According to the company’s announcement on April 2, 2025, Collective Mining’s treasury now exceeds $78 million USD, which the company states will fully fund an expanded 70,000-meter drill program in 2025. The revised program will deploy up to ten diamond drill rigs across the Guayabales and San Antonio projects, representing the largest drill program in the company’s history. Additionally, the company intends to accelerate baseline environmental, hydrological, and metallurgical studies to expedite the permitting process in the future.

Ari Sussman, Executive Chairman of Collective Mining, spoke about the Apollo System, the company’s primary discovery at the Guayabales Project, which has emerged as a large-scale, bulk tonnage, and high-grade system resulting from grassroots exploration. He further stated his belief that Apollo represents a significant discovery within the Guayabales Project and that continued drilling could lead to additional discoveries. Sussman also noted the potential porphyry indications at the San Antonio Project as a positive development.

Guayabales Drill Program Overview

For the remainder of 2025, up to eight drill rigs will be focused on the Guayabales Project with the following objectives:

• Apollo System: Up to seven rigs will be operational:
  • Up to three rigs will test recently discovered, high-grade sub-zones to potentially increase the overall grade of the system. Previous drilling in these sub-zones has reported bulk tonnage and high-grade intercepts, including drill hole APC104-D5, which intersected 106.35 meters at 9.05 g/t gold equivalent (AuEq) within a larger 497.35-meter interval grading 3.01 g/t AuEq.
  • Up to three rigs will test the recently discovered Ramp Zone, where multiple high-grade intercepts have been reported, including drill hole APC105-D1, which intersected 75.80 meters at 8.01 g/t AuEq, including 21.00 meters at 24.16 g/t AuEq. The company has secured additional rigs capable of drilling up to 2,000 meters, expected to arrive in June, to test the Ramp Zone at greater depths.
  • Two smaller rigs will conduct drilling from the surface to a depth of 150 meters within the Apollo system. This program aims to expand and define shallow mineralization and test drilling gaps within the block model, where current spacing is up to 100 meters. Prior shallow drilling yielded high-grade intercepts from the surface, including APC-35, which intersected 86.55 meters at 4.85 g/t AuEq (3.52 g/t gold, 16 g/t silver, 0.12% copper, and 0.34% tungsten oxide).
• Tower, ME, X, and Trap Targets: Up to two diamond drill rigs will test these targets throughout the year:
  • One rig is currently drilling at the Tower target, a new grassroots-generated target located west-southwest of the Apollo system. Precious metal-rich outcrop samples have been found within three multi-mineral soil anomalies. Initial assay results are anticipated in late Q2 2025.
  • One rig is being mobilized to the ME target, situated midway between the Apollo system and Aris Mining Corporation’s Marmato mine to the southeast. Five shallow holes drilled in 2023 at the ME target intersected a precious metal-rich breccia system, with APC-81 intersecting 111.25 meters at 1.00 g/t AuEq. A recent reinterpretation suggests a potential for Ramp Zone-style mineralization (gold-silver-bismuth-tellurium) at deeper elevations within the ME target. Drilling is expected to commence towards the end of April 2025, with initial assay results anticipated in early Q3 2025.
  • The company plans to mobilize a single rig in the second half of 2025 to test the grassroots-generated X target for the first time. Mapping and surface sampling have identified a large, heavily altered breccia body with a precious metal-rich soil and rock chip anomaly adjacent to a copper and molybdenum-rich soil anomaly. The X target reportedly shares surface characteristics similar to the Apollo System, located approximately 1,100 meters to the north.

San Antonio Project Overview

Drilling commenced at the San Antonio project in late January 2025 as part of an initial 2,500-meter program.

• One rig is currently drilling at the Pound Target, with a second rig scheduled to begin drilling before the end of April 2025. Two initial holes drilled in 2021 at the Pound Target intersected long intervals of modestly grading, precious metal-dominant mineralization from the surface, with both holes ending in mineralization. Drill hole SAC-8 intersected 710 meters at 0.53 g/t AuEq. A recent reinterpretation of the Pound Target suggests that the previous drilling intersected the outer phyllic pyrite halo of a potentially significant porphyry system. Both holes showed increasing copper grades with depth, and the copper/zinc ratio indicates a vector toward a potential porphyry source at depth. Two new diamond drill holes were completed in 2025, with a third underway. The first hole, SAC-10, intersected pyrite-dominant, phyllic mineralization before being terminated due to rig capacity. The second hole, SAC-11, intersected pyrite-dominant mineralization in altered metagabbro rock, transitioning into quartz and chalcopyrite porphyry veins at 500 meters depth, with copper-bearing chalcopyrite mineralization increasing in intensity until the end of the hole. Minor amounts of bornite were also noted toward the end of the hole. The company is encouraged by the visual logging, which suggests the mineralized metagabbro is near a porphyry intrusive. Assay results are pending.

Collective Mining Ltd. was founded by the team that developed and sold Continental Gold Inc. to Zijin Mining for approximately $2 billion in enterprise value. Collective Mining is focused on gold, silver, copper, and tungsten exploration in Caldas, Colombia. The company holds options to acquire 100% interests in two projects located within an established mining camp with ten fully permitted and operating mines. Management and insiders reportedly own approximately 33.4% of the company’s outstanding shares. Collective Mining is listed on the NYSE American and TSX under the trading symbol “CNL” and on the FSE under the trading symbol “GG1”.

