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Antioquia loses mining delegation
The government of Colombia’s president, Gustavo Petro, has provoked a furore in Antioquia, the country’s leading gold-producing department, after refusing to renew the delegated authority to administer its mining sector, which it has enjoyed since 2001. From January 1 of 2024, mining activity in Antioquia will be administered by the National Mining Agency (ANM) in Bogota. “My government has decided to terminate the delegation that had been issued regarding mines for the department of Antioquia. We recover our constitutional function and put it at the service of the small miner,” said president Petro. “The ANM notified [the Government of Antioquia] that it will not extend the mining delegation with the alleged legal argument of the permanent nature it has acquired. We reject this decision and its motivation, which once again highlights the centralism prevailing in our days,” responded Antioquia governor Anibal Gaviria.
A decade ago, the national government revoked the delegated authority that Bolivar, Cesar, Norte de Santander, Caldas and Boyaca previously enjoyed on grounds including inefficiency, malpractice and corruption. Antioquia was the sole department to retain its delegated authority after this cull with successive governors successfully arguing for its renovation due to the sector’s importance as an economic engine for the department, and the administrative expertise it has generated over the decades. While Antioquia had sought to extend its delegation authority until the end of 2025, the ANM said an analysis showed shortcomings in following procedures and processes. When delegated authority was created under Law 685, the 2001 Mining Code, it was seen as a mechanism to increase efficiency. In the pre-digital age, delegated authority meant people in the mining sector could file the paperwork for administrative processes in the departmental capital, such as Medellin, rather than travel to Bogota. However, with efforts by the government beginning seven years ago to enable people to file documents online, culminating in the 2020 launch of the ANNA Mineria system, and the digitisation of the concession database, visits to an office to file paper documents are a thing of the past.
Politics
Many in Antioquia believe the Petro administration's decision is a political move to centralise activities and power in capital Bogota, in what is seen as a reverse of a broader constitutional principle of decentralisation. The loss of delegated authority follows a September 2023 announcement that the national government would not provide the funds to conclude the 4G highway programme in the department. The 4G road programme aims to improve competitiveness by reducing transportation times and costs for goods to get to the country’s ports. “Autonomy in Antioquia is a threat to the government … and it wants to reduce the budgetary and governance independence of Antioquia and the rest of the country,” Colombia Risks Analysis founder Sergio Guzman told CGS.
President Petro also wants to launch a state mining company called EcoMinerales even though the 2001 Mining Code states that the nation will not engage in mineral extraction. “Petro is trying to launch a state mining company, and I presume that it would want Antioquia to be an important part of the portfolio of EcoMinerales, and that the state can occupy a lot of the mining titles in Antioquia,” said Guzman.
Antioquia is home to Colombia’s two biggest gold mines: Aris Mining’s (TSX:ARIS) Segovia Operations and Zijin Continental’s Buritica, both of which produce more than 200kozpa. Under the administration of Gaviria, whose term ends at the end of 2023, Antioquia’s gold exports have increased from US$1.4B in 2019 to $3B in 2022, although this time period has seen the gold price increase substantially. Mining safety and environmental remediation have also improved, Antioquia Secretary of Mines of Antioquia, Jorge Jaramillo told CGS. However, successive Antioquia governors have been unable or unwilling to resolve the security issues and invasion by criminal miners that have plagued the Buritica gold mine for almost a decade, and which caused owner, Zijin Continental, to file an international investment dispute against Colombia in November 2023.
Exploration activity has also decreased since the boom experienced in 2009-2012. While the bear market and the inability of explorers to raise funds have been a contributing factor, the inability to apply for concessions and convert them into mining titles so exploration drilling can take place has been equally damaging. Almost no concessions were awarded during the first three years of governor Luis Perez (2016-2020), for example, and in its four years, the Gaviria administration has awarded 159, bringing the department total to 1,127. At the end of November, Antioquia had 1,702 processes pending, including title applications, title modifications and small miner formalisation requests. In 2020, after conducting a study on the process of converting concession applications into mining titles in the department, consulting group Portex, said the conversion delay represented a loss of 26B pesos (US$7M) in income through surface canon payments in 2019, and meant some 1,270B pesos ($340M) of exploration expenditure was not incurred over what would have been the initial three-year exploration period.
