colombia mining projects report 2010 -...

Colombia

Mining Projects

Report 2010

Projected Investment on Mine Development and Expansion Projects in Colombia; 2010 to 2020

A market research study on behalf of

The Australian Trade Commission - Austrade –

And

Australian Mining Equipment and Services Export Association - Austmine –

By

Asomineros Chamber of National Business Association of Colombia - ANDI -

Bogota, D. C. April 2010

Project Investment on Mine Development and Expansion Projects in Colombia 2010 - 2020

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I. TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................ 1�1.1.� Background ................................................................................................ 2� 2. COLOMBIAN MINING SECTOR POLICIES .................................................. 4� 3. THE COLOMBIAN MINING SCENE IN 2009 ................................................. 6�3.1 Coal ............................................................................................................... 8�3.2 Nickel ........................................................................................................... 11�3.3 Precious Metals ........................................................................................... 12� 4. ELECTRICITY GENERATION PROJECTS ................................................. 14� 5. DEVELOPMENT AND EXPANSION PROJECTS BY COMPANY .............. 15�5.1. Carbones del Cerrejón LLC. ....................................................................... 19�5.2. Cerro Matoso .............................................................................................. 21�5.3. Drummond Ltd. ........................................................................................... 22�5.4. Prodeco ...................................................................................................... 24�5.5. Mineros S. A. .............................................................................................. 26�5.6. Vale ............................................................................................................. 27�5.7. Grupo EBX .................................................................................................. 29�5.8. Carbones San Fernando ............................................................................. 31�5.9. Carbones del Norte del Cesar – Norcarbón S. A. ....................................... 32�5.10. Minera El Roble –Miner S. A. .................................................................... 33�5.11. Carbones de Los Andes –Carboandes S. A. ............................................ 34�5.12. Greystar Resources Ltd. Sucursal Colombia ............................................ 35�5.13. Anglogold Ashanti ..................................................................................... 37�5.14. B2Gold Corp. ........................................................................................... 39�5.15. Continental Gold Ltd. ................................................................................ 41�5.16. Grupo de Bullet S. A. Inversiones Mineras ............................................... 42�5.17. Cosigo Resources. .................................................................................... 43�5.18. Goldman Sachs Group ............................................................................. 44�5.19. Coalcorp Mining Inc. ................................................................................. 46�5.20. Galway Resources Ltd. ............................................................................. 47�5.21. Medoro Resources Ltd. ............................................................................. 49�5.22. Colombian Mines Corp. ............................................................................ 51�5.23. Anglo American Plc ................................................................................... 53�5.24. Cordillera Exploraciones ........................................................................... 54�5.25. Inversiones Argos ..................................................................................... 55�5.26. Holcim Ltd. ................................................................................................ 56�5.27. Ventana Gold Corp. .................................................................................. 57�5.28. Votorantim Siderurgia ............................................................................... 58�5.29. Yamana Gold ............................................................................................ 60�5.30. Miranda Gold Corp. ................................................................................... 61�


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5.31. Orofino Gold Corp. .................................................................................... 62�5.32. Oroandes Resource Corp. ........................................................................ 63�5.33. Bandera Gold ............................................................................................ 64�5.34. Bearing Gold Corp. ................................................................................... 65�5.35. Bellhaven Copper & Gold ......................................................................... 66�5.36. El Zancudo Mining .................................................................................... 67�5.37. Cadan Resources Corp. ........................................................................... 68�5.38. Gemini Exploration .................................................................................... 69�5.39. Caerus Resources Corp. .......................................................................... 70�

II. LIST OF FIGURES Figure Page

1. Quarterly Gross Domestic Product 2003 – 2009 ............................................ 6 2. Value of Colombian oil and mining exports ..................................................... 7 3. Distribution of the value of Colombian Mining exports .................................... 7 4. Quarterly Foreign Direct Investment FDI - 2000 – 2009 ................................. 8 5. Production of Colombian coal 1998-2009 ....................................................... 9 6. National Nickel Production and International Nickel prices ........................... 11 7. Colombian production of precious metals ..................................................... 12 8. Colombian Gold Exports and international gold prices ................................. 13 9. Development and Expansion projects in Colombia ....................................... 17 10. Location of development and expansion projects ....................................... 18 �

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III. LIST OF TABLES Table Page

1. Historical mining production of Colombia 2000-2009 ....................................... 2 2. Colombian Coal production by departments (2008 – 2009) ........................... 10 3. Electricity generation expansion projects ....................................................... 14 4. Projection of mining investments for the 2010 through 2020 period. ............. 16 �


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1. INTRODUCTION �

This study has been performed under the coordination of the ASOMINEROS Chamber of ANDI and has had participation by the IMCPortal Ltda. Company.

