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Thursday, March 11, 2021 12:49:21 AM
$Gran Colombia Gold: Under the Radar Gold Producer
March 7, 2021 JayCurrie
$GCM.T, Gran Colombia Gold, Gold, Colombia
Quick question: which Canadian listed company is the largest producer of
underground gold and silver in Colombia? The answer
“Gran Colombia Gold” (GCM.T) is, to say the least,
not well known to Canadian investors.
This is a mid-tier, 200,000 ounces per year,
monthly dividend paying company, which seems to be
entirely off investors radar.
From the company’s website, “Gran Colombia produces gold from the
Segovia Operations, an area of approximately 9,000 hectares in
the Segovia-Remedios mining district of Antioquia.
$These high-grade mines have been in continuous operation
for over 150 years and over that time have produced
more than an estimated 6 million ounces of gold
with 1.3 million ounces produced over the last 10 years since
Gran Colombia acquired the project.”
So why is Gran Colombia not better understood by the Canadian market?
I was fortunate enough to have a phone conversation with Executive
Chairman Serafino Iacono.
“The Company is ten years old but some of the mines we own are
300 years old,” said Iacono.
“I bought the property from the government for 225 million dollars.
At the time they were mining 60,000 ounces per year.”
$It was quite a property.
Twenty-seven separate mines over 3,500 hectares with
the mineral rights held in “King’s right”.
$Underground there are over 500 kilometers in tunnels, which
go down 1,000 meters.
The grades were impressive, running 14 to 17 grams of gold per tonne
and there were areas which were over 2 ounces per tonne.
However, the mines had been run by the government.
“It took us a while to restructure,” said Iacono.
“We wanted to increase production.
But when gold dropped down to $1000 an ounce we got into a bit of
trouble. But we survived.”
Iacono took over the Company in 2014.
“I was running a large oil company at the time,” said Iacono.
“When I took over, the company had a debt of 180 million dollars and
high operating costs.
Now we have a debt of 32.6 million, 90 million USD in the bank and
a cash cost of about $700 an ounce.
$We took production from 80,000 ounces per year at Segovia
to over 200,000.”
“There is real growth potential,” said Iacono.
“We are starting to open up the mines on the property.
The old Gran Col vein is yielding 1.5 ounces a tonne.
As you go deep you get good grades.”
“We have sheer zones where you have intrusives and veins 1 to 1.5 meters
wide,” said Iacono.
“We are seeing polymetallic material: zinc, lead and silver.
Often we see a 1:1 gold to silver ratio.”
“Since 2010 we have been setting aside the tailings,” said Iacono.
“We knew we only recovered 60% of the silver with our current facility.
We are building a new facility to deal with the tailings.
We’ll float them and make a concentrate,
70% lead with gold and silver in the mix.”
$Despite paying a 3% dividend, guidance suggestion 2021 production
of 200 to 220 thousand ounces of gold,
continued high grade zones and expansion of both the mines and
the processing facilities Gran Colombia trades around $6.00 per share
with only 62 million shares for a market cap of about $372 million.
“Six years ago, Gran Colombia was a story that needed a turnaround,”
said Iacono.
“We did that turnaround, but past investors still think
the Company was what it was seven years ago.”
$It is a perception which Iacono and his team at Gran Colombia
are working hard to change.
With this much gold being produced at its Segovia Operations,
a vastly decreased debt, low cash costs, a dividend and
a solid portfolio of investments in some junior miners,
it is difficult to see why Gran Colombia is not trading higher,
much higher.
Part of the reason may be lingering doubts about Colombia
as a jurisdiction.
However, as the Gran Colombia website points out,
“Colombia is a country of opportunities with a growing economy,
one of the lowest inflation rates in Latin America and
free trade agreements with eight trading partners
including the USA, European Union and more than 100 designated
free-trade zones.
Colombia’s government is very supportive of foreign investment and
it has the best investor protection in Latin America,
15th worldwide, according to the World Bank (2019).
Mining is a significant sector in the Colombian economy and
one of the country’s largest export sectors.”
