Colombian Mines Corporation (TSXV:CMJ) is a Vancouver, Canada based mineral exploration and development company focused on the acquisition and development of mineral properties with near term resource and mine development potential in the South American country of Colombia. With a very tight share structure (35.4 million shares Issued and Outstanding) and less than 15 million shares in float, cash on hand, no debt, a 100% carried interest at Yarumalito with drilling scheduled to begin in the first quarter 2013 and then in the second quarter at El Dovio, and an enviable pipeline of projects behind these, the Company is well positioned for rapid and substantial appreciation in shareholder value.
- Tight Share Structure: 35.4 million shares issued and outstanding/15 million share float
- Management expertise and proven history of discovery and development
- Massive land package, First Mover advantage in Colombia
- Premier Prospect Generator
- Active joint ventures with Teck Resources, Colombia Crest Gold and Arcturus Ventures
El Dovio represents an exceptional opportunity to apply cutting-edge exploration techniques to a known gold-rich poly-metallic system. Volcanogenic massive sulphide deposits or VMS deposits are formed as massive, that is, over 60% sulphide minerals, in lens-like accumulations on or near the sea floor in association with volcanic activity. A typical VMS system consists of two main ore types, (1) massive sulphide mineralization, and (2) stringer or stockwork vein system. Eskay Creek, Noranda, Kidd Creek are well-known Canadian examples of VMS type deposits. Similarly, The El Dovio property hosts polymetallic gold-silver-copper-zinc mineralization in this distinct volcanogenic massive sulfide deposit setting, as well as bonanza grade mineralization in what may be a boiling feeder zone in the stringer zone.
The property is 100% owned by the Company, and is covered by 10,106 hectares of granted mining contracts. The El Dovio project, known locally as Mina Sabanablanca, is located on a ridge between the municipalities of El Dovio (Department of Valle del Cauca) and Sipi (Department of Choco) in western Colombia. This belt hosts other known massive sulfide prospects and mines and provides an opportunity for combined metals production with high economic value.
The deposit occurs within a northeastern trending belt of Cretaceous aged, volcanic and sedimentary rocks. Mineralization at El Dovio occurs as structurally controlled veins composed of crystalline quartz with massive to semi-massive sulfides within broad zones of stockwork (small veinlets) of mineralization that can be more than 100 meters thick. Detailed saw cut channel sampling of Sabanablanca zone returned a 68 meter true width that averages 4.7 grams gold, 6.2 grams per metric tonne silver and .5% copper. Higher grade zones found within the broader mineral envelop assay to 27.4 grams gold, 8.1 gram silver and .2% copper with individual samples assaying as high as 104 grams gold per metric tonne.
The results of the 2012 exploration season have been tabulated and the Company was pleased to announce via a November 5th press release that it has discovered a new, high grade zone of gold rich, polymetallic mineralization averaging 13.6 grams gold per metric tonne over two meters. Discovered in follow-up trenching of the 800+ meter long Brazo 1 geochemical anomaly, this new zone of mineralization is situated approximately 200 meters uphill from the Sabanablanca zone and continues to expand the exploration potential of the Property.
Brazo 1 sample results included mineralization averaging 13.6 g/t gold, 10.75 g/t silver and 1.6% zinc over two meters, within a broader zone of mineralization 9 meters wide averaging 3.8 g/t gold, 4.1 g/t silver and 0.6% zinc. The entire 19 meter sample interval in trench B1 averages 1.9 g/t gold, 2.9 g/t silver and 0.3% Zn.
The Brazo 1 zone is associated with one of several recently identified geochemical anomalies at El Dovio, some more than 1 kilometer wide. The zone occurs along a favorable geologic contact, sub-parallel with, and approximately 100 to 200 meters uphill from the Sabana Blanca Zone where the Company has previously announced numerous high-grade results with individual samples containing up to 104 g/t gold.