The objective of the study is to provide information on existing mining projects and those that are planned in the forthcoming decade in Colombia, in order to provide to Australian Mining Equipment and Services Export Association – AUSTMINE – with an outlook of the future opportunities that the Colombian mining sector offers.

The scope of the study covers detailed known and disclosed mining expansion projects for existing mine operations, estimated future developments for mines that are currently in production, and new potential mining developments arising from many exploration projects that are being performed at this time in the country. The study spans a 10-year time frame, from 2010 through 2020.

A brief description of the Colombian mining sector is presented, including background, recent mining performance, composition of mining in Colombia, historic figures for Production, Exports and Direct Foreign Investment, and highlights the main producers of coal, nickel, gold, and other minerals. Government mining goals for the next decade are also included.

Moreover, a detailed description is presented for each project, including contact information, available technical and commercial data, as well as a description of services, plant and equipment opportunities, for the benefit of AUSTMINE members.

There was a certain reticence that was observed on the part of several companies with regard to making public the progress in their projects and the investments required, which made it somewhat difficult to obtain part of the information. Consequently, in addition to the official information provided directly by some companies, further information was obtained in individual consultation with persons that are close to the companies, press reports endorsed by the companies, and in the companies’ pages on the Internet.

On account of the above, it was not possible to obtain complete information on the needs for goods and services for each of the projects.

Based on the information collected, we could establish that for this decade, there are at least 12 expansion projects, 5 projects with defined feasibility, and 38 in the pre-feasibility and exploration stage.


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1.1. Background

In recent years, Colombia has risen quickly in the worldwide scales for coal exports, ferronickel production, and interest generated in mining exploration. Projects that are under execution indicate that this positive evolution will continue in the future.

Colombia, with close to 70 million metric tonnes (MT) is ranked fourth among world coal exporters, after Australia (252 MT), Indonesia (203 MT), and Russia (101 MT). In steam coal, Indonesia ranks first, followed by Australia, Russia and Colombia1. Moreover, the Cerromatoso mine produces close to 4% of the total world production of nickel with one of the lowest operational costs.

Growth in mining production in Colombia has been associated with expansions in existing mines. Evolution of Colombian mining over the last 10 years has exhibited an interesting pattern: coal extraction increased from 38 MT in 2000 to 72.3 MT in 2009, with a 91.6% increase; nickel grew by 80.2% during the same period, and gold production has increased by 29.2%, showing a significant recovery in comparison with the amounts reported for 2006 and 2007.

TABLE 1. Historical Mining production of Colombia (2000 – 2009)

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Source: Ingeominas

Based on a study performed by the Ministry of Mines and Energy (Herrera, 20082 ), it is estimated that annual production in 2019 for the main minerals could reach the following levels: 197 MT of coal, 106 tonnes (3.5 million ounces) of gold, 50,700 tonnes of nickel, and 33.4 tonnes (1.1 million ounces) of silver.

With few exceptions, metal projects that are about to commence production in Latin America have taken over nine years, on average, between the time of discovery of the deposit through its socio-economic environmental and financial viability. With this outlook, it is possible to consider that, towards the second half of the decade, important metalliferous finds will have materialized in Colombia, on the basis on the exploration projects that are taking place at present.

��The Australian Bureau of Agricultural and Resource Economics – ABARE. 2010. Australian Commodities,

December quarter, Vol. 16. Number 4. http://www.abare.gov.au/interactive/09ac_dec/htm/coal.htm ��HERRERA, J. 2008. Estimate of Colombian mining production based on projections for the Latin American

GDP. Consulting assignment for the Ministry of Mines and Energy. 71 pag. http://www.minminas.gov.co/minminas/downloads/archivosEventos/3607.pdf �


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Growth possibilities for coal are clearer, and it is highly feasible that by 2019, the country will be producing close to 197 MT per annum.

