “We have begun to consistently mine the high-grade zones of LCS, supplementing high-grade production from other areas at San Albino. This high-grade production will allow us to continue generating significant cash flows for the foreseeable future, which will be used to grow our business internally and externally,” said CEO Akiba Leisman. 23 RC drill holes at the northern portion included hole 251 that intersected a splay of the San Pablo quartz vein with 3m @ 16.20g/t Au &19g/t Ag.
Goldsource Mines (TSXV:GXS)
Announced a PEA for its Eagle Mountain Au project in Guyana, to produce an average 67koz/y for 15 years at an AISC of US$1077/oz following a $95.6M initial capital investment. The project would yield an after-tax NPV of $292M with an IRR of 57% and a 1.5-year payback. It would have a capital efficiency of $95.8/oz, well below the average, and NPV/capex ratio of 3.1, meaning that every dollar of initial capital would generate $3.1 of NPV. “A key objective with the PEA was to demonstrate the merits of the phased development plan, specifically the potential to scale into production with a low capex intensity, multi-year runway of low AISC, and potential strong free cash flow generation. As expected, Eagle Mountain is well suited to this approach due to the distinctly shallow nature of its mineral resources. Notably, the soft-rock saprolite, which does not require drilling and blasting, translates to low estimated initial capital and operating cost intensities,” said president & CEO Steve Parsons.
Solaris Resources (TSX:SLS)
Previewed its 2024 plans for its Warintza Cu project in SE Ecuador. It is nearing the completion of its second phase of mineral resource drilling at Warintza, which is expected to nearly double the meterage available for inclusion in an updated resource estimate in 2Q24 and deliver growth through expansion of the deposit in extensional drilling at Warintza Central and Warintza East, and through the inclusion of the recent discovery of Warintza Southeast within a common pit shell. The third phase of drilling is set to commence imminently. It includes extensional drilling in areas in which the Warintza East and Warintza Southeast deposits are still open and 30km of infill drilling to further delineate and define mineral resources within the pit shell in advance of studies, with some of these holes doubling to provide technical data for mine design and mine planning purposes. Exploration drilling plans include following up on the Patrimonio discovery and the El Trinche area, forming the southern, low-grade margin of Warintza Central. Field investigation is planned to define drill targets at prospective areas identified in the regional exploration programme. SLS anticipates finalising and submitting the EIA for regulatory review and approval in 2H24. Follow-up programmes for metallurgy, geotechnical and hydrogeological drilling, detailed access, internal/external infrastructure, and water and power studies will proceed. SLS also intends to list on the NYSE American Stock Exchange.
SLS also began the 2024 drilling programme at Warintza, with six rigs planned to operate by the end of February. An updated resource estimate is expected in the June quarter to take in nearly double the meterage of the prior estimate. Drilling will continue through the updated resource, focusing on opportunities for further growth and infill drilling of at least 30km. Field programmes are also underway to define drill targets at prospective areas identified in the regional exploration programme, including at the Mateo prospect, where a 3km x 1.4km arc of Cu-Mo enrichment in soil samples is expressed.
Founders Metals (TSXV:FDR)
Announced assay results from the Antino Au project in Suriname. Hole 45 hit six zones from the surface for 56.5m of Au mineralisation, including 10.5m @ 2.81g/t in the Froyo Au zone. “We are thrilled to see so much Au mineralisation through this zone as it really starts to fill the gap between the main Froyo structure and this emerging parallel trend,” said CEO Colin Padget.
FDR also began its 30,000m 2024 drilling campaign and assay results with an interval of 10m @ 24.61g/t Au in hole 36B from resource infill/expansion-type drilling within the Froyo zone. Founders is fully funded for an initial 2024 drill program of up to 30,000m using two company-owned drills.
