|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Mining Corporation completed the purchase of 21,762 acres of precious metal Mineral Rights from Compania Primera de Minas del Nechi, of Medellin, Colombia, in June 2001. The properties lie approximately 85 air miles NNE from Medellin, in the State of Antioquia. They are located on the Rio Nechi' in the foothills of the Central Cordillera of the Andes at an elevation of approximately 100 meters above sea level, ending as a topographical feature at 8 degrees North.
The significance of the precious metal Mineral Rights and their purchase by WMC is immeasurable. Concession rights allow one to exploit a property, receiving ownership of the precious metals or minerals upon their removal from the ground and a payment of royalty to the government. Mineral rights grant ownership of in situ precious metals or minerals. Compania Primera de Minas del Nechi (CPMN) had been a concession rights holder of the Rio Nechi properties since 1859. In 1976, through provisions of the Andean Pact, CPMN was granted deeded ownership of the precious metals and domain over the properties by resolution of the Federal Government. By purchase from CPMN and approval by resolution of the Ministry of Mines and Energy, WMC received deeded ownership and domain over the Mineral Rights on September 4, 2000.
The Mineral Rights are recorded as six mines:
| 1. San Benito |
|
|
| 2. El Charcon |
|
|
| 3. Tamara |
|
|
| 4. Nechi Tercero |
|
|
| 5. Tenche I |
|
|
| 6. Tenche II |
|
|
| Back To Top |
|
|
In general, the Andes Mountains of Antioquia consist of highly decomposed granite and marble interwoven by a network of quartz veins and stringers of auriferous pyrites. The yearly torrential tropical rains slough down an incalculable tonnage of this soft bedrock which carries with it considerable quantities of goldbearing pyrites. As further disintegration takes place, the gold is freed from the pyrite and finds lodgement in the rivers and streams with sands and gravels, constituting principal alluvial deposits.
Regional Geology. The Andes Mountains in Colombia are divided into three topographically and geologically distinct ranges. The Eastern and Western Cordilleras are composed, respectively, of miogeosynclinal and eugeosynclinal rocks deposited in Mesozoic time and deformed in Late Cretaceous and Tertiary time. The Central Cordillera is composed of crystalline rocks which are mostly pre-Mesozoic. Within the area of WMC's Mineral Rights, the mountain range is underlain by deeply-eroded Paleozoic and older medium to high-rank metasedimentary and metavolcanic rocks which have been uplifted repeatedly since Triassic or earlier time. These metamorphic rocks are intruded by Mesozoic and Tertiary acid intrusive rocks which represent the source of the gold of the region.
The rivers which have deposited the gold-bearing alluvium of this region are in late youth, to some extent rejuvenated by the continuing uplift of the Andes. They are presently in a downcutting phase, cutting through and exposing older alluvial deposits on their flanks. These older deposits consist of fine sands over coarse gravels, with the gravels representing deposition during a time of much higher stream flow when the Central and Western Cordillera were glaciated in Pleistocene time.
Local Geology. The prevailing geology of the local area is determined by the Nechi' Canyon through which the Rio Nechi' flows down from the Central Cordilllera. The area is crossed by huge tectonic depressions related to the Cordillera Andina formation. Among them, the most important is the one that goes down by the Tenche River Valley, crosses the Nechi Canyon, displacing the Nechi one kilometer from this trajectory and continues to the Tamara Creek, ending north of the Popales Creek.
It is considered that a long time ago the Rio Tenche' flowed into the Rio Porce' at Dos Bocas and the Rio Nechi' flowed to Tamara, continuing to Popales and flowing into the "now" Rio Nechi' in the Pato region downstream of Dos Bocas.
This explains the extraordinary richness of the gold deposits found at Pato. Probably at that time when the tectonic depression of Tenche was active and the Rio Nechi' ran by Tamara-Popales, the present flat lowlands of Liberia surrounding both sides of the Nechi was the bottom of a lake. This is substantiated by the stratas of clay found in the alluviums. This lake was a gigantic gold collector as having been proven by the richness found by mining at El Charcon (Villerina) and San Benito.
Later on when the tectonic depression of Tenche became active again, the Rio Tenche' made the Rio Nechi' Lake its actual flow with its water going to the lake that used to be in the area of Liberia. Part of the gold collected at the the bottom of the old lake was dragged along by the new flow of the Nechi and the biggest particles were deposited over a fan shaped alluvium which is the Hojas de Maiz area. Part of this theory is based on the fact that the Tamara Creek dragged along pebbles that are too big to have their origin on that depression or creek. Also, it seems impossible due to the moderated action of its waters.
|
|
In 1859, Joaquin Marquez Cano, grandfather of the present Marquez family patriarch, Gustavo Marquez B., and his brother Ricardo denounced and registered at the Colombian authorities a group of gold mines located at the Rio Nechi' and some of its tributary rivers. Since that date until Joaquin Marquez Cano's death in 1890, the brothers worked the mines with very poor and simple working implements.