On the other hand, in accordance with reports issued by INGEOMINAS (Spanish acronym for the Colombian Geology and Mining Institute), the number of mining titles granted by the Colombian State through December 2009 reached 8,623, which, altogether, span an area of close to 19,000 km2, that is to say, 1.7% of the national territory.

Mining titles in the country, at present, are distributed approximately as follows: 29.6% for construction materials (7.9% of the total area granted under concession), 19.3% for coal (30% of the total area granted under concession), 18.8% for precious metals (38.8% of the total area granted under concession), 4.9% for emeralds (1.8% of the total area granted under concession) and 27.4% distributed among other minerals (22% of the total area granted under concession).


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2. COLOMBIAN MINING SECTOR POLICIES On the basis of the National Mining Development Plan, 2019 Vision (UPME, 2006)3, the National Mining Policy Advisory Council recommended that the Ministry of Mines and Energy establish three government policies for the sector, as follows:

1. Policy to promote Colombia as a mining country: This policy seeks to increase participation by mining investors in the country, both junior companies and promoters of mining projects such as mining conglomerates and traditional mining companies that can attract national and foreign technical and capital resources to the sector and provide increased value added to the chain. For the proper performance of this policy, the following activities have been set forth:

• A communications strategy to position the country’s mining industry. • Government-Industry Agenda. • Structuring and set-up of the Mining Investment Project Database in

Colombia • Organization and operation of the Mining Promotion Bureau at

INGEOMINAS • Digital portal for the Mining Country and dissemination and communications

campaign • Training for mining authorities and entering into inter-institutional

agreements • Participating in national and international events • Guide for the Mining Investor.

2. Management policy for the mining resource: Seeks to attain optimisation of the support processes for the mining activity. In this sense, the purpose is for management of the mining resource to be performed under criteria of efficiency, efficacy and effectiveness, for which purpose the response time in contracting must comply with the best known standards, and there must be a higher level of follow-up on fulfillment of the obligations entered into by the holders of mining titles. The following are the activities to develop this policy:

• Institutional adjustments: INGEOMINAS, Ministry of Mines and Energy (MME), Mining and Energy Planning Unit (UPME).

• Adjustments to the Mining Code. • Colombian mining land register inventory on line for INGEOMINAS and

governorships. • Strategic Information Technology and Communications Plan for the

Colombian mining sector. • Joint agenda for the Ministry of Mines and Energy and the Ministry of the

Environment, Housing and Territorial Development.

��UPME, 2006. National Mining Development Plan, Vision for 2009. Mining and Energy Planning Unit, Bogotá 125 pg. http://www.imcportal.com/galeria/PNDM%202019.pdf


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3. Policy for the enhancement of productivity and competitiveness: Aimed at enhancing the social profitability of the mining industry, based on exploitation with the best practices, generating employment, carrying out its activities with high levels of industrial safety and occupational health, that ensure sufficient surplus income for the small-scale miner to improve his quality of life. This policy also expects to boost the State’s efforts to increase productivity and competitiveness of legal traditional mining exploitation operations that exist in the national territory. The activities for this policy are:

• A comprehensive program to control illegal mining activities • Financing strategies for the mining sector • A management model for mining districts (analysis of their present situation

and the future projection for areas with a significant mining presence)

National Mining Development Plan, Vision for 2019 (UPME, 2006) In order to be able to affirm that the Colombian mining industry is one of the activities that contribute the most to the national economy and that it is also considered to be one of the most important in the continent by the year 2019, the following objectives have been set forth:

1. To attract a larger number of investors to develop the mining resource. 2. To achieve an increased capture of value for the State as a consequence of

the successful results in the mining activity. 3. To optimize the support processes that the mining institutional framework

requires in order to fulfill the value proposals that it structures for the different segments of clients.

And the following goals have been established for the year 2019, which are to use the figures reported as of December 2005 as a baseline for comparison purposes:

• To triple the volume of coal production. • To increase the production of precious metals four-fold. • To convert Colombia into one of the three main destinations in Latin

America for private, internal and external, investment destined to mining exploration.