The other factor may have been the lack of “blue sky”
exploration results.
The market, particularly the Canadian junior market, likes action,
drill results and for many investors, Gran Colombia
was primarily a production story.
$Those investors may have simply missed press releases such as
the December 21 Exploration update with a headline
“Including Intercept of 162.7 g/t Au and
77.0 g/t Ag Over 0.51 meters” or the February
23 Exploration update with
“96.68 g/t Au and 423.7 g/t Ag over 0.49 meters
on the Lluvias Vein.”
In the December 21, 2020 release, Iacono commented,
“Our Segovia Operations were recently acknowledged again
as one of the top five highest-grade underground gold
operations globally.
Our 2020 drilling program in Segovia is continuing to provide us
with outstanding results, providing further confirmation
that the Segovia Operations are a world-class gold system.
With the discovery of a third high-grade vein at depth
in the El Silencio Mine, we remain confident that we will
be able to expand mineral resources and add to
the mine life for this operation.”
So, Gran Colombia may be under the market’s radar at the moment,
but as it hits its production goals and
adds ounces with the drill, it becomes an
increasingly attractive way of participating in what we
believe may be a major upleg in the gold cycle.
$Share this:
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Related
Gran Colombia Provides Its 2021 Production Guidance for Segovia;
Declares Monthly Dividend to Be Paid on March 15, 2021
Gran Colombia Gold Provides Exploration Update for Its Segovia
Operations
Gran Colombia Announces Acquisition of Approximately 36% Equity
Interest in Denarius Silver Corp.
$This is big news for TPRFF and ALLXF which TPRFF is biggest owner of.
Their ARIS stock may end up be worth more than TPRFF stock is today,
the rest of TPRFF for free, the deposit can end up being huge at
Marmoto.
It is still up at depth and they found 2 new zones laterally.
Have loaded up heavy in this price drop, have a ton of it.
Aris Gold announces drill results at the Marmato Deep Zone,
including 78.1 metres at 3.43 g/t Au (true width 30.8 m)
PR NEWSWIRE 4:00 AM ET 3/9/2021
Symbol Last Price Change
ALLXF 1.8631up +0.1731 (+10.242604%)
QUOTES AS OF 03:59:59 PM ET 03/09/2021
VANCOUVER, BC , March 9, 2021 /PRNewswire/ -
Aris Gold Corporation(ALLXF) (Aris Gold(ALLXF) or the Company)
announces high-grade gold intercepts over broad widths
at the Marmato mine in Colombia.
The 2020-2021 drill program that began in May 2020
at Marmato comprises 60 holes totalling 35,000 metres and
is now approximately 50% complete.
Drilling to date has demonstrated high-grade mineralization
over broad widths, demonstrating potential to extend
the 13-year mine life outlined in the Company's
Pre-Feasibility Study dated September 18, 2020
with an effective date of March 17, 2020.
The principal objective of the drill campaign is to convert
Inferred Mineral Resources to Indicated Mineral Resources.
In addition to the Deep Zone, the campaign is also testing
the newly discovered Fortaleza Zones A and B to the north,
which opens up a new area that will require further drilling
to evaluate its potential.
Aris Gold (ALLXF) CEO Neil Woodyer commented,
"Our ongoing drill program at Marmato continues to deliver
on our objective of adding to the already large gold inventory
and 13-year mine life.
Drilling in the Deep Zone is demonstrating potential for a larger,
higher-grade system than previously envisioned.
In addition, drilling on the newly discovered Fortaleza zones
to the north confirms a prospective new area worthy of
additional testing."
https://www.arisgold.com/news/news-details/2021/Aris-Gold-announces-drill-results-at-the-Marmato-Deep-Zone-including-78.1-metres-at-3.43-gt-Au-true-width-30.8-m/default.aspx
https://twitter.com/gcmgold?lang=en
In GOD We Trust - Real Money -
https://www.kitco.com/images/live/silver.gif?0.8344882022363285
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
March 7, 2021 JayCurrie
$GCM.T, Gran Colombia Gold, Gold, Colombia
Quick question: which Canadian listed company is the largest producer of
underground gold and silver in Colombia? The answer
“Gran Colombia Gold” (GCM.T) is, to say the least,
not well known to Canadian investors.
