Top photo: Supía Mayor Marco Antonio Londoño Zuluaga speaks during a recent walking tour of the town. (Photo credit: Loren Moss)

Already a local tourism destination, the town of Supía, located in Colombia’s coffee-centric department of Caldas, has set its sights on becoming a national and international destination with its welcoming population, social inclusion, and easy access.

To achieve this goal, it is getting support from a partner that may surprise some, the Canadian gold-mining company Collective Mining (TSXV: CNL, OTCQX: CNLMF).

Finance Colombia Executive Editor Loren Moss recently traveled to Supía to take a walk through the town with Mayor Marco Antonio Londoño Zuluaga, and they shared the following conversation about the town’s development in recent years and ambitious aims to further showcase its culture.

Mayor Londoño in front of one of the many colorful street art displays that can be seen throughout the town. (Photo credit: Loren Moss)

Loren Moss: Can you explain the project and the work that you have been doing here?

Mayor Londoño: There is a municipal site, which has around 14 roads that were in very bad shape — very damaged — because they had been built about 25 years ago. So, we introduced an investment project here of about 2.2 billion Colombian pesos, and we have already completed about a 25% of the construction to transform this entire sector and push for economic growth.

There are many commercial establishments, and this is a main throughway that connects the north side of town with the south side, where of course a lot of commercial components have developed.

Loren Moss: So, the idea would be that it is more touristic and more people come to visit?

Mayor Londoño: That’s right. The north side of town is very active during the day, and the south side is very active after 4 or 5 pm, more or less until 10 or 11 pm. The north side is very saturated, so with these investing works what we want is to invigorate this area of the municipality, where there are parks that have just been renovated, such as Colón park, the park and neighborhood of Los Colores where we have some very large murals made by national artists who are known internationally. Here, in Los Colores, is where we want to promote urban art and history through large murals. This entire area comes alive with those works, with roads, with parks, and with cultural sites.

Loren Moss: W are the economical driving forces here?

Mayor Londoño: There are different economical driving forces. One that is very important is the entire mining process that has developed in Marmato, for example. Marmato is a site that generates no less than 2,000 jobs for the Supieños [people from Supía] and their families.

In this sector, the commercial side is very strong, with the bakery, bean shop, restaurant, pharmacy, butcher’s shop, and cafes around the park. Also, for the town, clay mining is very important.

Everything related to glassmaking is very important in the municipality. Of course, there is agribusiness, too. There is avocado, coffee, sugarcane. It’s very important and it has a lot of value for the municipality. And with all these works, the commercial component — the entrepreneurial component — is also strong, very strong.

Loren Moss: Tell me about your plans, your vision. What do you want to achieve during your term as mayor here?

Mayor Londoño: Really, we are already coming toward the conclusion — because we will be finishing in December 2023 — and we believe we are going to deliver a municipality with better urban infrastructure and rural infrastructure as well, with some parks and some sites of common interest that have transformed as well, mostly for the families.

There is commerce that has, directly and indirectly, benefitted from all these investments developed in the area, and that generates employment and economic dynamics.

I believe Supía is a developed municipality in the region. We are located in a place where the municipalities of Río Sucio, Marmato, Caramanta, and Anserma converge. We are a sort of axis. We connect the region, and that has resulted in that we are a strong goods and service provider in the region and, obviously, in the municipality as well.

Mayor Londoño and colleagues talk about Supía during the walking tour. (Photo credit: Loren Moss)

Loren Moss: How have you seen the arrival of Collective Mining here as a new neighbor — not just as the mayor, but as a resident and someone from this region?

Mayor Londoño: I believe that, in Supía, we are very used to taking in developers interested in the region, right? Investors, traders, businessmen. But I believe the most important thing for a municipality when it receives investors and interested people interested — or new neighbors — I believe the most important thing is to be able to develop a coordinated, concerted process, especially a respectful one too.

With Collective Mining, we have found that it is a company that respects the communities, respects the authorities — a company that takes a chance on an industrial process, like mining, but also works hand in hand with the communities. It tries to provide support, development, and investments. And the processes, for example, are extensive processes in terms of capital, but they also need to be extensive in social investments.

That’s what we have been accomplishing with Collective, with good attention to the communities, being good colleagues with the municipality administrations, with the communal action points, with all the different actors that converge in a territory.

If I had to define Collective Mining in a word, I would define them as a respectful company.

Loren Moss: Are there other mining companies in the area? I know there’s also artisanal mining. What is the key so artisanal mining can exist side by side with commercial mining?