• To increase the extent of contracted area for geological and mining exploration.

• To optimize mine contracting and customer service processes. • To gain increased knowledge on the country’s subsoil. • To develop agendas for productivity and competitiveness in all mining

districts. • To increase production in community-based mining developments. • To reach a growth rate in the mining GDP that exceeds the Latin American

average.


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3. THE COLOMBIAN MINING SCENE IN 2009 �

According to the National Administrative Statistics Bureau (DANE, its acronym in Spanish), the national economy grew by 0.4% in 2009. Nevertheless, the mining and hydrocarbon sector consolidated itself as the second sector with greatest growth, with 11.3%. On the other hand, mining, without hydrocarbons, grew 6.7%, despite the reduction of 1.6% in coal extraction, and in response to the increase in ferronickel production (22.2%), gold production (39.4%) and growth in construction materials (26.1%).

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18

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I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV

2003 2004 2005 2006 2007 2008p 2009p

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PIB Minas e Hidrocarburos

PIB Minas sin Hidrocarburos

Producto Interno Bruto Colombia

FIGURE 1. Quarterly Gross Domestic Product 2003 – 2009 –annual percent variation

(Source: DANE)

The results for exports and direct foreign investment in mining were quite favorable in 2009.

Exports reached US$ 8.153 billion, maintaining their upward trend, at 24.8%. Direct Foreign Investment in mining, which represented 43% of the total direct foreign investment in the country in 2009, exhibited record levels, in accordance with the latest statistics released by the Central Bank (the Banco de la República) with US$ 3.094 billion.

In the following graphs we can observe the historical data for exports and direct foreign investment in the mining sector:

Per

cent

ann

ual v

aria

tion

Year / Quarter�

Mines & Hydrocarbons GDP Mines GDP w/o Hydrocarbons Gross Domestic Product


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FIGURE 2. Value of Colombian oil and mining exports in billions of US$ (Source: Banco de la República. Calculations: IMCPortal)�

FIGURE 3. Distribution of the value of Colombian mining exports in millions of dollars.

(Source: Banco de la República)

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FIGURE 4. Quarterly Foreign Direct Investment – FDI. 2003 – 2009 en USD Millions. (Source: Banco de la República)

The main investments in the sector came from Brazilian company Vale, representing close to US$ 373 million, on account of the acquisition of several coal assets from Colombian company Inversiones Argos, and from the North American company Drummond Ltd., for its coal projects, particularly those destined for the El Descanso mine.

3.1 Coal

Albeit the forecasts of the Ministry of Mines and Energy indicated coal production of 87 MT, the 1.6% reduction in actual production in comparison with 2008 (73.5 MT) could have been greater due to the accumulation of inventories due to slowdown in European purchases, cost of freight, and the high costs involved in reaching Asian markets (both El Cerrejón and Drummond are exporting to Asia as of this year). The historical evolution of coal production can be observed in the following graph. The location of main mine producers is presented in figure 10, page 18.


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FIGURE 5�Production of Colombian coal in millions of tonnes

(Source: INGEOMINAS) The following table presents coal production in detail, by department and by project, in accordance with official figures published by INGEOMINAS. The Northern Region, which comprises the departments of La Guajira, Cesar and Córdoba, which represents 90% of national production, reduced its extraction by 1.08% (0.7 MT) with respect to 2008, reaching 65.4 MT in 2009. On the other hand, the region of the interior, which comprises the departments of Antioquia, Boyacá, Cundinamarca, Norte de Santander and others, to a lesser extent), exhibited a 6.21% drop, reaching 6.9 MT in 2009.

