Caldas Gold Corp. (TSX-V: CGC; OTCQX: ALLXF) announced today that
it has completed an updated Mineral Resource estimate for its
Marmato Project prepared in accordance with the Canadian Institute
of Mining Metallurgy and Petroleum (“CIM”) Definition Standards
incorporated by reference in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects (“NI 43-101”) with an effective
date of March 17, 2020. Caldas Gold also announced today that SRK
Consulting (U.S.), Inc. (“SRK”) has completed preliminary results
of a Preliminary Feasibility Study (“PFS”) for the Marmato Project
effective March 17, 2020 and is currently finalizing the technical
report to be prepared in accordance with NI 43-101 and filed on
SEDAR and the Company’s website in August 2020.
Serafino Iacono, Chairman and CEO of Caldas
Gold, commented “We are very pleased with the results in the PFS
for the Marmato Project. The study affirms the economic viability
of the project and the strength and potential for upside validating
Wheaton Precious Metals’ decision to enter into a US$110 million
stream transaction as part of our financing for the expansion of
our mining operations. With a continuation of our drilling programs
in the Deeps Mineralization, we are confident that we will be able
to continue to expand Mineral Resources at Marmato and add to the
mine life.”
Highlights of the PFS for the Marmato
Project
- The PFS affirms the economic viability of the underground
expansion of the Marmato Project. At a long-term gold price of
US$1,400 per ounce, total life-of-mine (“LoM”) undiscounted
after-tax free cash flow from mining operations amounts to US$770.0
million. After the initial capital costs of approximately US$269.4
million for expansion into the Marmato Deep Zone (“MDZ”),
undiscounted after-tax project cash flow amounts to US$500.6
million. At a 5% discount rate, the net present value of the total
LoM after-tax project cash flow amounts to US$263.9 million. Before
financing, the project has a 20.1% after-tax internal rate of
return and payback by 2026.
- The 2019 Phase 2 drilling program successfully upgraded Mineral
Resources from the Inferred category to the Measured and Indicated
category to support the PFS. Mineral Resources in the Measured and
Indicated category doubled to a total of 4.1 million ounces of gold
based on 39.4 million tonnes at an average grade of 3.2 g/t.
- The LoM plan for the Marmato Project in the PFS is based on a
total Mineral Reserve of 2.0 million contained ounces of gold based
on 19.7 million tonnes at an average grade of 3.2 g/t.
- Over the 14-year mine life based on Mineral Reserves in the
PFS, production is estimated to total 1.9 million recoverable
ounces of gold and 1.6 million recoverable ounces of silver from
the existing Upper Mine and the expansion of the second operation
into the MDZ.
- Gold production will average approximately 165.4 kozs from 2024
through 2033 once the MDZ is in full production with LoM total cash
cost of US$772 per ounce of gold and an average LoM all-in
sustaining cost (“AISC”) of US$872 per ounce of gold.
- Since the Preliminary Economic Assessment dated as of July 31,
2019 (the “2019 PEA”), the Company has updated its plan for the
Upper Mine to incorporate an expansion of the existing 1,200 tonnes
per day (“tpd”) processing plant to 1,500 tpd at an estimated
capital cost of approximately $10.7 million, including contingency,
to be completed over the next two years. This will facilitate an
increase in expected gold production from the Upper Mine to
approximately 50,000 ounces per annum starting in 2021.
Mineral Resource Estimate (“MRE”) Update
Effective March 17, 2020
The table below summarizes the updated MRE
effective as of March 17, 2020 (the “2020 MRE”) for Zona Baja at
Marmato and changes by category in tonnes, grade and ounces of gold
compared with the previous MRE as of July 31, 2019 (the “2019
MRE”):
|
Measured |
Indicated |
Measured & Indicated |
Inferred |
|
Tonnes |
Grade |
Oz Au |
Tonnes |
Grade |
Oz Au |
Tonnes |
Grade |
Oz Au |
Tonnes |
Grade |
Oz Au |
|
(Mt) |
(g/t) |
(000s) |
(Mt) |
(g/t) |
(000s) |
(Mt) |
(g/t) |
(000s) |
(Mt) |
(g/t) |
(000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 MRE |
2.1 |
5.6 |
387 |
|
37.3 |
3.1 |
|
3,699 |
|
39.4 |
3.2 |
|
4,086 |
|
26.4 |
|
2.6 |
2,172 |
|
2019 MRE |
2.1 |
4.9 |
325 |
|
15.2 |
3.5 |
|
1,714 |
|
17.3 |
3.7 |
|
2,039 |
|
44.9 |
|
2.3 |
3,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
- |
0.7 |
62 |
|
22.1 |
(0.4 |
) |
1,985 |
|
22.1 |
(0.5 |
) |
2,047 |
|
(18.5 |
) |
0.3 |
(1,140 |
) |
|
|
|
+19 |
% |
|
|
+116 |
% |
|
|
+100 |
% |
|
|
(34 |
%) |
(1) Mineral resources are inclusive of mineral
reserves and do not have demonstrated economic viability.
