Aris Gold up 10% on Colombia drilling news
Aris Gold Corp. [ARIS-TSX; ALLXF-OTCQX], a company previously known as Caldas Gold Corp., on Tuesday March 9 released high-grade gold intercepts over broad widths at its Marmato mine in Colombia. Its shares rallied on the news, gaining almost 10% or 21 cents to $2.36. The shares are currently trading in a 52-week range of $3.29 and $1.30.
The 2020-2021 drill program, which began in May 2020 at Marmato comprises 60 holes totalling 35,000 metres and is now approximately 50% complete. Drilling to date has intersected high-grade mineralization over broad widths, demonstrating the potential to extend the 13-year mine life outlined in the company’s recent pre-feasibility study.
Drilling results from the Marmato Deep Zone include 78.1 metres at 3.43 g/t (true width 30.8 metres).
The Marmato Project, consists of the existing producing underground gold and silver mine in the Upper Zone, including the right to mine in the lower portion of the neighbouring Echandia license area, the existing 1,200 tonne per day processing plant and the area encompassing the Deeps Zone mineralization. Those assets are all located within the mining license area referred to as Zona Baja.
The current mine has been in production since 1991.
The Marmato Project contains mineral resources of 2.0 million ounces of gold in the measured and indicated categories and 3.3 million ounces of gold in the inferred categories.
A prefeasibility study (PFS) completed in mid-2020, charts a path for expansion of mining operations, ultimately comprised of two distinct operations, the existing Upper Zone operation and the new Deeps Zone operation, which sits directly below the Upper Zone vein system.
In 2019, the Upper Zone mine produced 25,750 ounces of gold. Implementation of a mine optimization program was expected to reduce total cash costs per ounce and to increase gold production in 2020 to between 32,000 and 37,000 ounces, and thereafter to a range of 35,000 to 40,000 ounces for the next 15 years.
The PFS is focused on the development of the Deeps Zone mineralization, construction of a new 4,000 tonne per day plant and new dry stack tailings storage facilities. Mechanized mining, using an underground longhole stoping method, is expected to start in 2023 with an additional estimated 1.6 million ounces of gold recovered over a 16-year mine life.
The principal objective of the current drill campaign is to convert inferred mineral resources to indicated mineral resources.