Mayor Londoño: I had the opportunity of working in a private company — in the electrical sector in the city of Medellín — and for me, the topic that Collective implements and that is implemented in the region, is not a new topic.

It’s a topic I know about. I know how it works. I would think that one of the successes of a business like the kind Collective Mining desires — and does lead — in the region is that the company, and its shareholders, can grow and generate resources and value. Because of that, they will finally develop a project, and because of that, they have interest.

But I would think that, inasmuch as artisanal or ancestral miners achieve the same thing, at that moment is when you can generate a good and healthy coexistence. Do I make myself clear? If Collective Mining is a company that develops a mining process, and has a wide, sufficient knowledge from a geological viewpoint — and it has a good financial capacity to close these projects — why not, in an exercise of social and business responsibility, help the artisanal or ancestral miners achieve the same thing? The investors of a company like Collective can have as much value and as much wealth as investors and owners of small mining companies.

So, I think, it’s at that moment, when Collective or the larger companies help the smaller ones grow, be responsible for the environment, make good capital investments, and teach to invest resources properly.

Because, here in the region, we also see that there are communities and ancestral and artisanal miners that have good economical capacities as well. But sometimes they don’t invest those resources well. They make the wrong decisions, or they prioritize liquor and women instead of prioritizing their investments.

Loren Moss: That is a key aspect. We have seen in other towns here in Colombia that they leave the artisanal mining uncontrolled, and without formalization it then becomes illegal mining. They have problems, as you said, with vices and with crime, even in small towns. This area here, I think, is very touristic, very healthy, with a lot of security. Of course, it’s very important to maintain that level of formality.

You also mentioned the environment. Because I have seen some success stories where commercial miners support the artisanal ones, saying, “Look, we can buy your gold and regulate it and do everything legal and keep everything in line. Or we can process your finds so you don’t need to touch chemicals ,like mercury or cyanide, we can help protect your health, your family, and the environment.

Mayor Londoño: That’s right. As you said, I believe those with the financial capacity to develop more modern processes — more rigorous ones with environmentally friendly techniques and socially friendly processes as well — they could teach and share that knowledge and those abilities to those who haven’t done it that way or those who don’t know better. It is also a cultural issue, isn’t it?

There are people who traditionally or historically have developed a process without meeting certain standards. We can’t force them to go from one end to another. But we can help them a little bit to get to legal and more prosperous processes.

One of the many murals located all across Supía, a cultural tradition that Mayor Londoño believes can help attracts tourism. (Credit: Loren Moss)

Loren Moss: Shifting directions a bit, what is the tourist offering of Supía? Why should people come and visit Supía?

Mayor Londoño: Supía’s main assets, I think are, first of all, the climate. Fortunately, we have a very, very valuable geographical location, which generates a municipality with an average temperature of 25° Celsius [77° Fahrenheit]. Normally, we have some pretty hot days here and that makes outings very attractive: being in the pool, the hostels, or vacation centers. We have several estates for rent where the owners have a vacation center with twelve cabins, and in each cabin you can have up to eight people. It has the only wave pool in the department.

We have been generating other attractions around the parks where you can have healthy recreation, share time with your family, have a nice coffee. The whole gastronomical culture has been very strong as well, both ancestral and traditional, from the region, as well as more specialized gastronomy that has been emerging in the municipality.

The other important asset Supía has is the geographical location. We are in a place where we can easily get to the departmental capital city, Manizales. We are about an hour away, 70 kilometers. From Pereira, where there is an international airport, we are at about 85 kilometers away, about an hour-and-a-half. From Medellín, once the Pacífico 3 highway is done, we will be able to get to in about two-and-a-half hours.

Our municipality also welcomes ethnic, indigenous, and Afro-descendant communities. A lot of tradition and culture has been generated around these communities: gastronomy, dance, music. There is a large amount of added value — or more like competitive advantages — that our municipality has. The people, too! Here we have, as we say, a culture that is very similar to the paisa culture, the Antioqueña culture.

We tend to people very well. It’s a municipality where there is relative tranquility, from the point of view of safety, and some strong institutions that aim to guarantee public services for safety, mobility, and different topics that are important for visitors.

Loren Moss: How has mining overall played into the culture in Supía?

Mayor Londoño: They have played a part of the history of our municipality. In a mural over here, there are some traditional elements from our municipality: mountains, panela [cane sugar product], colaciones [sweets], the church, one of the many birds we have in the municipality. And this one specifically is a mural that recognizes mining, because mining for us has been part of our development, right? Mining for some families or some sectors, artisanal mining, with the metal washing pans, right?