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TABLE 2. Colombian coal production by departments (2008 – 2009)

2008(Kt)

2009(Kt)

Var %

CERREJON ZONA NORTE 17,982.9 15,881.7 -11.7CONSORCIO CERREJON - AREA PATILLA 4,535.5 5,287.9 16.6CARBONES COLOMBIANOS DEL CERREJON - AREA LA COMUNIDAD 1,095.5 1,178.2 7.6

CARBONES DEL CERREJON - AREA LA COMUNIDAD 4,161.3 4,404.9 5.9

CARBONES DEL CERREJON - AREA OREGANAL 4,164.6 4,678.2 12.3

31,939.9 31,430.9 -1.6DRUMMOND LTD - AREA LA LOMA 21,396.5 18,431.5 -13.9DRUMMOND LTD - EL DESCANSO - 2,157.8CARBONES EL TESORO S.A. 1,849.5 1,078.5 -41.7CARBONES DE LA JAGUA 2,517.1 2,667.5 6.0CONSORCIO MINERO UNIDO S.A. 0.0 801.3C.I. PRODECO S.A. 4,697.7 5,700.1 21.3COMPAÑÍA CARBONES DEL CESAR S.A. 1,299.2 806.7 -37.9NORCARBON S.A. - AREA LA DIVISA 356.0 306.7 -13.9EMCARBON S.A.- DIAMOND LTDA 1,560.1 1,622.2 4.0

33,676.2 33,572.3 -0.3

CORDOBA CARBONES DEL CARIBE - AREA LA GUACAMAYA Y MINA BIJAO 493.2 392.3 -20.4

403.9 655.8 62.42,230.9 2,276.2 2.0

0.1 0.6 829.82,405.6 1,941.6 -19.3

178.1 116.5 -34.62,085.2 1,938.4 -7.0

79.0 0.0 -100.09.9 4.9 -50.4

73,502.1 72,329.6 -1.6

TOTAL CESAR

ANTIOQUIABOYACACASANARE

Departamento / Proyecto

LA GUAJIRA

TOTAL LA GUAJIRA

CESAR

CAUCATOTAL COLOMBIA

CUNDINAMARCASANTANDERNORTE DE SANTANDERVALLE DEL CAUCA

Source: INGEOMINAS, for data on the collection of royalties.

The value of coal and coking coal exports increased in 2009 to US$ 5.416 billion, increasing its share of total exports from 13.4% to 16.5%, consolidating itself as the second export product in the country, second to oil. During 2009, there was an increase in coal sales to rather non-traditional destinations such as The Netherlands (from US$ 534 million in 2008 to US $1.138 billion in 2009), Turkey (US$ 168 million to US$ 303.2 million) and India (US$ 85.4 million in 2009). According to INGEOMINAS data, coal is the main contributor to national royalty collections, with an 85% share of total royalties. In 2009, royalties reached US$ 597 million, registering 26% growth with respect to 2008.

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3.2 Nickel

Colombia represents close to 3.6% of world nickel production, with an average 48,000 thousand tonnes (kT) per year. Despite the decreasing trend in international prices for nickel, national production during 2009 interrupted the decreasing production trend from previous years, going from 41.6 kT in 2008 to 50.8 kT in 2009 (22% growth).

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10.000

15.000

20.000

25.000

30.000

35.000

40.000

US$ / t

Prod Colombiana de Níquel (t)

Precios Internac. Ni (US$/tn)

FIGURE 6. National nickel production and international nickel prices.

(Source: INGEOMINAS. International Prices: IMF, LME. Calculations: IMCPortal)

Figure 6 shows the decreasing trend in international nickel prices, with a 60.8% drop since the historical maximum price registered in 2007, averaging US$ 14,564.81 US$/T during 2009. With respect to the amount exported by this industry, in accordance with Banco de la República data, revenues decreased by 15.96%, going from US$ 863.7 million in 2008 down to US$ 725.9 million in 2009, for a 2% share of total Colombian exports. Cerromatoso S.A. paid US$ 50 million in royalties in 2009, going from a 14% contribution to national collections down to 7%, a 37.6% drop with respect to 2008.

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Colombian Nickel Production

International Ni Prices (US$/t)


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3.3 Precious Metals Colombian production of gold, silver and platinum during 2009 reached 59.6 tonnes (1.95 million ounces), registering a 32.9% growth with respect to production in 2008.

