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Colombia scraps gold export tax idea
Colombia’s finance minister Jose Antonio Ocampo has said the government has scrapped plans to introduce a 10% export tax on gold as part of the tax reform bill before Congress, having recognised that it would likely increase smuggling while are damaging efforts to bring small miners into the formal sector.
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Colombia Au sector pushes back on export tax
Colombia’s legal Au producers are pushing back on a proposed 10% export tax on the yellow metal, which forms part of a tax reform bill presented by the administration of Colombia’s new president Gustavo Petro.
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Exploration News
GCM Mining (TSX:GCM)
Produced 53,198oz Au from its Segovia Operations in Antioquia, Colombia in 2Q22, up 2% over the prior year period. With completion of the expansion of the processing plant at Segovia to 2,000tpd in August, GCM is on track to meet its 2022 production guidance of between 210-225koz. AISC increased to $1,228/oz. The new polymetallic recovery plant constructed in 2021 has been in steady operation through 1H22 and is expected to commence sales of stockpiled Zn & Pb concentrates under an offtake contract commencing in 3Q22. GCM reported net income of US$39M compared with $29.8M a year ago. The company completed 38,000m of drilling in the quarter through its in-mine/near-mine and mine programmes and 15,000m through brownfield drilling at Cristales, Marmajito, Manzanillo and Vera. GCM incurred $31M on Toroparu in Guyana in the quarter and in light of the proposed merger with Aris Gold (TSX:ARIS), it is now expected that a PFS will not be finalised until after the closing of the transaction. GCM returned $10.1M to shareholders in 1H22 with monthly dividends totaling $7M and the repurchase of 800k shares under its NCIB at a cost of $3.1M.
Royal Road Minerals (TSXV:RYR)
Provided an exploration update for its projects in Colombia. It said that whereas its principal focus in Colombia has been the Guintar-Niverengo Cu-Au project in Antioquia, since 2019, it has also conducted extensive regional exploration campaigns, including systematic drainage sampling and airborne geophysical surveys in both its Northern and Southern blocks which has identified several prospects throughout the Eocene porphyry-Cu and the Oligo-Miocene Cu-Au belts. La Merced is a newly discovered prospect area in Caldas identified by the follow-up of systematic drainage geochemical sampling. Rock-chip channel samples have returned up to 1m @ 9.6g/t Au and define an anomalous area of 700m by 1.3km. “By way of our various collaborative arrangements, through our land holdings, our discovery focus and our innovative approach to community and environment, RYR is well-positioned to create value and to assist Colombia in becoming globally significant as a responsible source of metals that are crucial for the global energy transition,” said president & CEO Tim Coughlin.
RYR also provided a drilling update from its Caribe Au discovery in NE Nicaragua where infill drilling intersected 66m @ 1.3g/t Au in hole 40. It said step-out exploratory drill holes intersected native Cu, Cu oxides and anomalous Au but have not, as yet, identified a possible Cu & Au mineralised intrusive source. Results to-date imply that the Au mineralised system remains open for a further 300m towards the W and SW and suggests a broad and significant Cu anomaly towards the E. The newly identified Au mineralisation located to the W of the project area, is hosted in the footwall to a major crustal scale fault-zone, which was previously assumed to be barren. 25m-spaced infill scout-RC drilling is planned in this area to better constrain geometry prior to diamond drilling.
Max Resource (TSXV:MAX)
Reported initial results of the high-resolution ground I") survey and said the IP chargeability correlates with the two Uru Central Cu-Ag rich discoveries and extends at least 200m below surface. The IP data is to be integrated into a detailed geological and structural three-dimensional model for an upcoming drill programme. "The initial IP survey has achieved the objectives of defining the vertical dimensions of the primary chalcocite-bearing mineralised body at the two Uru Central discoveries. MAX is preparing drill sites and planning to mobilise the diamond core drill rig late next month, initiating the first ever drilling programme targeting Cu-Ag mineralisation on its Uru mining concessions," Max CEO Brett Matich.
