Miningscout / DE0000000022

Colombia's mining industry is gaining momentum: Even the previously rather restrictive government under Gustavo Petro is discovering the benefits of the industry in light of the country's copper shortage. Several companies are reporting substantial progress in exploration and production.

The rugged mountains dominate the panorama like emerald green waves with countless shades: the vegetation covers the foothills of the Andes cordillera from the lower elevations up to the cloud-shrouded peaks like a A densely woven carpet. The air is so warm and humid that you can practically feel it when you breathe it in. With every breath, you also absorb the impressive soundscape provided by countless insect and bird species.

Quimbaya Gold starts drilling program at Tahami

Amidst this powerful natural backdrop, geologists at gold explorer Quimbaya Gold are preparing a drilling program to explore the portfolio's most important project: Tahami. The 7,087-hectare program is located in the Antioquia region of Colombia and has attracted attention from exploration experts.

One reason for this is the relevant proximity: There are approximately 25 historic and current mines nearby. Aris Mining operates the Segovia mine in the area, where 220,000 troy ounces of gold were produced in 2023. The deposits beneath Segovia are estimated at 3.6 million ounces.

Quimbaya Gold's exploration team believes Tahami also has the potential to host a large deposit, based on geological similarities with its neighbors. Rock samples have already returned promising gold values.

Colombia is considered a location with two faces among mining companies and explorers: On the one hand, the country's resource wealth is vast – and, moreover, largely underexplored compared to other locations. However, the investment climate under the current government of President Gustavo Petro is considered suboptimal. The government is rather hostile towards mining, which is reflected in slow licensing and high environmental and social standards.

Colombia launches auction for copper mining projects

But the tide is gradually turning: the government is increasingly becoming aware of the importance of mining for the national economy. An auction for copper mining projects is scheduled to begin in May, as Alvaro Pardo, president of the government's National Mining Agency, recently announced.

The government aims to meet domestic demand for the industrial metal and end its current dependence on imports. A total of 17 exploration and production blocks in the departments of Antioquia, Cesar, and La Guajira will be offered at the auction.

But it's not just copper mining that's seeing activity: Last year, companies submitted 293 applications for the mining of copper, gold, and other metals, exceeding the number of applications for coal projects, which traditionally play a major role in Colombia. Those who submit a license application expect success: The high number of applications is an indication of growing exploration activity in the country.

Denarius Metals and Outcrop Silver report successes

Recent success stories from other exploration and mining companies in the country fit into the picture of a cautious but determined recovery. Canadian junior exploration company Denarius Metals, for example, expects first production from its Zancudo gold-silver project in the second quarter.

Over the past year, the company has made significant efforts to advance the development and construction of the project, secure the required mining license, and obtain approval for the Environmental Impact Assessment (EIS). An eight-year contract with Trafigura for Zancudo's gold-silver concentrate has already been signed.

Outcrop Silver & Gold made quite a splash on the exploration front earlier this year, with step-out drilling south of the main resource at its Santa Ana project in central-western Colombia returning grades of up to 1,913 grams of silver per tonne.

Quimbaya Gold’s management is committed to the potential of Colombia and especially the Antioquia region. The country's two largest gold mining projects, Segovia and Buritica, are located in the region. Antioquia accounts for 50% of Colombia's gold mining production and offers substantial facilities for exploration companies, with a well-developed road network and access to electricity and water.

Capital increase successfully completed

Investors are increasingly receptive to Quimbaya Gold's plans. Not only has the share price increased by almost 30% in the past six months, but the company also completed a multi-stage capital increase totaling USD 3 million in February – not a foregone conclusion for a junior explorer valued at just under EUR 7 million in the current market.

Analysts are also beginning to take notice of the company. Couloir Capital announced the commencement of research coverage in April 2025. Ron Wortel, Senior Mining Analyst at Couloir Capital, wrote in a report on Quimbaya: "During its early years of operations, the company focused on its strategy of deliberately building a land package in Colombia. With access to proprietary staking software, Quimbaya was able to acquire claims cost-effectively and quickly. This gave Quimbaya a head start to secure the most promising land ahead of other companies." Wortel then issued a price target of CAD $1.00, which represents a doubling potential from the current price level.

For more information about Quimbaya Gold, please see the company profile on Miningscout.de:

https://www.miningscout.de/minenaktien/quimbaya-gold-inc/

Company: Quimbaya Gold

CSE: QIM

WKN: A3DT3C

ISIN: CA74841L1013

Website: https://quimbayagold.com/

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