Politics, politics and more politics

Transcription

@ColGoldLetter
4
Local
Relations
www.ColombiaGoldReport.com
5
AntioquisaGold
Q&A
5
Exploration
News
No.22 / June 2013
12
Colombia
List
Politics, politics and more politics
Election cycle starts with drugs and mining in the crosshairs
C
olombia's presidential election cycle
revved its engine with the news that
President Juan-Manuel Santos said
he plans to run for re-election in
2014, while his housing minister, German
Vargas Lleras, resigned in order to run for
the top job too.
In the June 2010 election, Santos was
elected with over 9M votes, some 69% of
the votes in the second round. Vargas
Lleras obtained about 1.5M votes in the
first round and was third placed. Polls place
him as a strong contender. Former President Alvaro Uribe, prohibited from running
by the Constitution, will also be a factor
through his new Democratic Center party
that has several candidates aiming to run.
In 2010, Santos represented the U party
that Uribe was part of, on a ticket promising
continuity of his policies, including Democratic Security. Public opinion believes he
has failed to do this, with people perceiving
that security has worsened under Santos.
Santos would see his popularity shoot
off the charts if he can achieve peace with
the FARC and ELN, and it is probably with
this in mind that he is pushing deadlines for
peace in talks with FARC. Armed conflicts
are rarely resolved to a timetable as peace
takes a lot of time, struggle, tears, frustration, continuing violence and unpopular
concessions to achieve.
A significant step towards peace has
been taken with the news that the government and FARC reached agreement on land
reform during peace talks in Havana, Cuba.
“This agreement will be the start of a
radical transformation of rural Colombia,”
said a joint statement. The deal calls for the
economic and social development of rural
areas and providing land to poor farmers.
The agreement calls for fair access to land,
rural development and the creation of a
land bank to reallocate land. “Today we
have a real opportunity to attain peace
through dialogue,” chief government
negotiator, Humberto de la Calle.
Talks will resume on 11 June. Other
points on the agenda are political participation, disarmament, illicit drugs, rights of
the victims and peace deal implementation.
OAS report on drugs
President Santos has wasted no time to
paint himself as the peace-bringing humanist, and it cannot be a coincidence that the
week he confirmed he would run for reelection was the same week that the Org© 2013 Colombia Gold Letter. All Rights Reserved.
President Juan Manuel Santos speaking at Cinmipetrol in Cartagena
anization of American States (OAS) launched The Drug Problem in the Americas
report, in Bogota. Apparently, Santos will
speak on this during a forthcoming UK visit.
In broad terms, the report says that the
majority of drug consumption and therefore of the revenue stream and profits
occur and accrue in North American states,
whilst the, “impact on the economy, social
relations, security and democratic governance,” is mainly in Central and South, Mexico and the Caribbean where cultivation,
production and transit occur. The report
says 65% of revenues and profits accrue in
North America whilst growers (peasant
farmers) generate and receive about 1%.
Without saying so directly, the report
suggests that the US-backed war on drugs
has been a failure and that alternative policy scenarios need to be considered. It
states that, “at the level of the United
Nations conventions, changes will arise
from the possibility that the current system
of control of narcotic and psychotropic
substances could become more flexible and
allow countries to collectively explore policy options on drugs, taking into consideration the needs, behaviours and particular traditions of each.”
It offers four scenarios about how the
drug issue in the Americas could develop.
These include Pathways, which is to move
away from the current legal and regulatory
regime to control drug use through criminal
sanctions that cause too much damage
towards learning from alternative legal and
regulatory regimes, such as the cannabis
decriminalization that some US states have
adopted. “In the field of national legislation
existing signs and trends that point toward
the decriminalization or legalization of the
production, sale and consumption of marijuana.” The objective of this alternative is a
transition from criminal markets to regulated markets and reassignment of state
resources from control to prevention and
treatment of problematic use.
Another scenario, Disruption, sees a
focus on countries where drugs are produced and where trafficking takes place.
This argues that because of the unbearable
and unfair social costs of this to those countries, some will unilaterally abandon the
fight against drug production and trafficking, or come to accept it as they seek to
reduce violence and free up resources
currently spent on security and law enforcement. This scenario would allow the
expansion of drug markets and profits, the
cooptation of the state by criminal organizations and conflicts arising from violations
of international treaties,” it says.
1
@ColGoldLetter
No.22 / June 2013
News Feature (continued from P1)
A more practical, integrated international drugs policy is clearly desireable.
Colombia has been on the front line of the
war of drugs and received massive amounts
of US military aid to combat their production. Despite successes, the massive
amounts of money spent have failed to
stem the flow of drugs, merely displacing
some of it to Bolivia and Peru where the
state military response is not as strong, and
to displace distribution to Central America,
the Caribbean and Mexico, that are experiencing the levels of violence Colombia
experienced in the past.
A drugs policy that removes the super
profits from this sector is the only way to
deflate the violence and allowing other
economic sectors to prosper, including mineral exploration. As things stand, there are
large tracts of Colombia with high mineral
potential that are not currently subject to
exploration due to security risks. Whilst the
Andes run N-S through Colombia, only the
part N of Cali has been subject to exploration within the last ten years. An area the
size of Switzerland SE of Cali was ceded to
the FARC in 1999 by President Andres Pastrana as part of a prior peace attempt. The
FARC essentially used this truce to rearm
and entrench themselves in the land ceded
to them. It also saw them strengthen drug
trafficking routes to the Pacific coast
through the Andes S of Cali, which are still
in place, and the main reason why mineral
exploration has scarcely occurred there.
Politcal target
Drugs and violence are obvious election
issues. Mining could be another. Perhaps
with the intention of undermining Santos,
the General Controller (GC) of the Republic
published Mining in Colombia: Fundaments
to Overcome the Extractive Model. One
doesn’t have to read many pages to get the
impression that the GCs office is staffed by
old school Marxists of the type that Fernando Jaramillo, CEO of Antioquia Gold
(TSXV: AGD) mentions in this months’ Q&A
interview (p5). The report revives long-discredited concepts such as import substitution and state exploitation of natural
resources. “This study is a revision of various researchers that traditionally have
been critical of the mining sector. This is
nothing new and it is not public policy,” said
Cesar Diaz, executive director of the
Colombian Mining Chamber.
Speaking at the Cinmipetrol Congress in
© 2013 Colombia Gold Letter. All Rights Reserved.
Reports hold mixed blessings for mining
Cartagena the week following the publication of the report, President Santos reaffirmed his support for the “crucial”
sector. “Without its contributions ... it is
impossible for us to build a just, modern
and safe country,” he said.