MAX was also awarded a key mining concession contract for a total of five for the Uru district, now covering a total of 74-km², located along the Cesar North 90km-long Cu-Ag silver belt. Since late 2021, MAX has been awarded 20 concessions covering 188km². "The five strategic Uru concessions provide secure tenure of the 20km-long Uru district. MAXs drill site preparation is on schedule for mobilisation of the diamond core drill rig late next month,” said Matich.
B2Gold (TSX:BTO)
Pulled the plug on the Gramalote open pit Au development project in Antioquia, Colombia, a JV with AngloGold Ashanti, citing poor economics. In a terse statement within its June quarter results, the company said the partners determined that the project does not currently meet their investment thresholds for development at this time. Cost inflation and the inability to define a higher-grade starter pit are believed to be the key contributors to the decision. BTO envisioned production of 281koz/y from a resource of more than 4Moz @ 0.73g/t at Gramalote over a 10.6-year mine life at an AISC of US$744/oz following a capex of $925M. “We had some hopes we could improve the economics of Gramalote with a different engineering and design approach to bring the capital cost down. We knocked over $100M off the original cost, but inflation really bit us and most of the gains were wiped out by the effect of inflation. We hoped infill drilling would increase the number of ounces but we didn’t get the additional ounces we hoped for and we got a bit of a drop in grade,” said president & CEO Clive Johnson during the company’s 2Q22 results call. Johnson said BTO plans to continue with its resettlement planning while evaluating whether there is a smaller project that makes sense, or to look to selling the permitted project.
After becoming operator in January 2020, the company set about optimising the prior work completed by AGA to boost project economics and infill drilling to better define high-grade areas within the Gramalote pit. In May 2021, the company released of some interim data from the feasibility work showing an IRR of 15%, borderline for a project development, which it seems the company has been unable to meaningfully improve upon. “Large, low-grade sulphide deposits with big capex are not going well anywhere,” commented former Exploration Insights editor Brent Cook in a Tweet. A FS is due before the end of the September quarter, but the company is not expecting to publicly release this.
Zijin Mining
Restarted production at the Buritica Au mine in Antioquia following more than a week of road blockades were set up as community members demanded a rescue mission to find illegal miners allegedly trapped in a tunnel. Despite several rescue missions, no bodies were handed over to authorities. Buritica produced 196koz Au & 295koz Ag in 2021. In early August local news reported heavily armed police entering the illegal tunnels into the Buritica deposit, believed to be operated by the Clan del Golfo illegal armed group, which authorities estimate operation generates more than 70koz/y for the illegal group.
Rather than face arrest, it is believed some criminal miners disappeared further into the rabbit warren of tunnels they had excavated to avoid detection. The blockades began on August 12 by people demanding the national mining agency (ANM) to enter the deposit to verify whether any miners are trapped. The company supports the idea and wants the ANM to undertake an inspection as soon as possible. The roadblock has isolated the rural mountain community preventing food supplies from entering the town. Zijin also reported that its contractors and security posts have been attacked.
Several thousand criminal miners invaded Buritica several years ago and began to steal Zijin's ore, effectively preventing it from working part of its deposit due to the security risk of blasting tunnels in areas where illegal miners may be working. Despite an attempt to remove the illegal miners in 2016, many remained and sought to be formalised by Zijin. Illegal miners in the area are now claiming they are ancestral miners even though there were none present in the Buritica region when exploration began in 2008 by former operator Continental Gold.
In November 2021, Petro Tweeted that he would propose buying the Buritica mining concessions and those of AngloGold Ashanti’s Quebradona so that, “small- and medium-mining is developed in the hands of the people of Antioquia and agriculture and water are privileged. [Former presidents Ivan] Duque and [Alvaro] Uribe handed over Antioquia territory to predatory transnational mining companies.” While Petro is opening peace talks with illegal armed groups, he has made no move to execute on this campaign promise.
