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Posts tagged ‘Batero Gold Corp (BAT)’

Investors pile into Colombia-focused Vancouver gold junior

November 8th, 2013

by Frik Els | November 8, 2013 | Reprinted by permission of MINING.com

Investors pile into Colombia-focused Vancouver gold junior

Liking what they see.
(Photo: Batero Gold)

Shares in Batero Gold TSXV:BAT jumped as much as 8% in volumes 10 times higher than usual on November 8 after releasing a PEA for its Colombian project earlier this week.

In early afternoon trade the Vancouver-based explorer fell back slightly from highs earlier in the day to trade at $0.125, up 4.2% with more than 615,000 shares changing hands, including one 250,000-block at $0.13.

That compares to usual volumes below 50,000 and made Batero the tenth-most traded stock on the Venture exchange.

It has been a busy week for Batero, kicking off on November 4 with the company announcing a preliminary economic assessment of its 100%-owned Batero-Quinchia project in Riseralda, Colombia, board changes and new prices for warrants issued two years ago.

What makes Batero-Quinchia a particularly attractive asset according to the PEA is the “relatively high gold recoveries and fast leach kinetics of the surface oxide mineralization within the Batero-Quinchia deposit.”

Highlights of the PEA, with a base case gold price of $1,400 an ounce, include:

  • Mine life of seven years at 3.5 million tonnes per annum production steady state (10,000 tonnes per day)

  • Life-of-mine (LoM) production of 390,000 ounces of gold and 817,000 ounces of silver recovered

  • Annual average production of 56,000 ounces of gold and 117,000 ounces of silver recovered

Total open pit production, which has been factored for mining extraction and mining dilution:

  • 9.4 million tonnes of measured mineral resources at 0.81 grams per tonne gold and 1.8 g/t silver for 244,000 ounces of contained gold and 545,000 ounces of contained silver

  • 11 Mt of indicated mineral resources at 0.77 g/t gold and 2 g/t silver for 273,000 ounces of contained gold and 720,000 ounces of contained silver

  • 3.3 Mt of inferred mineral resources at 0.59 g/t gold and 1.6 g/t silver for 64,000 ounces of contained gold and 171,000 ounces of contained silver

  • Approximately 86% of open pit production tonnage is classified as measured or indicated mineral resources

  • Mining strip ratio of 0.3:1 (waste:production)

  • LoM average gold and silver heap leach recoveries of 67% and 57% respectively

  • Initial capital cost of $97.3 million, which includes $16.2 million in contingency costs

  • Pre-tax payback of 23 months

  • Net pre-tax cashflow of $105 million

  • Pre-tax internal rate of return (IRR) of 27%

  • Pre-tax net present value (NPV) at a 5% discount rate of $69.1 million

  • Total cash operating cost (net of silver credits) of $842 per ounce gold

  • After-tax payback of 30 months

  • Net after-tax cashflow of $76.9 million

  • After-tax IRR of 21%

  • After-tax NPV at a 5% discount rate of $47.3 million

Click here for the full report.

Reprinted by permission of MINING.com

Batero reports Colombia Batero-Quinchia Project Resource Estimate

February 28th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningBatero Gold Corp TSXV:BAT announced the maiden resource estimate for its Batero-Quinchia project in Risaralda Department, Colombia. The project has indicated resources of 3.5 million ounces gold, 12.3 million ounces silver and 438 million pounds copper; it has inferred resources of 2.6 million ounces gold, 14 million ounces silver and 320 million pounds copper.

President/CEO Brandon Rook commented, “We are very pleased that after our first year of drilling we were able to establish a significant first indicated and inferred mineral resource estimate within the prolific Mid Cauca belt of Colombia. We look forward to take the next step by completing a preliminary economic assessment in a timely fashion. We are also excited about the continued exploration potential of the Batero-Quinchia project area for expansion of the La Cumbre-El Centro-Dos Quebradas porphyry cluster and also the exploration potential throughout the greater Quinchia property. We have significant mineralization intersected directly adjacent and underneath the pit shell, which is not included in the resource estimate. We look forward to growing the resource through drilling of multiple, high-priority exploration targets during 2012.”

