Support for CGS newsletter provided by
Colombia explorers face Jekyll & Hyde administration
Explorers in Colombia are receiving mixed signals from the administration of president Gustavo Petro about the ability to explore and develop projects, even though general policy towards the sector has changed little from his pro-mining predecessors.
This is a Premium article
First Quantum suspends Cobre Panama
First Quantum Minerals (TSX:FM) suspended ore processing operations at the Cobre Panama Cu mine in Panama due to its inability to ship concentrate following the Panama Maritime Authority’s (AMP) refusal to permit loading operations at the Punta Rincon port.
This is a Premium article
First Quantum calls out Panama’s coercive tactics
First Quantum Minerals (TSX:FM) called out Panama’s coercive tactics as the two parties work towards signing a new contract to govern the Cobre Panama Cu mine.
This is a Premium article
Newcrest deal could unlock Newmont’s Americas potential
Newmont’s (NYSE:NEM) bid to acquire Australia’s Newcrest Mining (ASX:NCM) would create a US$53.1B behemoth, creating a Au company with a market capitalisation approaching that of some of the diversified miners while increasing the daylight to its main rival Barrick Gold (NYSE:GOLD).
This is a Premium article
Lundin Gold has stellar 2022
Lundin Gold (TSX:LUG) reported net earnings of US$73.6M for 2022 on revenues of $815.7M, 67% less than the $221.4M reported in 2021. The company produced 476koz Au in 2022 from its Fruta del Norte mine in Ecuador at an AISC of $805/oz, beating its guidance of 430-460koz and AISC guidance of $820 to $870/oz. LUG is guiding 2023 production of 425-475koz based on an average throughput rate of 4,400tpd at an estimated head grade of 9.67g/t. FDN has increased its throughput from an initial design capacity of 3,500tpd to 4,272tpd, with recoveries now averaging close to 90%. The company achieved record throughput of 4,574tpd in the December quarter. “2022 was another blockbuster year for Lundin Gold,” said president & CEO Ron Hochstein during the 2022 results conference call.
The company continued to pay down its debt in 2022, ending the year with $322.6M, 42% less than the $551.8M it held at the end of 2021. In January, it continued to clean its balance sheet with the repayment in full of its Au prepay facility of $207.5M. Its debt now comprises its senior debt facility which it expects to repay two years ahead of its scheduled maturity date. “This gives us greater flexibility in our capital structure to pursue opportunities,” said Hochstein. This includes M&A activity. "We are active [in M&A], more so than in the past. The challenge is how do we add something that will be as good or better then FDN. We look at a lot of things. You never know what will be the rose among the dandelions," said Hochstein.
The company said near-mine exploration is in full swing, targeting the east and west faults, which are the main controlling strucutres of the deposit, at depth and along the southern extension of the deposit. It anticipates updating its reserves and resource in the near future. Regionally, at Quebrada La Negra, its exploration intercepted a major structure with quartz veins, hydrothermal carbonate-silica breccias and sulphides hosted in the Santiago formation, which is also the Fruta del Norte hosting sequence.
LUG also updated the reserves and resources at FDN. LUG replaced all reserves mined since the beginning of operations in late 2019. Reserves are now 18Mt @ 8.68g/t containing 5Moz. M&I resources are 23Moz @ 9.2g/t for 6.8Moz. 3.6Moz are now categorised as measured resources due to an improved understanding of the deposit geology. “We expect that this updated resource and reserve estimate is only the first step in expanding the total minable ounces of Au, allowing FDN to continue production for many years to come,” said Hochstein.
Exploration News
Soma Gold (TSXV:SOMA)
Set a new monthly production record of 2,680oz AuEq in January from its El Bagre Au mine in Antioquia, Colombia, 24% ahead of budget and 47% more than the prior year period. Full-year production for 2023 is planned to be 36koz. “Our team in Colombia has done an outstanding job of ramping up production by leveraging our new mechanised fleet to achieve the new mine plan. Integrating the new mining method and adding an experienced mining engineer like Mark Bren as VP operations, will ensure that we meet or exceed our production goals in the coming years,” said president & CEO Javier Cordova.
Adventus Mining (TSXV:ADZN)
And Salazar Resources (TSXV:SRL) announced additional infill drilling results from the underground portion of the El Domo VMS deposit within the Curipamba project in central Ecuador. Highlights included 21m @ 4.43% Cu, 3.4g/t Au, 2.28% Zn, 36.1g/t Ag & 0.01% Pb for 6.03% CuEq in hole 408, including 14.35m @ 7.54% CuEq.