Small miners
While tardiness in converting applications to concessions is not unique to Antioquia, in addition to the financial implications for the mining authority, local employment and local suppliers, the inability to convert concession applications into concession contracts has provided opportunities for informal and criminal mining to flourish. "One of the causes [of informal mining] is delays and the poor efficiency of the mining and environmental authorities for the concession mining areas. When the authorities don't give answers, this increases the ability of informal miners to occupy areas of interest," said Leonardo Guiza, director of the CIMA Mining and Environment Innovation Centre of Rosario University in 2020. Recognising that small miners, whether legal, informal or illegal, are voters, Petro’s mining policy has been geared towards this scale of activity rather than overtly seeking to increase large-scale mining in Colombia. Antioquia has been a national leader in the formalisation of small miners, accounting for 40% of the total processes completed in Colombia. In the period 2020-2023, Antioquia has formalised 7,180 miners.
Solaris funds Warintza through to permitting
Solaris Resources (TSX:SLS) entered into an US$80M financing agreement with Orion Mine Finance to advance the Warintza Cu project in Ecuador. The financing comprises a $60M four-year senior secured debt facility, an offtake with a buyback provision upon a change in control, $10M in equity and a commitment for $10M in additional equity financing. The first $30M is expected to close and be drawn down in the coming weeks. Another $15M can be drawn on submitting an EIA, and a further $15M can be drawn on publishing a PFS for Warintza. Under the offtake agreement, Orion can purchase 20% of metals produced from Warintza for 20 years from the start of production. Proceeds will fund the advancement of Warintza, including exploration and infill drilling, technical and environmental programmes and studies, permitting and community social relations programmes. “We previously disclosed that we had received offers from companies and so we have confidence in transacting on the asset once it is further derisked. We want to advance the asset while minimising dilution, to get to a better share price when we would have a broader audience,” president & CEO Daniel Earle told CGS.
The first $30M is expected to close and be drawn down in the coming weeks. Another $15M can be drawn on submitting an EIA, and a further $15M can be drawn on publishing a PFS for Warintza. Under the offtake agreement, Orion can purchase 20% of metals produced from Warintza for 20 years from the start of production, with a buyback provision upon a change in control. The initial $10M equity raise is priced at C$5.11, representing a 26% increase over the company’s current share price, with a further $10M equity commitment, which can be called upon later by SLS. The funding boost will enable Solaris to take Warintza through its next resource update in 2024, the EIA, PFS, exploitation agreement, and complete permitting in 2025. “The full programme of derisking is based on discussions we had with potential buyers. No one is asking for a FS, detailed engineering, or to have the construction workforce mobilised,” said Earle.
Recent dramatic changes in the supply side of the copper market mean that being able to deliver on its timeline could prove fruitful for SLS. Some 600kt/y of Cu supply has recently been cut due to the closure of First Quantum Minerals’ (TSX:FM) Cobre Panama operation in Panama and cuts made by Anglo American to reduce costs. Rio Tinto has also cut its output while community issues continue to dog MMG’s Las Bambas operation in Peru. “We thought that the inflection point of sustained deficits in the Cu market, that the real fireworks would come in 2025, but recent events have moved that point forward,” said Earle. Earle believes Warintza is in the right location to benefit from the changing market dynamics, with Ecuador providing the promise of low-cost development for Cu projects. SLS has an April 2022 resource of 287Mt @ 0.79% CuEq as an indicative starter pit at Warintza Central within a larger 1.5Bt resource. “Mirador 40km to the south of Warintza is undergoing an expansion that will see it produce 250ktpy of Cu once complete. Its initial capex, sustaining capital, and expansion is less than $3B because the infrastructure in this part of Ecuador, the elevation, access to water and power deliver incredibly attractive capital intensities at the bottom of what we see in the industry. This will become the defining feature of which projects get built or not in the next cycle,” said Earle.