Lumina Gold (TSXV:LUM)
Announced results from the 2023 phase 1 mining resource conversion drilling campaign in support of the ongoing FS at its Cangrejos Au project in Ecuador, including metallurgical samples and geotechnical holes. Highlights from the 7,800m programme included 85m @ 2.47g/t AuEq in hole 265 from surface to end of hole and the highest assay ever on the project in hole 253 of 2m @ 580g/t Au. “Work on the revised resource estimate, pit slope design, and metallurgical testing, including high-pressure grinding roll testing, are now all underway,” said CEO Marshall Koval.
LUM also appointed Ausenco Engineering and other consultants to lead the FS on Cangrejos, which it expects to complete in 1H25. “Most of these consultants have been working on Cangrejos since the first PEA released in 2018 and bring a wealth of project knowledge to this FS,” said COO Ron Halas.
C3 Metals (TSXV:CCCM)
Provided an update on the 2023 exploration results and 2024 strategy for its Cu-Au projects in Jamaica. Exploration has confirmed 16 porphyries and over 40 epithermal Cu-Au prospects along a 30km strike. Over 9,300m were drilled in 2023; up to 20,000m is planned for 2024. "We've achieved tremendous exploration success in Jamaica during 2023. An extensive remapping campaign was critical to improving our understanding of the geology, creating a 3D geologic model, and the overall potential of this underexplored district. We have up to 20,000m of drilling planned for 2024. Our immediate focus is a 4km trend of Cu-Au mineralisation at Bellas Gate that is open in multiple directions and to depth. We also intend to advance multiple additional targets across our 30km strike extent to drill status through fieldwork and collection of additional geophysical data,” said president & CEO Dan Symons.
Auxico Resources (CSE:AUAG)
Announced results from its 2023 exploration and sampling programme on the Minastyc property in Vichada, Colombia. A total of 72 samples were collected across 27 pits over a distance of 2km, with the results indicating the presence of REE in all samples, including cerium, dysprosium, praseodymium, neodymium, gadolinium, lanthanum, samarium, rubidium and in all 64 samples, and terbium in 49 samples. Most pits identified other critical minerals such as Ta, Nb, Sn & Ti. Samples were taken across a property section defined in the issued PTO report work programme area. Data from previous work outline that the highly prospective TA Area and Area 50 returned high grades in concentrates. "The 72-sample campaign was an interesting insight into the vast potential of Minastyc, with new critical minerals such as Li that were previously not indicated in other result batches, enhancing the highly prospective nature of the project,” said chair Mark Billings.
Quimbaya Gold (CSE:QIM)
Secured three exploration properties totalling 7,393 hectares adjacent to its Maitamac project in the Abejorral-Sonsón area in Antioquia, Colombia. The properties were acquired through mapping staking from the Colombian government. "Adding new ground to the company's property portfolio at Maitamac confirms our strategy to consolidate large under-explored areas with Au exploration potential in Colombia,” said president & CEO Alexandre Boivin.
Corporate News
Adventus completes Luminex acquisition
Adventus Mining (TSXV:ADZN) completed the acquisition of Luminex Resources (TSXV:LR). LR shareholders received 0.67 ADZN shares for each LR share, with ADZN issuing 117.4M shares. ADZN obtains a 98.7% interest in the Condor Au project, the Pegasus earn-in project with Anglo American, and a portfolio of greenfield assets in Ecuador. ADZN issued 76.2M subscription receipts @ 29c for proceeds of US$17.9M. Each subscription receipt converted to one ADZN share. ADZN and Altius Minerals amended the terms of an outstanding US$4M unsecured convertible debenture to extend the maturity date from December 2023 to December 2024. The conversion price was amended from 31c to 30c. JOGMEC LR of its plan to withdraw from the Orquideas earn-in.
Solaris raised US$40M
Solaris Resources (TSX:SLS) closed US$40M in funding, including $10M in equity financing and the drawdown of the first $30M of the senior secured debt facility as part of an $80M offtake financing. These fund the baseline programmes for 2024 and 2025. Upon closing the C$130M strategic investment by Zijin Mining, SLS plans to aggressively expand its 2024 and 2025 programmes to bring ten rigs into operation and significantly scale up its regional exploration programs.