View Company Profile

Contact:
Batero Gold Corp
604.568.6378

by Ted Niles

Treasure Islands

January 30th, 2012

Miners Face Increasing Danger from Crime, Social Unrest and Violence

By Greg Klein

With 22 years’ experience in the British Special Forces, 10 of them with the Royal Marines and the other 12 with the SAS, Alan Bell is no stranger to conflict. Since founding the Toronto-based security company Globe Risk International in 1996, he’s provided his expertise and active involvement to a number of exploration and mining companies overseas. And he’s seen a few changes over the years.

“I remember when I started out in the 1990s, the old VPs of exploration used to go out into the mountains with their hammers and their boots and their trousers tucked into their socks. The old-school guys would go out there and say, ‘We don’t need any security.’ Well the world has changed dramatically since then.”

Miners Face Increasing Danger from Crime, Social Unrest and Violence

His admonition would apply to all resource companies but especially those of Canada, “the global leader in mineral exploration,” according to the Prospectors and Developers Association of Canada. Rising prices and limited supply push exploration into increasingly dangerous places, in a world that is itself becoming more troubled.

Companies often turn to Globe “when things go wrong,” Bell says. “They’ve got to spend a lot more time researching where they’re going and what they’re going to do. They’re running out of places to go, and the places that are left are where there’s problems.”

Bell’s company will visit the site of a proposed project to assess certain types of risk—not so much political risk, which might involve expropriation or a sudden and onerous tax/royalty regimen, but conflict in the form of crime, social unrest, sectarian violence or terrorism.

“There could be anything from suicide bombers to vehicle-exploding devices. We talk about what’s in the area. Can you get helicopters in there; what type of security do you need; who can assist you? We assess the local population, aviation, flight clearances, landing sites. Basically we develop a report for the client so they can see what their problems and options are before they bid on these contracts.

“We’ve had many clients who have looked at our reports and said, ‘Well this looks like an option, we’re willing to take a certain amount of risk,’ and they go in. Others say, ‘Shit, we’re not going to get involved in this, it’s too dangerous.’”

Bell started out with assignments in Latin America and Africa. In 2004, he began working on Canadian government contracts in Afghanistan. He employs a number of former Canadian military but trains locals to work as onsite security.

“We just finished a major project in northern Afghanistan for a Chinese company looking to start in March or April. What we will do, if they wish, is provide them with security to do their work. We’ll get a camp built for them, train the security team, get the vehicles. When they come over and start carrying out their exploration, we’ll support them from a security perspective as well.”

Precautions notwithstanding, not everything can be predicted, let alone prevented.

Last September, for example, Semafo TSX:SMF shut down its Kiniero Gold Mine in Guinea and evacuated its expatriate employees after protests about foreign workers turned violent. The mine still hasn’t re-opened, although exploration resumed in late October.

In December 2010, Luna Gold TSXV:LGC lost 1,500 ounces of gold, worth over $2 million at the time, to an armed gang at its Aurizona Mine in Maranhao State, Brazil, about 2,000 kilometres north of Rio de Janeiro. Robbers failed in a second attempt last November, however, despite taking hostages. The captives were released unharmed, an outcome which the company attributes to precautions taken after the initial heist.

We knew that this was going to happen based on intelligence-gathering by our security people. We advised the local police. The police were on site at the time the outsiders came. And the police just stood by while they vandalized the place —Donald East

In March 2011 Torex Gold TSX:TXG suspended work at its Morelos Project in Guerrero State, 200 kilometres southwest of Mexico City, after the armed robbery of several of its trucks. No one was hurt, but employees were evacuated nonetheless. Operations have since resumed.

Last June Torex President/CEO Fred Stanford explained, “We’re in a little town that had no police, and it had never needed them. I think we injected enough money into the community that we attracted a criminal element…. There are now police, and we’re back and moving forward. The government’s been very good; the community wants the mine; and we’re negotiating now for land. No doubt there will be issues, but we’ve got a great partnership with the community.”

Other companies work in the thick of cartel country. US Gold’s TSX:UXG El Gallo Silver-Gold Project is slated for mid-2012 production in Sinaloa State on Mexico’s north-central coast. Senior VP Ian Ball said, “We have been very active there for three or four years and have been able to establish a pretty good relationship—and this might sound strange—with the cartel. You have to know who they are and inform them what you’re doing and where you’re moving to…. They don’t want you near their marijuana crops.”

