Medoro has acquired a significant portion of the prolific Marmato gold district in Colombia. The Marmato Project covers 1,198 hectares in the mid-Cauca gold belt in the Western Cordillera, 120 km south of Medellín in Caldas state.
The Marmato Project was acquired in three stages. In October 2009, Medoro acquired the Zona Alta license through its share purchase of Colombia Goldfields Ltd. In early February 2010, Medoro acquired the Echandia and La Maria licenses through its share purchase of Colombia Gold plc and, in late February 2010, the Zona Baja license through its cash purchase of Mineros Nacionales S.A., a private Colombian company. As part of the acquisition of Mineros Nacionales S.A., Medoro took possession of the Mineros Nacionales operating underground gold mine, located at Zona Baja, which produces approximately 25,000 ounces of gold per year and is the largest employer in the region.
The Marmato Project is one gold zone comprised of the three contiguous license areas of Zona Alta, Echandia and Zona Baja and currently has a measured and indicated resource of approximately 7.5 million ounces of gold in a total of approximately 245 million tonnes of material with an average grade of 0.95 g/t gold, and an additional inferred resource of approximately 2.2 million ounces of gold in a total of approximately 76 million tonnes of material with an average grade of 0.92 g/t gold, both at a cut-off grade of 0.03 g/t, plus additional silver resources, all as set out in the NI 43-101 technical report in respect of the Marmato Project resource estimate dated March 5, 2010.
With the consolidation of the three license areas Medoro is now in a position to explore, develop and, subject to feasibility and permitting, mine the deposit as a whole. The ability to explore and drill the structure from all three license areas, including from underground, significantly improves the potential to increase and upgrade the gold resources at the Marmato Project in a relatively short time.
Medoro is currently conducting a substantial exploration and infill drilling program which aims to expand and upgrade the gold resources at its Marmato Project as the basis for its plan to develop a large open pit gold mine to realize the rich potential of the Marmato Project. It is anticipated that this program will be completed in the second quarter of 2011.
During 2010, the Company plans to conduct a scoping study for a large open-pit gold mine at Marmato. Concurrent with this work, Medoro will commence the various studies and test work required to complete a feasibility study for the project including baseline environmental studies and then an Environmental Impact Study. Various technical and metallurgical studies will also be undertaken along with planning for the location and construction of waste and tailings disposal areas, the plant site and a water storage facility for use during dry periods.
Blue - Zona Alta 100% owned by MRS acquired through acquisition of Colombia Goldfields Oct 2009
Red - Echandia acquired from Colombia Gold in early February 2010
Purple - La Maria (part of Echandia)
Orange - Zona Baja acquired from Mineros Nacionales in late February 2010