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Collective Mining (CNL.V) is Looking to Discover the Next Major Gold Deposit in Colombia
Gold has been one of the hottest assets in the market this past year.
It’s often a great safe haven for funds, away from the uncertainty of currency inflation or drops in equity values.
Since the financial crash over a decade ago, gold prices have been soaring nearly every quarter, and most financial experts predict similar gains in the coming months.
This was exacerbated by the economic uncertainty after the fallout caused by COVID-19, forcing many investors to diversify their assets into precious metals. According to sources from Goldman Sachs last year, gold prices may soar by nearly 22% as demand continues to rise.
In this climate, gold mining companies have the potential to take advantage of rising prices and maximize profits.
One such company is Collective Mining, a company based in Caldas, Colombia. The company was formed recently by a group of former executives from Continental Gold. During their tenure at Continental, they were responsible for the discovery and construction of the Buriticá Gold mine, the biggest gold mine in Colombia. Since then, the company was sold to Chinese mining conglomerate Zijin Mining for roughly $2 billion.
Founded and Operated on ESG Principles
The success of Continental Gold hints at a bright future for the executives running Collective Mining.
The company has a collective business approach to its mining operations, where the concerns of all stakeholders are taken into consideration through a strong set of Environmental, Social, and Governance (ESG) principles.
In the South American mining market, these ESG principles are particularly vital to maintaining longstanding ties in the country and guarantee the license to operate. Cutting-edge technologies allow Collective Mining to explore the area without harming the country’s biodiversity or local water supplies.
This has helped the company’s social relationships with the communities in the area, who want to protect their region’s natural resources and cultural patrimony.
By hiring local workers and strengthening local supply chain industries, Collective Mining also provides value to these communities. All of these factors, along with maintaining a strong commitment to go beyond Colombian regulation, bodes well for continued success in the region.
Additionally, the company has a strong partnership with the Coffee Growers Committee of Caldas, which operates in the same region its Guayabales and San Antonio projects are located. Collective has been clear that partnerships with local allies and consultation for its operations are critical to its mission.
This includes the Municipality of Supia, whose mayor, Marco Antonio Lodoño Zuluaga has spoken highly of the company. The mayor has been supportive of Collective’s investments in the area and has noted that the project with the Coffee Growers Committee of Caldas proves “that responsible mining is possible”.
Collective Principles at Work
Collective Mining’s two main sites, Guayabales and San Antonio, are both in Southwest Colombia in the Caldas region, roughly 75 km outside Medellin.
Recently, the drilling has begun at the Guayabales project and anticipation for analytical results are given the amount of high-grade gold and silver already uncovered at surface and within small-scale historical mines at the site. Located near Aris Gold’s extremely profitable Marmato Mine, many experts believe this site will be similarly profitable.
As for the company’s San Antonio mining project, a small scout drilling program was recently completed with results expected in the next couple of months.
With gold prices continuing to rise, these potentially deposit-rich mines have caught the attention of investors. In early August, the company announced proceeds of more than $13.5 million from a warrant exercise, giving the company a total cash balance of roughly $26 million.
This should fund its newer operations and position the company for a long run of operations in Colombia. While the company has only just begun to report results, the investment community, business partners and stakeholders at every level are excited to see what will come next.
This article does not necessarily reflect the opinions of the editors or the management of EconoTimes