Quimbaya Gold Inc. (CSE: QIM) has exciting news for investors and stakeholders as it embarks on its initial 4,000-meter drilling campaign at its Tahami South property located adjacent to Aris Mining's Segovia project. This venture is expected to help the company tap potential high-grade gold resources and marks a significant stride forward for Quimbaya as they look to expand their mining operations.
According to the company’s announcement on March 3, 2025, the drilling operations have been contracted out to Independence Drilling S.A. through their affiliated entity, Elawa S.A.S. To aid this effort, Quimbaya Gold has also partnered with Palmer Assets Holding Corp. to provide consulting services during the drilling campaign. The collaboration highlights the strategic partnerships Quimbaya has formed, leveraging local expertise and established relationships within the mining community.
The quantum of the agreement is set at approximately $1.2 million CAD, with Quimbaya agreeing to compensate the drilling contractors 100% with shares. Each unit to be issued under this agreement will consist of one common share priced at $0.30 and one share purchase warrant priced at $0.40, valid for up to two years. The shares earmarked for the contractors will be held in escrow by Olympia Trust Company and released as drilling services are completed.
Reflecting on this milestone, Alexandre P. Boivin, President and CEO of Quimbaya Gold, stated, "With drilling set to begin, we are poised to capitalize on our prime location adjacent to Aris Mining's world-class Segovia operation. This program is our first step toward unlocking the immense potential of Tahami South, where historical data indicates high-grade gold systems." This statement encapsulates the ambition and strategic positioning of Quimbaya Gold within Colombia's prolific gold mining sector.
For investors, this announcement not only emphasizes Quimbaya's growth potential but also reaffirms the company’s commitment to community relations and responsible mining practices. Quimbaya has made it clear they intend to continuously update stakeholders on drilling progress and other significant developments as they move forward. This transparency is likely to endear Quimbaya to its investors and create confidence within the market.
The drilling contract is part of Quimbaya's broader strategy to position itself as a leader within Colombia's competitive mining arena. The company is actively engaged in the exploration and acquisition of mining properties across the region, with its other projects including the Berrio and Maitamac projects also located within the Andes.
With the global demand for gold surging, driven by both investment interest and market volatility, Quimbaya stands to benefit significantly from this timely drilling operation. The results of the upcoming drilling campaign could potentially lead to discoveries of commercially viable gold deposits, bolstering Quimbaya's standing within the mining industry and enhancing shareholder value.
Tags: Quimbaya Gold, drilling campaign, gold mining, Indonesia mineralization, Aris Mining.
Caution is advised as with all mining ventures, as exploration and drilling come with inherent risks and uncertainties. The company has cautioned stakeholders about the speculative nature of their exploration activities and the potential for unforeseen difficulties associated with drilling and mineral resource estimation.
The mining sector is dynamic, and the upcoming months are expected to be pivotal for Quimbaya as the company embarks on this drilling campaign. With the hope of unearthing significant findings, Quimbaya Gold is preparing to make its mark on the Colombian mining sector and potentially, the global markets.
Quimbaya Gold’s success hinges on careful management of its operations, maintaining strong partnerships, and effectively communicating developments to its shareholders. Investors will be watching closely as drilling progresses and results begin to emerge.
For more information, stakeholders are encouraged to follow Quimbaya Gold’s updates through their official channels.