Targets at the Guayabales Project to be Drilled in 2025. Photo credit: Collective Mining.

David Reading, Special Advisor to Collective commented: “Surface exploration work at the Box Target continues to confirm a very similar geological and geochemical footprint to the Apollo system. Visual observation from the three holes drilled in the northern portion of Box are promising and highlight multiple styles of mineralization, which are typical of the upper levels of a porphyry system and are proving useful in assisting our team to vector towards the center of the system. The discovery of brecciated porphyry outcrops in the south, some 400 metres higher in elevation, is also very encouraging and we hope to be drill testing that area soon. Reconnaissance exploration at Box is in its infancy, and to date, we have only drill tested a small portion of the total area at very shallow levels. The Box porphyry centre is only 1.5 kilometres west of the Apollo system and we believe that both systems form part of a much larger cluster of porphyry bodies.”

Highlights (see Table 1 and Figures 1-2)

• Further surface exploration work at Box has discovered new well mineralized, brecciated porphyry outcrops resulting in an expansion of the target area by 300 metres to the south. The Box target area now measures approximately 1.3 kilometers by 0.8 kilometers by 0.4 kilometers vertically and remains open in all directions and at depth (see Figure 1).

• In the south, two new outcrop areas of brecciated porphyry with overprinting CBM veins have been identified and host the same type of consistent high-grade gold and silver mineralization as the north zone with values up to 12.02 g/t gold equivalent (11.06 g/t gold, 106 g/t silver and 0.02% copper). See Table 1 for further details.

• Three reconnaissance drill holes have been completed to date in the northern portion of the Box target and highlight multiple mineralization styles including porphyry vein stockwork, brecciated porphyry and CBM vein systems. All styles of mineralization encountered are associated with sericite alteration typical of the upper portions of a porphyry system indicating that deeper drilling is required. Assays results expected in the near term.

• Two drill rigs are operating at Box with immediate plans to steepen the next drill holes in order test below the multiple mineralized outcrops. Additionally, new drill pads are being constructed in the central and southern areas of Box with drilling of these areas expected to commence shortly.

Table 1: New Rock Chip and Channel Sample Results from The Box Target

*AuEq (g/t) is calculated as follows: (Au (g/t) x 0.97) + (Ag (g/t) x 0.014 x 0.88) + (Cu (%) x 1.47 x 0.90) + (Mo (%) x 7.41 x 0.85) utilizing metal prices of Cu – US$3.95/lb, Ag – US$25/oz, Mo – US$ 20/lb, and Au – US$1,850/oz and recovery rates of 97% for Au, 88% for Ag, 85% for Mo, and 90% for Cu. Recovery rate assumptions for metals are based on metallurgical results announced on October 17, 2023, and April 11, 2024.

Figure 1: Plan View of The Box Target as Defined by Soil Anomalies, Rock Chip Samples and Surface Geology Mapping with New Assay Results

Plan View of The Box Target as Defined by Soil Anomalies, Rock Chip Samples and Surface Geology Mapping with New Assay Results

Figure 2: Plan View of the Guayabales Project Highlighting the Box Target Area

Plan View of the Guayabales Project Highlighting the Box Target Area

Rock, soils and core samples have been prepared and analyzed at ALS laboratory facilities in Medellin, Colombia and Lima, Peru. Blanks, duplicates, and certified reference standards are inserted into the sample stream to monitor laboratory performance. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification. No capping has been applied to sample composites. The Company utilizes a rigorous, industry-standard QA/QC program.

See also: Collective Mining and SENA’s Joint Training Initiative Has Helped More than 280 Women Join the Workforce

Trap Highlights: see Figures 1-4 below

• The company recently announced the discovery of a gold rich porphyry system at Trap which is located approximately 3.5 kilometers to the northeast of the flagship Apollo system. The Trap target covers a large surface area measuring approximately 2 kilometers by 2 kilometers with assay results previously announced on January 18, 2024 for the initial three drill holes as follows:
  • 102.2 meters @ 1.53 g/t AuEq (TRC-1)
  • 646.0 meters @ 0.81 g/t AuEq (TRC-2, bottomed in mineralization) including;
    •  301.5 meters @ 1.01 g/t AuEq from 19.5 meters depth
  • 159.75 meters @ 1.04 g/t AuEq (TRC-3)

• Geological inspection of the initial three discovery holes plus interpretation of precious and base metal assay data suggests that the csericite,chloride,sulphide
• Collective has only drill tested the upper levels of a porphyry system consisting of overprinting early and late-stage porphyry veins associated with a pervasive phyllic (sericite – chlorite – sulphide) alteration assemblage. On January 19, 2024 a follow up drill hole was initiated from Pad 2 to test the mineralized system at depth and is currently coring in a southeast direction at approximately 745 meters in length.

