Description and Investing Strategy
Metminco's growth strategy is to become a gold producer in the near term whilst maintaining a longer-term interest in gold and copper within South America, in particular Colombia and Chile. To this effect, the Company purchased the Quinchia Gold Portfolio in Colombia in June 2016 which includes the Miraflores, Dosquebradas, Tesorito and Chuscal projects as well as retaining an interest in its Chilean assets.
The Company seeks to deliver growth in long term shareholder value by progressing the following objectives:
- Advance the feasibility study on the Miraflores Project with an expected completion date for the feasibility study by the end of first half of 2017. The Miraflores Project is expected to produce 50,000 oz Au per annum over a life of mine of 9 years. Current estimate for commencement of construction during the second quarter of 2018.
- Enhance anticipated future gold production from the Miraflores Project through exploration and development of high potential prospects in the Quinchia Gold Portfolio.
In Colombia, the gold industry is gaining momentum with a number of new EIA licences being issued to companies such as AngloGold Ashanti, B2Gold and Continental Gold for the development of three new open pit and underground mines, while Red Eagle Mining, a Canadian listed company, recently completed the construction of a new mine and processing facility at San Ramon, north of Medellin in Colombia.
Chile has substantial mineral extraction industries, developed over many decades, and both countries are major producers of copper. It is estimated that in 2016 Chile and Peru hosted 40% of the world’s copper reserves, and produced some 39% of the world’s copper.
All countries offer favourable jurisdictions for exploring and developing mineral projects with Colombia now attracting significant investor interest.
Statement by the Chairman, Dr Phillip Wing:
“We envisage development of the Miraflores Gold Project to be the first leg of the Company’s strategy to transition into a significant gold producer. The 100% owned Quinchia Gold Portfolio also includes the Tesorito, Dosquebradas and Chuscal gold targets. Tesorito and Chuscal, in particular have the potential to increase targeted mine life and annual gold production. The Quinchia Gold Portfolio is a high quality gold asset that is located in the Cauca region of Colombia, a region which we believe is increasingly becoming more prospective and attractive to investment.*
The Company’s other assets, the Mollacas, Vallecllo and Loica projects located in central Chile, have the potential to add significant shareholder value in the longer term with an increasing demand for and a falling supply of copper.”