The 2020 MRE represents a number of changes in
the defined Mineral Resource due to the following key factors:
- Infill drilling within the MDZ areas has increased the
confidence in the estimates and resulted in significant movement
from the Inferred to Indicated category.
- Minor reduction in the vein domains as a result of additional
depletion accounted for between the 2019 PEA and the PFS models,
plus changes in the geological interpretation of veins and
disseminated material.
SRK highlights that the current MDZ
mineralization represents a notable change in the style of
mineralization and considerations for mining methods compared to
the Veins and Upper Mine (current operating mine) at the Project
and has maintained the use of a high-grade core to the
mineralization at depth.
The following table provides additional details
with respect to the 2020 MRE(1):
|
Category |
Quantity [Mt]) |
Grade (g/t) |
Metal (kozs) |
Au |
Ag |
Au |
Ag |
Upper Mine (2) |
Measured |
2.1 |
5.65 |
27.0 |
387 |
1,853 |
Veins (5) |
2.1 |
5.65 |
27.0 |
387 |
1,853 |
Porphyry (5) |
0.0 |
0.00 |
0.0 |
0 |
0 |
Indicated |
9.2 |
4.45 |
18.7 |
1,320 |
5,545 |
Veins |
7.2 |
5.01 |
21.1 |
1,156 |
4,862 |
Porphyry |
2.1 |
2.50 |
10.3 |
165 |
682 |
Measured and Indicated |
11.4 |
4.67 |
20.2 |
1,707 |
7,397 |
Veins |
9.3 |
5.15 |
22.4 |
1,543 |
6,715 |
Porphyry |
2.1 |
2.50 |
10.3 |
165 |
682 |
Inferred |
4.5 |
3.70 |
15.5 |
532 |
2,224 |
Veins |
2.7 |
4.38 |
17.9 |
386 |
1,574 |
Porphyry |
1.7 |
2.62 |
11.7 |
145 |
650 |
Transition Zone (3)
(6) |
Measured |
0.0 |
0.00 |
0.0 |
0 |
0 |
Indicated |
3.4 |
2.68 |
7.2 |
294 |
785 |
Measured and Indicated |
3.4 |
2.68 |
7.2 |
294 |
785 |
Inferred |
0.0 |
1.95 |
3.7 |
2 |
3 |
MDZ (4) (6) |
Measured |
0.0 |
0.00 |
0.0 |
0 |
0 |
Indicated |
24.7 |
2.63 |
3.6 |
2,085 |
2,870 |
Measured and Indicated |
24.7 |
2.63 |
3.6 |
2,085 |
2,870 |
Inferred |
21.9 |
2.32 |
2.1 |
1,639 |
1,506 |
Combined |
Measured |
2.1 |
5.65 |
27.0 |
387 |
1,853 |
Indicated |
37.3 |
3.08 |
7.7 |
3,699 |
9,200 |
Measured and Indicated |
39.4 |
3.22 |
8.7 |
4,086 |
11,053 |
Inferred |
26.4 |
2.56 |
4.4 |
2,172 |
3,733 |
(1) Mineral resources are not mineral reserves
and do not have demonstrated economic viability. All figures are
rounded to reflect the relative accuracy of the estimate. All
composites have been capped where appropriate. The Mineral
Resources were estimated by Benjamin Parsons, MSc, MAusIMM #222568
of SRK, a Qualified Person pursuant to NI 43-101.(2) Upper Mine is
defined as the current operating mines from levels 16-21 using
existing mining methodology (cut and fill).(3) “Transition Zone” is
defined as mining of MDZ above an elevation of 950 access from the
current operations using a modified longhole stoping method.(4) MDZ
is defined as mining of MDZ below an elevation of 950 using
longhole open stope mining methods.(5) Porphyry and vein mineral
resources are reported at a cut-off grade (“CoG”) of 1.9 g/t. CoGs
are based on a price of US$1,500/oz Au and gold recoveries of 90%
for underground resources without considering revenues from other
metals.(6) MDZ mineral resources are reported at a CoG of 1.3 g/t.
CoGs are based on a price of US$1,500.oz Au and gold recoveries of
95% for underground resources without considering revenues from
other metals within a limiting pitshell.
The main changes on the combined Mineral
Resource in the 2020 MRE since the previous estimate are as
follows:
- Increase in the Indicated MDZ Mineral Resources, including the
Transition Zone, from 6.4 Mt at 2.6 g/t Au for a total of 537 kozs
to 28.1 Mt at 2.6 g/t Au for a total of 2,379 koz, representing an
increase of 1,842 kozs within the MDZ. This is reflected in a
reduction in the Inferred Mineral Resources from 41.2 Mt at 2.1 g/t
for 2,812 kozs to 21.9 Mt at 2.3 g/t for 1,639 kozs, which is a
reduction of 1,173 kozs.