• Visual observation of the current drill hole is showing a noticeable increase in total sulphide content and alteration in comparison to the prior holes with three overprinting styles of mineralization being observed as follows:
  • Porphyry quartz veins containing pyrite and minor chalcopyrite
  • Late crosscutting sheeted carbonate base metal (“CBM”) veinlets enriched in sphalerite and galena
  • Dark polymetallic sheeted veinlets

• Sufficiently encouraged by the deeper drill hole visuals, Collective is mobilizing a second drill to Trap with drilling anticipated to commence in the coming days. Additional assay results from Trap are expected in Q1 2024.

David Reading, Special Advisor to the Company commented: “The current drill hole at Trap is very exciting as it highlights the presence of stockwork and sheeted porphyry veins which relates to pulses of mineralized fluids typical of large systems. Additionally, based on core inspection of this hole, there is a noticeable increase in total sulphide content relative to the discovery holes previously announced by the Company.”

Richard Tosdal, Special Advisor to the Company added: “The current drill hole appears to start at the margin of a porphyry system and then enters porphyry quartz diorite with sheeted quartz veins surrounded by pervasive phyllic alteration assemblages composed of sericite (probably muscovite), chlorite and sulphides typical of the upper parts of porphyry copper-gold systems.”

Figure 1: Core Photos Highlights From the Current Drill Hole Underway at Trap

Figure 2: Plan View of the Trap Target and Visual Results From the Hole Currently Underway

Figure 3: Drill Core Tray Photo Highlighting Overprinting Styles of Porphyry Mineralization

Figure 4: Plan View of the Guayabales Project Highlighting the Trap Target Area

This recent discovery concerns assay results from four additional drill holes APC-11 through APC-14, which is completed, at the Apollo target within the company’s Guayabales project located in Caldas, Colombia. APC-12 intersected the highest-grade assay results drilled to date in the main breccia discovery at the Apollo target. The hole intercepted a continuous, broad, and consistently high-grade zone of copper-silver-gold mineralization with multiple, overprinting carbonate base metal veins observed within the breccia matrix and returned 237.70 meters @ 2.88 g/t AuEq (gold equivalent) (170 meters vertical).

Figure 1: Plan View of the main breccia Discovery at Apollo Highlighting the Significant Extensions to the Zone Based on Drill Holes APC-17 and APC-22

Eleven diamond drill holes with accompanying assay results have now been announced at Apollo and based on results, the main breccia at Apollo continues to grow and now measures up to 385 meters along strike by 190 meters in width by 500 meters vertical.

“Drill-hole APC-14 is a very important hole as it not only confirmed that the main breccia comes directly to the surface in the southern portion of the system but also extended the size (width) of the system to the south and to the north. Subsequent step-out drill holes either recently completed or currently underway appear to have intersected significant extensions to the size of the system in the north. Once logging has been completed and interpreted by our team, a further update will be provided in the near term on this exciting development,” commented Ari Sussman, Executive Chairman.

Figure 2: Plan View with Traces of Drill Holes Completed to Date in the main breccia Discovery at Apollo with Assay Results for Holes APC-12 to APC-14 in Red

Assay results and related details are listed below:

• APC-12: 237.70 meters @ 2.88 g/t AuEq from 191.35 meters downhole (170 meters vertical) including: 14.3 meters @ 5.58 g/t AuEq from 209.70 meters downhole and 21.75 meters @ 8.27 g/t AuEq from 339.55 meters downhole.
• APC-14: 47.45 meters @ 1.36 g/t AuEq from 84.25 meters downhole (45 meters vertical) and 194.30 meters @ 2.00 g/t AuEq from 197.0 meters downhole (130 meters vertical).
• APC-11 was drilled specifically to target a zone of high grade CBM veins and intersected multiple sheeted northwest trending veins and returned a grade range of 11.9 g/t AuEq to 3.48 g/t AuEq over widths ranging from 0.55 meters to 1.35 meters.
• APC-13 was sited to intersect the main breccia body at depth but was terminated early due to mechanical issues with the rig. Prior to termination, the hole did intercept multiple CBM veins at shallow elevations including: 3.9 meters @ 10.25 g/t gold equivalent from 128.95 meters down hole; and 2.0 meters @ 16.99 g/t gold equivalent from 141.20 meters down hole.

Figure 3: Zoomed in Plan View of the main breccia Discovery at Apollo Highlighting the Increase in the Width of the System in the South and North Due to Hole APC-14

Earlier, in September, Collective Mining had announced assay results from additional holes:

• APC-4, which is the first hole drilled to test a grassroot-generated vein target located shallower and above the main breccia discovery at Apollo cut a near-surface zone of sheeted veins and returned: 17.5 meters @ 12.79 g/t gold and 21 g/t silver (65 meters vertical), including 0.65 meters @ 331.47 g/t Au and 53 g/t Ag.
• APC-7 and predecessor scout hole OLCS-3 were drilled to test a grassroot-generated breccia target located 250 meters to the north of the main breccia discovery at Apollo and intersected multiple zones of mineralization between 45 meters and 320 meters below the surface, including 41.8 meters @ 1.07 g/t gold equivalent; and 38.4 meters @ 1.51 g/t gold equivalent.
• APC-6, which intersected the main breccia zone with some interfingering, mineralized rock flour breccia towards the northern end of the hole resulting in a broad interval as follows: 326.05 meters @ 1.07 g/t gold equivalent from 364.60 meters (295 meters vertical) including:
  • 151.5 meters @ 1.20 g/t AuEq from 480.15 meters down hole, and
  • 10.55 meters @ 4.64 g/t AuEq from 680.10 meters down hole.
• APC-6 is the deepest diamond hole drilled to date and this long intercept consisted primarily of favorable angular breccia with interfingering of rock flour breccia, which is less porous and therefore lower grade. APC-6 was collared from Pad 3 and terminated at a final depth of 759 meters.
  APC-8, which also intersected a broad, high-grade zone of breccia mineralization with multiple, overprinting carbonate base metal veins and returned: 265.75 meters @ 2.44 g/t gold equivalent from 202.00 meters (157 meters vertical) including:
  • 13.20 meters @ 4.29 g/t AuEq from 202.0 meters down hole,
  • 18.45 meters @ 4.55 g/t AuEq from 239.05 meters down hole,
  • 28.45 meters @ 4.18 g/t AuEq from 279.40 meters down hole, and
  • 15.50 meters @ 5.21 g/t AuEq from 342.6 meters down hole.

Figure 4: Plan View of the Guayabales Project Highlighting the Apollo Target

APC-8 intercepted continuous mineralized angular breccia with a sulfide matrix consisting of pyrite, chalcopyrite and pyrrhotite which has been overprinted by carbonate-base metal porphyry veins (“CBM”) hosting sphalerite in various locations and particularly in the upper portion of the intercept.

Besides, some geological mapping of rocks exposed by pad 3 drill access tracks confirmed on September 22 that the main breccia discovery at the Apollo Target daylights at the surface north and east of the drill pad. The recently completed drill hole, APC-14 intersected the main breccia approximately 50 meters below the newly discovered northern outcrop. This hole intercepted mineralized breccia from approximately 84 meters down hole (50 meters vertical) down to 132 meters with a second zone commencing at 197 meters and finishing at approximately 391 meters down hole. Assay results for drill holes APC-11 through APC-14 are anticipated in the near term.

Visual observation of the shallow portion of drill hole APC-14, indicates a marked increase in chalcopyrite leading to the possibility that copper grades will be higher than seen elsewhere in the main breccia discovery.  Additionally, the company’s conviction that the porphyry source for the main breccia discovery lies due south has now been increased. As a result, exploratory drill holes are currently being finalized to test the southern porphyry target.

The discovery of the northern outcrop of the main breccia coupled with visual observations in drill hole APC-14 has extended the strike length of the system to the southwest by 35 meters.

Figure 5: Plan View with Traces of Drill Holes Completed to Date in the main breccia Discovery at Apollo with Current Holes, APC-6 & APC-8 in Red

According to Executive Chairman Ari Sussman, “confirmation that the main breccia discovery at Apollo extends to surface enhances future possibilities for the project. Additionally, the fact that we see a noticeable increase in chalcopyrite near the surface in the southern part of the main breccia discovery has our team excited that the porphyry source is nearby and is likely located beneath the robust, yet untested high-grade copper-in-soil anomaly located due south of drill pad 3.”

Furthermore, visual observations from two step-out diamond drill holes within the main breccia discovery have intersected the most cumulative mineralization in drill holes completed to date.

• Hole APC-17 was drilled approximately due north from Pad 3 to a maximum depth of 912.60 meters. The hole intersected more than 70 meters of mineralization beginning at 119 meters down hole (100m vertical) and another 545 meters of mineralization from 365 meters down hole (330m vertical) to the end of the hole (825m vertical). Total mineralization in this diamond drill hole exceeded 600 meters and is the most mineralization drilled in a single hole to date into the main breccia discovery at Apollo. The shallow intercept is hosted within angular porphyry-related breccia containing chalcopyrite (1-2%) with pyrite and pyrrhotite and is located directly beneath recently discovered mineralization outcropping at the surface.
• Hole APC-22, which was drilled to the northeast from Pad 3, cut more than 400 meters in a total of favorable mineralization before terminating at 734 meters while still in mineralization. Mineralization is hosted within angular porphyry breccia with a matrix of chalcopyrite (1-2%) and pyrrhotite and overprinting zones of sheeted CBM veins.
  

  Figure 6: Images of Core from Hole APC-17

As a result of both new holes, the potential total volume of rock hosting the main breccia discovery within it has approximately tripled in size with the dimensions now measuring 385 meters along strike by 350 meters width by 825 meters depth versus prior dimensions of 385 meters x 190 meters x 500 meters. The discovery remains wide open for expansion and further step-out holes are currently being designed.

Ari Sussman stated that “These two new diamond drill holes are incredibly exciting as we have significantly expanded the size of the main breccia discovery at Apollo and while doing so, we have cut the longest intercepts of both total and continuous mineralization completed to date. Importantly, the system remains open to the north and northeast as both holes bottomed in mineralization. We look forward to continued aggressive drilling in order to see how much more this exceptional discovery can grow.”

Three rigs continue to drill at Apollo with additional assay results anticipated in the near term.