Cordoba Minerals (TSXV:CDB)
Recommenced FS technical programmes, including in-fill drilling for its Alacran Cu-Au-Ag project in Cordoba, Colombia. Work was temporarily suspended due to public demonstrations on social reforms.
Rugby Resources (TSXV:RUG)
Announced initial results for hole 3 on its Cobrasco Cu-Mo discovery in Choco, Colombia, with an intercept of 144.6m @ 0.69% Cu & 155ppm Mo from 156m. The hole targeted to be drilled to 1,300m was paused at 300.6m at year end in high grade porphyry mineralisation. Hole 3 was drilled using the same drill collar location as hole 2, which returned 754m @ 0.46% Cu & 76ppm Mo. The holes are 400m S of hole 1 which hit 808m @ 0.42% Cu & 79ppm Mo. Hole 3 will resume one RUG has a strategic partner to fund drilling. “The three drill holes are all well mineralised, yet they are testing only a portion of the system. The ultimate depth and lateral extent still need to be defined, but clearly the scope of the system is impressive with the size potential of a world class porphyry. RUG simply needs drill holes to define the high-grade sweet spots and to establish grade contours for the system,” said chair Yale Simpson.
Dundee Precious Metals (TSX:DPM)
Reported the 2022 diamond drilling results on the Tierras Coloradas concessions in Loja, Ecuador, designed to test a series of low sulphidation epithermal veins previously identified by field work and scout drilling in 2020. Drilling confirmed the presence of a well-mineralised vein system. Highlights included 6m @ 2.92g/t in hole 13 at the Aparecida vein system and 4m @ 2.51g/t Au in hole 16 at the La Tuna vein system. DPM has delineated over 8km of vein strike length, largely accounted for by the Aparecida and La Tuna vein systems. Aparecida has been traced over 1.5km, whilst La Tuna for 2km. A diamond drilling programme of 2,739m in nine holes was undertaken in 2022 to test four low sulphidation epithermal vein zones to confirm lateral and down-dip geologic and grade continuity.
Reunion Gold (TSXV:RGD)
Exercised the two options to acquire all of the rights to its Oko West Au project in Guyana, originally held by two local miners, for no additional consideration. RGD is now the 100% registered and beneficial owner of Oko West.
RGD also chose G Mining Services to provide full engineering and project development services for Oko West, including completing a PEA. RDG is working with G Mining towards releasing a maiden resource estimate on the Kairuni zone by mid-year. In parallel, RGD will continue to explore three additional priority exploration targets on Oko West, including the Takatu zone, which represents the southern 4 km of the same sheared contact that contains the Kairuni zone. “There is no engineering firm with the mine building experience in the Guiana Shield and in tropical environments that G Mining Services has. Louis Gignac and G Mining have a successful track record of designing, building and/or operating such mines as the Omai Au mine and Omai Bauxite in Guyana, Gross Rosebel and Merian in Suriname, Fruta del Norte in Ecuador, and currently Tocantinzinho in Brazil,” said CEO Rick Howes.
Collective Mining (TSXV:CNL)
Announced assay results from three further holes drilled into the Main Breccia system at the Apollo target at its Guayabales Au-Cu project in Caldas, Colombia. Step-out drill hole 28 cut the longest intercept to date of 601.65m @ 1.4g/t AuEq including 259.95m @ 2.15g/t. Hole 28 extends the width and vertical dimensions of the Main Breccia system to 395m and 915m. It also bottomed in mineralisation, indicating that the Main Breccia system remains open to the west and at depth. “The Main Breccia system at Apollo continues to yield positive surprises. The company drilled three long holes in 2022, APC-17, APC-22 and APC-28, with each hole expanding the size of the deposit and bottoming while still in mineralisation. 2023 drilling is off to an excellent start with the initial four holes testing the Main Breccia system, all intersecting mineralisation beginning at surface. Our aim for 2023 is to define the newly discovered high-grade and near surface mineralisation while continuing to be aggressive with expansion drilling,” said executive chair Ari Sussman.
CNL also announced assay results from the first drill hole of 2023 as part of a phase II drill programme at Guayabales, which aims to test and define through drilling the shallow portion of the Apollo porphyry system (previously known as the Main Breccia discovery) as well as continue expanding the system through step-out drilling. Hole 31 is the first to test the mineralised outcrop of the Apollo porphyry system and returned 384.7m @ 1.17g/t Au, 43g/t Ag & 0.37% Cu for 2.46g/t AuEq including 109.8m @ 4.14g/t AuEq. The hole was terminated in strong mineralisation. Deeper drilling is planned, and five additional holes have been completed in 2023, and all appear to have cut mineralisation. “Not only did hole 31 confirm for the first time that the high-grade Cu-Ag-Au mineralisation in the Apollo porphyry system comes right to surface, but there is also a significant zone of high-grade oxide mineralisation. We have truly discovered a remarkable porphyry system at Apollo characterised by unusually high-grades,” said executive chair Ari Sussman.