The report criticizes the concession application process whereby the first to apply
for a concession is awarded it, which, “does
not guarantee the selection of the best
applicant,” it says. “It is necessary and
urgent to eliminate the ‘first in time, first in
right’ criteria in the assignation of titles,” it
says. The GC believes concession awards
should take into account whether the applicant has the “expertise, technology, financial resources, environmental compliance
and social responsibility”. In this, it agrees
with current government policy. As MinMinas looks to auction exploration blocks,
its selection criteria will include such requirements. However, the GC thinks the
requirements should go further and include
a curriculum vitae of a company’s environmental, human rights and social responsibility record, in addition to its compliance
2
@ColGoldLetter
No.22 / June 2013
News Feature (continued from P2)
with labour, contractual and tax obligations. Whereas MinMinas
wants to auction unstaked concessions, the GC says it should look to
recover concessions where no work has been done, so that they too
can be subject to competitive tender.
As the GC report progresses, it becomes increasingly radical and
reactionary. For example, whilst organizing the auction of concessions, it says the state must also study the possibility of directly
exploiting the resources, as it does with hydrocarbons through
Ecopetrol. The 2001 Mining Code, Law 685,
prohibits this. The GC further recommends that
when third party participation is decided, it must
be via public-private partnerships with profits to
be distributed proportionally to their participation via the payment of taxes and royalties”.
Another example of anachronistic political
thinking is that it says 99% of gold and 92% of
coal production is exported, “without generating
any productive chains, which converts the country into a net exporter of raw materials and
President
accumulator of contaminated wastes.” It questions the rush to exploit scarce resources that will be scarcer in the
future, without considering the opportunity cost of not exploiting
them to develop the country today rather than in the future.
The report exhibits jealousy of foreign capital and rails against
explorers that seek to sell mineral discoveries onwards to larger
companies via offshore transactions. “It must be established that
concession holders cannot grant their total or partial rights without
the approval of the national authority, and in the event that the
answer is positive, the operation must be undertaken in Colombia.”
The GC report recommends the implementation of mechanisms
to strip assets that would open the door to even greater levels of
administrative corruption than the sector has already been subject
too. It states that the lapse of a mining contract should not only be
for infractions to mining but must also the refusal of the authority to
grant an environmental license. Its argument is that without an
environmental license, there is no mining title to exploit, so that
when the environmental authority denies an environmental license,
the concession right is not complete should be lost. It cites Greystar
Resources as an example of a company that held its titles for 18
years without an environmental license, ignoring the fact that the
company has invested over US$200M in exploration. The GC says
Greystar continued to claim its mineral rights, “until it negotiated
[them] with another company, Eco Oro.” Greystar did no such thing;
the company changed its name to break with the failure of the past.
Seemingly drawing inspiration from the
Internationale, the report expounds how the
awarding of mining titles and concessions violates fundamental and collective rights because
there are no clear rules regarding land use. It
sees legal conflicts between territorial planning
and mining that could exacerbate human rights
violations via forced displacement and a lack of
consultation and land restitution. To achieve
better territorial planning, it urges the elimination of, “the total autonomy that the majority
Santos
of the mining projects in the country operate”.
The GC believes MinMinas has too much power and oversteps
the jurisdiction of other ministries. It says the 2001 Mining Code,
“overlapped, invaded and neutralized articles of other laws to
create norms that are beneficial to the private sector,” and that
environmental norms must be reformulated given that it is inconvenient that the Mining Code, “invades the competence of the
environmental, ethnical and territorial authorities,” arguing that as
mining has various impacts its licensing, “cannot be the exclusive
responsibility of the mining authority, an authority that is weak, vulnerable to pressure and with low technical capacity”. Instead, it says
the award of mining titles must be a decision of the State that
includes an exercise of strategic planning, the valuation of the
strategic resources in function of present and future demand and
the study of the environmental, social and economic impacts, to
determine through cost/benefit analysis the integral viability of a
request for mineral exploration and exploitation."
CGL
“Without *mining’s+
contributions ... it is
impossible for us to
build a just, modern
and safe country”
3
@ColGoldLetter
No.22 / June 2013
Feature
Community Relations in Colombia
By Don Clarke, General Manager, CES*
I
have had the opportunity to work with
the junior exploration sector in Colombia and experience first hand a country
that holds “blue sky” exploration potential. However, despite this considerable
potential the mineral exploration industry
has found itself in an extremely challenging
environment due to the global financial
crisis and falling commodity prices which
have resulted in many Colombian junior
exploration companies reducing operations,
merging or simply closing shop.
The issues facing Colombian juniors are
challenging as security, political and social
risks are on the increase. In response to
these challenges, Colombian juniors must
look for strategies to address them. Perhaps the most cost effective strategy to
deal with social, political and security risks
is to maintain good relations, engage local
stakeholders and ensure that communities
are informed and knowledgeable about a
project and exploration processes to ensure
they understand what is required to advance a project into development.
My experience working with communities from Northern Canada to Southern
Chile has shown that modern exploration
and its processes has been a difficult concept for communities to understand. Most
stakeholders find it hard to believe that a
company could spend millions of dollars
examining conducting years of drilling with
only a small chance that they may get a
return on their investment. Communities
develop expectations and the minute they
see an exploration company working they
assume that a mine is going to built.
It is not uncommon for communities to
believe that core samples contain immense
amounts of gold and that a company sells
them and uses the proceeds to finance its
operations. I have been informed by locals
that companies must be laundering money
as they couldn’t see anything being produced but were aware that large sums of
money were being spent in the area. All
these scenarios have a common issue: a
lack of information in the community with
mis-information taken root in this vacuum.
Colombia has a rich mining heritage
but at the community level there is confusion about the difference between a
modern junior conducting exploration and a
traditional mining company that produces.
Most communities in Colombia have knowledge of small-scale, artisanal and traditional mining, but the majority have no
experience of modern exploration companies, how they operate or why they exist.
I have observed explorers who create
community issues such as unrealistic
expectations due to a lack of experience or
management. For example, communities
often believe a junior explorer is a much
larger company than it actually is because it
spends significant amounts on supplies,
trucks, equipment and hiring people.
Differences in timelines creates issues.
Exploration timelines are measured over
years but timelines for the majority of
people in remote and rural communities extend as far as the here and now, with the
corollary that communities want to know
what benefits exploration will bring today.
In haste, exploration companies often overpromise and under-deliver to communities
which creates strained relationships from
the moment a company starts a project.
Other issues manifest themselves when
companies move from drilling to pre-feasibility when they no longer need a large, low
-skilled local workforce, but fewer higher
skilled workers from outside. Communities
do not react well to local workforce reductions particularly when they feel they were
not well-informed or aware of how changes
in exploration phases will affect them.
Not a charity
I spoke with several companies at the Feria
de Mineria in Medellin in October 2012
about their community relations programmes and was surprised to learn the majority
operated them like charities. Several companies said they give scholarships but when
I asked how they decide who gets one and
what transparent and equitable process
they use to select candidates, they became
very quiet. Some companies said they built
thousands of dollars worth of infrastructure
projects, but when I asked what the community gave the company there was no response. When a company operates community relations like a charity it works
temporarily and community support is only
maintained so long as the financial tap
remains open. When a company can no
longer maintain a certain level of giving,
relationship strain develops between the
company and the community.