Especially in these areas you can see at the front — in Sevilla, Bajo Sevilla, Alto Sevilla, over the Supía river — this type of mining, which they call bank mining, has been very developed. The subject of mining is captured in the culture and the tradition that we have.

Collective Mining has also participated. They have helped us make this a reality. They painted the front of some houses, too. This is a neighborhood, an area of the municipality, that was built in the 1990s more or less. There are around 1200 houses in this entire area, and in this specific neighborhood there are 90. It’s an area with different and heavy social conflicts. Yesterday, for example, we had a homicide in that area a little up there, about 100 meters from here, unfortunately.

That’s what we want to change, isn’t it? So that tourists arrive — and foreigners — and we start making the economy of this area more dynamic so that it doesn’t depend, as it so often happens, on drug trafficking and such things. So that there are alternatives, like tourism. I don’t know if you are familiar with, in Medellín, in Comuna 13, with the graffiti tour there, but it’s a bit similar to our murals here.

Final approval of the listing is subject to the company meeting certain customary conditions required by the TSX. Collective says it will issue a press release once the TSX confirms the date when trading of the Common Shares is expected to commence on the TSX.

In connection with the listing of the Common Shares on the TSX, the company will submit a request to voluntarily delist its Common Shares from the TSXV. Such delisting is expected to be effective on or shortly after the date the Common Shares commence trading on the TSX. Shareholders are not required to exchange their share certificates or direct registration system advices, or take any other action in connection with the listing on the TSX, as there will be no change in the trading symbol or CUSIP for the Common Shares.

The company, which highlights the system’s rare high-grade and bulk tonnage copper gold silver system, originally announced the discovery hole at Apollo in June 2022 as part of its Guayabales project and has since completed 18,978 meters of drilling and 49 drill holes.

In its most recent announcement, the company outlined results from three holes (APC-45, APC-47, and APC-48) as well as visual observations from two long drill holes (APC-49 and APC-55).

Collective Mining presented its recent drilling results at various depths. (Image credit: Collective Mining)

The following are listed as the most notable findings from the results:

• Drill hole APC-45 (which is the first hole into the contact zone in the southernmost part of the Apollo porphyry system from Pad 7) intersected an abundance of sheeted CBM veins overprinting earlier porphyry mineralization. The contact zone contains excellent gold, silver, and copper grades associated with the sulfide matrix and overprinting quartz-carbonate and sulfide veining.
• Hole APC-47 was drilled in an easterly direction from Pad 4 in order to cut across the system in an area of the block model with limited information. A long and continuous interval of high-grade gold-silver and copper mineralization was intersected.
• Hole APC-48 was drilled to the southwest from Pad 7 and successfully expanded the overall footprint of the shallow mineralization to the southwest. Interestingly, the hole exited the brecciated portion of the Apollo porphyry system and continued to the end of the interval in a mineralized precursor porphyry unit.
• Two drill holes, APC-49 and APC-55 were designed to explore the depth potential of the Apollo system from Pad 6 to the northeast and northwest respectively. Detailed visual logging of both holes indicates that long and continuous zones of mineralization were encountered from surface to downhole depths of 840 meters and 790 meters respectively. APC-49 was terminated while still in mineralization due to a drilling-related issue while APC-55 will expand the dimensions of the Apollo system to the northeast if it is mineralized to the end of the interval.

(Image credit: Collective Mining)

“The contact zone at the Apollo system continues to intercept impressive high-grade mineralization and importantly can now be traced over a meaningful strike length,” said Ari Sussman, executive chairman of Collective Mining, in a statement.

“June 2023 is shaping up to be an exciting and important month for the company with assay results expected for Contact Zone drill hole APC-53 and deep holes APC-49 and APC-55,” said Sussman. “Additionally, our aggressive exploration focus will expand with a fourth rig scheduled to arrive on site in late June. This rig will be designated to systematically test exploration targets surrounding the Apollo porphyry system and the greater Guayabales project.”

(Image credit: Collective Mining)

Photo: Loren Moss of Finance Colombia and Natalia Yepes Jaramillo of ANDI visit Collective Mining’s extraction site in Supía, Caldas.

Caldas is small but economically significant department in Colombia. It is best known as the capital of the Coffee Axis (Eje Cafetero), where Manizales sits as the largest city within the heart of the nation’s traditional bean-producing region.