Figure 7: Images of Core from Hole APC-22

Table 1: Assay Results

*AuEq (g/t) is calculated as follows: (Au (g/t) x 0.95) + (Ag g/t x 0.014 x 0.95) + (Cu (%) x 1.96 x 0.95) + (Mo (%) x 7.35 x 0.95)+(Zn(%)x 0.86 x 0.95)+ (Pb(%)x 0.44 x 0.95) utilizing metal prices of Cu – US$4.00/lb, Mo – US$15.00/lb, Zn – US$1.75/lb, Pb – US$0.9/lb, Ag – $20/oz and Au – US$1,400/oz and recovery rates of 95% for Au, Ag, Cu, Mo, Zn and Mo. Recovery rate assumptions are speculative as no metallurgical work has been completed to date.

** A 0.4 g/t AuEq cut-off grade was employed with no more than 10% internal dilution. True widths are unknown, and grades are uncut.

Highlights (See Figures 1 – 4)

• APC-2, which was drilled to the southwest from a drill pad located 200 meters southeast of the collars for APC-1 and APC-1W, intercepted over 200 meters of mineralized breccia from 154.7 meters downhole (100 meters vertical). Core from this hole and APC-1W have been sent to the lab as a batch and assay results are expected shortly.
• Mineralization is remarkably continuous along the axis of the intercept of interest in APC-2 and is hosted within a breccia sulphide matrix consisting of chalcopyrite (Cu), pyrite and pyrrhotite. Additionally, overprinting carbonate base metal (“CBM”) veins flood the breccia matrix in various locations along the mineralized interval in APC-2 with visible sphalerite (Zn) and Galena (Pb) observed. The breccia clasts are all quartz diorite in composition and this hydrothermal system is clearly linked to a porphyry system. The mineralization in APC-2 is remarkably consistent with the mineralization observed in APC-1 and APC-1W (refer to press releases dated April 27, 2022 and June 22, 2022 for further details).
• APC-2 extends this mineralized system at least 200 meters to the northeast and 100 meters to the southwest and is located centrally within the 800 meter X 700 meter Apollo target area. The Company is currently drilling two additional holes, APC-3 and APC-4, which aims to expand the mineralized system and better understand the morphology of this new discovery.
• Apollo remains open to the east, west, south and at depth for further expansion. Due to the size of the target area and success in early drilling, a fourth drill pad is now under construction.
• The Apollo target area consists of newly generated porphyry and porphyry related breccia and vein targets with coincidental high-grade copper and molybdenum soil anomalies in places measuring greater than 500 parts per million (“ppm”) in copper and 30 ppm in molybdenum. Additionally, surface sampling at Apollo has uncovered a series of high-grade gold outcrops with numerous rock samples assaying greater than 3 g/t gold.
• Apollo is road accessible all year-round and is situated within an elevation range of 1,800 to 2,000 meters above sea level. Additionally, an electrical substation is located less than one kilometer from the target area.

“At more than 200 meters in length and with at least three distinct overprinting types of mineralization observed, APC-2 is a nice surprise and has the potential to provide another high-grade intercept of bulk-style mineralization. Although we are at an early stage in understanding Apollo, the target is clearly demonstrating excellent potential to ultimately evolve into a large mineralized system.  We will continue to be aggressive in drilling Apollo at various orientations and dips in order to learn the geometry of the system and unlock the potential of this very exciting new discovery,” said Ari Sussman, Executive Chairman.

Figure 1: Plan View of the Guayabales Project Highlighting the Apollo Target

Figure 2: Plan View of the Apollo Target Area Outlining the Porphyry and Breccia Targets, their Related Soil Anomalies and Drill Holes Completed or Currently Underway.

Figure 3: Plan View of the Hydrothermal Breccia Discovery Made at Apollo highlighting APC-2

Figure 4: Apollo Target Cross Section NE-SW With APC-2 mineralized interval and position relative to APC-1. Related Core Photos Highlighted

The company also announced that at the annual special meeting of shareholders of the Company held on June 29, 2022, the company’s 10% “rolling” stock option plan was re-approved by shareholders in accordance with the policies of the TSX Venture Exchange.  The newly approved plan also reflected certain housekeeping amendments to ensure compliance with the new Policy 4.4 of the TSXV which came into effect on November 24, 2021.

Headline photo courtesy Collective Mining: Mineralized-breccia-at-208m-with-chalcopyrite-galena-sphalerite-calcite-and-quartz.

Collective Mining is led by Ari Sussman and much of the leadership team that developed Continental Gold in Buriticá, Colombia, before a 2 billion sale to Zijin Mining of China. Sussman and his team were widely recognized not only for their successful mining, but their strong social commitment and relationships with the surrounding communities, including creating opportunities for women in mining, and collaborating with nearby artisanal miners.

APC-1 intercepted the mineralized breccia from 291.6 meters downhole (170 meters vertical) with results as follows:

• 8 meters @ 2.49 g/t AuEq including:
• 9 meters @ 4.55 g/t AuEq from 291.6 meters down hole; and
• 3 meters @ 3.67 g/t AuEq from 352 meters down hole

Collective says that mineralization is remarkably continuous along the axis of the discovery intercept and is hosted within a breccia sulphide matrix consisting of chalcopyrite (Cu) and pyrite. Additionally, overprinting carbonate base metal porphyry veins flood the breccia matrix in various locations along the mineralized interval in APC-1 with visible sphalerite (Zn) and Galena (Pb) observed. The breccia clasts are all quartz diorite in composition and this hydrothermal system is clearly linked to a porphyry system.