The engagement process must be
respectful, open and transparent. Information shared should not overwhelm stakeholders. Lack of infrastructure, inadequate
education systems and poverty result in
knowledge and information gaps. It is important to be aware of this. A common mistake is that companies use technical staff
such as geologists to deliver information
that does not fit the cultural and educational reality of a community.
It is key for juniors to have trained community relations personnel experienced in
stakeholder mapping that can develop a
social risk matrix to manage and mitigate
risk. It is a huge advantage when staff have
lived in communities where large-scale mining has been developed so they can share
“real life” experiences of modern mining.
A number of Colombian exploration
projects have stalled, been hobbled or
stopped from not having community support. Such projects usually have two issues:
the community was not well informed nor
was it properly engaged. It is critical when
building community relations that the strategy should be simple, clear and focused on
making sure that communities have a clear
understanding about a project. Exploration
companies that build capacity with respect
to responsible exploration and manage expectations effectively are more likely to
encounter community acceptance and will
have the social license to operate. CGL
*A community relations and risk management
specialist who for 20 years has successfully
worked with junior, mid-tier and large-scale mining, forestry and energy companies to advance
challenged projects throughout the Americas.
[email protected]
4
@ColGoldLetter
No.22 / June 2013
Interview
Fernando Jaramillo, President
Antioquia Gold (TSXV: AGD)
AGD has been active in Colombia since
2007, but has never excited the market.
Now, with new management, it is pushing
ahead with a near-term production plan.
CGL AGD is looking at near-term production at Cisneros. How close to that
possibility are you?
FJ We have drilled over 45,000m and are in
the process of finalizing modelling and NI
43-101 resource estimation. We need to
prove up more resources to sustain operations and this is becoming increasingly
costly. We are exploring for vertical or subvertical veins and have to intercept them at
increasing depths, which means longer drill
holes. The plan is therefore to develop
exploration tunnels in the Guaico and Guayabito prospects with a view that these will
later be used for production. Guaico has a
production permit and environmental license for tunnel development. We want to go
into small-scale production and continue to
explore from the tunnels. Once we define
more resources we will take the decision to
go into production. We are aiming for mid2015 if all goes well.
CGL What mine scale are you considering?
FJ We are considering a medium-scale mine
of 500-1,000 tpd, depending upon the
resource grade, which is likely to be in the 5
-10 g/t Au range. We want to use modern
mechanized equipment, large tunnels with
Jumbo drills, 3 cubic metre scoops and 30t
trucks. The processing plant will be gravity,
floatation and closed circuit cyanidation.
Exploration tunnels will help prove up the
resource and give the ability to drill underground. It is also pre-investment as if all
goes well, some mine development will already have been done. We are confident in
the geological model as a disused train
tunnel passes through the mountain we are
exploring. What we see on the ground we
see in the tunnel, so we know the veins are
vertically continuous. We are fortunate to
have a major shareholder that exploits similar deposits in Peru that is willing to invest.
CGL What financing will you need for this?
FJ To get to the BFS stage we will need
US$12M and then possibly another US$3035M to bring it into production.
financing of C$500k and we will then, given
the interest, do another to continue the
work plan. We will spend C$500k-600k
completing technical studies including a NI
43-101 resource estimate, plant concept
study, mine plan concept, advanced metallurgical studies, tunnel engineering and land
purchases that will bring us close to PEA
level. We hope to complete these by
October. We will then need C$12M to build
the exploration tunnels, complete feasibility studies and carry out exploration. The
two-year plan is to drill up to 20,000m from
the exploration tunnels at Guayabito and
Guaico, and 5,000-10,000m of surface drilling on some of the other 11 target zones.
CGL Private miner Desafio Minero is 48%
majority shareholder. Will AGD delist?
CGL Delisting is an option and we are looking at the options for future financing, that
may include becoming a private company.
We have retained investment bank IBK
Capital to develop options for us.
CGL How will you raise this in the current
financial market?
FJ We need a lot of finance and we cannot
do that in the stock market alone. We are
not ready to obtain gold-backed loans yet
as we are not in production. We think we
are an attractive opportunity for investors
that like the risk of getting to a production
decision, rather than exploration risk.
CGL What about blue-sky? AGD has only
explored a fraction of its concessions?
FJ So far we have only focused on two
targets of 11 that have been identified. We
know the others have gold because we
have drilled some of them. The Guaico
tunnel can be extended into three targets
that are fairly near: Nus, Chamuela and
Papi, which could enable us to extend production scale or mine life.
CGL What is the 2013 work plan?
FJ We are finalizing a private placement
CGL How do you see the outlook for
modern gold mining in Colombia?
FJ Coffee is the main economic reference
point so let me put it in terms of that. Some
90Moz Au have been discovered here and
at current prices, that is equivalent to about
90 years of coffee exports, but that can
potentially be realized in 30 years. Simply
put, gold mining could be three times
bigger than Colombia’s flagship industry.
Colombians consider mining a necessary
evil and so miners must do things very well
otherwise it will not be allowed. Mining
water use creates a lot of dread, which is
unfair as modern miners use water sparingly as though it were cologne. After mining, land can be reconditioned to be better
than it was before. Mining transformed
Australia to a developed nation with a high
level of technology that generates high
level education and wealth. Where there
was mining in the Hunter Valley there are
now wineries. It should be this way in
Colombia but unfortunately a utopian socialist discourse is part of the national psyche of my generation. This takes the view
that it is better to leave resources in the
ground until Colombians can exploit them.
Colombians undervalue exploration and the
effort to make a discovery. They think the
minerals are just sitting there.
Colombians have a choice: we either
support and embrace mining as an engine
for development and a means for a better
life, or we keep these valuable minerals in
the ground hoping for a better moment.
This is like saying it is better to educate
children later, because we will know more
in the future, so why waste energy to educate them now? This position makes no
sense to me.
CGL Thank you.
5
@ColGoldLetter
No.22 / June 2013
Exploration News
Seafield Resources (TSXV: SFF)
Made a new discovery of Au-Cu porphyry mineralization at the Tesorito target of its Quinchía project in Risaralda, 800m SE of its
Miraflores deposit. To date, 750m have been drilled in two holes,
both of which ended in mineralization. Drilling at Tesorito is testing
a broad target identified from surface exploration. The anomalous
zone outlined by Au in soils and high chargeability IP covers a 500m
x 700m area. Highlights included 384m @ 1.01 g/t Au, 0.9 g/t Ag &
0.08% Cu in hole TS-DH-02. “This marks a new discovery for SFF and
continues to highlight the geological potential of the district. Tesorito was originally examined as a possible location for a tailings site
for Miraflores, but our field work quickly identified its mineral potential and we were led to make a discovery instead,” said president
& CEO, Cesar Lopez.
SFF earlier updated its NI 43-101 resource estimate for Miraflores that contains a M&I resource of 1.8M oz Au contained in
72.6Mt @ 0.78 g/t Au, with 3.6Moz Ag @ 1.5 g/t Ag, at a 0.27 g/t
Au cut-off grade. It also includes an Inferred resource of 62,000 oz
Au @ 0.51 g/t Au & 275,000 oz Ag @2.3 g/t Ag, contained in 3.8Mt.