But in the modern day, there is a rich, diverse blend of economic drivers fueled by the high-caliber labor force graduating from the respected universities in the department.

The mining sector, for example, is an important — yet controversial — industry both in Colombia and Caldas. Local communities have waged protests and legal challenges to several projects in recent years, causing disruptions and even some operational shutdowns. This has put additional pressure on industry companies operating in Colombia and forced them to navigate a climate that now also includes a national president who has been unwelcoming to exploration, especially in the oil and gas sector, but also with skepticism toward mining firms.

To better understand everything Caldas has to offer and shed more light on the state of the mining sector in the department, Loren Moss, the founder and publisher of Finance Colombia, recently met with Natalia Yepes Jaramillo, manager of Caldas region at ANDI (Asociación Nacional de Empresarios de Colombia). Together, they visited the exploration site of Canadian-Colombian mining company Collective Mining Ltd. (TSXV: CNL) (OTCQX: CNLMF) in Supía, Caldas near the border with Antioquia to better understand how Collective is working hand in hand with the local community, and how ANDI is working to support the industry and the region.

Finance Colombia: ANDI is an industry trade association. Can you explain what ANDI is? What is its purpose and value?

Natalia Yepes Jaramillo: We are a trade association that will be over 78 years old this year. Before we were the National Association of Industrials of Colombia, today we are the National Association of Colombian Entrepreneurs. It’s been a little over two years since we changed the name, because we became associated and affiliated with almost all economic sectors.

Finance Colombia: Why is it so important to have an organization that represents the interests of entrepreneurs and those who manage large companies?

Natalia Yepes Jaramillo:  Our importance lies in the ability we have to represent and be the spokespeople of the private sector — and of companies across the productive sector — in the face of different issues. In front of the national government, for example, with different ministries, or in front of Congress — but also in the regions.

We also do this work as representatives and spokespeople with the local governments and departments. For example, with the parliamentarians, we have permanent conversations where we represent different topics for our affiliates. This year, we are working strongly on everything related to health reforms, labor reforms. We know that these reforms, if they are presented as they are now, will have a big impact, not just for entrepreneurs but for the economy as a whole. So we try to be that bridge between a private company and the different government branches on both a national and departmental level.

Finance Colombia: It’s interesting because, this year, the national government proposes changing the health system and the employment regime. I imagine a lot of these things appear as big threats to the private sector.

Natalia Yepes Jaramillo: That’s right. And what we also have from ANDI is an economic studies center, a social studies center, and work studies center where we do a rigorous analysis. With that same rigor, and in a very technical manner, we go to the national government, and to the Congress in this case, and explain the implications and the effects of these reforms.

Why? Because we know that if the proposed labor reform is approved, it’s going to impact employment, employment generation, and the growth we’ve had as a country in the last years.

In the city I represent, Manizales, we are the city with the second lowest unemployment rate in the country, in part because entrepreneurs make a great effort to maintain productivity, competitiveness, and such factors. We know these policies, the way that they are proposed, would affect the economic growth as a whole. That’s why we know — in a very technical, rigorous, and organized form — that we can be that conversation channel.

Finance Colombia: You specifically represent Caldas, a very important economic driving force for the country. What makes Caldas, Manizales, and the Coffee Axis unique? What are the specific advantages, and why should investors, especially international investors, pay more attention here when they do their due diligence and look for where to put their investments?

Natalia Yepes Jaramillo: Human talent is what differentiates us as a region, and it is what has made us grow in the way that we have in terms of employment. In Manizales, we are a city with an important industrial tradition, for over 80 years, and we have been improving on this and growing in sophisticating through our human talent.

This has been achieved with the academic offerings we have. We are a city with approximately 450,000 inhabitants and six universities — with five of them credited as high quality — so we have developed our advantages in relation to infrastructure.

We are also the most formal city in the country. When you check reports — for example in the “Doing Business” survey — we are first in quality of life. This gives us some important comparative advantages next to other cities.

We also have some interesting distinctions regarding providers, which we see with Collective Mining developing and learning to understand this region in Supía. There are some really good developments and opportunities for development.

David Reading, special advisor at Collective Mining, gives a presentation near the extraction site in Supía. (Photo: Loren Moss)

Finance Colombia: Today we visited the site where Collective Mining has their titles, where they are doing exploration. We have a new government that has been very hostile toward the petrol sector, and it isn’t too friendly to mining either. How important is the extractive sector? Is it positive or negative to have it in the region right now?