After successfully developing Continental Gold, Ari Sussman (center) is now leading Collective Mining, Ltd.

APC-1 was drilled to the south from Pad 1 on the northern fringe of an 800 meter X 700 meter target area as defined by rock sampling, soil geochemistry and geology mapping. Apollo remains open to the east, west, south and at depth for further expansion. Due to the size of the target area at Apollo, the company has completed the construction of two additional drill pads. Drill holes APC-1W and APC-2 have already been completed with APC-3 and APC-4 currently underway. Future assay results for Apollo will be reported in batch format once received and interpreted by the company.

The Apollo target area consists of newly generated porphyry and porphyry related targets with coincidental high-grade copper and molybdenum soil anomalies in places measuring greater than 500 parts per million (“ppm”) in copper and 30 ppm in molybdenum. Additionally, surface sampling at Apollo has uncovered a series of high-grade gold outcrops with numerous rock samples assaying greater than 3 g/t gold.

Apollo is road accessible all year-round and is situated within an elevation range of 1,800 to 2,000 meters above sea level. Additionally, an electrical substation is located less than one kilometer from the target area.

“The discovery at Apollo opens a new and very exciting front for the company. Firstly, it is the first time that the company has discovered a significant amount of copper. Secondly, large mineralized systems generally have multiple styles of overprinting mineralization and in the case of Apollo, we have already observed three different mineralization types, namely two types of porphyry related CBM veins and of course the mineralized breccia. Our technical team also believes that the Apollo discovery may be the first in a series of porphyry and breccia discoveries at the Apollo target,” said Ari Sussman, Collective’s Executive Chairman. “With a second rig recently commissioned and now coring, we have made the decision to soon add a third rig to the program in order to aggressively unlock the potential value of this discovery.”

Figure 1: Plan View of the Guayabales Project Highlighting the Apollo Target

Figure 2: Plan View of the Apollo Target Area Outlining the Porphyry and Breccia Targets, their Related Soil Anomalies and Drill Holes Completed or Currently Underway

Figure 3: Plan View of the Hydrothermal Breccia Discovery Made at Apollo

Figure 4: Apollo Target Cross Section N-S With APC-1 and Related Core Photos Highlighted

Table 1: Assay Results

*AuEq (g/t) is calculated as follows: (Au (g/t) x 0.95) + (Ag g/t x 0.014 x 0.95) + (Cu (%) x 2.06 x 0.95) + (Mo (%) x 6.86 x 0.95+(Zn(%)x 0.80 x 0.95)+ (Pb(%)x 0.45 x 0.95) utilizing metal prices of Cu – US$4.50/lb, Mo – US$15.00/lb, Zn – US$1.75/lb, Pb – US$1.0/lb, Ag – $21/oz and Au – US$1,500/oz and recovery rates of 95% for Au, Ag, Cu, Mo, Zn and Mo. Recovery rate assumptions are speculative as no metallurgical work has been completed to date.

** A 0.4 g/t AuEq cut-off grade was employed with no more than 10% internal dilution. True widths are unknown, and grades are uncut.

Continental Gold continues to advance with construction on or ahead of schedule. While the company previously stated that mechanical construction would be complete in the first half of 2020, it now says that the construction will be complete in the first quarter of 2020, then commercial production commencing another 6 to 9 months after completion.

Highlights (see below graphics)

• The planned 1,600-meter diamond drill hole will be the deepest one drilled to date at the Buriticá project and will span a final vertical depth of more than 2,000 meters below surface. The hole is collared at the Higabra tunnel elevation (up to 700 meters below surface) and is targeting the depth extensions of both the Yaraguá and Veta Sur high-grade vein systems as well as the final target, the gold-copper porphyry intrusive. Results from the drill hole are anticipated in Q4 2019.
• The new drill hole has the potential to extend the high-grade vein mineralization by more than 400 meters vertically from the deepest intercept drilled to date, as well as extend the porphyry mineralization by greater than 700 vertical meters.
• A two-year program—involving extensive core relogging and reinterpretation of the geology of the Buriticá deposit—highlights that the high-grade gold-carbonate-base metal (“CBM”) veins at Buriticá are formed by a gold-bearing porphyry intrusive system (see Figure 2). The Yaraguá veins are located within a porphyry intrusive complex (herein referred to as the Buriticá Intrusive Complex (“BIC”) and the Veta Sur veins occur along the contact zone between the BIC and the surrounding country rock.
• The BIC displays alteration mineralogy and metal zonation which is typical of gold-dominant porphyry deposits. The copper-to-zinc ratio increases with depth and is associated with changing alteration patterns indicating progressively higher temperatures of formation. This is reflected by a change in alteration mineralogy from sericite / chlorite / pyrite to magnetite / biotite / pyrrhotite at depth.
• The deeper part of the BIC is associated with a Quartz Feldspar Porphyry (“Porphyry”) which is coincident with a strongly magnetic body as defined by modelling of the airborne geophysical data and magnetic susceptibility data collected in the drill holes (see Figure 1). Previous exploration drilling into the Porphyry was confined only to the top of the magnetic body due to steep topography and a lack of underground development limiting access for drill rigs and returned multiple thick intercepts including:
  • 65.1 meters @ 10.42 g/t gold and 8.8 g/t silver (BUSY291)
  • 26.45 meters @ 2.61 g/t gold and 2.74 g/t silver (BUUY291D04)
  • 27 meters @ 2.28 g/t gold, 19.2 g/t Silver and 0.1% of Copper (BUUY339D02)