- Increase in Measured and Indicated Mineral Resources within the
vein domain from 9.2 Mt at an average grade of 4.6 g/t to
9.3 Mt at an average grade of 5.2 g/t Au, which is an increase
of 180 kozs.
- Reduction in Inferred Mineral Resources within the veins from
3.3 Mt at 4.4 g/t Au for 466 kozs to 2.7 Mt at 4.4
g/t Au for 386 kozs, which represents a difference of 80 kozs.
- Minor increase in Indicated Mineral Resources of porphyry
(pockets) material of 25 kozs.
- Increase in the Inferred Mineral Resources of porphyry material
from 0.3 Mt at 3.1 g/t Au for 34 kozs to 1.7 Mt at 2.6 g/t Au for
145 kozs.
LoM Mineable Gold Reserves Total 2.0
Million Contained Ounces Effective March 17, 2020
SRK, in conjunction with Ausenco, has also
completed preliminary results of a PFS for the Marmato Project
effective March 17, 2020 and is currently finalizing the technical
report under NI 43-101. The PFS has provided the Company’s first
Mineral Reserve estimate for the Marmato Project with a total of
2.0 million proven and probable ounces of gold, based on 19.7
million tonnes of material at an average head grade of 3.2 g/t.
The mine is currently developed and mined to the
1,000 m elevation. A transition is occurring from narrow vein
mineralization to large porphyry mineralized areas (gold associated
with pyrrhotite veinlets). Mineralization is generally vertical
with veins widths ranging from >1m to several meters. Porphyry
mineralized areas also have a vertical mineralization trend and can
be up to ~100m in width. For this PFS, there are three different
mining methods, separated into three distinct zones as follows:
- The first zone is the mineralized vein material between 950 m
elevation to 1,300 m elevation, referred to as the Veins. This is
the current mine and will be mined using the current conventional
cut and fill stope method.
- The second zone is the wider porphyry material between 950 m
elevation and 1,050 m elevation, referred to as the Transition
Zone. A modified longhole stoping method will be used in this area.
The stope size is 15 m wide by 15 m high with varying length of up
to 26 m. These stopes are mined in a primary-secondary sequence
with paste backfill for the primary stopes and unconsolidated waste
rockfill for the secondary. Where waste rock is unavailable,
hydraulic fill will be used to fill the secondary stopes.
- The third zone is the porphyry material below 950 m elevation,
referred to as MDZ. There is a 10m sill pillar left in-situ between
the MDZ and the Upper Mine (Veins plus Transition area). The MDZ
material can be mined using a longhole stoping method with stope
sizes that are 10 m wide by 30 m high, with varying lengths of up
to 30 m. The MDZ area is currently not developed.
The first two zones (Veins and Transition) are
considered the Upper Mine, and the material is processed in the
existing processing facility. The third zone is considered the MDZ
and the material is envisioned to be sent to a new processing
facility. Separate mine plans are presented for the Upper Mine area
and MDZ area. Mining activities are limited to 2 million tonnes per
annum of ore and waste by permit restrictions.
The following table provides a breakdown of the
Mineral Reserve estimate(1) as of March 17, 2020 by area and
category:
Area |
Category |
Tonnes (kt) |
Grade (g/t) |
Contained (kozs) |
Au |
Ag |
Au |
Ag |
Veins(2) |
Proven |
762 |
5.01 |
21.80 |
123 |
533 |
Probable |
3,049 |
4.20 |
16.85 |
412 |
1,652 |
Veins Total |
3,812 |
4.37 |
17.84 |
535 |
2,184 |
Transition(3) |
Proven |
40 |
7.63 |
28.16 |
10 |
36 |
Probable |
1,293 |
3.43 |
7.92 |
143 |
329 |
Transition Total |
1,333 |
3.56 |
8.52 |
152 |
365 |
MDZ(4) |
Proven |
- |
- |
- |
- |
- |
Probable |
14,556 |
2.85 |
3.84 |
1,333 |
1,799 |
MDZ Total |
14,556 |
2.85 |
3.84 |
1,333 |
1,799 |
Total |
Proven |
802 |
5.14 |
22.11 |
133 |
569 |
Probable |
18,898 |
3.11 |
6.22 |
1,888 |
3,780 |
Total |
19,701 |
3.19 |
6.87 |
2,020 |
4,348 |
Notes: All figures are rounded to reflect the
relative accuracy of the estimates. Totals may not sum due to
rounding. Mineral Reserves have been stated on the basis of a mine
design, mine plan, and economic model.(1) Veins ore reserves are
reported using a CoG of 2.23 g/t Au. The Veins CoG calculation
assumes a US$1,400/oz Au price, 85% Au metallurgical recovery,
US$49.45/t mining cost, US$13.63/t G&A, US$12.24/t processing
cost, and US$8.96/t royalties. Transition ore reserves are reported
using a CoG of 1.91 g/t Au. The Transition CoG calculation assumes
a US$1,400/oz Au price, 95% Au metallurgical recovery, US$46.00/t
mining cost, US$13.63/t G&A, US$12.24/t processing cost, and
US$8.96/t royalties. MDZ ore reserves are reported using a CoG of
1.61 g/t Au. The MDZ CoG calculation assumes a US$1,400/oz Au
price, 95% metallurgical recovery, US$42.00/t mining cost,
US$14.00/t processing cost, US$6.75/t production royalties/taxes,
US$3.00/t G&A, and US$3.00/t tailings cost. Note that
costs/prices used here may be somewhat different than those in the
final economic model. This is due to the need to make assumptions
early on for mine planning prior to finalizing other items and
using long-term forecasts for the LoM plan.(2) The Veins area is
currently mined using cut-and-fill methods. Mining dilution ranges
from 20% to 55%, averaging 26%, is included in the Reserves using a
zero grade for dilution. A mining recovery of 90% is applied to
stopes. The Veins Mineral Reserves were estimated by Fernando
Rodrigues, BS Mining, MBA, MMSAQP #01405, MAusIMM #304726 of SRK, a
Qualified Person pursuant to NI 43-101.(3) The Transition Zone is
envisioned to be mined using a modified longhole stoping method. A
mining dilution of 7% is included in the Reserves using a zero
grade for dilution. A mining recovery of 90% is applied to stopes.
