Quimbaya Gold (CSE QIM / Frankfurt K05) is about to start its first drilling program at the Tahami gold project in Colombia. The property, which is adjacent to the producing, high-grade mine of Aris Mining (market capitalization CAD 1.4 billion), is already being mined on a small scale by artisanal gold prospectors. Quimbaya now wants to formalize this through a cooperation with Denarius Metals – and share in the expected proceeds, among other things!
To this end, CEO Alexandre Poivin’s company has already signed a binding letter of intent with Denarius to establish a 50:50 joint venture with the aim of transforming the existing small-scale mining operations in the Segovia gold district in the Colombian province of Antioquia into a mutually beneficial structure. Above all, the communities on whose land the local gold miners are active are to be supported and strengthened.
Final agreement already in progress
This, Quimbaya emphasizes, and we can only agree, is also an important aspect for the ongoing exploration work, including the planned 4,000 meters of drilling at Tahami South. Better and closer relationships with the communities will make the work much easier and the planned initiative should also make it easier to access important project areas.
Quimbaya and Denarius are already working to finalize a definitive agreement as soon as possible, as the joint venture is expected to have numerous benefits for both parties. These include:
- 50:50 production partnership: profit split equally between Quimbaya and Denarius (via Zancudo Metals Corp.). Denarius will provide technical and financial support to enable small-scale miners to legalize their production as part of the mining legalization program.
- Joint development of the Tahami South and Tahami North areas within the Tahami project. Exploitation will focus on those areas which are held by Quimbaya.
- Formalization of existing activities: The partnership aims to formalize the current artisanal mining sector and adapt it to successful models in the region.
- Supporting exploration: By formalizing artisanal mining activities, the joint venture strengthens community engagement and supports Quimbaya’s ongoing drilling and exploration initiatives.
- Future cash flow opportunity: Following the final agreement, efforts will be made to generate cash flow from the existing small-scale mining operations.
- Complementary strategy: This joint venture complements Quimbaya’s exploration objectives and ensures that the focus remains on the discovery of a high-grade deposit at Tahami.
Strategic Significance
However, the planned approach is also promising and of strategic importance for Quimbaya. This is because the company will be able to make use of a business model that has proven successful in the DMSR (Segovia-Remedios Mining District). For example, formalized small-scale mining also contributes to the production of its much larger neighbor Aris Mining!
And by joining forces with Denarius, Quimbaya is also working with Serafino Iacono, one of the key figures behind the rise of Gran Colombia Gold (now Aris Mining). Gran Colombia / Aris has been the largest gold and silver producer in Colombia for decades (underground mining) and currently has a gold production of 200,000 ounces of gold per year – from three mines in the high-grade DMSR. This means Quimbaya gains access to a team with extensive experience in transforming local artisanal mines into structured, profitable operations that benefit both communities and shareholders!
As Quimbaya CEO Poivin explains: “This is a pivotal step for Quimbaya. By partnering with one of the most experienced exploration and mining teams in Colombia will not only allow Quimbaya to quickly leverage this existing opportunity, but also to deliver on our community objective of helping formalize artisanal miners, while we continue advancing our broader exploration and drilling plans to make a high-grade gold discovery on the Tahami South property.”
We are eager to see how quickly this initiative, which we believe to be extremely promising, can be implemented and are anticipating the launch of Quimbaya’s first drilling program at Tahami. We will of course keep the readers of Goldinvest.de up to date!