The modelled magnetic data widens and intensifies as it progresses vertically, indicating that the Porphyry mineralization potentially extends considerably deeper.
With more than 18 kilometers of commercial-scale underground development now in place and advancing at more than 1 kilometer per month, drilling access has materially improved.

“The company has been waiting a long time for underground development to advance to the point that a suitable location for a drilling chamber could be established in order to drill-test the depths of the vein and the potential porphyry feeder systems,” said Continental Gold CEO Ari Sussman.

David Reading, Special Advisor to Continental Gold, stated: “Buriticá is clearly analogous to the famous Porgera mine in Papua New Guinea and demonstrates a clear genetic relationship between high-grade carbonate base metal (“CBM”) veins and an underlying potassic altered porphyry. The target is very tangible as we have already drilled into the top of this body and intersected high gold grades for a porphyry deposit. We are very excited for this new hole as it has been designed to target the core of the porphyry intrusion body at depth.”

Figure 1: Location of the deep diamond drill hole targeting the depth extension of the mineralized Porphyry body as defined by magnetic data (purple outline). Note the thick intercepts located only in the apex of the Porphyry body.

Figure 2: Schematic Geology and Alteration sections of the Yaraguá Deposit showing the relationship between veins, the Buriticá Intrusive Complex and Alteration.

All images courtesy of Continental Gold

Royal Road Minerals to acquire over 2000 square kilometers of appraised and prioritized mineral exploration titles and title applications containing drill-ready targets

Highlights of the Transaction

• High quality, Appraised and Prioritized Title Package. AngloGold Ashanti has elected to focus on its three advanced projects in Colombia and in Q2 of 2018, commenced a sales process for its exploration title packages outside of these three principal projects including the Titles as held under NC Holdings and ENC. These title packages are the result of systematic exploration, appraisal, prioritization and the purposeful reduction of land holdings by AngloGold Ashanti over the years since inception of its activities in Colombia in 2004.
• Increased Future Optionality. The Transaction will significantly increase the Company’s portfolio of potentially Tier 1 exploration assets and provides the Company with various options for joint-venture and cash generating transactions in Colombia
• Advanced Exploration Potential. The Transaction provides the Company with access to drill-ready potentially Tier 1 projects on granted concession agreements within its present area of interest and elsewhere in prospective mineral belts throughout Colombia

Click on images to enlarge

The Properties

The Titles are grouped into two blocks, the Southern Block, which is located contiguous with Royal Road’s existing 3500 square kilometers of exploration rights in Nariño Province and the Northern Block, which covers the well-known Middle Cauca Belt, a region hosting over 50 million ounces of recently discovered gold resources (see Figure 1). There are 16 currently identified individual gold project areas located within the title package and numerous underexplored areas which management believes host significant geologic potential. Royal Road’s initial focus will be on granted titles containing targets that can be moved to the drilling-stage as soon as possible. Some of these targets are as follows:

• The La Llanada project area in Nariño Province, characterized by very high stream sediment sample results and comprising several currently known high-grade vein-gold systems, (see Figure 2) and surrounding the La Redención mining license, over which the Company has an option agreement and is permitted to drill (see press release dated April 4, 2016)

• The El Tambo intrusion-related gold project in Cauca Province, where AngloGold Ashanti reported an area of steep-moderate dipping quartz-veins, up to 3 meters wide, over 3 kilometers in strike length and 600 meters in total zone-width and with rock chip results returning up to 77 grams per tonne gold (based on a reported 182 combined panel and grab rock-chip samples ranging from below detection limit and with a mean of 2.2 grams per tonne gold; Figure 3)
• The Güinter sheeted quartz-calcite-sulfide vein project area in Antioquia. The vein system has been mapped over 6 square kilometers, AngloGold Ashanti drilled 10 scout diamond drill holes for a total of 5662 meters at the project and reported best intersections of 56 meters at 1.1, 14 meters at 1.8 and 20 meters at 1.8 grams per tonne gold (not true thickness). Based on geological observations management believe there is volume potential in mineralized stratabound horizons and potential for higher-grade mineralization where veins link and interact similar in style to the nearby Buriticá and Anzá projects (Figure 3).