In October 2012, Colombian Mines received official notification from the Colombian Environmental Ministry that the administrative order removing the El Dovio exploration area from the Pacific Forest Zone was issued. The Company anticipates that all water permits will be issued by early March at which time construction of drill pads, water diversion and discharge facilities will commence, followed by drilling.
Recent reconnaissance sampling of the Mercedes property have returned values to 49.8 g/t gold, 526 g/t silver, and 17.05% copper from the Company’s new 100% owned Mercedes Contract. One sample in particular had the highest silver value of 773 grams or 24.9 troy ounces as well as the highest copper value of 26.47% copper.
Situated within a prominent gold producing region of Colombia the property lies near the town of Natagaima, in the Department of Tolima, Colombia. Accessed by paved road from either Bogota or Medellin to Natagaima, gravel and dirt roads provide access to the property. The property is not affected by any environmental reserve, park, and lies well below the environmental protection zones of the Paramos.
Mineralization is hosted in a belt of Mesozoic age, volcanic rocks that extend northward into this part of Colombia from Ecuador that are known to host other intermediate sulfidation epithermal deposits including Kinross Gold’s Fruta del Norte deposit that according to Kinross’s website boasts more than 11 million ounces of gold and 17 million ounces of silver.
Mineralization consists of brecciated quartz and / or barite with abundant manganese, iron and copper oxide in rock outcrop. Alteration, mineralization, gangue minerals and geochemistry indicate the system is probably an intermediate sulfidation, epithermal system. Zones of barren ground where high concentrations of naturally occurring minerals are toxic to plant growth often referred to as “kill zones” and surround mineralization at Mercedes. This can be an indicator of high concentrations of metallic elements such as copper and silver, which are known to be toxic to plants.
The highest-grade gold sample to date is a chip sample assaying 49.8 g/t gold that also contained 526 g/t silver, and 17.05% copper. The highest-grade channel sample, from a different outcrop area, was assayed 28.33 g/t gold, 264 g/t silver, and 9.76 % copper. The highest silver value of 773 g/t from a chip sample also contained the highest copper grade of 26.47%. Mercedes is an excellent early stage exploration project and additional work including geological mapping, geochemistry, and possibly geochemistry is planned to establish drill targets.
The Yarumalito property is situated in the Marmato Mining District, approximately 11 kilometers north of Marmato Mountain, and 110 kilometers south of the city of Medellin. The Marmato district hosts a number of productive gold-silver properties, and is one of Colombia’s most famous mining districts with historic production dating back before Spanish colonization of the area in the 1500′s. In the Mina Yarumalito area, high-grade, vein hosted gold deposits were discovered in 1988, and produced approximately 13,000 ounces of gold from small scale, private mining activity. Mining was halted in 2002 due to the low precious metal prices. In March 2012, Colombian Mines entered into a joint venture agreement with Teck Resources at Yarumalito. Under the agreement Teck may earn up to 70% of the project by spending not less than $10 million on exploration and making combined cash payments and private placements into the Company of $5.5 million. Colombian Mines is 100% carried for all exploration expenses and will remain manager of the project until Teck’s local subsidiary has earned its interest. A minimum of $1.5 million in exploration, mostly in drilling will be completed at Yarumalito under the Joint venture by June of 2013.
The Yarumalito property has the potential to host large tonnage, bulk mineable gold-copper mineralization, as well as high-grade structurally controlled gold mineralization that may be extracted using underground mining techniques. Exploration at Yarumalito is focused on gold-copper porphyry-related mineralization typical of other Colombian deposits, including Marmato, La Colosa, and Angostura. This style of alteration and mineralization has been mapped and tested with multiple exploration programs including geochemical assessment using surface rock chip and soil sampling. The rock sampling and mapping of exposures in road cuts, trenches, and drainages has provided detailed information in some areas. On a broader property-wide scale the extent of the mineralization was also indicated by soil auger/rock chip sampling and wide spaced soil sampling.