Red Eagle Mining (TSXV: RD)
Completed 22,000m of Phase IV drilling at the San Ramon deposit of
its Santa Rosa project in Antioquia. Highlights from the 94 hole programme included 36.10m @ 2.64 g/t Au in hole SR-168, 0.60m @
157.70 g/t Au in hole SR-172, and 24.00m @ 9.03 g/t Au in hole SR215. An updated resource estimate is planned for July to upgrade
existing Inferred resources below 100m to the M&I classifications.
This will be incorporated into a PEA and EIA planned for release
early in 3Q13. San Ramon remains open at depth. “Our Phase IV
drilling programme has successfully delineated the resource to
250m depth and extended it to more than 500m at depth. Over 90%
of drill holes encountered economic mineralization including high
grades over significant intervals,” said VP exploration Jeff Toohey. A
total of 45,000m in 233 holes have been drilled. RD is looking to
develop a mining operation initially capable of processing 1Mtpy to
produce 75,000 oz Au.
Solvista Gold (TSXV: SVV)
Completed an 8,000m, Phase I drill programme on three targets
within the porphyry cluster at its Caramanta project in Antioquia
and seven additional drill holes from its El Retén Au-Cu discovery.
The results support SVVs model that the Caramanta porphyry cluster represents related mineralized bodies and has the potential to
host significant new Au-Cu porphyry discoveries. The El Retén drill
results increased the dimension of the mineralized body by
expanding the surface footprint to the SW and the known vertical
extent. Highlights included 456.7m @ 1.40 g/t AuEq in hole CAD1218 and 323.4m @ 1.74 g/t AuEq in hole CAD-1220. “The fact that
we have identified significant mineralization in areas previously
thought to not be mineralized and have also discovered additional
mineralized porphyry phases, which have not been mapped at outcrop highlights the dynamic and extensive nature of the mineralizing system and bodes well for further drilling and exploration
success at El Retén,” said president & CEO Miller O’Prey.
SVV has essentially defined the surface footprint of El
Reten, so the news here is the discovery of new porphyry mineralization that does not outcrop, which could potentially
add to its size. With a 456m mineralized intercept, SVV now has
potentially economic mineralization that extends beyond the maximum depth of any pit development. Future upside at Caramanta is
therefore making discoveries at SVVs other targets. Drilling will
restart in late July or early August with 2,000m at both the Malabrigo and Casa Verde targets. Once completed, SVV will have put 5
-6 holes in five targets: El Retén, El Corral, Ajiaco Sur, Malabrigo and
Casa Verde. Many juniors in Colombia are pursuing a strategy to
achieve near-term production. SVV is opting to test targets throughout its property so as not to put all its eggs in one basket and
potentially risk missing a big discovery.
CGL Analysis
Bellhaven Copper & Gold (TSXV: BHV)
Began drilling the La Garrucha Au-(Cu) prospect at its La Mina
project in Antioquia. The first drill hole, LME-1100, is collared in the
6
@ColGoldLetter
No.22 / June 2013
Exploration News
central region of the large magnetic anomaly and will pass directly
beneath where recent channel samples along a stream returned up
to 0.88 g/t Au & 0.30% Cu. The hole is designed to exit the target
near where hole DDH LME-1096 nicked the edge of the magnetic
anomaly, returning 10.81m @ 1.10 g/t Au & 0.20% Cu. “In the past
all of our drilling at La Garrucha was restricted to the western fringe
of the large magnetic anomaly because of ownership issues. Now
that BHV has unified ownership of La Garrucha, the first test of the
core region of the magnetic anomaly can commence,” said CEO &
chairman Julio Benedetti.
Angel Gold (TSXV: ANG)
SFFs Quinchia
targets with
Tesorito
bottom right
Completed a six-hole Phase I drill programme at its El Cafetal
project in Antioquia and released results from three holes. The first
three holes targeted the downward extension of the auriferous sulphide veins exposed within the known adits located in the Quebrada La Honda area. The results confirm the downward extension
of known Au mineralization, confirm the existence of a mineralized
trend inferred from sampling and mapping, and indicate the presence of Au-bearing sulphide veins, some of which exhibit highgrade. Highlights included 1m @ 23.40 g/t Au in hole DDH 13 CAF003 and 4.5m @ 1.24 g/t Au in hole DDH 13 CAF-002. “I am very
pleased with and encouraged by these first assay results for ANGs
initial drill programme as they help to confirm our geologic assessment of the project and have revealed additional, previously unknown mineralized structures. These initial holes have only tested a
small portion of the potential strike length of mineralization on the
property and have yielded encouraging results,” said president &
CEO Stella Frias.
Colombian Mines (TSXV: CMJ)
Is to start a 2,500m Phase I drilling programme at its El Dovio project in Valle de Cauca in the first week of June. Phase I will focus on
the Sabana Blanca zone where mapping, soil and rock geochemistry
indicate stock work and massive veins structure 30 to 68m in true
width with an indicated strike length of 1km, with channel samples
with an average grade of 4.5 g/t Au) & 0.5% Cu.
Eco Oro Minerals (TSX: EOM)
SVVs El
Reten
drilling
with
456.7m
@ 1.4 g/t
AuEq
WYMs
unified
concessions
in blue
Reported the results from an ecosystem biodiversity study conducted by Ecodes Ingenieria that showed that the paramo ecosystem
does not exist in the area of its Angostura deposit in Santander. The
report covers 600 hectares surrounding Angostura and was commissioned in order to have a thorough understanding of the state of
ecosystem conservation in EOMs area of influence. The Ecodes
study was undertaken at a scale of 1:2,000. “EOM believes that the
Ecodes study provides the authorities with a robust analysis of the
state of conservation of biodiversity and expects that these findings
will assist them in delineating the ultimate boundaries of the Santurban paramo. The study supports our view that the Angostura
deposit is not located in paramo,” said president & CEO João
Carrêlo.
CB Gold (TSXV: CBJ)
Received the results of an environmental study entitled Delimitation and Identification of the Environmental Protection Area for the
Municipality of Vetas, Santander prepared by the Fundación
Estación Biológica Guayacanal that confirmed that its Vetas project
is not affected by the Paramo ecosystem. The study was requested
by the Mesa de Integración de la Región del Río Suratá, an NGO representing the Municipalities of Vetas, California and Surata, where
the projects of CBJ and other mining companies are located, and
was commissioned by the Colombian Chamber of Mines together
with CBJ and AUX. It was prepared on a 1:10,000 scale using data
from 99 vegetation surveys, 86 soil surveys and photo-interpretation. Over 30 scientists including biologists, forestry engineers,
agricultural engineers, social researchers and hydrologists worked
on it. The study concluded that, “according to the probabilistic
model, the lower limit of the Páramo is situated above 3,600masl in
most of the study area. This limit coincides very closely, for the
most part, with the limit proposed by the CDMB for the Santurbán
Regional Natural Park.” “We are extremely pleased with the results
of the study, which in great technical detail, confirms the company’s
view that Paramo does not impact the Vetas Au project, and also
7
@ColGoldLetter
No.22 / June 2013
Exploration News
provides the relevant governmental authorities a very useful tool to
define the final boundaries of the Paramo in the Vetas area,” said
CEO Fabio Capponi.