From 1890 until 1935, the mines were almost unexplored, but the Marquez family, as Compania Primera de Minas del Nechi (CPMN) took care of paying the required state taxes to maintain the exploration and exploitation rights. The Marquez family began conversations with Compania Minera del Charcon, predecessor of Sociedad Minera de Australasia, in 1935, which consumated in a lease with Sociedad Minera de Australasia in 1936. CPMN would receive a royalty of 5% of the gross gold production.
In 1976, through provisions granted by Colombia joining the
Andean Pact, CPMN received deeded ownership and domain over the
properties, converting the concessions to Mineral Rights by resolution
of the Ministry of Mines and Energy. By purchase from CPMN and
approval by resolution of the Ministry of Mines and Energy, WMC
received deeded ownership and domain over the Mineral Rights on
September 4, 2000.
|
|
The region of the Mineral Rights is one of the richest gold producing areas in Colombia and it is the richest of the State of Antioquia. The area started being worked almost 400 years ago with the founding of Zaragoza by Don Gaspar De Rodas in 1581 (approximately 20 miles downstream from the Mineral Rights). During the Spaniard domination, enslaved Indians were used to work the mines.
During 22 years between 1940 and 1981, Sociedad Minera de Australasia, a Colombian mining society, successfully mined gold on three of the six mines comprising the mineral rights; El Charcon (Villerina), San Benito and Hojas de Maiz (Nechi Tercero), under lease from Compania Primera de Minas del Nechi. Utilizing an antiquated, non-mechanized mining operation, much like the California placer mines in the 1800's, the company processed an estimated ten to fifteen cubic meters of alluvial gravels a day. The mine operated an average of 8.3 months a year and recovered a recorded production of over 44,807 troy ounces of refined gold. During the 22 years, Australasia mined less than 5 acres of the properties.
The heart of the hydraulic operations was a twelve mile water pipeline, thirty six inches diameter, starting high in the Andes mountains and terminating at the mine site, built from 1937 to 1940, when operations began. The pipeline drew water from a reservoir at Providencia, high in the Andes on the Anori' River which flows into the Nechi' River at the Villerina site. The elevation of the mouth of the pipeline up in the mountains provided the necessary water pressure and volume to operate two water monitors that slurried the sands and gravels, and a venturi lift pump that carried the earthen slurry from the bottom of the pit to the top of a wooden sluice box. The sluice was approximately four feet wide and sixty feet long and utilized quartered logs, and later two by sixes, as riffling to catch and trap the gold. The inefficiency of the sluice resulted in only the largest gold particles and flakes, measuring one to three millimeters in size, being recovered from the operations. The finer gold passed through the box and was redeposited with the sand and gravel tailings back onto the site. Obsolescence, deterioration of the pipeline and lack of technology resulted in the closure of mining operations in 1981.
|
|
In 1908, a French company began alluvial mining on the Rio Nechi' and its floodplains at Pato, by bringing in the first Yuba bucket ladder dredge from the Malaysia tin fields. Pato lies at the beginning of the floodplains approximately 15 miles downstream from WMC's Mineral Rights. The French company later was acquired by Consolidated Gold Fields of London under Pato Consolidated Gold Dredging, Ltd. It was subsequently purchased by Placer Development of Canada in 1932; followed by International Mining Corp. of New York in 1962. The operations now consisted of several Yuba dredges and were mining ancient paleo channels branching off the Rio Nechi'.
In 1974, the dredging operations were acquired by a public Colombian company, Mineros de Antioquia, which set up operations in El Bagre, approximately 35 miles downstream from WMC's Mineral Rights. For years during the '70's and '80's Mineros de Antioquia was South America's largest gold producer operating six Yuba bucket ladder dredges and presently accounts for over half of Colombia's annual gold production of 750,000 troy ounces. They now operate three dredging systems comprised of an overburden removing bucket wheel dredge in tandem with an alluvium mining bucket ladder dredge. The Company's operations are now downstream of El Bagre.
|
|
The Company's reserve and resource calculations are based upon several criteria: (1) geological studies which provide evidence of the property's early geophysical structure as a lake basin, (2) the substantial gold production by Sociedad Minera de Australasia whose archaic operations represent major bulk sampling on three of the mines property's, (3) the mining at four locations over a two km distance, on both sides of the Rio Nechi', showed consistent alluvium structure and yielded similar coarse 1 - 3mm angular gold flakes assaying at 94.5% purity, with 5.5% silver, and (4) the history of native panners and small scale mining operations from 1859 to present day on the many river and creek banks, yielding similar high value gold flakes and nuggets.