Ecuador’s recently elected president, Daniel Noboa, is mandated to generate employment and fix the economy. The country’s international foreign exchange reserves are running low, and it cannot access international credit markets. “Naboa is a consensus builder and pragmatist. The Assembly sees these signals, and two-thirds of Assembly members have said they will work with him to address the country’s economic issues,” said Earle.
Cobre Panama dust settles thick
The dust of the forced closure of the Cobre Panama Cu mine is settling, and it will likely settle thickly on mine operator and host country Panama. Cobre Panama is a company in growth mode with expansion and development projects at its operations worldwide. But it is also a company with some US$6B of debt as at the end of the September quarter, and with the shutting of Cobre Panama, the mine which was to drive its free cash flow generation in the coming years, its plans could soon be in tatters. CFO Ryan MacWilliam mentioned that the rapid change in the company’s circumstances could test its debt covenants. Fortunately, the company has some short-term wiggle room, with the $808M in short-term debt more than covered by its $1.3B in cash. However, almost $3.5B is due to be repaid 2025-2027.
First Quantum Minerals (TSX:FM) is hopeful that common ground can be found for the mine to continue to operate, although acknowledging that is unlikely in the near term. The company has shut operations and declared force majeure on its contracts, including those of its employees. The loss of Cobre Panama is new, and the company will have at least a year to put measures in place to adjust to its new reality. People close to the company say it is too early to tell what actions FM may take. However, debt restructuring, deferring capital projects and the possible full or partial sale of other assets could be within that conversation. FM notified the government of Panama that it initiated arbitration before the International Court of Arbitration (ICC), which provides for arbitration in Miami, Florida.
Panama, too will feel the loss of a project that was becoming a cornerstone of its economy for decades to come. As 7,000 direct Cobre Panama workers ask their government what is to become of them, Commerce and industry minister Federico Alfaro, who led the negotiation of the Cobre Panama contract with FM, which was agreed in March, signed into law in October and was deemed illegal by the Supreme Court in November, fell on his sword. During his resignation speech, Alfaro spoke of the “serious consequences” of the ruling, including loss of jobs, economic instability, international arbitration, a possible impact on the country’s investment grade risk rating, an increase in interest rates, future legal uncertainty of other concessions awarded in the country. Many are still stunned and in disbelief that the closure is permanent, and taking a Dr Pangloss view of things. “The stakes are too high for the country, the employees and other businesses that are affected to let it close down permanently,” a Cu analyst told CGS.
Yet, as the euphoria of the anti-mine protestors dies down, Panama is grappling with what mine closure means, and assuming the costs and responsibilities. Alfaro said the Ministry of Commerce is evaluating the actions it needs to take to implement the ruling, together with the Ministry of Environment and other government agencies. In this, the government will initially be able to count on the support of FM, which stands behind its environmental stewardship responsibilities in the country, even if no longer project operator. The task is complex, with the company enumerating the many different processes that must be undertaken and will likely take months to complete. “The court’s decision does not take into account a planned and managed closure scenario, in which key environmental measures are required to be implemented to maintain the environmental safety of the site during this process,” the company said. Specific tasks, or questions, include the tailings storage and water treatment facilities management plan to preserve water quality, maintain safety and prevent failure. To what extent will the government continue with Cobre Panama’s rehabilitation, reforestation and species conservation programmes, and will it replace the funding the mine provides to almost 20% of Panama’s total protected areas, some, 200,000 hectares?
Exploration News
Collective Mining (TSX:CNL)
Announced assay results from the first four directional drill holes into the Apollo porphyry system at its Guayabales Au-Cu-Ag-tungsten project in Caldas, Colombia, which have expanded the deposit to the SW, and intercepted high-grade mineralization at the deepest vertical depth drilled to date. Highlights included 389.45m @ 1.36g/t AuEq up to 935m below surface in hole 4, which extended the system by 100m to the SW. Apollo now measures 520m x 395m x 935m. Drilling continues with four rigs as part of a 42,000m programme, with two at the Apollo and two at Trap. “Our directional drill programme is off to an excellent start by demonstrating that orthogonal drilling improves the grade profile locally due to an abundance of zones flooded with mineralized CBM vein fluid. Additionally, directional drilling is making it much easier to test and expand the Apollo envelope by allowing us to quickly reach areas that are not possible to drill from surface due to topography,” said executive chair Ari Sussman.