CBJ also released drilling results from Vetas with four holes
returning four intercepts of 5 g/t AuEq or greater. At Real Minera,
drilling of a sheeted vein zone returned 16.28m @ 1.59g/t Au and
11.46m @ 0.60 g/t Au & 12.48 g/t Ag in hole RM-DDH13-145. CBJ is
planning a programme of rock saw surface trenching at Real Minera
to add surface data to the drill hole data for an upcoming resource
calculation.
Sunward Resources (TSX: SWD)
Announced drill results from a resource-delineation programme at
its Titiribi project in Antioquia. This drilling was primarily focused on
identifying the boundaries of various mineralized zones in addition
to some in-fill drilling to convert Inferred to M&I resources. Drilling
on the NW margin of the Cerro Vetas Au-Cu porphyry ore body
intersected several broad zones of near cut-off mineralization,
representing the distal portion of the mineralized system. Drilling at
the Chisperos zone aimed at infilling gaps in the current resource
model. Drilling at the Junta and Porvenir targets aimed to improve
the definition of these deposits to the W and NE, and encountered
several zones of anomalous Au and Cu. Drilling at the Maria Jo,
Margarita and Rosa targets returned few zones of economic
mineralization. SWD is updating its resource model which will form
the basis for completing engineering studies currently underway.
Waymar Resources (TSXV: WYM)
Integrated nine core concession areas of its Anzá deposit in
Antioquia. Five exploration licenses, two mining contracts and two
mining licenses were integrated into a unified contract that covers
6,738 hectares of WYMs 23,100 hectares at Anzá. The unified contract has a duration of 42 years and a preferential right for renewal.
Among other benefits, the integration formally allows concurrent
mining and exploration activities, eliminates ambiguities of interpretation that relate to compliance and simplifies the administration, payments and reporting requirements of the company.
Two of the areas had valid environmental licenses and are mined
for gypsum by a contract miner. This environmental license
continues under the unified contract and allows both underground
and open pit mining of gypsum, Au, Ag, Zn, Cu and associated
metals. “This integration is the result of nearly three years of
coordinated work between our legal advisors, our project team and
the regulatory authorities. The effort will now pay off in many
significant ways regarding cost, security of tenure and continued
environmental permitting,” said president Pablo Marcet.
WYM have integrated these concessions under a
mechanism contained in Law 1382 of 2010. This
mechanism is no longer in effect as Law 1382 was declared unconstitutional and the government was unable to meet a two-year
deadline given by the Constitutional Court to present a new bill.
Several explorers were working to integrate their concessions whilst
elements of Law 1382 remained in effect, and WYM was one of the
few that managed this. Given the benefit that this mechanism
provided to simplify the administration of the various exploration
concessions that comprise a project it can be expected that the
Mining & Energy Ministry will issue an administrative regulation at
some point to maintain it.
CGL Analysis
Miranda Gold (TSXV: MAD)
Purchased the 4,630-hectare Minagrande project located in the
Antioquia Batholith in Antioquia 10km S of the Gramalote deposit
being explored by AngloGold Ashanti and B2Gold (TSX: BTO).
Minagrande was targeted by MAD using lineament analysis of DEM
(Digital Elevation Model) and TM (Thematic Mapper) inferred faults
combined with ASTER (Airborne Space Thermal Emission Reflectance) alteration analysis. A coarse filter screen of ASTER alteration
products showed that the Gramalote and Minagrande areas both
contain supergene alunite which is probably an indirect indicator of
system-related alteration. A finer filter screen of Aster-imagedetected alteration showed probable hypogene illite that appeared
to have a distribution that correlated to a NW structure. Illite is
stable clay in most significant Au systems. Reconnaissance prospect© 2013 Colombia Gold Letter. All Rights Reserved.
8
@ColGoldLetter
No.22 / June 2013
Exploration News
ing showed anomalous Au mineralization in a granite-hosted NWtrending fault zone with high-density fracturing and shear textures.
This is the first targeted area funded for acquisition by MADs
strategic alliance with Agnico Eagle Mines (TSX: AEM). The agreement for Minagrande requires staged payments of US92k.
Cuoro Resources (TSXV: CUA)
Dropped its Santa Elena VMS project in Antioquia having decided
not to proceed with a US$1M option payment. CUA has approximately US$6.7m in the treasury.
CUA raised US$25M to explore Santa Elena and drilled
24,000m in 122 holes, extensively drilling outcropping
high-grade VMS targets. Having, essentially drilled out the TEM1
and TEM2 anomalies, in 4Q13 it completed a 416 line-km, helicopter-borne VTEM airborne geophysics programme to identify
anomalies. CUA has not published the results of this survey, and
was unable to mobilize to drill test any anomalies before it had to
make a US$1M option payment. It has taken a conservative decision
to drop the project rather than commit another US$1M to drill test
any possible new targets. This is prudent given its cash management history. Assuming an above average drilling cost of US$300/m,
the company would have spent some US$7M drilling Santa Elena,
28% of the capital raised, and which means that aside from drilling,
it burnt through US$11M in two years. CUA has slashed spending
and personnel to preserve cash and be a position to acquire
projects from other distressed companies.
CGL Analysis
Gran Colombia Gold (TSX: GCM)
Has completed some 18,000m in 72 holes of a 20,000m drilling
campaign that commenced in October 2012 to upgrade and expand
mineral resources at Segovia. have been completed. Highlights included 0.42m @ 663.32 g/t Au in hole DS-0089 at Providencia and
0.30m @ 340.84 g/t Au in hole DS-0130 at Sandra K. GCM expects
to finalize an updated NI 43-101 resource estimate for Segovia in
mid-2013, following completion of the drilling campaign. “We are
very excited by the ongoing exploration programme at Segovia as
we continue to see exceptional drill results, including several intercepts with visible Au and a 0.4m section with grades of over 20 oz/t
Au,” said executive co-chairman Serafino Iacono.
Batero Gold (TSXV: BAT)
Will continue to advance the La Cumbre oxide deposit of its BateroQuinchia project in Risaralda towards a production decision, with a
PEA due to be delivered by the end of 2Q13; continue to strategically explore the 60% of the Batero-Quinchia concession that
remains untested, with a focus on high-grade Au epithermal and
breccia targets; investigate the acquisition of under-valued advanced staged assets with a focus on producing or near production
projects in Colombia; and the re-purchase of up to 4.9M shares. BAT
also implemented cost reduction initiatives to preserve treasury,
which as of 28 February was US$17.7M. “Significant cost reduction
measures have been implemented to ensure that our strong financial position is used to its greatest advantage. In addition to advancing the La Cumbre oxide deposit, we look forward to analyzing
potential opportunities to acquire high-grade, production focused
projects in Colombia,” said president & CEO Brandon Rook.
