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.

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 Marmato Upper Mine, located between 1,000 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 currently in progress will result in increased production and lower costs at the Marmato Upper Mine mine

  • Mineralization in the Lower Mine, below 1,000 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 Marmato mine expansion project.

Mine Site Layout

The Lower Mine expansion project will include the construction of a new decline, mine workings, 4,000+ tpd CIP plant, dry stack tailings, and a project camp. The Marmato mine is supported by excellent infrastructure with access to the Pan American highway, Cauca river and national electricity grid.






Exploration

Over 200,000 metres of historic drilling has occurred at the Zona Baja and Enchindia properties to date.

In February 2019 a drilling program was designed to provide enough tonnes and grade in the Measured and Indicated categories to support a Preliminary Feasibility Study for an underground operation in the newly discovered Lower Mine, which was completed in July 2020.

A post PFS drill program that started in May 2020 confirmed the Main Zone (MZ) area of the Lower Mine remained open at depth and the discovery of a high-grade New Zone (NZ) and Fortaleza Zone. Drilling has been successful in proving high-grade mineralization over broad widths and suggest the potential to significantly increase the mine life of the Lower Mine project ahead of construction.

“Notable recent intersections of 63 metres at 5.7 g/t Au, and an extension of the Main Zone along strike by more than 300 metres”

--SRK (March 2020)

MINA_CALDAS_GOLD_25.jpeg

Marmato Highlights

In 2020 a Preliminary Feasibility Study (PFS) was completed to define an expanded Marmato mine, which includes production from a modernized Upper Mine and the newly developed Lower Mine. The Upper Mine performance optimization program includes plant upgrades for preventative maintenance, 3D mine planning to reduce grade dilution and the implementation of cost management systems to better control purchasing and procurement. The Lower Mine project includes the construction of a new 4,000 tpd CIP plant and is expected to begin following completion of the 2020-2021 infill drilling campaign, optimization studies and detailed engineering.

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

--SRK (March 2020)

2.0Moz

@ 3.2 g/t

P&P gold Reserves

PFS: 4.1Moz @ 3.2 g/t

Now: 5.8Moz @ 3.2 g/t

M&I gold Resources1

PFS: 2.2Moz @ 2.6 g/t

Now: 2.6Moz @ 2.6 g/t

Inferred gold Resources

13 year

Mine life

Based on P&P Reserves

5,500

tpd

Processing capacity

175koz

Per year

Gold production2

US$880

Per oz

LOM average AISC

US$269M

 

Lower Mine development capex



Notes:  1. M&I Resources are inclusive of Reserves
             2. Per June 30 2021 Mineral Resource Estimate. PFS results based on 4.1Moz @ 3.2g/t M&I Resources and 2.2Moz @ 2.6g/t Inferred Resources, effective March 17, 2020