Torontonian Colombia Goldfields (TSX: GOL, OTC BB: CGDF) aims to complete a feasibility study in early 2009 for its Marmato Mountain project in Colombia, company VP of corporate development Martti Kangas told BNamericas.
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Financing
Gold/Silver Mining
Exploration
Mergers & Acquisitions
A precursor to the feasibility, a scoping study, is set to be completed this year, Kangas said.
At the end of 2007 Colombia Goldfields had five drills operating at Marmato Mountain and some 17,500m have been drilled so far this year, the company reported, adding that the drilling is part of a 60,000m program planned for completion by the end of 2008 at the Zona Alta area of the property.
The drilling is aimed at converting a 5.3Moz gold historical resource into a NI 43-101 compliant resource.
The resource estimate should be complete by the end of the first quarter or possibly the beginning of the second quarter, according to the company official, who added that the exploration budget is likely to be about US$20mn.
PURCHASE OF MINEROS NACIONALES
At the end of January Colombia Goldfields won an auction to acquire Colombia's Mineros Nacionales, which owns the Zona Baja area of Marmato Mountain.
Colombia Goldfields made a cash offer of US$35mn and has deposited a guarantee of US$2.5mn for the transaction.
According to Kangas, the company intends to go forward with the acquisition but would need to arrange financing, which would likely be a combination of equity and debt.
"When we raise money it would not only be for the purchase of Mineros Nacionales, but we also have more exploration to do, and land acquisitions," he added.
Mineros Nacionales operates an 800t/d underground mine that produces some 25,000oz/y gold at Zona Baja.