The Transition Mineral Reserves were estimated by Fernando
Rodrigues, BS Mining, MBA, MMSAQP #01405, MAusIMM #304726 of SRK, a
Qualified Person pursuant to NI 43-101.(4) The MDZ portion of the
project is amenable to underground longhole open stoping mining
methods. Mining dilution (internal and external) is included in the
Reserve. Stope dilution is 8%, and a portion of the stope dilution
is applied using grade values based on average surrounding block
information. A mining recovery of 92.5% is applied to stopes. The
MDZ Mineral Reserves were estimated by Joanna Poeck, BEng Mining,
SME-RM, MMSAQP #01387QP, a Qualified Person pursuant to NI
43-101. Marmato
PFS and LoM Plan
A mining study and schedule was prepared by
SRK’s technical professionals to create a LoM production schedule
for the expanded underground mining operations at Marmato that will
ultimately comprise two distinct operations, the existing Upper
Mine and the new MDZ operation which sits directly below the Upper
Mine vein system. The Zona Baja contract was awarded to the
Company’s wholly-owned subsidiary, Caldas Gold Marmato S.A.S.
(formerly Mineros Nacionales S.A.S.) in October 1991 and is valid
for 30 years until October 2021. In October 2017, the Company
commenced the process to renew the contract for another 30-year
term, which is progressing well and is expected to be completed in
2020.
The PFS LoM production schedule foresees a total
of 19.7 million tonnes of mineralized material being processed over
a 14-year mine life resulting in a total of 1.9 million ounces of
gold produced at an average LoM total cash cost of US$772 per ounce
and an average LoM AISC of US$872 per ounce. The initial capital
cost, to be incurred between 2020 and 2023, required for the MDZ
mining operation is estimated to total US$269.4 million. At an
expected long-term gold price of $1,400 per ounce, total LoM
undiscounted after-tax project cash flow from mining operations
amounts to US$500.6 million. At a 5% discount rate, the net present
value of the total LoM after-tax project cash flow amounts to
US$263.9 million. Before financing, the project has a 20.1%
after-tax internal rate of return and payback by 2026.