When it comes to Colombia, Sunward Resources TSX:SWD COO David Forest can’t say enough good things about the country. “Geologically, there’s nothing like it,” he told ResourceClips.com last August. “There’s nothing on the planet with that kind of potential that’s so underexplored. Nothing happened there for 50 years. It’s phenomenal terrain, completely underexplored.”

He added that his flagship Titiribi Gold-Copper Project is in Antioquia Department, a region of northwest Colombia “which has very strong rule of law and tradition of order. We don’t have any security at site.” That confidence seems to be borne out by the presence of others. Neighbours include AngloGold Ashanti, Gran Colombia TSX:GCM, Colombian Mines TSX:CMJ, Continental Gold TSX:CNL, Bellhaven Copper and Gold TSX:BHV and Batero Gold TSX:BAT.

But while Forest emphasized, “The security and safety situation is fine in 90% of the country now,” there is that other 10%. It includes Sunward’s former Murindo-Mande Norte Project straddling the border between Antioquia and Choco departments. “There’s a number of issues including FARC [the Revolutionary Armed Forces of Colombia] and indigenous groups,” he said. “If you can name an issue in Colombia, that region’s got it. The prize, if and when we can get in there, is enormous. It’s an anomaly the size of Yaletown [a high-density Vancouver neighbourhood], with copper sticking out of the ground. For 30 years, everybody’s known about this unbelievable anomaly, but it’s remained a place where nothing happened. We’re working on getting in there and, if we can, it’ll be a lot of fun.” By December, however, Sunward had divested itself of the property.

Speaking from Bogotá, Gran Colombia COO Donald East waxes enthusiastic about his company’s Marmato Gold Project, now in prefeasibility and projected for 2015 production. If all goes to plan, it will be the company’s seventh operating mine in northern Colombia. Last October, however, the company shut down its Mazamorras Project in Nariño Department, in the southwest corner of the country, after a mob demolished the buildings.

“We knew that this was going to happen based on intelligence-gathering by our security people,” says East. “We advised the local police. The police were onsite at the time the outsiders came. And the police just stood by while they vandalized the place. We then complained to the government about that. In any country in the world you have to rely on some sort of legal protection for your assets. So I think that created a bit of a wake-up call for the government.”

There’s nothing remarkable about the security company’s presence, East maintains. “Obviously on any mine you have security because you have assets. It’s just a local security company; that happens on every mine.”

East says he still doesn’t know who’s responsible for the attack or what motivated them. But he believes they were from outside the region and the attack was somehow linked to the local and regional elections that were about to take place. The local population, he says, supports the project for the sake of jobs as well as the social work the company performs. “We’re just going to let the thing wait until we feel the risks aren’t too great for any of our people to go back there. So it’s probably going to be next year before we start to re-visit that project. Mazamorras is not really critical to our current planning.”

Read Part II of this story here.

Batero reports Colombia Gold Assays as high as 0.81 g/t over 344.4m

December 8th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningBatero Gold Corp TSXV:BAT announced assays from the La Cumbre porphyry of its Batero-Quinchia project in Risaralda Department, Colombia. Results include

0.79 g/t gold over 354.1 metres (including 1.31 g/t over 53.6 metres)
0.81 g/t over 344.4 metres (including 1.2 g/t over 146.4 metres)
0.51 g/t over 377 metres (including 0.87 g/t over 50 metres)
0.6 g/t over 116 metres

President/CEO Brandon Rook said, “We are pleased with the continued successful results from the drilling at La Cumbre porphyry including drill hole LC-008 that has added to the long intercepts of higher-grade gold mineralization located in the central region of the porphyry grading greater than 1 g/t gold. This is very near surface and continues to contribute to the growth of the surface footprint of elevated gold and copper grades at the project. Also, the results from LC-001 and LC-032 both significantly enhance the overall grade of the porphyry in this sector.”

View Company Profile

Contact:
Batero Gold Corp
604.568.6378

by Ted Niles

Phenomenal Terrain

December 5th, 2011

Sunward Advances in Colombia

By Greg Klein

Talk to COO David Forest about Sunward Resources’ TSX:SWD Titiribi Gold-Copper Project, and you get why so many mining and exploration companies are moving into Colombia. “Geologically, there’s nothing like it,” he says. “There’s nothing on the planet with that kind of potential that’s so underexplored. Nothing happened there for 50 years. It’s phenomenal terrain, completely underexplored. The security and safety situation is fine in 90% of the country now.”