This is a mid-tier, 200,000 ounces per year,
monthly dividend paying company, which seems to be
entirely off investors radar.
From the company’s website, “Gran Colombia produces gold from the
Segovia Operations, an area of approximately 9,000 hectares in
the Segovia-Remedios mining district of Antioquia.
$These high-grade mines have been in continuous operation
for over 150 years and over that time have produced
more than an estimated 6 million ounces of gold
with 1.3 million ounces produced over the last 10 years since
Gran Colombia acquired the project.”
So why is Gran Colombia not better understood by the Canadian market?
I was fortunate enough to have a phone conversation with Executive
Chairman Serafino Iacono.
“The Company is ten years old but some of the mines we own are
300 years old,” said Iacono.
“I bought the property from the government for 225 million dollars.
At the time they were mining 60,000 ounces per year.”
$It was quite a property.
Twenty-seven separate mines over 3,500 hectares with
the mineral rights held in “King’s right”.
$Underground there are over 500 kilometers in tunnels, which
go down 1,000 meters.
The grades were impressive, running 14 to 17 grams of gold per tonne
and there were areas which were over 2 ounces per tonne.
However, the mines had been run by the government.
“It took us a while to restructure,” said Iacono.
“We wanted to increase production.
But when gold dropped down to $1000 an ounce we got into a bit of
trouble. But we survived.”
Iacono took over the Company in 2014.
“I was running a large oil company at the time,” said Iacono.
“When I took over, the company had a debt of 180 million dollars and
high operating costs.
Now we have a debt of 32.6 million, 90 million USD in the bank and
a cash cost of about $700 an ounce.
$We took production from 80,000 ounces per year at Segovia
to over 200,000.”
“There is real growth potential,” said Iacono.
“We are starting to open up the mines on the property.
The old Gran Col vein is yielding 1.5 ounces a tonne.
As you go deep you get good grades.”
“We have sheer zones where you have intrusives and veins 1 to 1.5 meters
wide,” said Iacono.
“We are seeing polymetallic material: zinc, lead and silver.
Often we see a 1:1 gold to silver ratio.”
“Since 2010 we have been setting aside the tailings,” said Iacono.
“We knew we only recovered 60% of the silver with our current facility.
We are building a new facility to deal with the tailings.
We’ll float them and make a concentrate,
70% lead with gold and silver in the mix.”
$Despite paying a 3% dividend, guidance suggestion 2021 production
of 200 to 220 thousand ounces of gold,
continued high grade zones and expansion of both the mines and
the processing facilities Gran Colombia trades around $6.00 per share
with only 62 million shares for a market cap of about $372 million.
“Six years ago, Gran Colombia was a story that needed a turnaround,”
said Iacono.
“We did that turnaround, but past investors still think
the Company was what it was seven years ago.”
$It is a perception which Iacono and his team at Gran Colombia
are working hard to change.
With this much gold being produced at its Segovia Operations,
a vastly decreased debt, low cash costs, a dividend and
a solid portfolio of investments in some junior miners,
it is difficult to see why Gran Colombia is not trading higher,
much higher.
Part of the reason may be lingering doubts about Colombia
as a jurisdiction.
However, as the Gran Colombia website points out,
“Colombia is a country of opportunities with a growing economy,
one of the lowest inflation rates in Latin America and
free trade agreements with eight trading partners
including the USA, European Union and more than 100 designated
free-trade zones.
Colombia’s government is very supportive of foreign investment and
it has the best investor protection in Latin America,
15th worldwide, according to the World Bank (2019).
Mining is a significant sector in the Colombian economy and
one of the country’s largest export sectors.”
The other factor may have been the lack of “blue sky”
exploration results.