CNL also announced a discovery at the ME target about 800m SE of Apollo with highlights including 111.25m @ 1g/t AuEq in hole 81 and 55.4m @ 1.20 g/t AuEq in hole 83. Final reconnaissance drill holes into the NW portion of the Plutus target intercepted 304.6m @ 0.76 g/t AuEq in hole 5. The 2024 exploration programme will include a minimum 40,000m of diamond drilling and an airborne VTEM/ZTEM survey. Drilling will focus on the continued expansion of Apollo and exploration drilling of various targets.
Cordoba Minerals (TSXV:CDB)
Released a FS for the Alacran Cu-Au project in Cordoba, Colombia and filed the EIA application with the relevant government authority. Alacran will produce more than 53Mlb/y of Cu in addition to Au & Ag from a conventional open pit mine over 14.2 years at a C1 cash cost, net of by-product, of US$1.35/lb with by-product credits at $1.31/lb, following an initial capital expenditure of $420.4M. The project would yield an after-tax NPV of $360M with an IRR of 23.8% with a three-year payback period. These are similar, albeit slightly lower, to those reported in the 2022 PFS. The FS uses metal prices of $3.99/lb Cu, $1,715/oz Au & $22.19/oz Ag. The PFS used $3.60/lb Cu, $1650/oz Au & $21/oz Ag. The average mining rate is projected to be 39.5Mtpa of mined material with ore to be fed into dual processing plants consisting of a main processing facility for fresh and transition material comprised of a conventional 17,600tpd semi-autogenous ball mill crusher circuit and a flotation process plant producing a copper concentrate and a high-grade gold and silver concentrate. A separate wash gravity plant for 2,400tpd of saprolite ore and 1,200tpd of historical tailings will produce a high-grade Au & Ag concentrate. The operation will also feature a co-disposal of waste rock with thickened tailings waste management facility. "The filing of the EIA in conjunction with the completion of the FS for Alacran officially commences the next chapter for CDB as we transition from a pure exploration company to a development enterprise," said president & CEO Sarah Armstrong-Montoya. Detailed mine engineering and design work is planned to commence in early 2024.
Under the strategic framework agreement CDB has with joint-development partner JCHX Mining Management, the second instalment of $40M will be payable by JCHX to CDB within ten business days after the approval of the FS by the CDB board and the filing of the EIA application. CDB and JCHX entered into a strategic agreement on December 8 for the joint development of Alacran. JCHX purchased a 50% ownership interest in the project for $100M to be paid upon completion of certain milestones.
Lundin Gold (TSX:LUG)
Announced its 2024 guidance and three-year outlook for its Fruta del Norte Au mine in Ecuador. 2024 production is estimated at 450-500koz at an AISC of US$820-890/oz. Sustaining capital is estimated at $35-45M, with 56,000m of drilling planned under the 2024 near-mine and regional exploration programmes. Production is expected to rise to 475-525koz in 2026. “2024 marks LUGs next step in our FDN expansion story by increasing plant throughput to 5,000tpd and installing new flotation technology to improve recoveries, which will be operational by 4Q24. In parallel, the company will carry out the largest exploration program ever conducted on the extensive and highly prospective land package that hosts FDN,” said president & CEO Ron Hochstein.
Founders Metals (TSXV:FDR)
Announced drill core assay results from the Antino Au project in Suriname, with numerous high-grade intervals in a new zone parallel to the main Antino Shear Zone, more than doubling the width of the Au mineralised footprint to over 200m. Highlights included a discovery in step-out drilling parallel to the main Froyo zone with 14.5m @ 16.26g/t in hole 41. Drill-defined Au mineralisation at Froyo covers more than 500 x 200m and extends to vertical depths of >150m. “We continue to expand the exceptional Au mineralisation at Upper Antino, and these new results represent a major addition to the overall footprint of this robust Au system. … Even more exciting is that this year's drilling has tested only a fraction of the historical auger Au anomalies at Upper Antino, with similar surficial Au signatures yet to be tested at Lower Antino, Parbo, and Buese areas,” said CEO Colin Padget.