A summary of the key operating and financial
metrics(1) over the 14-year mine life of the Mineral Reserve in the
PFS is as follows;
Period |
GoldProd. |
Revenue(3) |
Opex |
Royalties |
IncomeTaxes |
WorkingCapital |
Operating CashFlow |
SustainingCapital |
FreeCashFlow |
InitialCapex(4) |
ProjectCash Flow |
CashCost (5) |
AISC(6) |
|
kozs |
US$ Millions |
US$/oz |
2020(2) |
29.3 |
41.8 |
(25.1 |
) |
(3.8 |
) |
- |
|
(1.9 |
) |
10.9 |
|
(12.2 |
) |
(1.3 |
) |
(1.1 |
) |
(2.4 |
) |
961 |
1,379 |
2021 |
48.9 |
69.3 |
(37.5 |
) |
(6.4 |
) |
(3.7 |
) |
(0.7 |
) |
21.0 |
|
(12.4 |
) |
8.6 |
|
(109.1 |
) |
(100.5 |
) |
880 |
1,134 |
2022 |
54.3 |
76.8 |
(38.2 |
) |
(7.1 |
) |
(7.1 |
) |
(0.8 |
) |
23.6 |
|
(9.3 |
) |
14.3 |
|
(112.0 |
) |
(97.7 |
) |
820 |
991 |
2023 |
78.2 |
110.7 |
(64.7 |
) |
(10.2 |
) |
(8.6 |
) |
(2.8 |
) |
24.4 |
|
(26.6 |
) |
(2.2 |
) |
(47.2 |
) |
(49.4 |
) |
942 |
1,282 |
2024 |
180.8 |
254.7 |
(116.2 |
) |
(23.4 |
) |
(5.5 |
) |
(7.1 |
) |
102.5 |
|
(17.6 |
) |
84.8 |
|
- |
|
84.8 |
|
764 |
861 |
2025 |
193.8 |
272.7 |
(111.3 |
) |
(25.1 |
) |
(24.4 |
) |
0.1 |
|
111.9 |
|
(9.0 |
) |
102.9 |
|
- |
|
102.9 |
|
697 |
744 |
2026 |
206.6 |
290.8 |
(113.7 |
) |
(26.8 |
) |
(30.5 |
) |
(1.3 |
) |
118.6 |
|
(10.1 |
) |
108.4 |
|
- |
|
108.4 |
|
672 |
722 |
2027 |
181.0 |
254.9 |
(111.8 |
) |
(23.4 |
) |
(34.4 |
) |
2.8 |
|
88.0 |
|
(25.6 |
) |
62.4 |
|
- |
|
62.4 |
|
739 |
881 |
2028 |
167.1 |
235.1 |
(109.0 |
) |
(21.6 |
) |
(24.9 |
) |
1.4 |
|
81.0 |
|
(10.4 |
) |
70.5 |
|
- |
|
70.5 |
|
775 |
838 |
2029 |
156.8 |
220.4 |
(109.4 |
) |
(20.3 |
) |
(19.6 |
) |
1.2 |
|
72.4 |
|
(19.2 |
) |
53.2 |
|
- |
|
53.2 |
|
821 |
943 |
2030 |
149.5 |
210.4 |
(110.3 |
) |
(19.4 |
) |
(15.1 |
) |
0.9 |
|
66.5 |
|
(10.5 |
) |
56.0 |
|
- |
|
56.0 |
|
860 |
930 |
2031 |
166.8 |
234.8 |
(110.8 |
) |
(21.6 |
) |
(11.8 |
) |
(2.0 |
) |
88.6 |
|
(12.1 |
) |
76.5 |
|
- |
|
76.5 |
|
786 |
859 |
2032 |
135.6 |
190.3 |
(88.6 |
) |
(17.5 |
) |
(18.4 |
) |
2.3 |
|
68.2 |
|
(7.6 |
) |
60.5 |
|
- |
|
60.5 |
|
778 |
835 |
2033 |
116.4 |
163.4 |
(67.1 |
) |
(15.0 |
) |
(9.8 |
) |
7.9 |
|
79.5 |
|
(3.3 |
) |
76.2 |
|
- |
|
76.2 |
|
702 |
730 |
2034 |
- |
- |
- |
|
- |
|
(0.8 |
) |
- |
|
(0.8 |
) |
- |
|
(0.8 |
) |
- |
|
(0.8 |
) |
- |
- |
Total |
1,865.1 |
2,625.9 |
(1,213.6 |
) |
(241.6 |
) |
(214.6 |
) |
- |
|
956.1 |
|
(186.1 |
) |
770.0 |
|
(269.4 |
) |
500.6 |
|
772 |
872 |
(1) All figures are rounded to reflect the
relative accuracy of the estimate. Totals may not sum due to
rounding.(2) Commencing March 2020.(3) Revenue is based
on spot gold and silver prices of US$1,400 and US$17 per ounce,
respectively, and is shown net of refining costs.(4) Initial
capex represents the upfront capital costs for the expansion of
mining operations into the MDZ.(5) Cash cost per ounce is a
non-IFRS measure and is calculated on a by-product credit basis by
deducting revenues from silver production from opex, refining costs
and royalties and dividing the sum by the number of gold ounces
produced. Opex includes mining, milling, mine site security and
mine site administration costs.(6) AISC per ounce is a
non-IFRS measure which adds sustaining capital per ounce produced
to cash cost per ounce.
Existing Upper Mine Operation
The Upper Mine is the existing operating gold
and silver mine that extends from 1,300 m elevation down to 950 m
elevation, including the Veins and the Transitional Zone. The mine
has been developed with level accesses proceeding horizontally from
the main portal as the surface to horizontal cross cuts to provide
access to the veins. There are currently six production levels, the
highest being Level 16 and the lowest being Level 21. The mine uses
the conventional cut and fill stope mining technique that currently
supplies approximately 1,000 tpd of material to a 1,200 tpd
capacity mill, which uses a Merrill-Crowe process to produce
gold/silver dore bars. The Company plans to expand the capacity of
the existing mill to 1,500 tpd over the next two years. Additional
material will be mined from the wider porphyry area between the 950
m elevation and the 1,050 m elevation, referred to as the
Transition Zone, using a modified longhole stoping method.