Antioquia Gold (TSXV: AGD)
Aims to be able to make a production decision for its Cisneros project in Antioquia by year end. It estimates that US$12M is required
to complete the work to provide the information it needs to do this.
A NI 43-101 resource estimate is being prepared for the Guayabito
and Guaico deposits, with delivery scheduled for early June. Further
exploration including diamond drilling and bulk sampling will be
carried out in two tunnels at Guaico and Guayabito. Government
approval has been received for the 650m Guaico tunnel environmental and development permits. The tunnel will be designed and
built in 2013 and will support midsize underground mining equipment. In 2014, AGD plans to undertake sufficient exploration drilling
to establish a Measured resource sufficeint to provide for the first
five years of production and extend the resource base for +15 years
of production; design and build the +600m Guayabito tunnel and
9
@ColGoldLetter
No.22 / June 2013
Corporate News
extend the Guaico tunnel into the Papi and Nus prospects; produce
final mine and plant designs and incorporate them into a PFS or FS
in order to make a production decision by year end.
Cliffmont Resources (TSXV: CMO)
Provided an update on its San Luis project in Huila where a field
programme is focused on the La Julia and San Jorge target areas.
Current work includes soil sampling at La Julia over a 1.5km x 400m
area, detailed structural and geological mapping at the Los Azules,
Merceditas and El Callao/San Jorge targets, initiation of the environmental licensing process for San Jorge production and a geochemical programme S of the San Jorge mine. La Julia has a strike length
over 1.3km with rock samples up to 342 g/t Au. “We continue to
expand on the discovery at La Julia while working through the
environmental licensing for small production at San Jorge. As we
continue to remain focused on a two tiered business plan the discovery at La Julia is a testament to the untested potential for thicker
zones of mineralization at the San Luis project,” said president &
CEO Jeff Tindale.
Corporate News
Colombia invited to join OECD
The Organisation for Economic Co-operation and Development
(OECD) has agreed to initiate a process of expansion of the
organization, at its meeting in Paris, France, and invited Colombia to
join. The last OECD expansion was in 2007, when Chile was invited
to join. Colombia will begin talks in June. To obtain membership,
Colombia would have to implement OECD recommendations such
as a tax reform to eliminate payroll taxes to reduce informal labour
and generate more employment. “It is the meeting point of the
developed world because only countries that meet the highest
standards of the management of public policy, international trade,
capital flows and generation of statistics,” said finance minister
Mauricio Cárdenas. The OECD has 34 members amongst whom are
Mexico and Chile.
This would be positive for many sectors of the
economy including mining as Colombia would be held
to more rigorous standards of economic management, and have to
implement public policy that would give foreign investors more
stability. The need to reform payroll taxes is particularly welcome as
they are currently a disincentive to creating jobs, and make Colombia less competitive compared to other countries in the region.
Payroll taxes mean that the cost of employing someone in Colombia
typically costs 50-70% more than what their salary is
CGL Analysis
Australian Jaguar pounces in Colombia
Australia’s Jaguar Resources (ASX: JAG) is to acquire private Australian company West Rock Resources to obtain its portfolio of greenfield Cu-Au prospects in Antioquia, Tarso and Urrao. JAG will
appoint Westroc CEO Simon Noon as MD, and will look to raise
A$1.5M to begin a drilling campaign. Consideration for the deal
includes 100M JAG shares at a deemed price of A$0.015, 30M options exercisable at A$0.03 for 35 months and 30M options exercisable at A$0.06 for 35 months. An additional 30M JAG shares will be
paid upon the earlier of JAG announcing an Inferred resource of
1.0Mt CuEq @ 0.5% CuEq or greater: or an Inferred resource of
1.0Moz AuEq @ 2.0 g/t AuEq or greater: or an Inferred resource of
4.5Moz AuEq @ 0.75 g/t AuEq or greater.
Australia’s first explorer in Colombia is picking up two
properties in the Middle Cauca Belt. Tarzo is located
close to Caramanta (Solvista Gold TSXV. SVV), Quebradona (AngloGold Ashanti/B2Gold JV) and Arabia (Colombia Crest Gold TSXV:
CLB); whilst Urrao is near the high potential Murindo (Santa Fe
Metals TSXV: SFM) Cu prospect in Chocó. A$1.5M will not last long
so the JAG will be hoping for a rapid discovery to have a chance of
raising more funds.
CGL Analysis
10
@ColGoldLetter
No.22 / June 2013
Feature
Gran Colombia costs
down to US$1,545/oz
Gran Colombia Gold (TSX: GCM) reported
production of 24,350 oz Au for 1Q13 to 31
March, a 10% increase over 4Q12, driven by
a 13% increase at its Segovia Operations.
Mill operations at the Maria Dama plant
have stabilized and it averaged more than
1,000 tpd since March. GCM is on track to
produce 110,000 oz Au in 2013. The
company reported revenue of US$37.6M in
the quarter having sold 22,289 oz Au at an
average price of US$1,639/oz and 35,069 oz
Ag at an average price of US$30/oz. Total
cash costs fell 16.5% from US$1,534/oz in
4Q12 to US$1,281/oz in 1Q13 due to cost
reductions and improved production. All-in
sustaining costs were US$1,545/oz in 1Q13
and GCM forecasts a US$1,280/oz average
for 2013. The fall in the Au price will reduce
costs as approximately 56% of Segovia’s
production is sourced from artisanal mining
operations, where approximately 80% of
the cost is directly tied to the Au price. In
January, GCM embarked on a programme
to reduce annual costs by US$12M that resulted in US$850k/m of savings. In May, it
implemented new actions to reduce operating costs by an additional US$500k/m at
Segovia.
Cost reduction is good news
but can GCM reduce costs as
fast as the Au price declines? The majority
of its ongoing capital investment and
exploration programme is funded from cash
flow but as GCM is currently only marginally
profitable, it may have to reign things in.
Fortunately, the money for its Pampa Verde
new mine and plant development is already
in the bank and so that can proceed as
planned.
CGL Analysis
Cosigo to raise C$1M
Cosigo Resources (TSXV: CSG) announced a
non-brokered private placement of up to
4M units @ C$0.25 to raise up to C$1M.
Each unit consists of one share and one
warrant exercisable @ C$0.50 for 12 months. The proceeds will be used for a reversecirculation drilling programme and continuing exploration on its Machado project in
Vaupes.
AGD to raise C$500k
Antioquia Gold (TSXV: AGD) closed the first
tranche of a non-brokered private place-
ment raising aggregate gross proceeds of
C$151k via the issuance of 4.3M shares @
C$0.035. AGD aims to raise up to C$500k. It
also retained IBK Capital and consultant
Craig Duncan as financial advisors to explore strategic alternatives.
