Colombia possesses an exceptional geologic terrain for gold exploration, and a high endowment of gold both historically and now in modern times. Within the last five years Colombia has produced a very high discovery rate of plus-million ounce gold discoveries by a relatively small amount of active companies.
In the 19th century, Colombia was the world's largest gold producer. Currently Peru, Colombia's neighbor to the south, produces about 210 tons of gold per year from the metal rich Andean Cordillera. Three mineral belts of the Andean Cordillera extend through Colombia. The country's favorable geology creates an environment similar to that of Peru, allowing for the potential for numerous world-class gold discoveries.
Modern exploration in Colombia has until relatively recently been inhibited by political instability and security risks related to armed conflict between the Colombian army , right wing paramilitaries and left wing guerrillas , as well as violence associated with drug cartels. Combined, these factors created an unstable environment that made gold exploration difficult and investment questionable.
Under the government of Colombian President Alvaro Uribe, in office from 2002 to 2010, security issues impeding investment and exploration were diminished dramatically and now both major and junior gold companies are entering Colombia to conduct exploration. The well known Fraser Institute, which compares the relative favorability of mining jurisdictions with a range of metrics including political risk, reported in 2008 that Colombia is now comparable to Alberta, Canada and Ghana in overall exploration favorability. In the context of gold exploration, Colombia is now "open for business" as one of the least explored countries of South America and is a new frontier for the discovery of world class gold deposits.
Why Colombia for Miranda Gold?
Miranda's technical strength is in generating prospects that provide targets for world-class gold deposits. Colombia has a similar gold potential to Nevada for very similar geologic reasons. In addition, what Miranda's technical team is capable of in Nevada, it can also do in Colombia.
Nevada will continue to be Miranda's main focus for exploration. However, Nevada is a very mature exploration terrain. This means that while many quality deposits await discovery in Nevada, the rate of discovery there has diminished as the "easy" deposits have been found. The rate of discovery in Colombia is on the upswing because it is an immature exploration terrain.
Miranda's current strategy is to leverage its strong treasury and proven skills as a project generator by conducting aggressive exploration in an immature jurisdiction like Colombia while maintaining aggressive exploration in Nevada. Miranda's joint venture business model will continue to be employed in both jurisdictions.
Miranda Gold's Colombia Plan:
An exclusive Association Agreement has been signed with ExpoGold, a private consulting company in Colombia, whereby ExpoGold will conduct exploration on behalf of Miranda Gold. Miranda Gold will fund the exploration program while both companies will collaborate on planning and evaluation of prospects to be secured through license application or acquisition.
Teaming with Expo gives Miranda Gold the people on the ground necessary to be successful in entering a frontier jurisdiction. The partnership exposes Miranda Gold to superior experience, knowledge and contacts needed for working in Colombia. Expo has also compiled an extensive database from which to generate prospects.
Miranda Gold and Expo are developing exploration models derived from the more recent gold discoveries in Colombia. Working together we can quickly build an effective exploration program and assemble a portfolio of prospects. A Colombian subsidiary of Miranda Gold is being established.
Under the Association Agreement with Expo, Miranda Gold will have a first right to lease any of the 45 license applications Expo already controls. These applications collectively cover 123,000 hectares peripheral to 14 mining districts, including areas near the recent Ventana Gold Corporation discovery in the California-Vetas District and the Gramalote deposit (2.39 million ounce gold resource) held by B2 Gold Corporation.
Included in Expo's 45 licenses is the Pavo Real property. Miranda Gold has already negotiated terms to acquire this property. For more information on Pavo Real click here.
Given the competitive land situation in Colombia, it is significant that Miranda Gold was able to quickly acquire a good project that can easily be advanced to the drilling stage. Miranda Gold believes that Pavo Real will draw interest from potential JV partners.