In the PFS, the Upper Mine is envisioned to
produce 5.1 million tonnes of mineralized material, primarily from
the Veins system, over a 13-year life with an average LoM head
grade of 4.16 g/t resulting in total gold production of 0.6 million
recovered ounces, or about 32% of total gold production from both
the Upper Mine and MDZ areas. This will be accomplished through the
immediate implementation of an optimized mine plan, including the
strict control of dilution and mine recovery, and the
aforementioned mill expansion that will see annual production
increase from the approximately 26,000 ounces produced in 2019 to
approximately 50,000 ounces per annum starting in 2021.
A summary of the expected future production from
the Upper Mine in the PFS is as follows:
Period |
Ore (tpd) |
Ore Tonnes (kt) |
Grade (g/t) |
GoldRecovery |
Recovered Metal (ozs) |
Au |
Ag |
Au |
Ag |
2020 |
Q11 |
345 |
30 |
3.73 |
19.82 |
87 |
% |
3,154 |
6,388 |
Q22 |
725 |
63 |
3.70 |
17.27 |
87 |
% |
6,595 |
11,702 |
Q3 |
1,100 |
96 |
3.61 |
16.14 |
87 |
% |
9,736 |
16,600 |
Q4 |
1,100 |
96 |
3.65 |
16.31 |
87 |
% |
9,854 |
16,760 |
2021 |
Q1 |
1,250 |
109 |
3.90 |
16.57 |
87 |
% |
11,943 |
19,350 |
Q2 |
1,250 |
109 |
3.98 |
14.90 |
87 |
% |
12,182 |
17,401 |
Q3 |
1,250 |
109 |
4.05 |
14.00 |
87 |
% |
12,424 |
16,344 |
Q4 |
1,250 |
109 |
4.02 |
12.57 |
87 |
% |
12,316 |
14,680 |
2022 |
Q1 |
1,400 |
123 |
3.97 |
12.51 |
87 |
% |
13,629 |
16,370 |
Q2 |
1,400 |
123 |
3.96 |
12.75 |
87 |
% |
13,580 |
16,678 |
Q3 |
1,400 |
123 |
3.76 |
13.36 |
87 |
% |
12,894 |
17,476 |
Q4 |
1,400 |
123 |
4.13 |
13.65 |
87 |
% |
14,174 |
17,852 |
2023 |
Q1 |
1,500 |
131 |
3.97 |
14.35 |
87 |
% |
14,570 |
20,104 |
Q2 |
1,500 |
131 |
3.88 |
13.90 |
87 |
% |
14,284 |
19,479 |
Q3 |
1,500 |
131 |
4.09 |
14.58 |
87 |
% |
15,023 |
20,441 |
Q4 |
1,500 |
131 |
3.96 |
16.62 |
87 |
% |
14,571 |
23,287 |
20243 |
Q1 |
1,394 |
122 |
3.84 |
16.22 |
87 |
% |
13,124 |
21,116 |
Q2 |
1,408 |
123 |
3.78 |
15.65 |
87 |
% |
13,045 |
20,593 |
Q3 |
1,408 |
123 |
4.07 |
16.42 |
87 |
% |
14,065 |
21,612 |
Q4 |
1,408 |
123 |
4.14 |
16.70 |
87 |
% |
14,296 |
21,980 |
2025 |
1,110 |
389 |
4.40 |
16.98 |
87 |
% |
47,817 |
70,465 |
2026 |
1,292 |
452 |
4.30 |
15.75 |
87 |
% |
54,487 |
76,045 |
2027 |
1,170 |
410 |
4.34 |
15.23 |
87 |
% |
49,818 |
66,625 |
2028 |
1,005 |
352 |
4.38 |
14.42 |
87 |
% |
43,112 |
54,200 |
2029 |
1,105 |
387 |
4.30 |
14.33 |
87 |
% |
46,548 |
59,176 |
2030 |
1,111 |
389 |
4.18 |
14.43 |
87 |
% |
45,573 |
59,945 |
2031 |
1,272 |
445 |
4.43 |
17.43 |
87 |
% |
55,282 |
82,869 |
2032 |
262 |
92 |
4.22 |
21.69 |
87 |
% |
10,843 |
21,244 |
Total |
|
5,145 |
4.16 |
15.41 |
87 |
% |
598,939 |
846,782 |
(1) 2020 Q1 is actual production for March
2020(2) 2020 Q2 contains actual production for April and May. June
production is projected at 1100 tpd.(3) The production from 2024
and onward is reduced due to a 2 Mtpa limit on total material moved
from the Upper Mine and the MDZ.
To accomplish the optimized mine plan, the
Company will need to invest approximately US$24.5 million over the
next two years including $10.7 million for the mill expansion, $4.4
million for ongoing drilling, $4.2 million for mine development and
$5.2 million for equipment and other sustaining capital
expenditures.