FDR also announced assay results from further NW into the Froyo-Ginger connector zone including 9m @ 22.84g/t Au, 6m @ 94.69g/t and 1m @ 434.98g/t. “With Au grades reaching almost 13oz/t, today's results are a spectacular example of the high-grade Au mineralisation at Upper Antino. We are also very excited to see additional Au zones away from the main structure as these potentially represent a much broader mineralised footprint than previously recognised,” said president & CEO Colin Padget.
G2 Goldfields (TSXV:GTWO)
Announced additional intercepts from ongoing drilling at Oko, with highlights of 8.9m @ 13g/t in hole 180 and 5.7m @ 53.1g/t in hole 181W2. GTWO said the results provide further confidence in the continuity of Au mineralisation whilst expanding the mineralised zones down plunge. It has five diamond drill rigs operating.
Reunion Gold (TSXV:RGD)
Announced additional drill results from its Oko West Au project in Guyana from resource expansion drilling beneath the June 2023 resource pit shell between 500m to 1,000m. Highlights included 33m @ 7.26g/t Au in hole 336. Highlights from resource conversion drilling above 500m included 110.6m @ 2.77g/t in hole 343. Resource expansion drilling below the resource pit indicates that the high-grade zone identified within block 4 continues to a depth of at least 1000m. “We are pleased with the results of the deep drill programme which continues to indicate that the high-grade zone that was identified within the resource in Block 4, continues to a depth of at least 1,000m and is open below that. We expect this resource expansion drill programme to be completed early in 2024, and those results will be included in the resource. The resource will include both an updated pit-constrained resource in the area above 500m and an initial resource in the area down to a 1,000m depth. We remain on track to release a PEA in 2Q24,” said president & CEO Rick Howes.
Omai Gold Mines (TSXV:OMG)
Completed its 2023 Omai drill programme in Guyana which will contribute to an updated resource estimate that is underway. Two additional holes were completed on the SP and BBH exploration targets. One hole, drilled down plunge on the SP high-grade target, intersected two intervals of Au mineralisation with highlights of 9.5m @ 7.69g/t Au in hole 69. “Drilling in the West Wenot starter pit area successfully expanded the known zones of Au mineralisation in all directions and is expected to have a positive impact on the updated mineral resource estimate,” said president & CEO Elaine Ellingham.
Mako Mining (TSXV:MKO)
Said that after resuming its original processing plan, it has sold in excess of 10Koz Au since the beginning of 4Q23, which includes 7,964oz recovered in October and November and 2,234oz of Au delivered but not sold in 3Q23. Mill head grades have averaged 8.41g/t Au with 86.6% recovery. In 4Q23, MKO repaid US$1.6M to Sailfish and $3M to Wexford, reducing its accounts payable by $4M and increasing its cash balance by over $1M. MKO expects to fully repay the remaining $1.86M of principal owed to Wexford by year end. In addition, MKO repurchased 243K @ C$2.06 since the announcement of a NCIB in November. “The amount of cash flow coming from the mine in just the first two months of the quarter is extraordinary. MKO is on track for record Au sales and ounces recovered, which has significantly strengthened its balance sheet. This is setting up the Company to invest in a very large internally funded exploration program for 2024 while returning a significant amount of capital to shareholders,” said CEO Akiba Leisman.
