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, and in January 2014 joined a very select group of junior explorers that meet the very stringent investment criteria of the International Finance Corporation / World Bank Group. With a very tight share structure (42.4 million shares Issued and Outstanding), less than 15 million shares in float, cash on hand, and no debt and an enviable project pipeline, Colombian Mines has positioned itself well to take full advantage of the rising tide of metal prices. At the Company’s high grade El Dovio and Mercedes projects, 2014 focus will be to expand geochemical and geophysical coverage with a second phase drilling at El Dovio, slated to start during the second quarter. At the newest addition, the 5,000 hectare, Mercedes project, exceptional results are coming in already. The Company recently completed property wide airborne magnetometry and radiometric surveys and reconnaissance sampling has returned reconnaissance samples assaying more than 49 grams gold per tonne, 1,100 grams per tonne silver and 26% copper. The Company has two joint ventures, one with Teck Resources, where Teck is sole funding 100% of exploration expenditures at Yarumalito, and a 100% carried interest through to production with Australian junior Overland Resources at Rio Negro. With an enviable pipeline of projects behind these, the Company is well positioned for rapid and substantial appreciation in shareholder value.
- Pure Colombian Explorer – First Mover advantage focus on large, high grade projects
- Tight Share Structure: 42.4 million shares Issued and Outstanding, cash on hand, Experience Management with proven history
- Premier Junior Colombian Prospect Generator
The El Dovio is 100% owned by the Colombian Mines, and is comprised of 4 granted licenses covering 10,106 hectares situated in the municipalities of El Dovio (Department of Valle del Cauca) and Sipi (Department of Choco) in western Colombia.
The property covers an exceptional gold-rich poly-metallic vein system hosted in metamorphosed marine volcanic rocks. Mineralization is characterized as a large “stringer” or “stock work” zone that may have been the “feeder” for a volcanogenic massive sulphide (VMS) target that would be expected to form at the contact between the sediments and volcanic rocks. VMS systems are formed as massive, typically, 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) the massive sulphide mineralization, and (2) the stringer or stock work vein system that is hosted in volcanic rocks below the massive sulfide mineralization. Eskay Creek, Noranda, Kidd Creek are well-known Canadian examples of this type of deposit. The best known Colombian equivalent is Mina El Roble, recently purchased by Atico Mining Corporation. Similarly, the El Dovio property hosts polymetallic gold-silver-copper-zinc mineralization in this distinct setting, as well as bonanza grade mineralization in what may be a boiling feeder or stringer zone.
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 stock work (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.
Phase I drilling results as shown in Table 1, successfully traced high grade gold – copper mineralization more than 100 meters below outcrop and confirmed continuity within the area of drilling in the Sabanablanca zone.
|Drill Hole||From||To||Length (m)||Au – g/T||Ag – g/T||Cu – %||Zn – %|
In addition to the large Sabana Blanca zone the Company has identified several other mineralized zones including the Brazo 1 and Granizales zones. The Brazo 1 zone is situated approximately 200 meters uphill from the Sabanablanca zone. Strong coincident geochemical and geophysical anomalies associated with exposed mineralization in surface trenches indicate significant potential to develop additional high grade mineralization through drilling. The Granizales zone is located nearly 600 meters to the southwest of the Sabana Blanca zone in an intense geochemical anomaly, and exhibits similar mineralization to the Sabana Blanca and Brazo 1 zones. 2014 ground magnetometry will be expanded to cover the Granizales zone and drilling is planned for the first half of 2014.
Mercedes is composed of a single granted license, 100% owned by Colombian Mines that covers 4,995 hectares in northern Tolima Department, Colombian. Road access to the property is excellent an infrastructure is well developed. The Mercedes property is interpreted to cover a porphyry related, intermediate sulfidation epithermal system hosted in Tertiary age volcanic and volcano-sedimentary rocks of the Saldana formation underlain by Mesozoic age carbonate sediments with potential to develop sediment hosted (Carlin type) mineralization. Recent reconnaissance sampling of the Mercedes property has returned values to 49.8 g/t gold, 1,120 g/T silver and 26% copper.
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 is hosted in a belt of 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. Airborne magnetometry and radiometric surveys completed in January 2014, reveal numerous strong anomalies that indicate extensive alteration and possible mineralization.