CNL also hosted Colombia’s new deputy mining minister, Giovanni Franco, during his visit to the region as part of the Ministry of Mines and Energy’s Social Mining Forum, a communication-based platform to discuss mining between the Ministry and municipalities. “What we see in the advances made by CNL over the past three years is what we would like to have in Colombia. We wish to have 10, 50, 100 companies like CNL all around Colombia to improve the geoscientific knowledge of the country, to improve the understanding of the subsoil resources we have in Colombia to define public policies to improve the extraction of our subsoil resources,” said Franco.
Outcrop Silver & Gold (TSXV:OCG)
Announced assays from 11 drill holes from its delineation programme at the Los Naranjos vein on its Santa Ana Ag silver project in Tolima, Colombia. 31 holes have been drilled in Los Naranjos to date. 18 returned high-grade assays and one hole is pending. The results show that Los Naranjos is one of the larger high-grade shoots on Santa Ana, with an average estimated true width of 72cm and a weighted average grade of 926g/t AgEq. High-grade mineralisation has been identified in Los Naranjos for 250m along strike and 300m depth. Exploration will continue defining limits to Los Naranjos and discovering potential new shoots. Highlights included 1.53m @ 516g/t in hole 312 and 65cm @ 3,312g/t in hole 296. "The recent good results at Naranjos confirm high-grade mineralisation open at depth on both ends of, and central to, the current exploration focus on 18km long vein zones. Hole 312 suggests that Los Naranjos may widen with depth,” said VP exploration Guillermo Hernandez. "The production level maps for the Frias Mine, and now OCG drill results from Las Maras and Los Naranjos all show plus 300m depths to mineralisation, we will likely significantly expand the vertical extent of mineralisation at Santa Ana," said CEO Joseph Hebert.
Lucky Minerals (TSXV:LKY)
Discovered large intersections of Au mineralisation in the initial stage of ongoing drilling at the Wayka project in Ecuador. LKY completed the first five holes at Wayka using lightweight drill equipment with shallow holes designed to follow up on trenches. Highlights included 10m @ 0.68g/t Au in hole 3. The objective of the initial programme is to prove the continuity of the siliceous lenses to depth and its lithological and/or structural control. "To have discovered large intersections of near-surface Au mineralisation in our first five shallow holes is a substantial achievement. We believe these initial holes have intersected the margins of the epithermal Au system and that additional drilling will allow us to vector into the higher-grade feeder structures within the system. We will be intensifying work as we continue to drill test the newest Au discovery in Ecuador,” said CEO François Perron.
G2 Goldfields (TSXV:GTWO)
Announced additional assay results from drilling at the OKO Main Zone (OMZ) on its OKO project in Guyana. Since G2 published a maiden resource on OMZ in April 2022, it has completed 36 drill holes for 13,279m. Drilling has focused on expanding the resource by targeting an expansion to the strike of mineralisation of shears 3, 4 & 5, down-plunge mineralisation of the three shears and near-surface Au mineralisation above 100m vertical, which was largely omitted from the estimate due to lack of data. Highlights included 4.7m @ 8.7g/t Au in shear 3, 3.7m @ 45.4g/t in shear 4 and 7.1m @ 5.1g/t in shear 5.
G2 also reported additional assays from ongoing drilling at the Ghanie zone where drilling has continued to intersect near-surface disseminated Au mineralisation. The new zone is now defined over a strike of 800m. “The latest drill results from Ghanie have confirmed a significant discovery directly S of our OMZ deposit. The high-grade footwall zone, within the broader zone of disseminated Au mineralisation, is continuous and remains open along strike and down plunge,” said VP exploration Boaz Wade.
Calibre Mining (TSX:CXB)
Updated its resources and reserves for its Nicaragua and Nevada properties, which featured a 16% increase in the Nicaraguan Reserve grade to 5.37g/t Au from 4.62g/t as reserves grew 278% to 1.1Moz, net of depletion since acquisition in 2019. Panteon North, discovered in May 2022, has a maiden reserve of 244koz @ 9.45g/t. In Nevada, CXB reported a 23% increase in pit-constrained Pan mine reserves to 234koz, net of depletion, and a 12% increase in Pan M&I resources to 359koz. The company plans 60,000m of drilling in Nicaragua this year and 40,000m in Nevada. “Year-over-year, we have discovered new, high-grade deposits, increasing overall reserve ounces and grades. In 2022, the discovery and delineation of the high-grade ore shoot at Panteon North resulted in 810kt @ 9.45g/t Au for 244koz of reserves, a significant achievement for the team. We have a multi-rig drill programme following up on the most recent results,” said president & CEO Darren Hall.