Soma Gold (TSXV:SOMA)
Said increased production at the Cordero Au mine in Antioquia, Colombia, will support the restart of operations at the El Limon mill, which has been under care and maintenance since 2019. The mill restart process is scheduled to commence in January, with an estimated completion time of three to four months. The decision to restart El Limon, rather than relocating it to the Bagre Au complex, was influenced by the proximity of the mill to the recently acquired Aurora mine on the OTU Centro concessions. SOMA anticipates resuming mine production at Aurora by the end of 2024. Currently, Cordero production surpasses the capacity of the Bagre mill, allowing for the building of a stockpile. Once operational, the El Limon mill will process material from Cordero, Aurora and formalised small miners. An environmental license has been granted to a second small miner operating on SOMAs concessions. The combined production from the two formalised mines is expected to add 50-75tpd of feed material. “The restart of the El Limon mill is a pivotal element in our strategy to maximise the use of our assets across our district-scale property in Antioquia. The mill underwent reconstruction and expansion from 2018-2019 and care and maintenance upon our acquisition of the El Bagre Au complex in 2020. It remained in this state until SOMA reached a point of generating sufficient feed to utilise the installed capacity of both mills fully. That time has come,” said CEO Javier Cordova.
SOMA was also awarded the highest Sustainability Seal certification from the regional environmental authority Corantioquia, in Antioquia, Colombia, given to organisations that demonstrate outstanding sustainability performance, surpassing regulatory requirements. SOMA received the highest level of certification, AAA.
Luminex Resources (TSXV:LR)
Agreed with a subsidiary of Anglo American to amend and restate the Pegasus earn-in and JV agreement in Ecuador. LR agreed to Anglo American having a right to earn in and retain the original 60% earn-in ownership threshold by spending US$15M more than expenditures to date, of which $10M must be allocated to direct drilling costs. LR will also be owed $3.9M through cash payments to complete the earn-in to 60% ownership. In addition, the parties agreed to exit a portion of the exploration tenure (Pegasus B) which can’t be meaningfully progressed in the short to medium term. Anglo American will also apply to reduce the concession size at Pegasus A based on fieldwork completed since 2018. “Our team continues to believe that Pegasus has the potential for large-scale Cu porphyry discoveries and is happy to see Anglo American has decided to continue its work and drilling,” said CEO Marshall Koval.
Volcanic Gold Mines (TSXV:VG)
Signed long-term access agreements with property owners on the Cirilo I exploration licence at the Motagua Norte project in Guatemala. The Cirilo I exploration license was granted in September 2023 and covers 13.5km². The land access agreements will allow access to and exploration of the Mila Au-Ag prospect and nearby mineralised veins. An environmental permit to undertake surface and trench sampling is in place, and VG is preparing for a trenching and drilling campaign in the new year. “The access agreements will allow us to undertake detailed geological mapping and trenching and prepare the way for drill-testing in the new year,” said president & CEO Simon Ridgway.
Quimbaya Gold (CSE:QIM)
Closed the acquisition of Explogold Ingenieria y Consultoria, Minera Buey Aures and Soluciones Ambientales Del Nordeste, companies owned by Remandes Corporation for US$100k and 10M shares. The $100k will be used by Remandes in accordance with a mutually agreed budget. The transaction brings QIM the Tahami and Maitamac projects in Antioquia. Tahami consists of two titles for 622 hectares and applications for 2,494 hectare, located around Aris Mining’s (TSX:ARIS) Segovia Au mines. Maitamac is 45km SW of Medellín in the Abejorral and Sonson municipalities and comprises six applications covering 26,102 hectares. “After evaluating numerous opportunities in 2023, QIM is delivering on its promise to add a quality prospective Au, Ag & Cu projects to its portfolio,” said Alexandre Boivin, who is also a Remandes shareholder. Following the transaction, he holds 9.3M shares of QIM, representing 33.44% of its issued and outstanding shares.
Goldsource Mines (TSXV:GXS)
Said the planned PEA for its Eagle Mountain Au project in Guyana will have an initial phase of shallow open pits to exploit saprolite resources. A second phase will develop fresh rock mineralisation, where Au production will be derived from a blend of fresh rock and saprolite. GXS anticipates receiving the PEA results for release in January 2024 which will be based on the April 2022 indicated resource of 31.1Mt @ 1.18g/t for 1.2Moz.