MDZ Mining Operation
The MDZ area is currently in the exploration
phase and has not been developed. Mineralization is located below
the 950 m level and can be mined using an underground longhole
stoping method. The stopes will be 10 m wide by 30 m high, with
varying lengths of up to 30 m. The deposit will be mined in blocks
where mining within a block occurs from bottom to top with the use
of paste backfill. Sill pillars are left in situ between blocks.
The backfill will have sufficient strength to allow for mining
adjacent to filled stopes. The mine will be accessed by a decline
drift with mineralization transported from stopes via truck to an
underground crusher and then to surface by conveyor. Internal
intake and exhaust raises will be developed using raisebore
machines and air will flow into dedicated intake and exhaust
ventilation drifts to surface. A new 4,000 tpd plant facility using
gravity concentration and cyanidation of the gravity tailings will
be constructed to process material from the MDZ. In addition, new
dry stack tailings storage facilities will be constructed to
receive approximately 55% of the total LoM tailings from the plant.
The other 45% of tailings will go back underground into the mine as
cemented paste backfill.
In the PFS, the MDZ mining operation is
envisioned to produce 14.6 million tonnes of mineralized material
over an approximately 11-year life commencing in 2023 with an
average LoM head grade of 2.85 g/t resulting in total gold
production of 1.3 million recovered ounces, or approximately 68% of
total gold production from both the Upper Mine and MDZ areas.
Development of the MDZ mine is planned to begin
in October 2021. A summary of the expected future production from
the MDZ mining operations in the PFS is as follows:
Period |
Ore (tpd) |
Ore Tonnes (kt) |
Grade (g/t) |
GoldRecovery |
Recovered Metal (ozs) |
Au |
Ag |
Au |
Ag |
2021 |
Q1 |
- |
- |
- |
- |
- |
|
- |
- |
Q2 |
- |
- |
- |
- |
- |
|
- |
- |
Q3 |
- |
- |
- |
- |
- |
|
- |
- |
Q4 |
- |
- |
- |
- |
- |
|
- |
- |
2022 |
Q1 |
- |
- |
- |
- |
- |
|
- |
- |
Q2 |
- |
- |
- |
- |
- |
|
- |
- |
Q3 |
- |
- |
- |
- |
- |
|
- |
- |
Q4 |
- |
- |
- |
- |
- |
|
- |
- |
2023 |
Q1 |
- |
- |
- |
- |
- |
|
- |
- |
Q2 |
- |
- |
- |
- |
- |
|
- |
- |
Q3 |
396 |
36 |
2.91 |
4.15 |
95 |
% |
3,241 |
1,946 |
Q4 |
1,876 |
173 |
3.14 |
4.76 |
95 |
% |
16,548 |
10,563 |
2024 |
Q1 |
2,716 |
247 |
3.18 |
4.57 |
95 |
% |
24,003 |
14,524 |
Q2 |
3,597 |
327 |
3.20 |
4.68 |
95 |
% |
31,996 |
19,703 |
Q3 |
3,997 |
368 |
3.01 |
4.01 |
95 |
% |
33,807 |
18,964 |
Q4 |
4,005 |
368 |
3.24 |
4.52 |
95 |
% |
36,462 |
21,417 |
2025 |
4,004 |
1,462 |
3.27 |
4.47 |
95 |
% |
145,976 |
84,019 |
2026 |
4,002 |
1,461 |
3.41 |
4.85 |
95 |
% |
152,130 |
91,104 |
2027 |
4,003 |
1,461 |
2.94 |
4.54 |
95 |
% |
131,204 |
85,309 |
2028 |
4,003 |
1,465 |
2.77 |
4.04 |
95 |
% |
123,961 |
76,124 |
2029 |
4,003 |
1,461 |
2.47 |
2.87 |
95 |
% |
110,228 |
53,928 |
2030 |
4,001 |
1,460 |
2.33 |
3.11 |
95 |
% |
103,929 |
58,409 |
2031 |
4,000 |
1,460 |
2.50 |
3.01 |
95 |
% |
111,486 |
56,517 |
2032 |
4,000 |
1,464 |
2.79 |
3.22 |
95 |
% |
124,743 |
60,618 |
2033 |
3,678 |
1,342 |
2.84 |
3.85 |
95 |
% |
116,441 |
66,464 |
Total |
- |
14,556 |
2.85 |
3.84 |
95 |
% |
1,266,155 |
719,609 |
The initial investment to be incurred in 2020
through 2023 totals approximately US$269.4 million, including
US$32.2 million of contingency, comprising development of the MDZ
(including the main decline drift and ventilation raises), mining
and other equipment, and construction of the new 4,000 tpd
processing plant and the tailings storage facilities.
Qualified Persons
Ben Parsons, Principal Consultant (Resource
Geology) with SRK prepared the Marmato Mineral Resource estimate
according to CIM Definition Standards and will be supported by a NI
43-101 independent report which will be published and filed on the
Company’s website and SEDAR profile within 45 days. Mr. Parsons is
a Qualified Person as defined by NI 43-101. The NI 43-101
independent technical report will include additional detailed
information on the key assumptions, parameters and methods used to
estimate the mineral resources.
