#Mining #Colombian #Gold– #Stocks to Watch (TSXV: $OTGO.V) (TSX: $GCM.TO) (TSX: $BTO.TO) (NYSE: $AU) @otgo_v @GCMGold @B2GoldCorp @AGAColombia
Tax Incentives and Skilled Labour Make #Colombia Ideal for #Mining
Point Roberts WA, Delta, BC –September 16, 2021 - Investorideas.com, a leading investor news resource covering gold and mining stocks releases a special report on gold mining in Colombia and what makes Colombia such a draw for mining companies and investors.
Read this article, featuring OTGO in full at https://www.investorideas.com/news/2021/mining/09161OTGO-Colombian-Gold.asp
Colombia is fast becoming a top mining district. As an OECD member country with a growing economy and one of the lowest inflation rates in Latin America, it is hard to ignore how highly prospective the mining sector of this thriving and vibrant country has become.
Colombia hosts high-grade underground mines and a rich history of mining across various commodities like gold, silver and copper. With the right exploration and production company, discovering the true potential of the country’s widespread mineralized landscape could present tremendous economic potential, yield and expansive growth.
O2Gold Inc. (TSXV: OTGO), a mineral exploration company with activities in Colombia is focused entirely on the exploration of the Otú Fault project, with drilling currently underway.
The Company’s senior management is based nearby in Medellín. The team's deep roots and experience in Latin America, in both capital markets and mining, gives it the regional knowledge and operational expertise to create a world-class project.
Management recently told Investor Ideas in a podcast, "Part of the risk-reward upside of gold exploration plays in emerging markets is conditional to operational capacity. So, jurisdictional knowledge becomes extremely valuable in companies like these."
The company recently announced the results of the geophysical survey in the Aparecida brownfield. Key Highlights included: The ground geophysical survey allowed the interpretation of one zone of 650 x 500 meters in area with an anastomosed vein pattern, which had already been identified in surface mapping but whose extent was unknown. At least four different vein directions were identified, including the vein from the Fortaleza mine, where channels chips with values of up to 42.3 g/t Au have been collected.
The geoelectrical survey methodology was chosen because it is known to identify vein structures in the same geological context successfully.
The grids used were perpendicular to the vein structures, with variable spacing between 100 and 200 meters and with measuring points every 20 meters.
In Aparecida, due to the mapping having indicated veins with different strikes, a grid was used instead of lines perpendicular to the main structure.
Previous exploration work reported in the Company’s National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) report recorded multiple entries from artisanal mines in different veins with various directions, showing a mineralization system with an orthogonal pattern.
A geophysical grid of the soil was carried out to assist in interpreting the structures. The interpretation of this work presented a pattern of "anastomosed" veins (Figure 1B), in an area of 650 x 500 meters, with two preferential directions EW and NS, but with other low resistive anomalies (in blue) in directions orthogonal to these main structures, including the vein that feeds the production at the Fortaleza mine. At this mine, the O2Gold team sampled quartz vein chips in channels, obtaining gold values of up to 42.3 g/t.
For the Aparecida target, 1,000 meters of scout drilling are planned to verify the vein system's extension, depth, thickness, and gold grade.
O2Gold Inc. also announced that it has begun drilling at the Aurora mine targets, the site of an expected 2,000 meters of drilling. The Company has also received the results of additional geophysics surveying in the Aurora project area.
Key Highlights included: The ground geophysics survey allowed the interpretation of the Quintanillo mine’s vein structure of 1.2 km, which had already been identified in surface mapping but whose extent was unknown. In addition to showing the continuity of this vein, the survey also indicated the possibility of two more associated orthogonal vein structures and two structures that could be extensions of the Aurora vein system. The integration of the Aurora-Quintanillo target shows a projected vein system of almost 4 km in length along strike.
The grids used were perpendicular to the vein structures, with variable spacing between 100 and 200 meters and with measuring points every 20 meters.
The geological mapping and sampling on the Quintanillo target identified occurrences beyond those known from the artisanal production works in the Quintanillo mine. Due to the coverage by colluvial material and weathered rocks, these occurrences could not be followed in the field, hence the choice of geophysical methods to verify their continuity.
Another large gold mining company, B2Gold Corp. (TSX: BTO) has their Gramalote Project, which is located approximately 230 km northwest of the Colombian capital of Bogota and approximately 120 km northeast of Medellin, the regional capital of the Department of Antioquia.