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12.000

18.000

24.000

30.000

36.000

42.000

48.000

2005 2006 2007 2008 2009

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Kg

Oro

Plata

Platino

FIGURE 7. Colombian production of precious metals in kilograms

(Source: INGEOMINAS. Calculations: IMCPortal) The country’s gold production increased 39.4%, going from 34.3 tonnes (1.12 million ounces) in 2008 to 47.84 tonnes (1.56 million ounces), the contributions of the departments of Antioquia and Chocó representing 95.1%. Silver production, with an 18.2% growth, went from 9.2 tonnes (300,000 ounces) in 2008 to 10.8 tonnes (354,000 ounces) in 2009, and platinum production went from 1.37 tonnes (45,000 ounces) to 0.93 tonnes (30,000 ounces) in 2009, that is to say, a 32.2% decrease in comparison with production in 2008. Consistent with international gold price quotations (US$ 973 per ounce on average for 2009), Colombian gold exports reached a historical maximum of US$ 1,537.2 million in 2009, US$ 645.9 million more than in 2008. The main destination markets were the United States and Switzerland.

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500

800

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FO

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300

400

500

600

700

800

900

1000

1100

US$ / oz

Exportac Colombiana de oroMillones de US$ FOB

Precios Internac. (US$/ oz)

FIGURE 8. Colombian gold exports and international gold prices

(Source: DANE. International Prices, IMF. Calculations: IMCPortal) During 2009, the precious metals industry paid US$ 43 million on account of royalties, increasing royalty collections by 62% with respect to 2008, reaching a 6% participation in total royalties paid by the mining industry.

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Colombian gold exports in millions of US$ FOB International prices (US$/oz)


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4. ELECTRICITY GENERATION PROJECTS The mining sector is one of the largest consumers of electricity, reason for which it is important to know about the electricity generation expansion projects for the period under study. The following table presents a description of these projects:

TABLE 3. Electricity generation expansion projects (2012 – 2019)

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5. DEVELOPMENT AND EXPANSION PROJECTS BY COMPANY In addition to the historic solidity of basic coal and ferronickel mining and the large number of new exploration projects driven by the under-explored geological potential that the country offers, there are several internal circumstances that have come together so far in the decade of the 2000s: the issuance of a new Mining Code in 2001, the beginning of the major greenfield mining exploration thrust in national history by large mining companies, with close to 83,000 km2, which raised considerable interest by other international mining companies, improvements in physical and legal security conditions in the country, and the national government policies that generate trust with attractive tax schemes.

Albeit true that the global economic downturn has placed the Colombian mining industry in an atmosphere of expectation, the large majority of coal extractive companies has continued with their original plans that seek to double their production capacity through 2015, to achieve a total national production in the order of 140 million tonnes, which are expected to reach 200 million tonnes by the year 2020 with the entry of new coal production projects.

With the information obtained on the volume of investments in certain large-scale coal mining projects, one can infer that the investments required in this sector in order to attain the aforementioned production levels could reach figures in the order of US$ 12.5 billion through the year 2010.

Even though future investments in mining of basic metals imply a high level of uncertainty until results of the exploration activities are obtained, one can conservatively state that expansions in ferronickel and the forecast entry of new metal transformation facilities for metals such as bauxite for the production of alumina in the Urabá region of Antioquia, could entail investments in the order of US$ 4.5 billion during this decade.

The exploration for gold, which intensified as of 2004, has led to three discoveries with large-scale deposits with reserves that exceed 25 million ounces and which would require large investments in order to materialize their production. These results, and the significant exploratory activity in search for this metal, permit estimating investments in the order of US$ 5 billion during the 2010 through 2020 period.

Lastly, one can estimate that the recent discoveries of gold deposits, together with the expected reinforcement on account of decisions in the mining policy that strive to convert Colombia into a world-class mining country, should generate new exploration activities that could conservatively be estimated in an amount of US$ 2 billion during the period under study.

Table 4 shows a summary of expected investments, which add up to a total of US$ 24 billion for the 2010 through 2020 period:


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With the expected investments in the mining sector, solid growth in the mining sector is evident, consistent with the interest in the development of mining in Colombia, vis-à-vis other countries that have a greater tradition in the mining industry, such as Chile, which expects future investments in the order of US$ 35 billion, and Peru, in the amount of US$ 33.067 billion dollars4.

Consequently, the results obtained in this study present an important tool for the process or setting strategies for the provision of goods and services that are offered to the growing Colombian mining industry.