Collective Mining (TSXV:CNL)
Announced assay results from two additional holes completed at the Apollo target at its Guayabales project in Caldas, Colombia. Drilling has so far defined Apollo over 300m along strike by up to 100m across by 400m vertically. Highlights included 207.15m @ 2.68g/t AuEq in hole 2 and 89.40m @ 2.46g/t in hole 1. Hole 2 intersected a broad zone of high-grade breccia mineralisation with overprinting carbonate base metal veins beginning at 100m below surface. “We think we have a tiger by the tail here The drill result is an exciting way to really launch this target. These are only the second and third holes ever drilled into this target and all three have hit bulk intercepts at high grade,” executive chair Ari Sussman told CGS.
Apollo is a newly discovered high-grade Cu-Au-Ag porphyry-related breccia and is one of eight porphyry-related targets situated within a 3-4km cluster area generated by CNL through grassroots exploration. Apollo is a hydrothermal breccia, where there is or was a porphyry and the breccia either overprinted or blown out part of it. CNL has identified up to two pulses of mineralised fluids in the breccia itself plus two pulses of overprinting, late-stage porphyry veins. With holes three to five still in the assay lab, Sussman thinks the company will complete 25-28 holes at Apollo this year. “We have a long way to go in this programme. … It is not every day you drill a lot bulk intercepts at high grades of both precious metal and copper. It is porphyry-related, so it could have a very big vertical component,” he said.
CNL also recommenced drilling at the Olympus target. The phase II programme will be executed exclusively from underground chambers. CNL has four drill rigs operating as part of a minimum 20,000m programme for 2022 with one rig at Olympus and three following-up on the recent discovery at Apollo. Olympus is a target area measuring up to 1,400m by 900m and hosts over 50 ancestral mines with over 25 veins mapped from available exposures. The phase II programme will step out up to 500m along strike to the SW into an area where most of the historical and current ancestral mines are located and where multiple high-grade chip channel samples have been taken from underground working faces. CNL said constructing underground chambers is an innovative approach to working with the local miners operating in the target area as it increases cooperation among stakeholders, promotes health and safety practices and mine-planning as well as eliminating the challenges associated with lack of drilling angles from surface due to the steep topography. “Olympus offers potential for both bulk tonnage and high-grade vein mineralisation and we are looking forward to reporting assay results from the new program in due course,” said executive chair Ari Sussman.
Lundin Gold (TSX:LUG)
Produced 111,890oz Au in 2Q22 at an AISC of US$864/oz from its Fruta del Norte mine in Ecuador and declared an inaugural 20c per semester dividend. LUG reported net income of $56M including derivative gains of $40M. Based on continuing strong operating results, LUG increased its production guidance from 405-445koz to 430-460koz and a decrease in its AISC guidance from $860-930/oz to $820-870/oz. “FDN continues to generate significant operating cash flow, which allows us to expand our exploration programmes, pay down our debt aggressively and declare our inaugural semi-annual dividend,” said president & CEO Ron Hochstein.
LUG also updated its 2022 regional exploration programme in the Suarez basin in Ecuador. Drilling has focused on two high-priority targets, Barbasco and Puente Princesa. Through a detailed geological interpretation of exploration data and additional surface works, four additional targets have been identified: Barbasco Norte, Capullo, Puma and Quebrada La Negra, and a third rig has now been added to test these. An estimated 16,500m is planned in this year's regional programme, at an estimated cost of US$14M. "While exploration in the south Basin is challenging, mainly due to topography, thickness of the cover rocks and post-mineral lithologies, our programme continues to successfully advance and return evidence of important indicators that point toward the presence of buried epithermal deposits,” said Hochstein.
Calibre Mining (TSX:CXB)
Produced 59,723oz Au in 2Q22 at an AISC of US$1,284/oz and net income of $15.4M. The company completed 120,000m of drilling across its operations, which led to new discoveries, resource building opportunities and the potential for grade-driven production growth. It ended the quarter with cash of $92.3M. “Despite industry wide inflationary pressures our year-to-date AISC of $1,244/oz is favorable to budget, within guidance, and we reaffirm our commitment to deliver on our full year guidance,” said president & CEO Darren Hall.