A look at last September’s Titiribi resource update supports his enthusiasm. Using a cutoff of 0.3 grams per tonne, the indicated category estimates 142.94 million tonnes grading 0.48 g/t gold for 2.2 million ounces gold and 0.15% copper for 465.9 million pounds copper. The inferred category projects 372.7 million tonnes grading 0.51 g/t gold for 6.08 million ounces gold and 0.08% copper for 645.7 million pounds copper.

Sunward Advances in Colombia

With gold in the ground and money to burn, drilling continues. “We’re up to nine rigs now, and we’re expecting to go to 11 over the next couple of months,” says Forest. “The company’s well financed; we’ve done some big financing over the last year and a half, so we’re going to push it pretty hard. We raised $51 million in January, and last April we did $25 million, and in total the company’s raised over $80 million.”

Assays released November 10 from the project’s Cerro Vetas zone include

  • 0.56 g/t gold and 0.12% copper over 315.2 metres
    (including 2.11 g/t gold and 0.34% copper over 22.5 metres)
  • 0.36 g/t gold and 0.24% copper over 135.5 metres
  • 0.33 g/t gold and 0.15% copper over 66.6 metres
  • 0.72 g/t gold over 27 metres
  • 0.47 g/t gold over 30 metres
  • 1.88 g/t gold over 7.5 metres

“These results were fairly groundbreaking for the project because it’s a bulk-tonnage porphyry, so the assumption was the grade was always around 0.5 and 0.2,” Forest explains. “We smashed through that about a year ago, discovering some zones that were above a gram, but this is the first time zones above two grams have been discovered, making a new benchmark for the grade on this project.

He continues, “We were looking at doing a scoping study, but now that we’ve discovered these higher-grade zones, the feeling is we might do more drilling and figure out what we’ve got before we start wrapping economics around it. So at this point, the plan is mostly just drill. We’ll work on expanding the resource, then we’ll decide what we want to do on the economic side.”

According to Forest, Titiribi’s infrastructure is excellent. “We’re 70 kilometres from Medellin on a four-lane paved highway. It’s a historic mining area, so there’s power to the site. We’re very well positioned.”

And so are many others. Titiribi’s position in Colombia’s Middle Cauca Gold Belt put Sunward in proximity to juniors and majors alike. Gran Colombia TSX:GCM has begun trial mining at its Zancudo high-grade underground gold project and plans to complete prefeasibility for its nearby open-pit Marmato Gold Project in early 2012. AngloGold Ashanti proposes to start building a $3-billion Colosa Gold Mine in 2014. Those in the exploration stage include Colombian Mines TSX:CMJ at the former Yarumalito Gold-Copper Mine, Continental TSX:CNL at its Buriticá Gold-Silver-Zinc Project, Bellhaven TSX:BHV at La Mina Gold-Copper Project and Batero TSX:BAT at the Quinchia Gold-Copper Project.

As the above suggests, the “historic” mining area Forest refers to is actually prehistoric. Archeologists have found gold figurines old enough to make Columbus seem like recent news.

We’re up to nine rigs now, and we’re expecting to go to 11 over the next couple of months. The company’s well financed; we’ve done some big financing over the last year and a half, so we’re going to push it pretty hard —David Forest

The region is also “probably one of the best operating environments in Colombia,” Forest says. “It’s in Antioquia, which has very strong rule of law and tradition of order. We don’t have any security at site.”

The company doesn’t have security at its other project either—but for entirely the opposite reason.

“Murindo-Mande Norte is at the other end of the spectrum,” Forest concedes. “It’s the only part of the Cordillera, from Alaska down to Tierra del Fuego, that doesn’t have a road going through it, because it’s basically swamp. Access is tough. There’s a number of issues including FARC [the Revolutionary Armed Forces of Colombia] and indigenous groups. If you can name an issue in Colombia, that region’s got it. The prize, if and when we can get in there, is enormous. It’s an anomaly the size of Yaletown [a high-density Vancouver neighbourhood], with copper sticking out of the ground. For 30 years, everybody’s known about this unbelievable anomaly, but it’s remained a place where nothing happened. We’re working on getting in there and, if we can, it’ll be a lot of fun.”

