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A Gold Operation Investing in People & Precious Metals

Jon Brown Jon Brown, Stockhouse
0 Comments| March 3, 2021

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(Image via O2Gold Inc.)

In October 2020, the gold exploration Company O2Gold Inc. (TSX-V: OTGO, Forum) signed an agreement to acquire the Otú gold mining project, comprised of 26 mining claims and applications totaling 24,001 hectares, around Colombia’s highly-prospective Otú fault. In the nearby historic mining districts of Segovia and Zaragoza, high-grade mines have been exploited continuously by artisanal miners since colonial times. The project is also located among some serious firepower when it comes to gold production: there’s Continental Gold, which produced 225,000 oz. Au in 2020, and Gran Colombia Gold’s El Silencio’s mine. An ongoing exploration campaign by O2 Gold is targeting the prospective brownfields and uncharted greenfields, which hold the potential for a world-class discovery.

Nearly half of Colombia’s gold comes from artisanal mining and, in this, O2 Gold believes is an opportunity to transform a critical, necessary industry into one that participates in the value chain that allows companies like O2 Gold to succeed. The Company is advancing its artisanal gold business through a non-brokered private placement financing of up to 25 million units for gross proceeds of up to $5 million, set to close at the end of this month.

Stockhouse Editorial caught up with O2Gold’s Chief Executive Officer Jaime Lalinde to dig a little deeper into their operations ….


Thank you for joining us today. For investors who are unfamiliar with this concept, can we begin with an explanation on what artisanal mining is all about and what separates it from the major leagues of the industry?

Artisanal or informal mining is, and has been, the primary way families make their livelihoods in the areas of our project. For point of reference, the titles comprising this project have about ten artisanal mines on them. The country, and rightly so, has moved away from the term illegal miner. But an artisanal miner is a subsistence miner. They make what they haul out of their tunnels each day. But they do so with little mapping of the veins and limited understanding of the mineralization. If you compare them on these terms with large producers, they aren’t in the same league. But modern techniques aren’t a replacement for what has served geologists forever, which is shoe leather and a pickax.

Can we talk about the Segovia, Zaragoza, and Otú Centro districts? What is their history?

Segovia and Zaragoza, along with Machuca, are at the heart of the Otú fault gold district. Artisanal and small-scale mining goes back centuries, with historical production estimated to be at least 15 million ounces. That’s a tremendous number considering these miners have done so under incredibly challenging circumstances, not just the lack of capital, equipment, and exploration techniques, but also for the turmoil brought about by the country’s civil conflicts. What we’re seeing now, four years removed from Colombia’s peace accord with the guerilla, is widespread access to these once-inaccessible lands.


Social responsibility and community support are clear values the Company holds, what does having such a backing mean to your business?

I think it will make all the difference. We believe that the company that can innovate the social programs to integrate the artisanal miner into the gold value chain will unlock the full potential of this region.


The team is also located in Colombia to be close to the Company, this sounds like a true Colombian operation, what has your experience in the region been like?

Yes, that’s right. Our senior management team, with the exception of our Chairman, is located in-country, with most of us, myself included, relocating to Medellín. This is obviously important for the project, and it’s what we’ve seen from the successful peers in the region.


Let’s talk about O2’s partnership with Bullet Holding and their direct involvement with most of the major gold discoveries in Colombia? This sounds like it adds a lot of value to O2Gold’s projects.

Bullet is a legendary incubator and operator in Colombia. They’ve directly discovered or contributed to the majority of the country’s large discoveries. Nine million ounces at Buriticá. Twenty six million ounces at La Colosa. They also built and operated Continental Gold before selling in 2019. When the transaction is closed, they’ll be one of the largest individual shareholders and, subsequently, a strategic partner for us. Robert Allen, who runs the company, arrived in Colombia in the 90s, and to see what he’s built until now is a tremendous accomplishment.

Looking to the near future, can you outline the Company’s exploration plans?

As we speak, our team is trenching in the brownfields, preparing for a drilling campaign starting in the next two months. Early results have excited our head geologist, and, in my experience, geologists are difficult to excite. We’re also mapping the tunnel of the La Aurora mine, which is licensed for exploitation, with the expectation that the first 43-101 outlining resources in the next 12 to 18 months.



To find out more about this Company, visit their website: otugold.com.





FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.



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