Resource World Project Roundup series

COLOMBIA & ECUADOR

Gran Colombia Gold Corp. [GCM-TSX] has signed a definitive agreement to begin the process to merge with Gold X Mining Corp. [GLDX-TSXV; SSPQX-OTCQX]. Gran Colombia will acquire the remaining 81% of the issued and outstanding shares of Gold X that it does not already own at a share exchange ratio of 0.500 Gran Colombia shares for each Gold X share, implying a headline value of C$3.17 per share, representing a premium of 15% to the closing price on the TSX Venture Exchange on May 8, 2020, and a premium of 41% to the volume-weighted average price of Gold X shares on the TSXV over the 20 trading days ending on May 8, 2020.

Gran Colombia has also submitted a proposal to Guyana Goldfields Inc. [GUY-TSX] to acquire all of its issued and outstanding common shares. Shareholders of Gran Colombia will own about 60% of the combined company, with Guyana Goldfields and Gold X shareholders owning about 25% and about 15%, respectively, on a basic shares outstanding basis. The primary operation of Guyana Goldfields is the 100%-owned Aurora Gold Mine in northwest Guyana which reached commercial production January 2016.

Gran Colombia’s primary focus is in Colombia where it is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia operations. Gold X is developing the Toroparu Gold Project in Guyana, South America.

Cordoba Minerals Corp. [CDB-TSXV; CDBMF-OTCQB] is focused on its 100%-owned San Matias Copper-Gold Project, which includes the advanced-stage Alacran deposit, located within the Department of Córdoba, Colombia. In July 2017, Cordoba Minerals acquired a 100% ownership interest in San Matias from High Power Exploration Inc. (HPX), a privately owned, metals-focused exploration company led by mining entrepreneur Robert Friedland. HPX owns an approximate 70% interest in Cordoba Minerals.

San Matias comprises a 20,000-hectare land-package and contains several known areas of porphyry copper-gold and iron oxide copper gold, and/or carbonate replacement deposit mineralization and gold veins.

Royal Road Minerals Ltd.‘s [RYR-TSXV; RRDMF-OTC] 100%-owned Colombian subsidiary, Exploraciones Northern Colombia SAS (ENC), has entered into formalization agreements and related earn-in option and royalty agreements with the proprietors of the La Candelaria and San Miguel informal gold mines located in Narino district, Colombia. The La Candelaria and San Miguel mines are located within concession contract HH2-12001X, held by AngloGold Ashanti, pending assignment to ENC under a stock purchase agreement dated March 4, 2019.

Rock-chip channel and grab sampling completed by AGA at La Candelaria in 2010, returned best results of 2.0 metres at 50.4 g/t gold and 2.0 metres at 16.1 g/t gold.

Atico Mining Corp. [ATY-TSXV; ATCMF-OTC] reported operating results for the three months ended March 31, 2020 from its 90%-owned underground El Roble Mine 145 km east of Medellin, Colombia. Production for the quarter totaled 4.93 million pounds of copper and 2,736 ounces of gold in concentrates, an increase of 108% and 85% for copper and gold, respectively, over the same period in 2019. Exploration is underway in the vicinity of the mine.

Atico is also exploring the advanced gold-silver-copper-zinc La Plata Project 85 km south of Quito, north-central Ecuador where an 800 tonne-per-day underground mine is planned. Resources stand at 2 million tonnes of 12.9 g/t AuEq.

Lundin Gold Inc. [LUG-TSX, Sweden; FTMNF-OTC] purchased the Fruta del Norte Project in southeast Ecuador in late 2014 for US$240 million. Since acquiring the asset, a feasibility study was completed and the mine was constructed on schedule in five years. First gold production was reached in November 2019 and commercial production was achieved in February 2020.

Probable reserves stand at 5.02 million ounces grading at 8.74 g/t gold. Life-of-mine is ~14 years at 3,500 tonnes per day for an average 325,000 oz gold/year at an AISC of US$621/oz. Capex is $692 million.

For Q1 2020, 244,000 tonnes of ore was processed at an average daily rate of 3,018 tpd at an average head grade of 7.9 g/t gold. Gold production totalled 51,320 ounces, of which 37,568 oz were produced as concentrate and 13,752 oz were produced in the form of doré. Production is temporarily suspended due to the coronavirus.

Aurania Resources Ltd.‘s [ARU-TSXV; AUIAF-OTCQB] flagship asset is The Lost Cities – Cutucu Project in southeast Ecuador. The project consists of 208,000 hectares in 42 concessions, occupying the central part of the Cordillera de Cutucu. Auriana is the first company to tackle this package of land since the Spanish conquistadors of 1605.

Scout drilling for epithermal gold and silver at the first hole at Yawi Target A has been completed at the Lost Cities – Cutucu Project. The hole reached a depth of 533.40 metres, approximately 460 metres vertically below the collar elevation of the bore hole. Assays are pending. Four targets have been identified at Yawi, and a fifth is being mapped and soil sampled to determine if it warrants scout drilling.