Regardless, the combination of Sunward’s management team and Titiribi’s potential attracts some big players. “The company’s well-financed through our affiliations with the Electrum Group and Paulson & Co out of New York,” Forest emphasizes. “Those guys own a big chunk, and management owns 30%, so it’s a very tightly controlled company. Amongst the top 10 shareholders, we control 70% or 80% of the company now. All the people working on this are shareholders and are working alongside the other shareholders.”

As of November 1, Sunward had cash on hand of $60 million. At press time, the company had 136.9 million shares trading at $2 a share for a market cap of $273.8 million.

Batero reports Colombia Gold Assays including 0.54 g/t over 400m

October 31st, 2011

Resource Clips - essential news on junior gold mining and junior silver miningBatero Gold Corp TSXV:BAT announced assay results from its Batero-Quinchia project in Risaralda Department, Colombia. Highlights include

0.54 g/t gold over 400 metres (including 0.8 g/t over 152 metres)
0.61 g/t over 182 metres (including 0.71 g/t over 137 metres)
0.75 g/t over 352.1 metres (including 1.01 g/t over 212 metres)

President/CEO Brandon Rook commented, “We are pleased with the continued successful results from the drilling at La Cumbre porphyry, including drill hole LC023 which has returned to date at the project the longest mineralized intercept grading greater than 1 g/t gold. This was near surface and continues to contribute to the growth of the surface footprint of elevated gold and copper grade at the project. Also, the result from LC023 has both extended the eastern boundary of the porphyry and has also enhanced the overall grade of the porphyry in this sector while remaining open at depth.”

View Company Profile

Contact:
Batero Gold Corp
604.568.6378

by Ted Niles

Batero reports Colombia Results up to 0.59 g/t Gold, 0.14% Copper over 396m

October 12th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningBatero Gold Corp TSXV:BAT announced assays from its Batero-Quinchia Project in Risaralda Department, Colombia. Results include

0.59 g/t gold and 0.14% copper over 396 metres
(including 0.8 g/t gold and 0.14% copper over 141 metres)
0.48 g/t gold and 0.12% copper over 450.3 metres
(including 0.74 g/t gold and 0.13% copper over 113 metres)
0.4 g/t gold and 0.07% copper over 422 metres
(including 0.76 g/t gold and 0.05% copper over 71.8 metres)
0.53 g/t gold and 0.11% copper over 186 metres
(including 0.78 g/t gold and 0.1% copper over 69 metres)
43.4 g/t gold and 0.005% copper over 2 metres

President/CEO Brandon Rook stated, “With today’s results there has been further confirmation of the extension of La Cumbre porphyry both laterally and at depth and also new high-grade gold epithermal mineralization has been encountered for the first time within La Cumbre porphyry. This high-grade gold discovery is significant in that it is proof of a later phase of high-grade gold mineralization that has now been discovered over a surface area greater than one square kilometre. The high-grade gold mineralization is found near surface in all intersections reported to date. Also the epithermal gold mineralization encountered in La Cumbre porphyry is the highest gold grade yet encountered at the project, grading 43.4 g/t gold over two metres, 28 metres below surface.”

View Company Profile

Contact:
Brandon Rook
President/CEO
604.568.6378

by Greg Klein

Batero reports Colombia Gold Assays up to 0.70 g/t over 460m

March 8th, 2011

Batero Gold Corp TSXV:BAT announced assays from its Batero-Quinchia Project in Risaralda Department, Colombia. Results include 0.7 g/t gold over 460 metres (including 1 g/t over 261 metres) and 0.64 g/t over 407.5 metres (including 1 g/t over 81.5 metres).

President/CEO Brandon Rook commented, “The results from drill holes 9 and 11 further confirm evidence of a significant deposit developing at La Cumbre. Most significant, the 261 metres of drill hole 9 is grading at 1 g/t gold. We will continue to work aggressively to complete our Phase 1 drill program by the end of Q2 and anticipate publishing a compliant updated NI 43-101 resource later this year.”

View Company Profile

Contact:
Brandon Rook
President/CEO
604.568.3678

by Ted Niles