Outcrop Silver & Gold (TSXV:OCG)
Results of additional core holes in the Las Maras target at its Santa Ana Ag project in Tolima, Colombia. Highlights included 8.97m @ 1,651g/t AgEq including 66cm @ 15,941g/t in hole 274. Fourteen holes have been completed to date with eight returning high-grade assays, with two holes pending. For all significant drill-holes, Las Maras has an average intercept width of 3.07m and a weighted average grade of 1,583g/t. The new results extend Las Maras high-grade mineralization to 200m strike and 200m depth. “Las Maras results continue to be very robust as we look forward to our year-end resource estimation. Hole 274 returned the highest AgEq grade assayed in a drill core sample in the history of Santa Ana," said VP exploration Guillermo Hernandez.
OGC also provided an update on its regional exploration and target generation program at Santa Ana where it continues to generate new exploration targets through mapping, trenching and sampling, with a focus along the 8.5km Frias-La Ye. Three new targets which have never been drilled express as very high-grade veins and float at surface and will be drill tested in the near term. At Los Mangos, dump and outcrop. Additional samples in the area show 27.71g/t Au. “We are thrilled with the results from our comprehensive target generation programme and we are working hard to prepare even more targets to drill later in the year," said Hernandez. “It is clear from reconnaissance mapping and prospecting that the entire trend between Las Naranjos, 2km N of the Royal Santa Ana mines, and the highly productive Frias mine, 18.3km SW, is very prospective for new discoveries," said CEO Joseph Hebert.
Adventus Mining (TSXV:ADZN)
And JV partner Salazar Resources (TSXV:SRL) announced a drilling programme at the Curipamba-El Domo Cu-Au project in Ecuador with a planned peak of seven rigs. Two drill rigs are working to upgrade the underground mineral resource estimate of the El Domo deposit that is at a PEA stage. This work will advance the basis for a future combined open pit and underground FS. For the ongoing detailed engineering programme, one rig has been mobilized for the hydrogeological wells with four geotechnical rigs to mobilise over the next month. Drilling for the underground resource upgrade and open pit detailed engineering are expected to continue into 2Q23.
Los Cerros (ASX:LCL)
Engaged Ausenco to develop a PEA of the Quinchia Au project in Risaralda, Colombia which includes the Miraflores, Tesorito and Dosquebradas deposits within a 3km radius. In preparation for the PEA, a high-level economic evaluation of three potential production scenarios will be undertaken, evaluating mining sequence, plant size/cost, open pit/underground permutations and other variables. From this study a base case will be selected for the PEA. It will include the Miraflores underground as the initial development for the plant with subsequent expansion or modifications to accommodate materials from other sites, or a plant based on the combination of Miraflores and a high-grade starter pit at Tesorito with additional feed from the larger Tesorito pit shell, Dosquebradas and potential other sources. Our strategy for the Quinchia Project is to build confidence around our established resources. This includes defining likely process flows and assessing production scenario permutations open to us considering both underground and open pit resources within a 3km radius,” said MD Jason Stirbinskis.
Cordoba Minerals (TSXV:CDB)
Reported initial diamond drilling results from the FS drilling programme at its San Matias Cu-Au-Ag project. Some 6,385m in 24 holes were drilled of the initial 25,000m in-fill programme at the Alacran deposit with highlights of 61m @ 0.99% Cu, 0.35g/t Au & 5.17g/t Ag in hole 87 for a 1.17% CuEq. CDB said the mineralised intersections correlate closely with the PFS mineral resource block model. Multiple late-mineral Au-Cu veins, known as carbonate base metal (CBM) veins, were intersected and are superimposed upon high-grade zones of earlier carbonate replacement Cu-Au mineralisation. "We are excited to see the initial in-fill drill holes supporting the higher-grade domains in our resource model for Alacran. The fact that these domains also host multiple CBM veins brings us one step closer to understanding the relationship between the CBM and carbonate replacement events," said president & CEO Armstrong-Montoya.