Future exploration will focus on additional geochemical and geophysical surveys, and further drill testing of specific targets of interest. The Company will also focus on higher-grade fault zone hosted (vein-style) gold zones in and around the porphyry gold-copper mineralization. This type of mineralization has been both prospected and mined at Yarumalito and in the Marmato District for hundreds of years, and has the potential to add higher-grade material to any NI 43-101 compliant resource estimates.
Colombian Mines is conducting several early-stage exploration programs on high-value polymetallic projects, and is poised to increase shareholder value by also developing its primary precious and base metals properties, through the formation of strategic joint venture partnerships
The Anori Project
The Company’s 2,373 hectare property occurs in the Department of Antioquia’s municipalities of Amalfi and Anori, and surrounds the 173 hectare Solferino Mine. The adjacent Solferino Mine, originally developed by the French company “Compagnie française de Segovie” in the late 1880′s, was reopened in the mid-1990′s by a local Colombian miner, and is currently producing at a reported rate of up to 10 tonnes per day at grades varying between twenty to more than forty grams per tonne gold. Underground workings and limited drilling at Solferino have defined a system more than 400 meters long, with minimum vertical expression over 300 meters. The Company’s reconnaissance rock sampling at the Solferino mine in 2006 returned over 30 g/t gold in individual samples, with composite intervals ranging from 4.5 meters at 17.7 g/t gold to 17.0 meters averaging 6.6 g/t gold.
The Anori project targets high-grade vein style mineralization with the potential for bulk mineable stockwork zones in an area with significant historic lode and placer gold production. Colombian Mines Corporation’s Anori property surrounds the Solferino mine, which exploits shear-hosted gold mineralization in Paleozoic schist as veins and stockworks. Historic artisanal mining on the Company’s ground has produced high-grade colluvial placer gold from weathered and altered bedrock along the extension of the Solferrino zone onto the Company’s property.
Colombian Mines Corporation is a Canadian based exploration and mine development company with an extensive portfolio of gold, gold-copper, and polymetallic projects that cover more than 90,000 hectares of highly-prospective exploration ground in the vastly under-explored country of Colombia. 2013 will be an active year for the Colombian Mines team, with drilling scheduled to start during the first quarter at Yarumalito, then at El Dovio during the second quearter and possibly at Mercedes by year end.
With a well large developed pipeline of quality projects like El Dovio, a high grade, gold rich poly-metallic project; Yarumalito a gold-copper porphyry project with multi-million ounce target potential that Teck Resources is earning in to; Mercedes, an early stage exploration project with outcrops assaying 50 grams gold per tonne, 773 grams silver per tonne and 26.47% copper, along with more than 20 other similar high potential projects, Colombian Mines has the exploration foot print of a major with the upside of a junior, and this, on top of its position as the most prolific, Colombia focused, junior prospect generator in the country. Additionally, Colombian Mines is conducting several early-stage exploration programs on high-value polymetallic projects, and is poised to increase shareholder value by also developing its primary precious and base metals properties, through the formation of strategic joint venture partnerships.
Robert G. Carrington, BSc., PGeo, QP – President, CEO, and Director
Mr. Carrington has over thirty years experience in all facets of the exploration and mining industry, as well as in production and executive management. He is the former CEO, Director, of Gold Canyon Resources, and the founder of Colombian Mines.
David Cross – CFO and Corporate Secretary
Mr. Cross is a Certified General Accountant (“CGA”) and is a partner in the CGA firm of Cross Davis & Company LLP. Mr. Cross began his accounting career in 1997 and obtained his CGA designation in 2004. The Board welcomes Mr. Cross to the Company’s management team.
Donn Burchill – Independent Director
Mr. Burchill is a Certified Management Accountant, and formerly controller for Quest Capital Corp. He has extensive experience as director of junior resource companies.
Paul Wang – Independent Director
Mr. Wang has an extensive banking and financial background specializing in natural resource, mergers and acquisitions.
Gloria A. Carrington – President, Corporacion Minera de Colombia/Country Manager
Born and raised in Medellin, Colombia, studied law at University of Medellin with extensive business and legal background in Colombia.