Seafield adopts rights plan
Seafield Resources (TSXV: SFF) announced
the adoption of a shareholder rights plan to
ensure that shareholders are treated fairly
in the event of a take-over bid. On the
occurrence of certain triggering events,
which include the acquisition by a person or
a group of 20% or more of the outstanding
shares in a transaction not approved by the
board, the rights plan will entitle shareholders to acquire shares at a significant
discount to market price.
chairman Robert Allen. Patrick Anderson
resigned as a director.
Antioquia Gold names Roden
CFO
Antioquia Gold (TSXV: AGD) appointed
Rodger Roden as CFO. Roden is a chartered
accountant with more than 25 years of
industry experience and replaces JoAnne
Dorval-Dronyk.
Insiders Mar-Apr-May 2013
CNL adopts advance notice
Continental Gold (TSX: CNL) approved an
advance notice by-law that sets a deadline
by which shareholders must submit a notice
of director nominations prior to any annual
or special meeting of not less than 30 days
and not more than 65 days.
BUYERS
BHV
Patrick Abraham
Director
50,000
BVL
John Burzynski
N/A
177,500
BVL
Jose Vizquerra
CEO
65,500
CLB
Hans Rasmussen
CEO
270,000
CMJ
Robert Carrington
CEO
3,500
CMO
Jeff Tindale
CEO
30,000
CSG
Barry Holmes
VP
53,500
CSG
Andres Rendle
VP
1,140
CSG
Patrick Mooney
Director
41,360
GCM
Miguel de la Campa
Co chair
234,500
Waymar Resources (TSXV: WYM) approved
an advance notice policy that sets a deadline by which shareholders must submit a
notice of director nominations prior to any
annual or special meeting of not less than
30 days and not more than 65 days.
GCM
Serafino Iacono
Co chair
23,500
GLW
Robert Hinchcliff
CEO
240,000
QIA
Yannis Banks
CEO
242,860
QIA
Rick Brown
VP
120,000
CNL appoints Teicher to board
QIA
Adam Szweras
Director
70,570
TOM
Jaime Lopez
CEO
10,5000
SFF adoptsadvance notice
Seafield Resources (TSXV: SFF) approved
and adopted an advance notice by-law that
sets a deadline by which shareholders must
submit a notice of director nominations
prior to any annual or special meeting of
not less than 30 days and not more than 65
days.
WYM adopts advance notice
Continental Gold (TSX: CNL) appointed León
Teicher to its board. Teicher was president
& CEO of Cerrejón Coal, Colombia’s largest
private coal producer and exporter. “We
are extremely pleased to have León Teicher
join the Board of CNL. His extensive management experience, combined with his
operations and industry knowledge within
the Colombian mining sector, makes him an
invaluable addition to our company,” said
SELLERS
CBJ
Giles Baynham
President
235,000
CBJ
Fabio Capponi
CEO
500,000
Source: www.canadianinsider.com
11
No.22 / June 2013
@ColGoldLetter
The Colombia List / Updated 30 May 2013
The Colombia List
Micro Cap
<C$10m
Ticker
Shares
(M)
Fully
Diluted (M)
Price
Mkt cap
($M)
Cash
($M)
Debt
($M)
Moz Au
EV/oz
($)
Angel Gold
ANG.V
74.4
114.7
0.13
9.7
0
0
N/A
N/A
31.6M
Arctic Star
ADD.V
37.0
48.8
0.125
4.6
N/A
0
N/A
N/A
8.8M
Arcturus Ventures
AZN.V
39.7
53.3
0.02
0.8
0.007
0
N/A
N/A
N/A
AuRo Resources
ARU.V
68.5
81.6
0.015
1.0
0
0
N/A
N/A
15.8M @ $0.33 2012
Bandera Gold
BGL.V
102.2
131.3
0.04
4.1
N/A
0
N/A
N/A
N/A
Colombia Crest Gold
CLB.V
85.8
129.7
0.02
1.7
2.0
0
N/A
N/A
6.7M @ $0.75 / 23.0M @ $0.45 / 375K @ $0.44 6M @ $0.35
Cordoba Minerals
CDB.V
17.7
27.9
0.205
3.6
0.1
0
N/A
N/A
2.3M @ $0.50 Mar 2014 / 5.0M @ $0.40 Sep 2014 / 2.4M @
$0.50 Apr 2014
Crown Gold
CWM.V
91.3
128.8
0.02
1.8
N/A
0
N/A
N/A
N/A
Midasco Capital
MGC.V
45.1
54.6
0.005
0.2
0.1
0
N/A
N/A
N/A
Quia Resources
QIA.V
85.5
128.1
0.01
0.9
3.2
0
N/A
N/A
11.7M @ $0.30 Jan 2014
Red Rock Resources
RRR.L
724.0
763.5
0.05
36.2
N/A
0
N/A
N/A
N/A
Samaranta Mining
SAX.V
48.8
70.9
0.005
0.2
2.5
0
N/A
N/A
5M @ $0.12 / 11.9M @ $0.12 / 800k @ $0.50 / 1.1M @ $0.05
Company
Warrants
Small Cap
C$10-100M
Ticker
Shares
(M)
Fully
Diluted (M)
Price
Mkt cap
($M)
Cash
($M)
Debt
($M)
Moz Au
EV/oz
($)
Antioquia Gold
AGD.V
124.4
144.4
0.03
3.7
2.0
0
N/A
N/A
N/A
Atico Mining
ATY.V
52.1
64.1
0.69
35.9
8.2
0
N/A
N/A
1.6M @ $0.50 Mar 2014
Batero Gold
BAT.V
90.4
106.2
0.21
19.0
17.0
0
6.1
7.9
1.9M @ $ 2.45 Nov 2013 / 4.9M @ $ 0.90 Apr 2014 / 471k @ $ 0.65 Apr
2014 / 535k @$ 0.65 Dec 2014 / 5.0M @ $ 0.90 Jan 2016
Bellhaven C&G
BHV.V
121.2
138.2
0.065
7.9
3.2
0
1.6
9.2
None
Braeval Mining
BVL.TO
93.8
99.6
0.09
8.4
10.0
0
N/A
N/A
N/A
Cabia Goldhills
CGH.V
38.6
48.3
0.085
3.3
3.0
0
N/A
N/A
6.2M @ $0.75 / 1.9M @ $0.45
Cliffmont Resources
CMO.V
36.5
44.1
0.16
5.8
3.0
0
N/A
N/A
N/A
Colombian Mines
CMJ.V
35.4
45.9
0.44
15.6
2.0
0
N/A
N/A
1.4M @ $0.90 & $1.15 Jul 2014
Condoto Platinum
CPD.AX
39.0
60.6
0.30
11.7
1.7
0
N/A
N/A
N/A
Cosigo Resources
CSG.V
72.8
104.3
0.24
17.5
3.0
0
N/A
N/A
7.1M @ $1.00 Apr 2014
Cuoro Resources
CUA.V
30.5
42.4
0.14
4.3
6.7
0
N/A
N/A
None
Galway Gold
GLW.V
37.1
37.1
0.19
7.0
18.0
0
N/A
N/A
N/A
Miranda Gold
MAD.V
53.1
61.2
0.22
11.7
N/A
0
N/A
N/A
N/A
Company
Red Eagle Mining
Warrants
RD.V
57.0
50.0
0.27
15.4
12.0
0
N/A
N/A
5.7M @ $1.50 Jun 2013
Rio Novo Gold
RN.TO
113.3
135.5
0.125
14.2
10.3
0
N/A
N/A
14.1M @ $2.25
Rugby Mining
RUG.V
46.0
61.8
0.23
10.6
5.2
0
N/A
N/A
N/A
