Page 51 - gmj146-Jan-Mar-mag-web_neat

Andean eyes Colombian gold

by Fraser Palamara

outh America has historically proven to be a turbulent stability and that is what you see in the country today. It’s quite
Sinvestment for ASX miners and explorers, with many of its a stable environment.”
prospective countries sometimes bearing equal parts instability A number of government schemes benefiting corporations
and government hurdles. has helped pull investments into the country, such as tax
However, a handful of companies continue to persevere, programmes that withhold up to 50% of payable fees to be put
exploring countries such as Brazil (Centaurus Metals Ltd), Chile into community infrastructure and growth.
(Hot Chili Ltd) and Argentina (Galan Lithium Ltd) for precious AngloGold Ashanti Ltd owns two projects in Colombia and
metals and battery minerals. operates half of another. The mines, Gramalote, Quebradona
The latest to company to hoist an Australian flag on the continent and La Colosa, account for a combined 38.5 moz gold.
is Andean Mining Ltd, eyeing a listing at the time of print to Andean’s El Dovio project, near Quebradona, is averaging
support its El Dovio copper-gold project in Colombia. grades of 4-6 g/t gold and 2.5-3.5% copper over widths of 3-6m.
As the machinations were under way for an expected $7 million Peak samples as high as 104 g/t gold and 17% copper have
IPO, managing director William Howe spoke to GMJ about his also been recorded.
four years living in Colombia and why he has packed his bags El Dovio was purchased from Canadian company Newrange
to return post-listing. Gold Corp while Howe was still living in Colombia.
“I lived in South America for almost 10 years, I was in Santiago “Since purchasing the project, we’ve done a lot of work with the
running Metminco [now Los Cerros Ltd],” Howe said. “My work data that existed,” he said. “There was a very big database of
included a feasibility study while living in Colombia for the information that we inherited with the company.
development of an underground 1,000 tpd gold mine.
“The project had underground development, surface work,
“People hear Colombia and think of the very difficult past there, geochemistry, geophysics and diamond drilling into what is four
well that is true. But for the last 25 years, there has been a very targets on the project.
stable and conservative government in there.”
“We’ve also done metallurgical test work. The previous owners
Howe cited the 2020 Fraser Institute’s Annual Survey of Mining had done some metallurgical test work too, produced a bulk
Companies which badged Colombia as the most favourable concentrate which demonstrated very good recoveries of all the
South American country to operate in. metals, but they never took it further than that. We’ve have now
“It beat out Chile and Peru, which is quite something,” he said. basically put all of the metallurgical work to bed.”
“And by country, it listed Colombia as fifth, sitting below the likes Purchasing El Dovio also came with its own in-country team,
of Canada, America and Australia.” which when combined with the data, created huge benefits,
according to Howe.
“We already have a strong board that covers technical
aspects, exploration, corporate expertise and mine
development,” he said. “But now we have inherited the on-
ground team that again covers such aspects, but in the
Colombian context.”
Work at El Dovio has led Andean to believe mineralisation
at the project runs into Ecuador, including seven high-grade
lenses that include zinc and silver.
The company will first conduct 15,000m of step-out and
infill diamond drilling to establish a JORC resource. That
programme is expected to finish in September with the
resource to be published by the end of 2022.
“Our focus now is to drill out the tenement and bring it into
Drill core being loaded into trays at the El Dovio project in Colombia JORC status to move towards a feasibility study,” Howe said.
“We’ll probably do a scoping study sometime in later 2022
Colombia has seen significant economic growth within the last when we’ve completed the drilling, which will then determine
30 years. GDP per capita has increased up to 10-times from how we go forward with the final drill out phases and feasibility
$US1,400 per capita to more than $US14,000 per capita. studies.
“There has been a tremendous increase in the standard of “In essence, we believe Colombia is underexplored. There are
living for most people in Colombia,” Howe said. “It has pulled tremendous opportunities in the country, but I think it’s starting
an enormous number of people out of poverty. With that, comes to slowly be known to Australian investors.”

Page 51