PROVEN RESERVE
Hojas de Maiz Gold Deposit. The Sociedad Minera de Australasia ("Australasia") had sporadically mined on the Hojas de Maiz deposit from 1970 to 1981, when operations ceased. WMC plans to initiate its first alluvial mining operation on the Mineral Rights by reopening a new modern mine on this deposit
Geologists Dr. Alexander Ritchie and Dr. Abraham Rosenzweig investigated the site and state that Hojas de Maiz is a very rich deposit. They estimate that gold concentrations range between 1/3 and 1 troy ounce per ton (15.7 to 47.2 grams/cubic meter). The deposit consists of an alluvial terrace whose upper surface is approximately 5 to 6 meters above the level of the adjacent Nechi' River. The terrace is composed of 5 to 7.5 meters of cross-bedded fluvial sand on 2 to 4 meters of auriferous, coarse cobble and boulder gravel which rests on a very irregular marble bedrock surface. The auriferous gravels are encountered at approximately river level. A large percentage of the gold from Hojas de Maiz is remarkably coarse, consisting of flat flakes from 1 to 3 mm in diameter. Refinery records indicate that the gold purity from Hojas de Maiz averages 94.5%, consistent with other past mining on the properties.
The Company conservatively calculates this proven reserve at a minimum of 2.38 million tons of mineable material at an average grade of 1.8 grams per ton, representing 136,700 troy ounces of recoverable gold.
PROBABLE RESERVES
Boca de Tenche Gold Deposit. These deposits were also investigated by geologists Dr. Alexander Ritchie and Dr. Abraham Rosenzweig to determine the reserve values and mining feasibility. The sites lie directly Northeast of the Hojas de Maiz deposit, on the same bank of the Nechi' River, are geologically identical and should average approximately the same values of gold. The Boca de Tenche deposit is divided in half by the Tenche River; Tenche I being on the East (down-stream) bank of the Tenche and Tenche II being on the West (upstream) bank of the Tenche River.
Based upon the geologist's findings, the small area at the mouth of the Tenche River is calculated to contain over 1.1 million tons of mineable material at an average value of 1.8 g Au/t, representing probable reserves of 62,387 tr.oz. gold.
El Charcon Gold Deposit. A large deposit on the South shore of the Rio Nechi' that surrounds the town of Liberia . The Western tip of this deposit was mined by Australasia to depths of about sixty feet with very high concentrations of gold being found in the lower alluvial gravels. However, due to their equipment limitations, they were never able to reach the bedrock at 70 to 90 feet below the surface, leaving the most concentrated gold bearing gravels. These operations opened a cut allowing the Rio Anori' to flow North into the Rio Nechi' and making Villerina an island.
The Company calculates this probable reserve at a minimum of 46.4 million tons of mineable material at an average grade of 1.6 grams per ton, representing 2.39 million tr.oz. gold.
San Bonito Gold Deposit. A large deposit on the North shore of the Rio Nechi', across from El Charcon, noted for its large bedrock outcropings. Australasia sporadically mined on this deposit for years. In 1976, one bedrock pocket discovered beneath a false bottom of dolomite, required eight days to excavate and yielded 624 troy ounces of gold.
The Company calculates this probable reserve at a minimum of 28.6 million tons of mineable material at an average grade of 1.6 grams per ton, representing 1.46 million tr.oz. gold.
The total mineable volumes of the Boca de Tenche, El Charcon and San Benito probable reserve deposits comprise 76.1 million tons with a total potential gold value of 4.9 million tr.oz.
RESOURCES
Anori' River Terraces. WMC's Mineral Rights extend up the Rio Anori' a distance of two kilometers from the Rio Nechi'. The Company calculates the potential mineable river terraces through this length of the river at a minimum of 22.8 million tons, which at an average value of 1.6 g Au/t would represent a potential recovery of 1.2 million tr.oz. gold.
These values do not include Villerina - an island resulting
from prior Australasia mining of the Villarina Creek at its Confluence
with the Nechi', adjacent to the Rio Anori'. Gold panners have
indicated this deposit to be a high gold concentration area.
Tamara' Creek Terraces. WMC's Mineral Rights extend up
the Tamara' Creek a distance of four kilometers from the Rio Neche'.
The Company calculates the potential mineable river terraces through
this length of the ancient river bed at a minimum of 137.2 million
tons, which at an average value of 1.6 g Au/t would represent
a potential recovery of 7.0 million tr.oz. gold. The terraced
area where the creek joins the Rio Nechi' is called Playa Rica.
Tenche' River Terraces. WMC's Mineral Rights extend
up the Rio Tenche' a distance of 11.75 kilometers from the Rio
Nechi'. The Company calculates the potential mineable river terraces
through this length of the river at a minimum of 67.2 million
tons, which at an average value of 1.6 g Au/t would represent
a potential recovery of 3.5 million tr.oz. gold.
The total estimated volumes of the Anori', Tamara', and Tenche'
river basin deposits comprise 227.2 million tons of mineable materials
containing an estimated 11.7 million tr.oz. gold.
In addition to these alluvial deposits, substantial quantities of gold are continually being sloughed down from the Andes mountains annually during each rainy season, indicating the potential for source lode gold discovery by future Company exploration efforts.
|
|
|
|
|
|
|
|
|
|