The title package contains numerous porphyry-style occurrences and two well-known porphyry copper and gold projects that whilst not drill-ready, will be the short-term focus for Royal Road’s social and permitting teams

• The El Molino porphyry gold project (Figure 4) is an outcropping gold porphyry system located in Cauca Province. Both the potassic core and quartz-sericite halo of the system are exposed on surface. AngloGold Ashanti previously reported sheeted gold veinlets returning rock-chip samples of up to 184 grams per tonne gold (based on a reported 493 combined grab and panel samples ranging from below detection limit with a mean of 2.5 grams per tonne gold; Figure 3).
• The Caramanta region in Antioquia, where AngloGold Ashanti reported three copper and gold bearing porphyry bodies and rock-chip results of up to 47 grams per tonne gold and 3.3% copper (based on 255 combined grab and panel samples ranging from below detection limit with a mean of 0.65 grams per tonne gold and 0.07% copper).

Transaction Details

All figures are in United States dollars unless otherwise indicated.

Under the terms of the Agreement, the Purchaser agreed to acquire from the Seller all of the issued and outstanding shares of NC Holdings. NC Holdings indirectly holds, through two wholly owned subsidiaries, all of the issued and outstanding shares of ENC, which is the holder of the mineral concession Titles and is the assignee of the rights to any Titles that are granted to AngloGold Ashanti Colombia S.A. (the “Assigning Company”), an affiliate of Anglo Ashanti, pursuant to title applications made by the Assigning Company to the National Mining Agency of Colombia (Agencia Nacional de Minería).

In consideration for the purchase of the shares of NC Holdings, the Company agreed to pay the Seller a purchase price of $4,655,462 on completion of the Transaction. In addition, the Company has granted the following contingent considerations to the Seller:

• If at any time after the closing of the Transaction, Royal Road Minerals completes a technical report pursuant to NI43-101 that discloses for the first time an inferred mineral resource of not less than one million gold equivalent ounces on a specific area within the lands subject to any of the Titles held by the Company or any of its affiliates, such specific area shall be designated as a “Specific Project”, and the following provisions shall apply with respect to each such Specific Project identified:

o An amount equal to five million dollars ($5,000,000) shall be payable within 90 days following the date on which such technical report for the Specific Project is completed; and

o a further amount equal to five million dollars ($5,000,000) shall be payable within 90 days following the date on which a feasibility study for such Specific Project is completed and delivered to the Seller; and

o a further amount equal to five million dollars ($5,000,000) shall be payable within 90 days from the commencement of commercial production for the Specific Project; and

o a further aggregate amount equal to twenty million dollars ($20,000,000), payable in four equal installments of five million dollars ($5,000,000) on the date that is 90 days following the end of each of the Company’s four consecutive fiscal quarters immediately following the commencement of commercial production for the Specific Project.

• If at any time after Closing, the Company completes a feasibility study that discloses for the first time an inferred mineral resource of not less than five million gold equivalent ounces on a Specific Project, the Seller shall have a one-time option (the “Feasibility Option”) to purchase a 75% interest in the Specific Project for a purchase price in an amount equal to the sum of the following amounts:

o An amount equal to three (3) times the aggregate sum of all exploration expenditures up to and including the feasibility study funded by Royal Road Minerals; plus

o An amount equal to the aggregate sum of all exploration expenditures funded by Royal Road Minerals for that Specific Project from the feasibility option date until the completion of the transfer of the purchased interest.

If the Seller exercises the Feasibility Option for a Specific Project, then the Company will no longer be required to pay the payments on and following commercial production for the Specific Project for which the Seller has exercised the Feasibility Option.

The Agreement contains customary representations, warranties, covenants and conditions for transactions similar to the Transaction. In addition, the obligations of the Company to complete the Transaction are subject to the fulfilment of certain conditions on or before the closing of the Transaction, including, among others, the following conditions:

• The Company shall have completed a financing for aggregate gross proceeds of at least $3.5 million on or before the date that is 60-days from March 4th 2019; and
• the Company shall have obtained any required approvals of the TSX Venture Exchange and the relevant authorities in Jersey in connection with the acquisition contemplated by this Agreement.
• The Seller shall have obtained the required approval to implement the Transaction from the South African Reserve Bank.

The Transaction is expected to close on or before the date that is 60-days from March 4th 2019, subject to the approval of the TSX Venture Exchange and the other conditions precedent set out in the Agreement.

The full list of directors now includes: Leon Teicher, Ari Sussman, Martín Carrizosa, James Gallagher, Claudia Jiménez, Paul Murphy, Christopher Sattler, Kenneth Thomas, and Timothy Warman.

During the same meeting, Continental Gold also reappointed PricewaterhouseCoopers LLP as the company’s auditor. The London-based big four auditing firm will continue to be retained for this duty until at least the next general meeting, said the mining company in a statement.

Continental Gold maintains at least two holdings in Colombia. The firm’s largest is its wholly owned 70,000-hectare Buriticá project in the department of Antioquia, which the firm’s feasibility study has found may hold up to 3.7 million ounces of gold.

The company also operates the 48,000-hectare Berlin project, a site located about 50 miles north of Medellín that dates back nearly 90 years and “displays high potential for the discovery of multiple mineralized quartz veins and lodes,” according to Continental Gold.

Photo: Inside the Higabra Valley Tunnel in Continental Gold’s Buriticá gold mine in Antioquia. (Credit: Continental Gold Inc.)