Natalia Yepes Jaramillo: It is very positive for the region. This is a region with a mining tradition, and we have promoted legal mining. Companies like Collective Mining have come to understand how the region works and entered in a friendly, conciliating way. They aren’t just arriving and doing exploration without knowing what happens in the region. They are learning a lot from the community. For us at ANDI, that is very valuable.

We also see very important practices in sustainability, environmental development, and social development. That’s what we look for in our companies — that they in one way or another boost what we have in the region. Because we consider this as a traditional mining region, we are going to support it being done in a legal and formal way.

Finance Colombia: Just recently, we have seen in Bajo Cauca that there was a strike supposedly from the miners. Some say it’s more complex, but there is a lot of not just informality, but illegality, in mining over there. But here, we see the role that formal companies play in providing formal employment and paying taxes to the government. You told me you saw what Collective Mining is doing as very positive, but we have also seen formal, commercial mining in this same region that didn’t have the same good relations with the town. What’s the difference between, say, Collective Mining and the companies that didn’t have the same success?

Natalia Yepes Jaramillo: I think the main thing is to understand the community before going in. It’s understanding the community, hearing them out. It’s having conversations with the people, with the social leaders, with the administrative leaders from the region, and understanding first how the community works. I think that’s the key to be able to enter and to have a successful result.

As the name says, it’s “collective” mining. Since one starts the route with the Collective staff members, you start seeing how they have improved the estates, how they have boosted the community, and they take their coffee, for example, from an estate that is part of the mining title they have. Honey is also produced in the area. And we see the development that women of the community have, being taught about providing clothing, helping them improve.

You can see the integration. You see how it can boost the community. And that generates formal employment. And there’s education, and there can be an organized health system that reaches many levels of the community. Even though we were going into some very far away areas on wild roads earlier, you can see how the community is working in a friendly way.

I think that is the difference, they didn’t come in to invade something that is ancestral and part of the area’s DNA. They entered to understand the community first and to integrate it into the mining work.

The township of Marmato, which is located in the Colombian department of Caldas, is one of the most historic and significant gold and silver mining regions in South America, with continuous production beginning more than 500 years ago. Collective Mining’s Guayabales project is located in Marmato, and has 10 fully permitted and operating mines located within a three kilometer radius of.

Since Collective Mining’s arrival to Marmato in 2020, the company says it has focused on aligning itself with the municipality’s development plan by cooperating with initiatives that are relevant for the community and the region, as determined by its inhabitants. These efforts have included the improvement of rural roads, providing technical proficiency to Marmato’s coffee growers, protecting local water sources, monitoring and improvement of the aqueducts in the municipality and establishing beekeeping projects.

“Collective is a company that listens to the communities and embraces the needs of our municipality. From day one, they have supported us in our development plan. We wish to highlight that the company always brings with it great respect for our communities. That is why, today, we can ratify this formal recognition proving it is possible to work hand in hand with a private company,” said Yesid Castro, Marmato’s mayor.

“Since our arrival to the region, our goal was to add value to local communities while advancing our efforts in making the next major discovery in Colombia. Since inception, our company has been committed to a “collective” approach to the development of projects, working alongside local government and communities to help develop our ESG initiatives. This recognition, coupled with our multiple geological discoveries are evidence that we are on the right track. We wish to express our gratitude to the local communities and to the mayor and his team for allowing us to bring value and work alongside the citizens of Marmato,” said Omar Ossma, Collective Mining’s President and CEO.

Each unit will consist of one common share in the capital of Collective Mining, and one-half of a common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of C$3.25 for 18 months following the completion of the offering.

Collective has granted the underwriters an over-allotment option exercisable in whole or in part, to purchase up to an additional 666,720 units for a period of 30 days from the closing date to cover any over-allotments and for market stabilization purposes. If the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be C$1,500,120.

Collective management and insiders will be participating up to 15% in the offering.

The company intends to use the proceeds to fund ongoing work programs to advance the Guayabales Project, to pursue other exploration and development opportunities, and for working capital and general corporate purposes.

The offering is expected to close next week, with a target date of October 25th and is subject to certain conditions including the approval of the TSX Venture Exchange (TSXV).

Founded by the team that developed and sold Continental Gold Inc. to Zijin Mining for approximately $2 billion USD, Collective is an exploration and development company focused on identifying and exploring prospective mineral projects in South America. by making significant new mineral discoveries and advance the projects to production. Management, insiders and close family and friends own nearly 45% of the outstanding shares of the company and as a result, are fully aligned with shareholders.

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.