Cordoba receives US$40M
Cordoba Minerals (TSXV:CDB) received the second instalment of US$40M from JCHX Mining Management under a strategic framework agreement for the joint-development of the Alacran Cu-Au project in Cordoba, Colombia. JCHX advanced the second instalment of $40M that was payable upon the completion of a FS and the filing of the EIA application. Part of the proceeds were used to repay the $4M bridge financing previously provided by majority shareholder Ivanhoe Electric and a $4M loan from JCHX.
G2 Goldfields raises C$22.5M
G2 Goldfields (TSXV:GTWO) closed a C$22.9M strategic investment by AngloGold Ashanti of 24.5M shares @ 90c. The proceeds are expected to advance exploration activities at the Oko project in Guyana. Under an investor rights agreement, AGA was granted pre-emptive and top-up rights for future security issuances by GTWO.
Omai to raise C$3M
Omai Gold Mines (TSXV:OMG) announced a non-brokered private placement of up to 43M units @ 7c for proceeds of up to C$3M. Each unit will consist of one share and half a warrant exercisable @ 11c for 1.5 years. The proceeds will further advance the exploration on the Omai Au project in Guyana. An updated resource is being prepared to form the basis of a PEA, both expected within the next couple months.
Libero to raise C$3M
Libero Copper & Gold (TSXV:BC) will conduct a non-brokered private placement to raise up to C$3M. The offering will consist of units @ 15c, each consisting of one share and a warrant exercisable @ 20c for three years. BC chair Ian Slater will invest $300k in the offering and will receive 750k bonus 20c three-year warrants as consideration of an outstanding loan. CEO Ian Harris will invest $70k. Upon closing, Ian Slater and Brad Rourke will resign from the board and be replaced by Robert Van Egmond and Ann Fehr.
Libero rolls back
Libero Copper & Gold (TSXV:LBC) is to undertake a 10:1 share consolidation, reducing its 174.8M issued and outstanding shares to 17.5M. LBC issued 13.4M shares from October to December 2023 through an ATM offering, generating proceeds of C$280k. Bill Bennett resigned as a director for personal reasons.
Collective in OTCQC Best 50
Collective Mining (TSX:CNL) ranked second in the 2024 OTCQX Best 50 top-performing companies traded on the market last year.
Soma graduates to OTCQX Best market
Soma Gold (TSXV:SOMA) graduated from the OTCQB Venture Market to the OTCQX Best market, and began trading under the ticker SMAGF.
Aurania extends warrants
Aurania Resources (TSXV:ARU) intends to extend the exercise period for 2M warrants, exercisable at C$1.25 until late March 2024 by one year.
ARU also obtained a loan of up to C$1M from its chair, president & CEO Dr Keith Barron. The loan unsecured loan bears interest at 2%/y and will help fund exploration expenses in Ecuador.
Denarius director update
Denarius Metals (TSXV:DSLV) announced the passing of lead independent director Hernan Martinez. Paul Sparkes has been appointed the lead independent director, and Mateo Restrepo has been appointed director. Restrepo is the managing partner of Impact Capital and previously served as president of Continental Gold.
Ecuador seeks Cordoba arrest
Ecuador’s government has asked Interpol to issue an international arrest warrant on former mining minister Javier Cordoba, for alleged corruption during his time in public office during the administrations of Rafael Correa and Lenín Moreno. Cordova, currently CEO of Colombian gold producer Soma Gold (TSXV:SOMA), has temporarily stepped down to attend to the situation, with executive chair Geoffrey Hampson acting as interim CEO. Cordoba has worked for SOMA, formerly Para Resources, since 2020, leading the company to acquire various assets in Antioquia, Colombia, growing its production 32,340oz in 2023. Cordoba was Ecuador’s mining minister from February 2015 until January 2018. He had previously held public office as interior deputy minister, justice vice minister, and other roles between 2012 and 2018. Ecuador’s prosecutor Diana Salazar, has accused the former minister of an unjustified increase in his assets based on findings by the comptroller general.