Location and History

The Marmato mine is located in the Marmato gold district in the Caldas Department, a mountainous region approximately 80 kilometres south of Medellin, Colombia.

The Marmato gold district has been mined since pre-Colonial times by the Quimbaya people. The gold resource was so significant that Simon Bolivar, the revolutionary leader who liberated much of South America from Spanish rule, used the gold as collateral with British banks to secure funding for a war of independence against Spain. The current mine on the Zona Baja property has been in operation since 1991.

The Marmato mine is supported by excellent infrastructure, located by the Pan American Highway and with access to the national electricity grid, which runs near the property.

Caldas-Gold-Mine

Geology and Mineralization

The mine is made up of the Enchandia and Zona Baja properties, where two distinct mining areas are delineated based on the style of mineralization as it appears across elevation:

  • Mineralization in the Upper Zone (UZ), located between 950 and 1,300 metres elevation, is characterized by narrow veins where an existing operation mines material using conventional cut-and-fill stope methods and processes the ore in a 1,200 tpd plant
  • A modernization program that will result in increased production and lower costs at the Upper Zone mine is currently in progress

  • Mineralization in the Deep Zone (DZ), below 950 metres elevation, includes wider porphyry mineralization that will be mined using longhole stoping methods and processed in a newly constructed plant as part of the Caldas mine expansion project.
  • Construction of the Deep Zone mine is expected to begin in Q4 2021

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“The Deep Zone represents a notable change in the style of mineralization…and has maintained the use of a high-grade core to the mineralization at depth”

--SRK (March 2020)

PFS Highlights

In 2020 a Preliminary Feasibility Study (PFS) was completed to define an expanded Marmato mine, which includes production from a modernized Upper Zone mine and the newly developed Deep Zone mine. The Upper Zone modernization program includes the implementation of a new mine plan and plant expansion from 1,200 tpd to 1,500 tpd. The Deep Zone Expansion Project, includes the construction of a new 4,000 tpd CIP plant and is expected to begin in Q4 2021 following the completion the 2020-2021 infill drilling campaign, optimization studies, detailed engineering, and submission of an Environmental Management Plan (PMA) amendment.

“Excellent results can be expected when processing the Deep Zone ore in a standard CIP circuit design”

--SRK (March 2020)

2.0Moz

@ 3.2 g/t

Gold Reserves

4.1Moz

@ 3.2 g/t

M&I gold Resources1

2.2Moz

@ 2.6 g/t

Inferred gold Resources

13-year

 

Mine life

5,500

tpd

Processing capacity

165koz

Per year

LOM average production

US$880

Per oz

LOM average AISC

US$268M

 

DZ Development capex

Notes: 1. M&I Resources are inclusive of Reserves