The market, particularly the Canadian junior market, likes action,
drill results and for many investors, Gran Colombia
was primarily a production story.
$Those investors may have simply missed press releases such as
the December 21 Exploration update with a headline
“Including Intercept of 162.7 g/t Au and
77.0 g/t Ag Over 0.51 meters” or the February
23 Exploration update with
“96.68 g/t Au and 423.7 g/t Ag over 0.49 meters
on the Lluvias Vein.”
In the December 21, 2020 release, Iacono commented,
“Our Segovia Operations were recently acknowledged again
as one of the top five highest-grade underground gold
operations globally.
Our 2020 drilling program in Segovia is continuing to provide us
with outstanding results, providing further confirmation
that the Segovia Operations are a world-class gold system.
With the discovery of a third high-grade vein at depth
in the El Silencio Mine, we remain confident that we will
be able to expand mineral resources and add to
the mine life for this operation.”
So, Gran Colombia may be under the market’s radar at the moment,
but as it hits its production goals and
adds ounces with the drill, it becomes an
increasingly attractive way of participating in what we
believe may be a major upleg in the gold cycle.
$Share this:
Click to share on Twitter (Opens in new window)
Click to share on Facebook (Opens in new window)
Related
Gran Colombia Provides Its 2021 Production Guidance for Segovia;
Declares Monthly Dividend to Be Paid on March 15, 2021
Gran Colombia Gold Provides Exploration Update for Its Segovia
Operations
Gran Colombia Announces Acquisition of Approximately 36% Equity
Interest in Denarius Silver Corp.
$This is big news for TPRFF and ALLXF which TPRFF is biggest owner of.
Their ARIS stock may end up be worth more than TPRFF stock is today,
the rest of TPRFF for free, the deposit can end up being huge at
Marmoto.
It is still up at depth and they found 2 new zones laterally.
Have loaded up heavy in this price drop, have a ton of it.
Aris Gold announces drill results at the Marmato Deep Zone,
including 78.1 metres at 3.43 g/t Au (true width 30.8 m)
PR NEWSWIRE 4:00 AM ET 3/9/2021
Symbol Last Price Change
ALLXF 1.8631up +0.1731 (+10.242604%)
QUOTES AS OF 03:59:59 PM ET 03/09/2021
VANCOUVER, BC , March 9, 2021 /PRNewswire/ -
Aris Gold Corporation(ALLXF) (Aris Gold(ALLXF) or the Company)
announces high-grade gold intercepts over broad widths
at the Marmato mine in Colombia.
The 2020-2021 drill program that began in May 2020
at Marmato comprises 60 holes totalling 35,000 metres and
is now approximately 50% complete.
Drilling to date has demonstrated high-grade mineralization
over broad widths, demonstrating potential to extend
the 13-year mine life outlined in the Company's
Pre-Feasibility Study dated September 18, 2020
with an effective date of March 17, 2020.
The principal objective of the drill campaign is to convert
Inferred Mineral Resources to Indicated Mineral Resources.
In addition to the Deep Zone, the campaign is also testing
the newly discovered Fortaleza Zones A and B to the north,
which opens up a new area that will require further drilling
to evaluate its potential.
Aris Gold (ALLXF) CEO Neil Woodyer commented,
"Our ongoing drill program at Marmato continues to deliver
on our objective of adding to the already large gold inventory
and 13-year mine life.
Drilling in the Deep Zone is demonstrating potential for a larger,
higher-grade system than previously envisioned.
In addition, drilling on the newly discovered Fortaleza zones
to the north confirms a prospective new area worthy of
additional testing."
https://www.arisgold.com/news/news-details/2021/Aris-Gold-announces-drill-results-at-the-Marmato-Deep-Zone-including-78.1-metres-at-3.43-gt-Au-true-width-30.8-m/default.aspx
https://twitter.com/gcmgold?lang=en
In GOD We Trust - Real Money -
https://www.kitco.com/images/live/silver.gif?0.8344882022363285
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
My opinions are my own and and DD I post should be confirmed as unbiased
