Aris Mining aims to produce 500,000 ounces gold in Colombia
Aris Mining Corp. [ARIS-TSX] is on track to produce 500,000 ounces of gold annually from operations in Colombia. The forecast is contained in the company’s financial and operating results for 2023, which included annual net earnings of $11.4 million or $0.08 per share.
Aris CEO Neil Woodyer said the company has achieved the initial phase of a plan to create an attractive gold mining company by integrating profitable operations with exploration potential and growth prospects.
“In 2023, we restructured the operations team and introduced new operating procedures following the combination of GCM Mining and Aris Gold in September, 2022,’’ Woodyer said.
The company operates two mines in Colombia, the Segovia Operations and Marmato upper mine, known for their high-grade deposits, which produced 226,000 ounces of gold in 2023. With expansion projects in progress, Segovia and Marmato aim to produce a combined 500,000 ounces of gold in 2026.
Aris Mining also operates and is the 20% owner of the Soto Norte project, where environmental licensing is advancing to develop the new underground gold, silver and copper mine. In Guyana, Aris is advancing the Toroparu project, a gold/copper project.
During 2023, the high-grade Segovia operations produced 202,940 ounces of gold at a processed grade of 10.4 g/t with all-in-sustaining costs per ounce of US$1,173, achieving production and AISC guidance. For the full year 2023, Aris mines generated $75.4 million in free cash flow from operations, which largely funded $84.2 million in growth and expansion investments. The company ended the year with a cash position of $195 million.
“With strong gold production results and substantial growth in mineral reserves and resources at our Segovia operations, we have started construction to increase its processing capacity by 50% to 3,000 tonnes per day, with completion expected by early 2025,’’ Woodyer said.
“As the new capacity is used, we expect to increase annual gold production at Segovia to over 300,000 ounces,’’ he said. “Construction at our Marmato lower mine project has ramped up with initial access roads completed, the lead contactor for portal and decline development selected and tenders for key items for the new processing plant under way. We are on pace to reach 500,000 ounces of gold production in Colombia in 2026.”
The Soto Norte project is located in the traditional mining area of California – Vetas, about 350 kilometres north of Bogota. It is one of the world’s largest feasibility-stage projects with high grade mineral reserves, low capital intensity, low operating costs and district-scale potential. A feasibility study envisages average production of 450,000 ounces of gold annually, life of mine average all-in-sustaining costs of US$471 an ounce.
On Thursday, Aris Gold shares rose 2.64% or 11 cents to $4.27. The shares are currently trading in a 52-week range of $4.65 and $2.77.