Fernando Rodrigues, BS Mining, MBA, MAusIMM,
MMSAQP Practice Leader/Principal Consultant (Mining Engineer) with
SRK, prepared the PFS according to CIM Definition Standards which
will be supported by a NI 43-101 independent report which will be
published and filed on the Company’s website and SEDAR profile
within 45 days. Mr. Rodrigues is a Qualified Person as defined by
NI 43-101. The NI 43-101 independent technical report will include
additional detailed information on the key assumptions, parameters
and methods used to estimate the mineral reserves.
Joanna Poeck, BEng Mining, SME-RM, MMSAQP
Principal Consultant (Mining Engineer) with SRK, prepared the PFS
according to CIM Definition Standards which will be supported by a
NI 43-101 independent report which will be published and filed on
the Company’s website and SEDAR profile within 45 days. Mrs. Poeck
is a Qualified Person as defined by NI 43-101. The NI 43-101
independent technical report will include additional detailed
information on the key assumptions, parameters and methods used to
estimate the mineral reserves.
In addition to the key assumptions, parameters,
and methods used to estimate the Mineral Resources and Mineral
Reserves identified in the footnotes after each estimate, the
resource estimation methodology involved the following
procedures:
- Database compilation and verification;
- Construction of wireframe models for the fault networks and
centerlines of mining development per vein;
- Definition of resource domains;
- Data conditioning (compositing and capping) for statistical
analysis, geostatistical analysis;
- Variography;
- Block modelling and grade interpolation;
- Resource classification and validation;
- Assessment of “reasonable prospects for economic extraction”
and selection of appropriate; reporting cut-off grades; and,
- Preparation of the Mineral Resource Statement.
About Caldas Gold Corp.
Caldas Gold is a Canadian junior mining company
currently advancing a major expansion and modernization of its
underground mining operations at its Marmato Project in the
Department of Caldas, Colombia. Caldas Gold also owns 100% of the
Juby Project, an advanced exploration-stage gold project located
within the Shining Tree area in the southern part of the Abitibi
greenstone belt about 100 km south-southeast of the Timmins gold
camp.
Additional information on Caldas Gold can be
found on its website at www.caldasgold.ca and by reviewing its
profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking
Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to Mineral Resource and Mineral Reserve estimates,
future production, the expansion or acquisition of processing
facilities, capital expenditures and projected financial results,
and the timing of any of the foregoing, in addition to its
anticipated business plans or strategies. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Caldas Gold to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors
that could cause actual results to differ materially from those
anticipated in these forward-looking statements include but are not
limited to development or mining results not being consistent with
Caldas Gold’s expectations, risks associated with the estimation of
Mineral Resources and Mineral Reserves and the geology, grade and
continuity of mineral deposits including but not limited to models
relating thereto; actual ore mined or metal recoveries varying from
Mineral Resource and Mineral Reserves estimates, mine plans and
life of mine estimates, and those risks described under the caption
"Risk Factors" in the Company's Filing Statement dated as of
February 19, 2020 which is available for view on SEDAR at
www.sedar.com. Forward-looking statements contained herein are made
as of the date of this press release and Caldas Gold disclaims,
other than as required by law, any obligation to update any
forward-looking statements whether as a result of new information,
results, future events, circumstances, or if management's estimates
or opinions should change, or otherwise. There can be no assurance
that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
Reliance on Preliminary Feasibility
Study and Resource Estimates
A Preliminary Feasibility Study is a
comprehensive study of a range of options for the technical and
economic viability of a mineral project that has advanced to a
stage where a preferred mining method, in the case of underground
mining, or the pit configuration, in the case of an open pit, is
established and an effective method of mineral processing is
determined. It includes a financial analysis based
on reasonable assumptions on any modifying factors and the
evaluation of any other relevant factors which are sufficient
for a Qualified Person, acting reasonably, to determine if all or
part of the Mineral Resource may be converted to a Mineral
Reserve at the time of reporting. A Preliminary Feasibility Study
is at a lower confidence level than a Feasibility Study.
The Mineral Resources and Mineral Reserves in
this press release were estimated using the CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared
by the CIM Standing Committee on Reserve Definitions and adopted by
the CIM Council and incorporated by reference in National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects. Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability. The estimate of
Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or
other relevant issues. The Inferred Mineral Resource in this
estimate has a lower level of confidence than that applied to an
Indicated Mineral Resource and must not be converted to a Mineral
Reserve. There is no certainty that Inferred Mineral Resources will
be converted to the Measured and Indicated Resource categories
through further drilling, or into Mineral Reserves, once economic
considerations are applied. As such, readers are cautioned
not to assume that part or all of an Inferred Mineral Resource
exists, or is economically or legally mineable.
For Further Information,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@caldasgold.ca
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