#Gold #Stocks in the News; (TSXV:
$OTGO.V) (TSX: $GCM.TO) (TSX: $BTO.TO) (NYSE: $AU); @otgo_v @GCMGold @B2GoldCorp
@AGAColombia
Point
Roberts WA, Delta, BC –September 17, 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/09171OTGO-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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