��4 AGAR, B., 2009. Projected investment in mine development and expansion projects in Perú; 2009 – 2010. Research for Austrade and Austmine. 39 pg.

TABLE 4. Projection of mining investments for the 2010 through 2020 period.

SECTOR ESTIMATED

EXPENDITURES (US$ MILLIONS)

Coal expansions &new projects 12,500

Basic metals expansions & new projects 4,500

Gold expansions & new projects 5,000

Exploration activities 2,000

TOTAL 24,000

Source: Company reports and calculations by Asomineros Chamber of ANDI


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Figure 9 shows a schematic diagram of the principal mining projects in Colombia, distributed as follows: under expansion, undergoing feasibility studies, and in the pre-feasibility study and exploration stage.

FIGURE 9. Development and expansion projects in Colombia

Following is a rendering of the companies that are most advanced in their projects and with the greatest possibility of expanding or developing in course of the next 10 years. For development projects, we have used, as a tool for inclusion, the level of knowledge regarding the deposit, or the investments in exploration that are foreseen to advance towards opening up the mine5.

��5 Note: A good part of the information was obtained from company reports. Consequently, the ASOMINEROS Chamber of the ANDI does not assume responsibility for errors or inaccuracies on the status of projects where the companies did not respond to the survey that was undertaken.

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FIGURE 10. Location of development and expansion projects that are to be

Undertaken in forthcoming years (IMCPortal, 2010)


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5.1. Carbones del Cerrejón LLC. Contact: Luis Germán Meneses Position: Executive Operations Vice president Address: Calle 100 # 19-54, 12th Floor Phone: (571) 595 25 72 City: Bogotá, D. C. E-Mail: [email protected] Url: http://www.cerrejoncoal.com/secciones/CERWEB/ENGHOME/seccion_HTML.html

CORPORATE PROFILE: Cerrejón is an open pit coal mining operation that is carried out in the North, Central and South areas of la Guajira, in the Northeast of Colombia, the northernmost area of South America. The owners of Cerrejón, in three equal portions, are subsidiary companies of BHP Billiton plc, Anglo American plc and Xstrata plc. The operation began in 1982. It is an integral operation with dedicated facilities for the production, transport and loading of high quality thermal coal for export. Present coal production and export capacity is 32 million tonnes per year. There are technical feasibility studies that provide for an expansion of up to 40 million metric tonnes as of 2012, the development of which shall depend on the evolution of the world coal market and its technical, economic and environmental viability. CERREJÓN MINE: The coal deposits are located in a 69,000 hectare stretch of land that contains five contracted areas, as follows: North Zone, Patilla, Oreganal and South Zone with the Colombian State, and the Central Zone with the Cerrejón Community. The mining operation uses 320-tonne and 240-tonne over- and inter-burden haulage trucks, and 190-tonne trucks for coal haulage. In addition, it has a fleet of 12 P&H electric shovels, 11 of which have a 27.5M3 capacity, and one, a 34M3 capacity, as well as 6 of 42 M3 capacity Komatsu PC800 front-end shovel loaders. For coal loading, there is a fleet of wheel and track tractors, as well as hundreds of units of mining operation ancillary equipment. The mine facilities comprise maintenance shops for major mining equipment and support equipment, in addition to refurbishing shops, administrative offices and a satellite and microwave telecommunications system between Bogotá, the mine, and Puerto Bolívar. PUERTO BOLÍVAR: The port is located 150 kilometres North of the mine, on the Caribbean Sea, and receives vessels of up to 250,000 deadweight tonnes, that are up to 300 metres long and 45 metres beam. Its navigation channel is 19 metres deep, 225 metres wide and 4 kilometres long. The main port facilities are: the train unloading station, three stacker-reclaimers, and the linear shiploader that deposits the coal in the vessel holds. The present


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annual average ship-loading rate is 6,000 tonnes per hour, peaking at up to 11,000 tonnes per hour. Moreover, the port has a commodities pier that can receive vessels of up to 30,000 tonnes, that deliver machinery, spare parts, and other materials for the operation. RAILROAD: The 150-kilometre long railway system connects the mine with the export load port. The coal is transported in trains up to 130 coal cars loaded at the silos, through a continuous process system. The complete cycle of loading, transport, unloading at the port and return to the mine takes approximately 12 hours. On average, seven trains are dispatched every day. Moreover, there is a service train that transports supplies, materials and spare parts. The railroad system is electronically controlled from a Centralized Traffic Control located at the mine.