Solaris Resources (TSX:SLS)
Reported updated geochemical sampling and assay results from follow-up holes at Warintza West in SE Ecuador. Geochemical sampling has identified a new area of strong overlapping Cu & Mo anomalies to the N measuring 1,000m x 500m with soil samples averaging 600ppm Cu and 80ppm Mo. This new area of strong soil anomalism represents a potential target for higher-grade mineralisation beyond the northern margin of prior exploration drilling. New drill results to the south returned 320m @ 0.50% CuEq from near surface in hole 13 within a broader interval of 496m @ 0.40%. “The ongoing drill programme is targeting resource growth within the high-grade starter pit at Warintza Central, where results are expected shortly, and expanding the Warintza East discovery, which adjoins Warintza Central,” said VP exploration Jorge Fierro.
Libero Copper & Gold (TSXV:LBC)
Said ongoing fieldwork at its Mocoa Cu-Mo project in Putumayo, Colombia identified new occurrences of leached cap in outcrop consistent with the leached cap that occurs directly over the Mocoa deposit. The newly identified leached cap outcrops extend more than 500m to the ENE and more than 300m to the E of previous drill collar locations. Other new areas of leached cap outcrop have been mapped, extending more than 500M to the S and more than 1km to the SE of previous drill collar locations. Another leached cap is mapped 2km SE of Mocoa immediately N of Target 5. “Identifying new areas with leached cap in outcrop suggests the possible presence of similar porphyry Cu-Mo mineralisation below the leached cap and may result in the expansion of the current Mocoa resource. As the Mocoa porphyry system may represent a clustered porphyry system, we anticipate discovering additional leached cap outcrops and related hydrothermal porphyry Cu-Mo mineralisation adjacent to the Mocoa deposit and surrounding area,” said president & CEO Ian Harris
Omai Gold Mines (TSXV:OMG)
Began a 5,000m 2023 drill programme at its Omai Au Property in Guyana. It will focus on targets along the 7km extension of the Wenot shear corridor and those delineated by geophysics, geochemistry and historical workings. Additional drilling is designed to optimise further expansion of the Wenot deposit along strike and at depth. "2022 was a transformational year for OMG. After drilling an additional 5,900m, we announced an updated resource in October that more than doubled our initial resource announced less than a year earlier. With a base of 3.7Moz (in all categories) we are starting the 2023 programme by stepping-out to test select exploration targets,” said CEO Elaine Ellingham.
Volcanic Gold Mines (TSXV:VG)
Continued to advance mining studies on the Holly Au project in Guatemala in preparation for upgrading the exploration license to an exploitation license. Holly has an inferred resource of 1.3Mt @ 6.5g/t Au for 270koz Au and 260g/t Ag for 11Moz. Further drilling will determine whether Holly will support a stand-alone mill or if the ore should be processed elsewhere. Based on this positive outlook VG is applying to upgrade the Holly exploration license to an exploitation license. VG intends to resume drilling at Holly once Bluestone Resources (TSX:BSR) has been permitted to build a mine at Cerro Blanco. “The project would be well serviced by the infrastructure surrounding it in a development and production scenario, and these engineering studies reflect our confidence in the future potential of this project and the steps that we are taking to work collaboratively with the government and communities to create a brighter future for economic and social development in the area,” said president & CEO Simon Ridgway.
Royal Road Minerals (TSXV:RYR)
Announced the integration of its Guintär and Niverengo mining concession contract areas in Antioquia, Colombia, into one new concession contract area and the consequent renewal of the relevant exploration term for a further 19-years and 11-months. The concession contract areas were part of the GNM project area, which it acquired from AngloGold Ashanti in 2019, and subject to a 50-50 exploration JV under a strategic alliance agreement with Mineros (TSX:MSE). Final documentation has now been submitted to the Colombian Mining Agency for registration.
Orla Mining (TSX:OLA)
Provided an update on exploration on its Cerro Quema AU-Cu project in Panama and its 2023 plans. At the Caballito deposit, drilling increased confidence and refined geometry, controls and mineralisation definition. At La Pava, drilling defined zones of significant Cu-Au sulphide mineralisation beneath the oxide Au deposits. At Quemita Norte, positive drill intersections over a 180m by 210m area highlighted potential satellite sulphide mineralisation. This years programme will follow-up on the encouraging results generated at La Pelona and La Prieta. “The 2022 exploration programme reinforced the potential for the definition and discovery of more oxide and sulphide resources on the property,” said SVP exploration Sylvain Guerard.