Mercedes is an outstanding early stage exploration project and additional work including geological mapping, and geochemistry are planned to establish drill targets during the first half of 2014.
Yarumalito – Teck Resources JV
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 an option agreement with Teck Resources at Yarumalito. Under the agreement Teck may earn up to 70% joint venture interest in 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. Teck has completed its first year work obligation consisting of $1.5 million in exploration and is in the process of assessing the data from that.
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 Rio Negro Project – Overland Resources JV
Colombian Mines 100% controlled Rio Negro property is comprised of 3,000 hectares situated at the projected intersection of northeast trending structures related to the high grade California and Vetas districts and the regional, north-northwest trending Bucaramanga fault that is widely postulated to have controlled the circulation of fluids that formed the Vetas and California deposits. Intense zones of clay alteration and quartz – sulfide mineralization have returned values to 23 grams gold per tonne and more than 2% copper and indicate circulation of large volumes of highly mineralizing fluids. Porphyry style alteration and mineralization has been found on the northern portion of the property where garnet bearing intrusive bodies with porphyry style alteration have been mapped.
Compilation and interpretation of geologic mapping by the government agency Ingeominas, and known gold mine locations in the California mining district to the northeast, suggest that the Rio Negro property may be on trend with recent major deposits in the California district. Ingeominas’ geologic studies indicate that the intrusive rocks found in the Rio Negro license area are closely related in age and composition to the host rocks found in the California District’s Angostura and La Bodega/La Mascota deposits.
Access and infrastructure are excellent on the property with an extensive network of roads and local power grid covering the entire property. The property lies entirely below 2,000 meters elevation, well below the environmentally restricted Paramos.
In 2013, Colombian Mines granted Australian junior explorer, Overland Resources an option to earn into a joint venture interest at Rio Negro. Under the terms of the option, Colombian Mines retained interest is 100% carried through to production.
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.
The Venecia Project
Colombian Mines’ 100% owned Venecia Property covers 1,985.09 hectares located along the central portion of the prolific Mid Cauca Porphyry belt. Venecia is one of several gold-copper porphyry systems along this segment of the Andean Porphyry Belt which extends through Chile, Peru, Ecuador, before passing into Colombia. Located just north the Marmato mining district in the Department of Antioquia, Colombia, Venecia hosts gold and gold-copper targets with the potential to host porphyry style, bulk-mineable targets, as well as high grade structurally controlled vein zones suitable for more selective underground mining techniques.
Paved and gravel roads provide excellent year round access to the Property from Medellin (2 ½ hours) and Venecia (15 minutes) distance. The primary surface use on the property is agricultural consisting of cattle grazing, coffee plantations and citrus groves. Access and infrastructure are excellent on the property with an extensive network of roads and local power grid covering the entire property. The property lies entirely below 2,000 meters elevation, well below the environmentally restricted Paramos.
Venecia is contiguous with the La Mina gold-copper porphyry now controlled by Bellhaven Resources, and approximately 20 kilometers north of B2/AngloGold’s Quebradona gold-copper porphyry. During the period 2011 to mid-year 2013, Colombia Crest Gold Corp held an option to earn a joint venture interest in the property. During this time they completed extensive stream sediment, soil and rock geochemical sampling and identified multiple anomalies. During 2012, they completed 6574.15 meters of diamond core drilling in 18 drill holes. Colombia Crest had proposed plans to conduct additional drilling to follow up the successful Phase I drilling but was unable to raise working capital due to the general depression in the junior sector in 2013 and terminated its option.
Like other porphyry targets of the region the geology of the Venecia area is dominated by Tertiary age, andesite to dacite porphyry (granodiorite) intrusive rocks. These stocks and smaller apophasis of these rocks intrude and mineralize volcano-sedimentary rocks of the Mesozoic age Canas Gordas Group and older portions of Combia Formation on the property. The upper members of the Combia Formation cover most of the earlier rocks and may post date the intrusive / mineralizing events.
Gold-copper mineralization is porphyry related disseminated, stockwork, and structurally controlled relatively high temperature, intermediate sulfidation epithermal type gold mineralization. Recent outcrop samples of porphyry style mineralization grade up to 3.8 grams per tonne gold and 0.6% copper.
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. 2014 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 quarter and possibly at Mercedes by year-end.
With a large, well 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.