| Good afternoon,
Management at Newlox Gold Ventures Corporation is pleased to share that the Government of Colombia, in collaboration with the Government of Antioquia, the Ministry of Mines and Energy, and mineral concession owners in the Province of Antioquia, have achieved a large-scale formalization of artisanal miners as part of their commitment to environmentally responsible social and economic development.
Last week, the Government of Antioquia, Colombia, announced the formalization of 60 artisanal mining areas into legal mining concessions, empowering 137 miners in the area to participate in legal mining activity with the associated economic, social, and environmental benefits that come with formalization.
This latest action is part of the Coexistence Model for Artisanal Mining, which has been gaining momentum in Colombia over the past few years and is a founding principle of Newlox Gold. Since 2019, the Government of Antioquia, through the Ministry of Mines, has formalized 7,135 miners who now operate 28 legal mine sites.
As a result of the formalization process, the government reports that many families in the region have realized significant benefits, including indirect effects related to economic development in the communities and the legalization of a major local industry. Meanwhile, mercury use in the community, with its associated environmental and human health effects, has been dramatically reduced (down 1.2 tonnes).
What's more, by bringing the local mining industry into the formal economy, 1.7 billion pesos in taxation have been generated, which the government has deployed for the benefit of all stakeholders.
“What reduces inequality the most is formalization. When a productive unit is formalized, three purposes are achieved: formal employment, social inclusion and capacity development,” commented Jorge Alberto Jaramillo, Secretary of Mines of Antioquia (link).
This week's announcement from the Government of Colombia is a significant development for Newlox Gold as it continues implementing its growth plan in Latin America. The Company has set its sights on Colombia as the location for its upcoming expansion project, and management is actively deployed in the region to advance the project.
Newlox Gold has been advocating for the Coexistence Model for Artisanal Mining for many years, and we believe it is the most productive way forward for the industry. Through this process, industry and government can collaborate to empower local miners to create economic development while protecting the environment and advancing social goals.
The World Gold Council reports that 20% of annual global gold production comes from artisanal mining and that it is one of the fastest-growing rural livelihoods in many developing countries. Responsible resource development can be a powerful tool for local stakeholders to supercharge local economic development and build robust communities.
Newlox Gold is at the forefront of the movement to bring artisanal miners into the formal economy, and management is delighted to hear that Colombia is making impressive progress in this respect. Management has been working diligently on the Company's expansion plans in Colombia. We look forward to briefing shareholders on what we believe will be a compelling new project in that jurisdiction shortly. |