Atico Mining (TSXV:ATY)
Said a strategic review of historical and recent exploration at its El Roble Cu property in Choco, Colombia defined high-priority targets within the favorable stratigraphy that hosts the producing VMS mine. The review highlighted evidence of a second epithermal mineralisation event which overprinted the VMS mineralisation resulting in upgraded Cu & Au content. The highest priority targets are identified by alteration and VMS mineralisation with the upgraded Cu-Au content coinciding with geophysical anomalies. Anomaly 8 was selected as the first target for follow-up diamond drilling. It is defined by values of up to 11% Cu in outcropping hydrothermal breccia within a 900m by 300m area of soil and rock Cu anomalies with values greater than 800ppm Cu. It is coincident with EM (VTEM) and magnetic (GMAG) geophysical anomalies. Drilling is in progress. Two holes have cut favorable stratigraphy and strong alteration with massive sulphide pyrite fragments.
Corporate News
SolGold closes Cornerstone buy
SolGold (LSE:SOLG) completed its acquisition of Cornerstone Capital Resources (TSXV:CGP). CGP shareholders received 15 SOLG shares for each CGP share. "SOLG has now consolidated a 100% interest in the world-class Cascabel project [in Ecuador]. This is an exciting transaction for all stakeholders that simplifies our structure and strengthens SOLGs strategic opportunities,” said interim CEO Scott Caldwell.
Mako 10:1 share rollback
Mako Mining (TSXV:MKO) intends to complete a 10:1 share consolidation to reduce its share count from 657.4 million to 65.7 million. "This consolidation is intended to increase the number of institutions who can invest in the company, including exchange traded funds that require higher notional share prices before they can invest, which we believe will increase the liquidity and valuation of Mako's stock over time,” said CEO Akiba Leisman.
GoldMining to raise US$20M in IPO
GoldMining (TSX:GOLD) subsidiary US GoldMining filed a registration statement concerning its IPO of up to 2M units @ US$10. Each unit will comprise one share and a warrant exercisable @ $13 for three years. US GoldMining has applied to list on the NYSE American under the ticker USGO. USGO is an exploration and development company focused on advancing the Whistler Au-Au project in British Columbia, Canada.
Luminex raises C$12.5M
Luminex Resources (TSXV:LR) closed brokered and non-brokered private placements and issued 41.7M units @ 30c for proceeds of C$12.5M. Each unit comprised one share and half a warrant exercisable @44c for two years. Ross Beaty subscribed for $2.5M of the non-brokered portion. LR plans to use the proceeds to drill 10,200m at the Condor North area of its Condor Cu project in Ecuador and update the resource estimate.
Rugby to raise C$1M
Rugby Resources (TSXV:RUG) opened a private placement of up to 14.3M units @ 7c for proceeds of C1M. Each unit consists of one share and a warrant exercisable @ 18c for two years. Proceeds will be used for exploration.
Baroyeca raises C$662k
Baroyeca Gold & Silver (TSXV:BGS) received subscriptions for 13.2M units @ 5c for proceeds of C$662k. Each unit consists of one share and a warrant exercisable @10c for a year.
Adventus Mining draws US$250k
Adventus Mining (TSXV:ADZN) made an additional US$250k drawdown from Wheaton Precious Metals (TSX:WPM) as part of its US$175.5M precious metals stream commitment to the El Domo Cu-Au project in Ecuador. The ESG deposit is in addition to the $13M drawn in December 2022. It will fund 2023 project community and social development initiatives at El Domo and the greater Curipamba district areas as part of pre-construction activities. These included a training and development partnership with ESPOL University, mine operator training, and the promotion of local suppliers and service providers.
Calibre appoints Jory
Calibre Mining (TSX:CXB) appointed John Jory as VP geology, Nevada and promoted Pedro Silva to VP Exploration, Nicaragua.
Solaris appoints Puri
Solaris Resources (TSX:SLS) appointed Poonam Puri as an independent director to replace Greg Smith, who stepped down to focus on external roles. Puri is a tenured Professor of Law at Osgoode Hall Law School in Toronto, Ontario, and a corporate lawyer at Davies, Ward, Phillips & Vineberg.
Mako director resigns
Mako Mining (TSXV:MKO) said recently appointed director Brian Szeto resigned due to a change to his employer's compliance policies.
Aventus VPex departs
Adventus Mining (TSX:ADZN) said its VP exploration Jason Dunningis left to move onto other opportunities for his family. Dunning will remain as non-executive technical advisor.