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Metminco outlines multi-mine development option for Columbian gold project Quinchia

Snapshot

The gold explorer merged with Andes Resources in August and is focused on opportunities in the Mid-Cauca copper-gold belt of Colombia.

Metminco Ltd - Metminco outlines multi-mine development option for Columbian gold project Quinchia

Quick facts: Metminco Ltd

Price: 0.098 AUD

ASX:MNC
Market: ASX
Market Cap: $16.32 m
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The company’s flagship Quinchia Gold Project features one studied deposit and two targets. 

Quinchia deposit Miraflores features a 457,000-ounce gold reserve and was valued at US$89 million in 2017 using a US$1,300 gold price. 

A processing plant could be housed at Miraflores to then take ore from other targets at Quinchia project as they are commissioned and made mines. 

One of the Quinchia prospects is Tesorito which has featured wide intersections such as 383 metres grading 1.01 g/t from surface. 

A high-priority target at Quinchia for Metminco is Chuscal, which is being maiden drilled and is near Miraflores and Tesorito. 

With the deposit and targets so close together, district-wide development of multiple mines is a possibility for the ambitious junior. 

I am excited to have the opportunity to rapidly progress some of the more advanced near-term opportunities that Metminco has in its portfolio as well as nurture some of the less mature prospects.

I … am particularly excited about … drilling of the Chuscal gold project, which has significant potential.

Metminco managing director Jason Stirbinskis

What does Metminco do?

Metminco Limited (ASX:MNC) (LON:MNC) (FRA:M9K) is an Australian exploration company with a focus on exploration assets in South America.

The company merged with Andes Resources in August 2019 and started maiden drilling at a project in Colombia on the Mid-Cauca copper-gold belt.

Metminco has been operating in Latin America for more than a decade and views Columbia as a nation of sizeable opportunity where many multi-million ounce discoveries have been made.

The company believes a Chilean-style approach of equi-spacing prospects among significant deposits could prove favourable in Columbia.

Metminco also has a strategy to follow cross-cutting structures as a way to discover new reserves and resources.

It has exploration projects in the Quinchia and Andes districts of Columbia and has highlighted the potential for shared infrastructure such as central processing units for multiple deposits developed as separate mines.

Who leads Metminco?

The company is led by geologist and former Andes managing director Jason Stirbinskis.

Stirbinskis is now the MD of Metminco and has more than 12 years’ experience leading mining and mining services companies.

He has worked on gold, zinc, lead, copper, and nickel projects, with his project management experience spanning greenfields exploration through to definitive feasibility study work and development.

Stirbinskis takes a strategic approach to company development, defining strategy, building capacity and navigating change.

He has an international network of contacts and has worked in Columbia, Australia, West Africa, Central Asia and Scandinavia.

What does Metminco own?

The key asset is the Quinchia Gold Project in a mineral district of porphyry stocks, breccias and epithermal vein occurrences.

Metminco controls key targets in the district, including the advanced Quinchia deposit Miraflores which features a 457,000-ounce gold reserve.

The gold ounces are found in a 4.32 million tonne reserve grading 3.29 g/t.

Mineral resources at the deposit have been put at 9.27 million tonnes grading 2.82 g/t for 877,000 ounces.

An October 2017 definitive feasibility study valued the deposit at US$89 million using a net present value (NPV8) calculated at an 8% discount, using a US$1,300 gold price.

The spot gold price is about $1,490.85 at current levels.

A processing plant has been envisaged to lie near Miraflores which Metminco considers could be started as a trial mine.

Ore from Miraflores could supply the plant, with other sources added to the feed as mines are commissioned and ramped up.

Metminco’s immediate focus at Quinchia project is its high-priority Chuscal target.

The company is undertaking maiden drilling at this target which lays 1,700 metres south of Miraflores deposit and two kilometres from Tesorito.

Chuscal is a 900-by-530-metre gold anomaly that starts at the surface.

The company started drilling at the target in the past few weeks and has planned a two-phase 2,400-metre diamond drilling program.

Three holes will be drilled in phase I and four in phase II, with holes drilled to 300 to 400-metre depths.

The first hole will go through Guayacanes diorite rock which has gold-bearing veins in a mineralised diorite porphyry.

Quinchia project also features the Tesorito prospect, an outcropping gold porphyry system just 500 metres from the proposed Miraflores plant.

Seven holes have been drilled at Tesorito by diamond drillers.

Drillers have pulled up wide intersections such as 383 metres grading 1.01 g/t from surface to end of hole, including 32.5 metres at 1.34 g/t from 48.8 metres and 156.6 metres at 1.28 g/t from 88.3 metres; and 253 metres grading 1.01g/t from 2.9 metres, including 64 metres at 1.67 g/t from 144 metres.

The company recently undertook a geological review and re-interpretation of Tesorito data led by Metminco’s consulting geologist Nick Winer, which confirmed the prospect’s appeal.

Winer had played a significant role in the discovery of Nuevo Chaquiro copper-gold porphyry deposit 50 kilometres to the north.

Metminco has responded to the opportunity presented by Tesorito and said last week it would now undertake a pre-drilling program for Tesorito.

The field program at the target would allow the company to generate a 3D model it could use in designing a Tesorito drill program.

Inflection points

  • In-field and laboratory findings on mineralisation at Quinchia project target Chuscal
  • Tesorito drill program progress, aided by preparatory programs on-site
  • Updated definitive feasibility study work for Miraflores and its plant, using latest gold prices
  • Significant transactions for the company and its regional neighbours
  • Funding milestones and key acquisitions, divestments and earn-ins

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Metminco submits plan of works for Miraflores gold project

Ram Venkat, non-executive director at Metminco Ltd (ASX: MNC)(LON:MNC), tells Proactive they've submitted a plan of works to the Colombian Mining Agency for the Miraflores gold project. The plan follows Metminco’s announcement last year that it had established a reserve of 457,000 ounces...

on 31/1/18

5 min read