SolGold (LSE:SOLG)
Provided an exploration update on its Espejo project in Ecuador 20km NE of its Cascabel project, which is under a strategic alliance with state minerals company ENAMI. SOLG identified another porphyry Cu target at Anomaly 4, in addition to Anomalies 1, 2, and 3. Recent exploration at Anomaly 4 revealed a 2km x 1.5km area with porphyry intrusive rocks exhibiting Cu, Mo, and Cu/Zn soil geochemical anomalies and zones of outcropping B-type quartz veining. Anomaly 4 shows classic porphyry geochemical zonation, alteration, and mineralisation patterns. Rock sampling returned highlights of 4.15g/t Au, 77.8g/t Ag & 2.63% Cu. “The recent identification of another high-potential target at Espejo, coupled with our discovery at Blanca Nieves, highlights the expertise and commitment of our geology team,” said president & CEO Scott Caldwell.
SOLG also provided an update on the La Florida exploration target within Blanca-Nieves, where exploration led to the discovery of high-grade epithermal quartz vein floats that exhibit visible Au. Assay results from rock samples have delivered values of up to 276g/t Au & 141g/t Ag. Subsequent work led to the discovery of a 15m wide zone hosting epithermal quartz veins and a breccia outcrop. Grab samples from quartz veins within the outcrop have yielded up to 4.15g/t Au & 3.35g/t Ag. SOLG is the new target areas at La Florida for drilling. Its proximity to the Cielito target means the two could be connected.
Lumina Gold (TSXV:LUM)
Began a work programme to support the development of the Cangrejos and Gran Bestia Au-Cu deposits in El Oro, Ecuador. The programme includes collecting 20 metallurgical composite samples from dedicated drill holes within the Cangrejos and Gran Bestia deposits, comminution test work, detailed mineralogy and flotation test work for Au & Cu recovery estimates and providing concentrate samples for marketing studies. C. H. Plenge in Lima, Peru will undertake test work. LUM completed 3,065m of drilling in 14 diamond drill holes to collect metallurgical samples and comminution testing samples. LUM also completed drilling 7,767m in 91 holes to potentially upgrade some of the indicated resources containing 16.8Moz Au & 2.2Blb Cu to the measured category. Some 6,842m of the 8,375m of planned geotechnical drilling is complete. A FS is due to be completed in 1H25.
Corporate News
Orla loses Cerro Quema
Orla Mining (TSX:OLA) said Panama’s Ministry of Commerce and Industry (MICI) rejected its requests for the extension of the three mining concessions comprising the Cerro Quema Au-Cu project and declared the concessions cancelled and the area comprising the concessions to be a reserve area. OLA said that until it has greater certainty with respect to the mining concessions and fiscal and legal stability in Panama, it will not consider additional spending towards the development of Cerro Quema and will explore all legal remedies available to protect its historical investments, including under international law. Cerro Quema includes a PFS-stage, open-pit, heap leach Au project, a Cu-Au sulphide resource, and various exploration targets. To date, OLA has invested over US$120M in Panama.
Venezuela renews territorial claim over Guyana
Venezuela’s president, Nicolas Maduro has renewed the country’s claim over Essequibo, representing about two-thirds of neighbouring Guyana. Maduro said a referendum on the issue, largely viewed as a farce by the international community, gave him the authority to press the claim. Essequibo is home to Guyana’s main Au exploration projects and offshore, large oil reserves. At a meeting held in Saint Vincent and the Grenadines under the auspices of the Community of Latin American and Caribbean States (CELAC), Venezuela and Guyana reiterated their commitment to Latin America and the Caribbean remaining a zone of peace and that they will not threaten or use force against one another; that any controversies between them will be resolved per international law, including the Geneva Agreement of February 1966. The internationally recognised border between Guyana and Venezuela was established in 1899 by an arbitration panel and has been continuously administered and controlled by Guyana since then. Venezuela does not recognise the International Court of Justice and its jurisdiction in the border controversy.
South32 force majeure at Cerro Matoso
South32 invoked force majeure at its Cerro Matoso Ni operation in Cordoba, Colombia, after protesters blocked the movement of people and supplies to the open pit mine and smelter. Local residents seek greater benefits from mining.