Aurania Resources (TSXV:ARU)
Said detailed geological mapping at its Tatasham target is progressing and is expected to be completed in the coming weeks. The second phase of mapping at its Awacha target is planned to start by the end of August. The purpose is to apply the Anaconda mapping method to define the drill targets.
Condor Gold (AIM:CNR)
Reported an updated resource estimate on its La India Au project in Nicaragua with an indicated resource of 9.7Mt @ 3.5g/t for 1.1Moz and 8.6Mt @ 4.3g/t for 1.2Moz of inferred resources. About half the resources are open pittable and half are underground mineable. The Cacao resource increased 69% to 101koz in the inferred category. La India is comprised of six separate deposits. A FS is underway on the La India Open Pit. “The focus has been of strengthening the confidence of the geological model ahead of a forthcoming FS. The update includes assay results from infill drilling, a new lithological, structural and weathering model, a new depletion model for historical and artisanal mining and an increase in the cut-off grade to 0.65g/t from 0.50g/t,” said chair & CEO Mark Child.
CNR also received the final FS metallurgical test results on La India. The testing was focused on variability testing and confirmation of recoveries at the lower grades. The confirmatory testwork demonstrated that Au recovery is independent of grade and a fixed Au recovery of 91% assuming a 75 micron grind size will be used in the project economics. Au extraction from the 11 variability composites averaged 92.6% at the 75 micron grind size, which is reduced by 2% to allow for Au being locked up in the processing plant. Au extraction from the four low-grade composites averaged 93.8% at the 75 micron target grind, indicating a Au recovery of 91.8% after a 2% reduction to allow for Au being locked up in the processing plant. At a finer grind size of 53 microns an average Au extraction of 94.7% was achieved, indicating a potential upside Au recovery of about 93%. “91% metallurgical recovery over the life of mine is a terrific result and represents a significant de-risking of one of the most important variables in the development of a new mine at La India and provides significant comfort to investors,” said Child.
Lumina Gold (TSXV:LUM)
Announced results from 25 drill holes at its Cangrejos project in Ecuador with 15 holes from Cangrejos and eight from Gran Bestia. Long intercepts in seven ridge holes are expected to add mineral resources with a highlight of 287m @ 0.76g/t AuEq in hole 225. During the 2021/2022 programme, 107 holes for 36,027m of resource definition and geotechnical drilling have been drilled and the programme is now complete. Results from two holes at Cangrejos and 15 at Gran Bestia are pending. A PFS is expected to be completed in 2Q23. “The drilling campaign appears to have delivered exactly what we set out to do, infill the US$1,100 Au constrained pits that formed the basis of the 2020 PEA, while also completing step-out drilling that should enhance the resource size and overall attractiveness of the project," said president & CEO Marshall Koval.
Rugby Resources (TSXV:RUG)
Recently commenced further exploration at its Cobrasco porphyry Cu-Mo project in Choco with a programme comprising ongoing environmental assessment, additional soil and rock sampling and subsurface exploration testing targets to a possible depth of 1,000m. RUG also relinquished 14 Au & Ag applications in Colombia after follow-up geochemistry and geology did not provide sufficient encouragement to continue the title process. It intends to continue the application process for 11 applications over three project areas in the eastern region of the country.
Corporate News
O2Gold returns Machuca
O2Gold (TSXV:OTGO) received approval from the TSXV for a settlement including with its largest shareholders, Bullet Holding and Magnolia Capital under which it returned Buenaventura Gold, a Panamanian company which indirectly owns 26 mining claim titles and applications comprising the Machuca Au project in Segovia-Zaragoza in Antioquia, Colombia. The project was returned as consideration for Bullet and Magnolia relinquishing their entitlements to a US$2.5M payment due later this year. As a result, the TSXV determined OTGO does not currently meet the continued listing requirements for a Tier 2 listed company, and its listing will be transferred to the NEX.
