The Buriticá project is Continental Gold’s 100%-owned flagship high-grade gold project located in the middle Cauca belt in the northwest region of Colombia. The project encompasses an aggregate area of 61,749 hectares in the Antioquia Department, easily accessible by an approximately two-hour drive on the paved Pan-American highway from Medellín, Colombia’s second largest city.
Comprised of two major vein systems, the project boasts a rare combination of size, grade, excellent metallurgy and growth-potential.
- Feasibility Study demonstrates that the Buriticá project will be a lowest quartile cost producer and an economically robust gold mine
- Base case scenario utilizes a gold price of $1,200/ounce, a silver price of $15/ounce and an exchange rate (US$:COP (Colombian Peso)) of 1:2,850, resulting in the following economics:
- The after-tax net present value at a 5% discount (“NPV5“) amounts to $0.86 billion;
- The after-tax Internal Rate of Return (“IRR”) of 31.2%; and
- Capital payback of 2.3 years;
- Mineral reserves for the combined Yaraguá and Veta Sur vein systems totaling 3.7 million ounces of gold and 10.7 million ounces of silver (13.7 million tonnes grading 8.4 g/t gold and 24.3 g/t silver)
- Mineral Resources: 4.71 million M&I gold (eq) ounces @ 11.4 g/t from 12.89 million tonnes, 4.8 million Inferred gold (eq) ounces @ 9.5 g/t from 15.6 million tonnes
- Significant exploration upside: multi-million ounces of existing Inferred gold from two vein deposits not included in Feasibility Study; both deposits remain open along strike and depth; four new vein systems at drill-ready stage
- Environmental permitting to be completed in Q4 2016/Q1 2017: Buriticá is a Project of National Strategic Interest (PINE)
- Vein continuity and robust mineability: pilot-scale mine operating for 23 years; over 10 km of underground development completed; trial mining stopes successfully extracted by long-hole (see May 3, 2016 news release).
All references to mineral reserves and the mineral resource estimate are sourced from the technical report entitled “Buriticá Project NI 43-101 Technical Report Feasibility Study Antioquia, Colombia” dated March 29, 2016 with an effective date of February 24, 2016. A copy of the technical report can be accessed under the Company’s SEDAR profile at www.sedar.com or on this website.
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