B2Gold has a 50% interest in the Gramalote Project (Anglo Gold Ashanti -50%) and on January 1, 2020 became the operator of the Project.
The initial 2021 budget for the Gramalote Project is $52 million (B2Gold’s 50% share is $26 million) for the continued development of the project, along with continued environmental and social activities supporting local communities. The Gramalote budget also includes $9 million for exploration in 2021. A total of 18,000 metres of diamond drilling is planned in 2021. This includes 8,000 metres for further drilling at Gramalote Ridge and 10,000 metres at two satellite deposits (Trinidad and Monjas West), which are proximal to the planned infrastructure.
B2Gold has also partnered with AngloGold Ashanti Limited (NYSE: AU) on the Gramalote project, a joint venture between AngloGold Ashanti (50%) and B2Gold (50%), which is located near the towns of Providencia and San Jose del Nus within the municipality of San Roque, in the northwest of the Department of Antioquia. It is approximately 124km northeast of Medellín, the regional capital of the Antioquia Department. B2Gold became the project manager and operator in 2020.
Gran Colombia Gold Corp. (TSX: GCM) (OTCQX: TPRFF), another large Colombia-based mining company, recently announced its unaudited interim condensed consolidated financial statements and accompanying management’s discussion and analysis (MD&A) for the three and six months ended June 30, 2021.
In their results they discussed not only some of their recent financial highlights but also some of the successes of their Colombian based operations such as their Segovia Operations.
Second Quarter and First Half 2021 Highlights included :Gran Colombia has completed a major step forward in its strategy to grow through diversification, completing the acquisition on June 4, 2021 of all the shares of Gold X Mining Corp (“Gold X”) it did not already own and then closing a $300 million offering on August 9, 2021 of 6.875% Senior Unsecured Notes due 2026 (the “2026 Notes”) to fund the development of the Toroparu Project in Guyana, to prepay the remaining $18.0 million balance of its Gold Notes and for general corporate purposes. The Company is nearing completion of an updated preliminary economic assessment (“PEA”) for the Toroparu Project incorporating the recently announced high-grade results from the 2020-2021 drilling program undertaken by Gold X.
Key highlights included:
The Company added a 27% equity interest in Denarius Silver Corp. (“Denarius”) to its portfolio in the first half of 2021, giving it exposure to the Lomero-Poyatos polymetallic deposit located in Spain, in close proximity to the Matsa JV project in the Iberian Pyrite Belt, and to the Guia Antigua and Zancudo Projects in Colombia.
In February 2021, Gran Colombia also successfully brought its spin out of the Marmato Mining Assets to a conclusion, one in which the Company has a continuing equity ownership of 44% in Aris Gold Corporation (“Aris”). The Marmato operating and financial results are only consolidated up to February 4, 2021 and thereafter the Company equity accounts for its investment in Aris.
Gran Colombia’s gold production from its Segovia Operations totaled 52,198 ounces in the second quarter of 2021 compared with 44,377 ounces in the second quarter of 2020. Total gold production from Segovia for the first half of 2021 amounted to 101,256 ounces compared with 94,723 ounces in the first half last year. In July 2021, Segovia’s gold production, which reflected the impact of a planned four-day maintenance shutdown at the plant, was 15,258 ounces. This brings the Company’s trailing 12-months total gold production from its Segovia Operations at the end of July 2021 to 201,688 ounces, up 3% over 2020. The Company remains on track with its annual production guidance of 200,000 to 220,000 ounces of gold from Segovia in 2021. Including Marmato production up to February 4, 2021, consolidated gold production for the first half of 2021 was 103,684 ounces compared with 104,475 ounces in the first half last year.
Consolidated revenue amounted to $96.4 million and $198.3 million in the second quarter and first half of 2021, respectively, up from $77.1 million and $178.1 million in the second quarter and first half, respectively, of 2020. The year-over-year increase in revenue largely reflects an increase in the Company’s realized gold price (1) which averaged $1,805 per ounce sold in the first half of 2021 compared with an average of $1,622 per ounce sold in the first half last year.
Another large factor driving mining to this area has been the recent tax deductions which help support positive financials like those shown above. Under the latest Colombia Tax Reform corporate income tax is 31% for 2021 and expected to be 30% for 2022 and onwards.
With these incentives and more in favor of drilling in Colombia, we can expect to see more gold results reported sooner rather than later and can expect these mining developments to increase in the years to come.
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