IAMGOLD terminates Zancudo agreement
IAMGOLD (TSX:IMG) terminated its option agreement with Denarius Metals (TSXV:DSLV) on the Zancudo Au project in Antioquia, Colombia, believed to be the need to pull in the corporate horns due to cost overruns at the Cote project in Canada rather than the project’s viability. DSLV intends to proceed with an exploration and is establishing a project team, with exploration expected to commence later this year.
Prudent to acquire ABE
Prudent Minerals (CSE:PRUD) entered into an interim agreement to acquire Berlin Precious Metals which has the exclusive right to earn 100% of the ABE Au project 70km S of Medellín, Colombia, which consists of five concession applications covering 4,512 hectares and a 110 hectare mining concession that's covers the Purimac Au mine. Au mineralisation at ABE is hosted in quartz veins in an orogenic/mesothermal setting, analogous to the past producing Berlin mine in Antioquia. The Purimac mine dates to the colonial period with quartz vein-hosted mineralisation located along a 30m wide structural corridor traced for over 2km and mined underground over 17 levels and 2km along strike. "Prudent believes ABE has the large-scale potential, and initial modern exploration only commenced in late 2020," said president Brett Matich.
Cordoba US$2M financing with Ivanhoe
Cordoba Minerals (TSXV:CDB) arranged an additional short-term loan with majority shareholder Ivanhoe Electric of US$2M, following a previously announced loan of $6Mesrlier this year. The loan will bear interest at 12% per annum, increasing to 14% in the event CDB does not repay the amount owing upon the maturity date, which is December 2022. The loan is to ensure CDB is able to continue exploration activities on its mineral projects, including the FS technical work at the San Matias Cu-Au-Ag project in Colombia.
Aurania raised C$1M loan
Aurania Resources (TSXV:ARU) completed a C$1M loan from chair, president & CEO Dr Keith Barron. The loan is unsecured, bears interest at 2% per annum and matures in a year.
GCM monthly dividend
GCM Mining declared a monthly dividend of C15c per share to be paid on September 15 to shareholders of record on August 31.
Goldsource trading on OTCQX
Goldsource Mines (CVE:GXS) was approved for trading its tock on the OTCQX in the USA under the ticker GXSFF. GXS was previously on the OTCQB.
Omai trades on OTCQB
Omai Gold Mines (TSXV:OMG) began trading on the OTCQB venture market under the ticker OMGGF. Omai is exploring the Omai Au project in Guyana.
SolGold management reshuffle
SolGold (LSE & TSX:SOLG) said independent non-executive director and former interim CEO Keith Marshall resigned although he will remain an advisor to SOLGs technical committee to oversee the Cascabel project and to ensure a smooth transition to the new VP projects, Bernie Loyer. A search for a new director is being initiated. SOLG also said recently appointed CFO Ayten Saridas resigned with Keith Pollocks appointed Interim CFO until a permanent replacement is appointed. It also said Jason Ward will step down as head of exploration as he is domiciled in Australian and the position is based in Ecuador. Ward, who has been with SOLG since its 2006 inception, will remain as an advisor.
Rugby name change
Rugby Mining (TSXV:RUG) has changed its name to Rugby Resources. It will maintain the RUG ticker.
Omai appoints Walker CFO
Omai Gold Mines (TSXV:OMG) appointed Dwight Walker as CFO. Walker is a CPA with over 30 years’ experience in finance and administration.
Reunion appoints Standford
Reunion Gold (TSXV:RGD) appointed Fred Stanford as director and Justin van der Toorn as VP exploration. Stanford brings is an industrial engineer with 40 years of mining experience, and was formerly president & CEO of Torex Gold. van der Toorn is an exploration geologist with 18 years’ experience in the minerals industry.