Seafield Resources
SFF.V
190.8
201.6
0.065
12.4
13.2
0
2.9
6.8
10.8M @ $0.20 Nov 2014
Solvista Gold
SVV.V
55.3
73.3
0.45
24.9
7.5
0
N/A
N/A
11.8M @ $1.10 Apr 2014
Tolima Gold
TOM.V
117.1
169.4
0.025
2.9
N/A
0
N/A
N/A
18.8M @ C$0.60 / 1.9M @ C$0.40
Touchstone Gold
TCH.TO
201.3
243.8
0.04
8.1
2.4
0
N/A
N/A
N/A
TTG.V
33.5
42.4
0.55
18.4
4.0
0
N/A
N/A
N/A
WYM.V
47.2
61.4
0.20
9.4
4.1
0
N/A
N/A
800k @ $1.10 Feb 2014 / 5.8M @ $1.50 Feb 2014 / 4.6M @ $0.55 Jun 2013
Trident Gold
Waymar Resources
ABOUT COLOMBIA GOLD LETTER: Colombia Gold Letter is published twelve times a year during the first week of each month. The information contained herein is derived from sources believed to be reliable but no warranty expressed or implied exists between the recipient and the
Publisher that this information is accurate. The contents of Colombia Gold Letter are intended for information purposes only based on news and information obtained and/or researched by the Publisher and is not intended to be construed as advice to buy or sell shares in any
security or asset. The Colombia Gold Letter is intended to be authoritative, critical and independent. The Publisher is not a stock tipper or promoter and is not paid, sponsored, provided with stock options or otherwise enticed to write positive pieces about the companies covered.
The Publisher does invest in some of the companies’ active in the Colombia gold sector and ends up with dogs as well as winners. The Publisher has shares in: CNL, WYM, SVV, BAT, CLB, CMJ, CUA, SFF, QIA and TTG. The Publisher has been involved in mining information research,
analysis and publication for over ten years including roles such as investor relations, media relations, senior reporter and research consultant for companies involved in mining and exploration, and reputable industry information providers. The Publisher is not a registered securities
professional and as such is not qualified to give personal or individual investment advice. Resource investing is risky and you could lose part or all of your investment. Consult a registered investment professional before making any investment in any security. For more information
contact please write to [email protected]. COPYRIGHT: © 2013 Colombia Gold Letter. All Rights Reserved. Unauthorized duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed
without the prior express consent of the publisher.
12
No.22 / June 2013
@ColGoldLetter
The Colombia List / Updated 30 May 2013
The Colombia List
Medium Cap
>C$100M
Ticker
Shares
(M)
Fully
Diluted
(M)
Price
Mkt cap
($M)
Cash
($M)
Debt
($M)
Moz Au
EV/oz
($)
B2Gold
BTO.TO
387.6
382.5
2.59
1,003.9
76.8
0
N/A
N/A
N/A
CB Gold
CBJ.V
159.0
200.9
0.34
54.1
11.3
0
N/A
N/A
25.4M @ $0.70 Oct 2015 / 700k @ $0.90 Jun 2014 / 5.0M @ $1.40 Nov 2014
Continental Gold
CNL.TO
126.4
136.8
4.17
527.1
178.0
0
5.4
130.6
N/A
Eco Oro Minerals
EOM.TO
84.2
92.8
0.78
65.7
26.7
0
2.7
34.2
63,500 Jan 2016
Gran Colombia Gold
GCM.TO
382.0
623.0
0.165
63.0
79.0
188.4
15.8
-2.9
158.0M @ $2.60 Aug 2015 / 3.7M @ $3.75 Jun 2013
Sunward Resources
SWD.TO
142.1
192.0
0.325
46.2
29.2
0
11.4
6.6
38M @ $1.65 Jan 2014
Company
Biggest Gainers
Warrants
Biggest Losers
SVV
38%
TCH
-43%
CSG
27%
BHV
-35%
ATY
17%
BVL
-34%
MAD
16%
SWD
-22%
Micro Cap <C$10M
Colombia Gold Letter Index
Now
90.2
Last
79.8
Change
15
10
5
13.0%
150
0
100
50
0
Jan
12
Small Cap C$10-100M
80
60
40
20
0
AGD
ATY
BAT
BHV
CGH
CMO
CMJ
CPD
CSG
CUA
EOM
RD
RN
RUG
SFF
SVV
TOM
TTG
WYM
Sector
Tot Mkt Cap
Jan
13
Ave Mkt Cap
Change %
Micro Cap
C$28.6M
C$2.9M
+1%
Small Cap
C$268.1M
C$12.2M
0%
Medium Cap
C$756.1M
C$151.2M
-10%
Total
C$784.7M
C$55.4M
-9%
The Colombia Gold Letter Index, an index of exploration stocks active in Colombia,
provides a means to track the collective performance of Colombian gold resource
stocks. Developed in collaboration with Rick Langer, VP & Sr Investment Advisor at
Canaccord Genuity who determined the weighting formula, the index is comprised
of stocks from The Colombia List, that meet the following criteria:
Medium Cap >C$100M
600
500
* Majority of projects or activity in the Colombia gold sector
* Stock price over 10 cents
* Minimum market cap of C$10M
* Minimum 20M shares outstanding
* Must be liquidity
400
300
200
100
0
CBJ
CNL
GCM
SWD
Applying these criteria, the following list is generated: ATY, BAT, BHV, BVL, CMO,
CBJ, CMJ, EOM, GCM, GLW, MAD, RD, SFF, SVV, SWD, TCH, TTG and WYM. The index
gives a weighting to the market capitalization of the stocks based on their
proportion of the aggregate market capitalization. This weighting is used to adjust
the change in market capitalization over the period from which the index is
calculated. CNL is excluded as an outlier due to its high market cap.
13

Politics, politics and more politics

Transcription

Similar documents

En tiempos de convergencia (In Times of Convergence

Classifieds: 607-4497

Exploration Company Pushes Back

GIs and Traditional Knowledge: the Case of Colombia

Crankshafts - Texma Petroleum Machinery

Colombia is good with words.

TotÓ la Momposina y Sus Tambores

Contents

Advance Tickets: Buy your tickets today!