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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 highly favorable jurisdictions throughout North and South America. In January 2014 joined a select group of junior explorers that meet the stringent investment criteria of the International Finance Corporation / World Bank Group.
Colombian Mines is well-positioned to take advantage of the rising tide of metal prices with a growing portfolio of gold, copper and silver properties in both North America and South America.
In Colombia, the company holds three prospective properties including El Dovio, Yarumalito and Mercedes. In July 2016, Colombia Mines announced it has entered into a purchase option agreement for the Pamlico gold project in Mineral County, Nevada for US$4 million. Also in July, the company announced it has entered into a binding letter of intent to acquire Rocky Mountain Mining, a private company with a group of patented mining claims in the Leadville Mining District of Colorado.
- Explorer with first mover advantage in Colombia with focus on large, high grade projects
- Tight share structure, cash on hand
- Experienced management with proven history
- Growing portfolio of North and South American gold, silver and copper properties
Key North American Properties
Pamlico Gold Project
The Pamlico gold project is located 12 miles southeast of Hawthorne, Nevada in the Walker Lane gold trend—one of Nevada’s largest and most productive gold regions. The property consists of 116 unpatented lode mining claims which include the historic Pamlico group of underground mines as well as the surrounding Good Hope, Central, Gold Bar and Sunset mines. Colombia Mines has the option to purchase a 100-percent interest in the property.
Visible gold dominates the high grade mineralization which occurs in thoroughly oxidized and brecciated quartz veins. A total of 103 drill holes (8487 meters) were completed on the property between 1993 and 2010, by three previous operators. Numerous historic drill holes contain high grade gold intercepts. Highlights are included in the table below.
|Drill Hole||Year Drilled||From(feet)||To(feet)||Intercept Length (feet) (meters)||Average Gold opt g/t|
|(ounces / short ton)||(grams / metric tonne)|
Note: Intercepts are average of all samples in drilled intercept length with no grade capping applied. All intercepts are drilled length. True widths are unknown.
Recent work includes completion of 29 rotary holes in 2010, a 188 meter long, 3 X 4 meter decline to one of the high grade zones in 2013, haul road, initial permitting, and all necessary surface and underground infrastructure including shops and office buildings. The decline, completed in 2013, was advanced to within 25 feet of high grade drill indicated mineralization. Two previously unknown gold zones were discovered while driving the decline. Both contain coarse visible gold in brecciated vein material with abundant iron oxides and will be independently sampled as a top priority of Colombia Mines going forward.
With the drilling to date, simple metallurgy, and access via the new decline, Colombia Mines has plans for a near term bulk sampling program and the processing of mineralized material from one or more high grade zones. The next step will be evaluating the potential for achieving commercial production from known high grade mineralization along with economic studies while pursuing exploration of additional targets.
Leadville Gold-Silver Property
The Leadville property is located in the Leadville Mining District of Colorado, one of the premier mining districts in the United States and known for its high gold values. The Leadville district has produced more than 3.25 million ounces of gold and 256 million ounces of silver since its discovery in 1860.
Colombia Mines has entered into a binding letter of intent to acquire Rocky Mountain Mining, the private company that holds the Leadville group of patented mining claims along with an extensive data base on the property.
Key South American Properties
The El Dovio property is wholly-owned by 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 in a recently discovered exhalative horizon at the contact between the sediments and volcanic rocks on the property.
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 the Sabana Blanca zone returned a 68 meter true width that averages 4.7 grams gold, 6.2 grams per metric tonne silver and .5 percent copper. Higher grade zones found within the broader mineral envelope assay to 27.4 grams gold, 8.1 grams silver and .2 percent copper with individual samples assaying as high as 104 grams gold per metric tonne.
Phase I drilling results successfully traced high grade gold – copper mineralization more than 100 meters below outcrop and confirmed continuity within the area of drilling in the Sabana Blanca zone.
In addition to the large Sabana Blanca zone, Colombian Mines 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 Sabana Blanca 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.
Metallurgical tests on El Dovio mineralization yielded recoveries of 96.4 percent for gold, 97.8 percent for copper, 91.1 percent for silver and 96.8 percent for zinc.
The Mercedes property is composed of a single granted license, wholly-owned by Colombian Mines that covers 4,995 hectares in northern Tolima Department, Colombian. Road access to the property is excellent and infrastructure is well developed. The Mercedes property is interpreted to cover a porphyry related, intermediate sulfidation epithermal system analogous to the Fruta del Norte deposit in Ecuador. Hosted in Tertiary age volcanic and volcano-sedimentary rocks of the Saldana formation and underlain by Mesozoic age carbonate sediments with this minerization also has 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 percent 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’ 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. Property-wide airborne magnetometry and radiometric surveys completed in January 2014 identified 31 high-priority targets for follow up.
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. The Mina Yarumalito, 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.
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 has largely 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 geochemical assessment using surface rock chip and soil sampling and more than 18,000 meters of core drilling in multiple exploration programs. . 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.
As demonstrated by historic mine workings, outcrop and drilling, the high grade Culebra shear zone extends over a 5 kilometer strike length with a vertical development in excess of 1000 meters. Sampling in historic mine workings has returned individual samples to 2.8 meters assaying 18.9 g/t gold and 64.8 g/t silver within a larger 12 meter zone averaging 5.8 g/t gold and 26.7 g/t silver. Initial drilling has also returned 1.9 meters (from 138.1 meters to 140.0 meters in hole YAR-11) assaying 33.8 g/t gold.
In the La Escuela zone, the presence and extent of gold porphyry style alteration and mineralization has been mapped and characterized with multiple programs of geophysical, surface rock chip and soil sampling. To date more than 18,000 meters of drilling has been completed, much of this in and around the Escuela target zone, resulting in the identification of a significant volume of mineralization including a 151 meter intercept from surface grading 0.64 g/t gold in an outcropping mineralized body roughly 1,000 meters long by 400 meters wide and more than 800 meters down dip. Metallurgical work on 1.5 metric tonnes of mineralized drill core composited from the Escuela zone indicates the entire deposit is amenable to cost efficient heap leaching, having achieved 91.6 percent recovery of gold on oxidized material crushed to 1⁄2 inch (12.5 mm), while transition and sulfide mineralization yielded recoveries of 80.6 percent and 63.0 percent respectively when crushed to 10 mesh (1.5 mm).
Future exploration will focus on higher definition drilling and expanding known mineralization along strike and down dip. Colombian Mines will also focus on higher-grade fault zone hosted (vein-style) gold zones with particular focus on the high grade Culebra zone. 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.
Robert G. Carrington, BSc., PGeo, QP – President, CEO, and Director
Robert 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
David Cross is a Certified General Accountant and is a partner in the CGA firm of Cross Davis & Company LLP. Cross began his accounting career in 1997 and obtained his CGA designation in 2004.
Donn Burchill – Independent Director
Donn 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
Paul Wang has an extensive banking and financial background specializing in natural resource, mergers and acquisitions.
David Salari, Independent Director
David Salari is a Professional Metallurgical Engineer with more than 30 years experience. He has been involved in the design, supply, and commissioning of mining and mineral processing systems throughout the world for gold and silver, base metals, and industrial minerals.
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.