Craig Stanley, Director of Equity Research Metals & Mining from Raymond James, issues an update on Collective Mining
September 27, 2021
CNL is a pre-resource explorer in Colombia.
The company is led by Ari Sussman who previously ran Continental Gold that had the Buritica project in Colombia and was acquired last year by Zijin Mining for C$1.4 billion in cash.
The 3,333 ha Guayabales Property is 80 km south of Medellin (152 km by road).
The national electricity and natural gas grids run along the River Cauca valley about 3 km east of the project.
Middle Cauca Belt
The Guayabales Project is in the 250 km long Middle Cauca Gold Belt that hosts ~ 100 mln oz Au and 11+ billion pounds Cu.
Major deposits in the belt include Buritica (Zijin Mining), Quebradona / Nuevo Chaquiro (AngloGold Ashanti), Marmato (Aris Gold), and La Colosa (AngloGold Ashanti).
Right Beside 6+ Million Ounces
Guayabales is immediately to the west of Aris Gold’s Marmato Project that hosts 6.3 mln oz (see https://www.arisgold.com/operations/marmato-mine/overview/default.aspx ).
Here are some quotes from a 2012 report comparing the two projects:
- “The similarities of Guayabales and Marmato include a number of key elements, including the same: a) host rocks, b) structural trends, c) styles of mineralization, and d) types of alteration.”
- “Emphasis is placed on the fact that the precious metals mineralization at Marmato is exposed over a vertical extent of more than 1,000 meters, yet exploration at Guayabales has been limited to the upper 100 to 200 meters of the system.”
- “…the upper exploitation level at Marmato is at an approximate elevation of 1500 m.a.s.l., yet the southern sector of the Guayabales property is at an elevation above 1800 m.a.s.l. It follows that the mineralized system evident at Marmato may indeed be at depths +250-300 meters below the current topographic surface in the southern sector of the Guayabales property. Furthermore, the broad, 1100 meter wide, northwest trending corridor of gold-silver and gold (copper) mineralization on the Guayabales property is on trend with, and is of a similar width as, the projection of the Marmato-Echandia mineralized zones. It follows from the foregoing relationships, that the exploration target area at Guayabales not only includes the broad lateral projection of the Marmato-Echandia trends onto the property, but as well, a potentially significant projection to depth.”
Los Cerros (LCL-ASX) is directly south of CNL. In August, Los Cerros closed a A$20 mln financing. The press release states “the Company is very pleased to welcome two high profile North American gold funds which are collectively investing approximately $10 million in the Placement (individually their holdings are under 5% of the Company)”.
In mid-September CNL announced its initial 7,500 m diamond drilling program had commenced.
Five targets will be drill tested: Donut, Box, Olympus, Victory and ME.
First assay results are anticipated in October.
Tight Share Structure
CNL has just 47.2 mln shares outstanding (49.8 mln fully diluted) and no warrants.
Solid Balance Sheet
As of mid-August, CNL had C$26 mln in cash.
Director, Equity Research Analyst, Metals & Mining
Raymond James Ltd.
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