INV Metals Inc. [INV-TSX; ILNLF-OTC] has released the preliminary drill results from the main vein and surrounding alteration zone in each of the first 10 holes of a planned 12-hole drill program, and discovered the Tuna 1 vein on the 100%-owned Tierras Coloradas gold target. The 6,955-hectare property is located in southern Ecuador near the Peruvian border.

The initial drill program at Tierras Coloradas was designed to test INV Metals’ discovery of the low-sulphidation epithermal quartz vein system on the target, which returned high-grade gold results within channel and rock chip samples.

The reported results are highlighted by intercepts of 10.94 g/t gold over 1.5 metres and 3.91 g/t gold over 4.0 metres, which are indicative of the presence of high grades within the veins at depth. The drilling has confirmed that the veins are continuous and mineralized at depth.

Lumina Gold Corp. [LUM-TSXV; LMGDF-OTCQX] is exploring the 100%-owned, 6,374-hectare,  road-accessible Cangrejos Project in El Oro province, southwest Ecuador, 30 km southeast of the provincial capital of Machala and the Pan American Highway and 40 km from the deep water commercial port of Puerto Bolivar.

Indicated mineral resources are 568 million tonnes of 0.73 g/t AuEq, for 10.4 million oz gold and 1.4 billion lbs copper. Inferred resources are 476 million tonnes of 0.52 g/t AuEq, with 6.3 million oz gold and 0.8 billion lbs copper. The Gran Bestia Zone remains open to the north, west and at depth. Cangrejos remains open to the west and at depth. An updated PEA will be completed this year.

Cornerstone Capital Resources Inc. [CGP-TSXV; CTNXF-OTC; GWN-Berlin, FSE] has provided an update on its Bramaderos gold-copper joint venture in southern Ecuador, in which it has a 12.5% interest carried by JV partner and project operator Sunstone Metals Inc. through to the start of commercial production.

Exploration at the Bramaderos gold-copper project is to resume shortly with the initial focus to be on the Espiritu epithermal gold target where recent sampling (March 2020) returned highly promising results of 4.2 g/t and 11.9 g/t gold in rock chip and float samples, adjacent to the previously reported 11.6 g/t gold (and 2,960 g/t silver) assays. Activities will include trenching at Espiritu and further mapping and sampling in the broader epithermal gold corridor with assays expected in late June.

Assay results from six rock chip samples collected in early March have been received and highlight the potential of Espiritu to host more significant gold-silver mineralization. Results include gold assays of 0.25, 0.3, 1.7, 4.2 and 11.9 g/t gold within the vicinity of the Espiritu trench 1, and over an adjacent gold and silver anomaly in soil sampling.

Phase 2 of the exploration program will involve the participation of local geologists to undertake mapping and sampling in the broader epithermal gold belt, and to work up at least two undrilled porphyry targets.

A Phase 3 program will involve the full technical team in the lead-up to drilling, which is, at this stage, expected to start in September. Drilling is expected to be undertaken at the Espiritu epithermal gold target, and the Brama, Porotillo, and Playas porphyry gold-copper targets.

First assay results from the new sampling are expected in late June or early July.

The Bramaderos Project is easily accessible via the Pan American Highway that crosses the property.

Cornerstone Capital Resources is also exploring the Cascabel gold-enriched copper porphyry joint venture in northwest Ecuador. Cornerstone has a 22% direct and indirect interest in Cascabel comprised of a direct 15% interest in the project financed through to completion of a feasibility study and repayable at Libor plus 2% out of 90% of its share of the earnings or dividends from an operation at Cascabel, plus an indirect interest comprised of 8.2% of the shares of joint venture partner and project operator SolGold Plc.

Salazar Resources Ltd. [SRL-TSXV; SRLZF-OTC; CCG-FSE] and 75% optionee Adventus Mining Corp. [ADZN-TSXV; ADVZF-OTCQX], based in Ecuador and Canada, have been working remotely due to the coronavirus to continue advancing various project activities and to prepare for the restart of the drilling programs and site activities.

Highlights include process engineering design for the El Domo deposit that includes analysis of the recently completed metallurgical test work resulting in flowsheet selection and related process design activities ahead of feasibility study commencement later in 2020.

Evaluation and selection of engineering firms for the El Domo feasibility study is underway. The Adventus management team has been in technical and commercial discussions with a number of interested groups and expects to announce a decision in the second quarter of 2020.

Target generation work continues for the Curipamba district and is expected to further refine regional drill targets for the restart of 2020 program.

Pijili exploration data compilation is underway in preparation of a summary of all partner exploration work done to date, including trenching results, ahead of the resumption of field activities and the start of drilling;

Santiago exploration data compilation continues in preparation of a summary of all historical and partner exploration work done to date in advance of future field activities.

In addition to the project activities, Adventus and Salazar continue to receive strong interest from potential new financiers and strategic partners.