Cerrejón railroad blocked
Glencore said the railroad taking thermal coal 150km from its Cerrejón coal mine in La Guajira to Bolivar port was attacked with explosives by unknown suspects. Although no one was injured, the explosion caused damage to the railway line and a railcar and led to a stoppage of coal transport. Between five and six trains carry 80,000tpd of coal to Bolívar Port. Cerrejón produced 19.7Mt of thermal coal in 2022.
Bluestone extends US$30M loan
Bluestone Resources (TSXV:BSR) extended the term of the US$30M loan with Lundin family companies Zebra Holdings and Investments, and Lorito Holdings to March 2025. The loan will provide for the drawdown of funds in tranches of not less than $1M to advance the Cerro Blanco Au project in Guatemala through permit amendment approval. Currently, $12M of the $30M is drawn. In consideration for the loan, BSR will issue 4,000 shares per month for each $1M of the principal amount outstanding.
AngloGold invests C$22.5M in G2
AngloGold Ashanti is to make a strategic investment in Guyana Au explorer G2 Goldfields (TSXV:GTWO). A C$22.5M investment @ 90c will result in AGA owning 24.5M shares, 11.7% of the junior. The proceeds will be used to advance the exploration of the Oko project. AGA will have pre-emptive and top-up rights for future security issuances by G2. “We are delighted AngloGold Ashanti has confirmed it intends to be a major shareholder in GTWO. This is a testament to the quality of our assets and exploration team,” said CEO Dan Noone.
Adventus raised US$18M
Adventus Mining (TSXV:ADZN) closed a private placement for proceeds of US$18M comprised of $13.5M in a non-brokered placement through the issuance of 63.8M subscription receipts @ US21c, C$5.7M in a bought deal placement through the issuance of 2M units @ $2.90 which includes the exercise of the over-allotment option, and US$211k in a non-brokered placement through the issuance of 100k units @ US$2.117. Each unit consists of four shares and six subscription receipts, with 40% of the price per unit allocated to the unit shares underlying each unit and 60% to the subscription receipts. Each subscription receipt will convert into one common share of ADZN without payment of additional consideration. The proceeds will advance the Curipamba El Domo project in Ecuador. ADZN and Altius Minerals also agreed to amend the terms of Altius’ outstanding US$4M unsecured convertible debenture until December 2024 from December 2023 and to reduce the conversion price from 31c to 30c.
C3 Metals share consolidation
C3 Metals (TSXV:CCCM) received approval from the TSX Venture Exchange for its 1:13 share consolidation, which became effective on December 19, 2023. As a result of the consolidation, the number of outstanding shares will be reduced from 804.5M to 61.9M. “We are undertaking a share consolidation from a position of strength. We have been providing positive drill results from our Bellas Gate project in Jamaica leading up to this consolidation. After closing an oversubscribed and upsized private placement of C$8.05M on November 15, 2023, we believe we are in an excellent position to continue to gain momentum through a well-funded and expanded drill programme in Jamaica. Cleaning up the share structure is important to attract new institutional investors,” said president & CEO Dan Symons.
Founders lists on OTCQX
Founders Metals (TSXV:FDR) said its stock is trading in the USA on the OTCQX under the ticker FDMIF.
Reunion settles Barrick claim
Reunion Gold (TSXV:RGD) settled a claim brought by Barrick Gold (TSX:ABX). RGD and ABX agreed that the strategic alliance agreement they entered into in February 2019 has terminated and no outstanding obligations or properties are subject to the agreement. A consent dismissal order will be entered in the Ontario Superior Court to dismiss the claim.
Bluestone board changes
Bluestone Resources (TSXV:BSR) announced changes to its board, with William Lamb, Jack Lundin, and Zara Boldt resigning. Jill Donaldson and Joyce Ngo have been appointed and president & CEO Peter Hemstead appointed chair. Adam Lundin will act as a strategic advisor.
Omai adds Macpherson to board
Omai Gold Mines (TSXV:OMG) elected Derek Macpherson to its board. Macpherson has over ten years of capital markets experience in mining, identifying investment opportunities, consulting on business strategy, and raising money for junior mining companies. Previously, he worked as a metallurgist. Macpherson is president & CEO of Gold79 Mines and executive chair of Olive Resource Capital.