Regulations have been changing while opportunities are emerging. According to data from the International Monetary Fund (IMF), inflation prices in the country have been coming down-in line with GDP growth.
(Data chart via IMF.)
There is a very unique opportunity for gold exploration in Columbia. 80 million ounces of gold had been produced from the country. It used to be the premier producer in all of South America, until civil unrest put a damper on such development. However, a recent regime change has turned things around and made it a more viable option for companies to explore a host of potential new deposits, such as
FenixOro Gold Corp (CSE: FENX, Forum).
With access to drilling and geological infrastructure, the experienced team at FenixOro Gold is entering into territory that is both well established and producing, but also relatively undiscovered. FenixOro is a junior mineral exploration company engaged in the business of acquiring, exploring and evaluating natural resource properties in the most prolific gold producing regions of Colombia.
Its flagship operation is the drill ready Abriaqui project, a high-grade gold exploration site located 15 km west of the Buritica project in Antioquia State, run by
Continental Gold Inc. (TSX: CNL), a miner whose success put it at the centre of a recent takeover by
Zijin Mining Group Ltd. in an all-cash transaction valued at $1.4 billion (CAD).
Fully permitted and on schedule for 2020 production, the Buritica deposit boasts a measured and indicated mineral resource of 5.67 million gold equivalent ounces (16.02 million tonnes at 11 g/t AuEq). It also yields an inferred mineral resource of 6.46 million gold equivalent ounces (21.87 million tonnes at 9.2 g/t gold AuEq).
FenixOro Gold Corp is a new story built on a lot of history.
The Abriaqui Project:
Situated at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica, as well as Anglo Gold's the Nuevo Chaquiro and La Colosa under
Anglo Gold Ashanti (JSE: ANG). The Cauca trend gold belt has seen more than 80 million ounces of gold discovered since 2007.
(Image via Google Maps.)
The geological characteristics of Abriaqui and Buritica are very similar. The
NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia details the region thoroughly and also documented high gold grade at Abriaqui, with samples taken from 20 of the veins assaying greater than 20 g/t gold.
FenixOro’s strategy is to launch its Phase 1 exploration program, with activities planned to generate valuable data such as ground geophysics, soil sampling, and rock chip sampling of newly encountered areas of mineralization both at surface and in historical adits, including multiple high-grade veins. The property boasts a potential porphyry target that the FenixOro team is starting to probe, with results expected in the near future once they begin digging further. FenixOro’s leadership has indicated they are approaching three target styles of mineralization and a new discovery zone waiting to be explored that appears to be rather extensive. As soon as the ideal targets have been completely identified and permitting is secured, drilling is scheduled to begin by the end of Q2 2020.
For comparison, roughly around this time, Buritica is expected to commence production in 2020. Its anticipated annual average production would see 250,000 ounces at an all-in sustaining cost of approximately $600 per ounce (USD). These resources, as well as cost and production data were taken from Continental Gold’s "NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019".
Drills haven’t hit the ground at Abriaqui yet, but surface and underground geological mapping and sampling, as well as a preliminary magnetometry survey have been completed. The property is ready to be drilled and is just pending finalization of the permitting process from the Colombian government.
FenixOro began utilizing a $250,000 (USD) advance of funds to help jump-start the exploration project when its go-public transacation was announced with American Battery Metals. The Company is in a position to expedite the planned drill program now that the transaction has been completed and its shares are listed and trading on the CSE (ticker symbol FENX).
Colombia at a glance:
“Colombia’s economic performance remains solid. I commended the government’s policy response to the sharp drop in world oil prices by strengthening fiscal policy more than required under the fiscal rule and by tightening monetary policy while allowing the exchange rate to depreciate. The agenda to upgrade infrastructure is a key reform that will improve the country’s prospects over the medium term.”
- Ms. Christine Lagarde, Managing Director of
the International Monetary Fund.
The country has re-emerged as a significant mining jurisdiction, establishing exploration opportunities and creating value for companies like FenixOro Gold Corp. Partially in response to a recent regime change, as well as the prominence of the Buritica project have helped set this new precedent for grade expectation and opens the door for projects such as Abriaqui. This new government focus has made for a more streamlined process for FenixOro during permitting and expediting applications. The Company’s leadership has seen a commitment to job creation that the resource industry can provide.
Meet the team:
The FenixOro / Continental connection runs deep. FenixOro’s VP Exploration, Stuart Moller led Continental’s discovery team at Buritica. He is a well-known leading authority in this field with deep experience and credibility. He brings to the table distinct expertise on this type of mineralization and deposit, while also being well versed in Colombia’s geography. Stuart Moller made a name for himself with the Buritica discovery and expects the same with the Abriaqui property. This is his interpretation of what lies beneath the surface and the program and work done here represents his past success, feeding into why he feels Abriaqui boasts very similar properties, yielding great success.
CEO John Carlesso also has extensive experience in Latin America. He was involved in the development and sale of both private and public companies, including 10-plus years in Colombia. He was formerly vice-president corporate development at
Desert Sun Mining (TSX: DSM).
Investment summary:
Given its location and the geologic similarities between FenixOro's Abriaqui and the neighboring world-class Buritica project, the Company is very excited about the project's exploration potential.
Fenix Oro Gold Corp. represents a new opportunity for investors with a lot of history. Digging into an area prolific for ultra-high-grade gold discoveries. The Company is well-funded, with more than $1 million in cash and an additional $3 million it expects to receive through the exercise of share purchase warrants. FenixOro isn’t in need of capital, nor in need of diluting what it has. This junior miner is on its path to see a big increase in its value long before it needs to take any financing. This stock is one to watch and should be kept on investor’s radars for deeper due diligence.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.