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5.2. Cerro Matoso Contact: Peter Bergsneider Position: Technical Services and Business Optimization Manager Phone: (574) 772 39 75 City: Montelíbano, Córdoba E-Mail: [email protected] Url: http://www.bhpbilliton.com/bb/home.jsp

CORPORATE PROFILE: Cerromatoso S. A., owned by BHP Billiton, is a company located in the Municipality of Montelíbano (Córdoba), which produces and exports ferronickel. It is the world's second largest producer of ferronickel and the nickel industry leader in unit cost of production. The ferronickel smelter and refinery are integrated with an open pit mine.

Present process design capacity is 50,000 tonnes per year of nickel, in the form of ferronickel, in two production units.

The Cerro Matoso nickel deposit, the exploitation of which began in 1982, follows an alignment of nickel-laden deposits associated with peridotites in the departments of Antioquia and Córdoba.

The company is carrying out feasibility studies for the following projects:

- Nickel Ore Smelting System: This project will mitigate the risk of operating with a low SiO2/MgO ore, will allow a safer and more stable operation during the life of the asset, will assist in maintaining throughput and as platform for de-bottlenecking; a way of compensating for declining ore head grades.

- Potential for power generation with local coal resources study.

- Early stage concept study to evaluate potential for de-bottlenecking of Mine and process plant.

- Local and regional exploration to find Nickel Resources with grade as high as possible.

INVESTMENTS: The investments in these CMSA projects are still to be confirmed.


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5.3. Drummond Ltd. Contact: José Miguel Linares Martínez Position: Corporate Affairs Vice president Address: Calle 72 # 10-07 Of. 1302 Phone: (57-1) 587 10 00 City: Bogotá, D. C. E-Mail: [email protected] Url: http://www.drummondco.com/operations/coal/Colombia.aspx

CORPORATE PROFILE: Drummond Ltd., Colombia Branch, is a branch of Drummond Ltd., a company with headquarters in the United States of America and an affiliate of the Drummond Company Inc. Group. The company’s operation in Colombia is located in the department of Cesar and is dedicated to the exploitation of thermal coal destined for export markets. It has recoverable reserves in the order of two billion tonnes. During 2009, the company exported 20 million metric tonnes, mainly for consumers in the United States and Europe.

Drummond, through its affiliate, ABC Coke, is one of the main producers and marketers of coking coal in the United States. It is widely recognized in the iron foundry industry on account of the quality offered and its reliability in supplies. ABC Coke has 132 furnaces with an aggregate capacity of 750,000 tonnes. Its main consumers are the automotive industry and the pipe industry for construction.

AFFILIATES IN COLOMBIA: Drummond Ltd., Colombia Branch, and Drummond Coal Mining LLC, Colombia Branch.

In its mining operations, Drummond uses draglines, hydraulic shovels, trucks, electric shovels, conveyor belt systems, apron feeders and support equipment.

PRIBBENOW MINE (LA LOMA, CESAR): In the decade of the 80s, the company acquired the rights to the areas where the open pit coal mine is located nowadays, in the Cesar river basin, in the municipalities of El Paso, La Jagua de Ibirico and Chiriguaná. Production commenced in middle of the following decade. Sustained growth in operations has permitted the company to increase production from one million tonnes in 1995 to 20 Mt in 2009. During this period, close to 200 Mt have been extracted.

The contract area spans 6,600 hectares, where the company estimates it has recoverable reserves in the order of 230 Mt of thermal coal.


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EL DESCANSO MINE: The “El Descanso” mining contract area extends through the municipalities of Becerril, Agustín Codazzi, El Paso, La Jagua de Ibirico and Chiriguaná, in the department of Cesar, and spans 42,800 hectares.

This contractual area is divided into four blocks, one of which, the largest one, known as Descanso Norte, began mining operations in June 2009, once the required environmental permits were obtained. It is expected that annual production levels will reach 25 Mt. The coal that is capable of being mined reaches a depth of 300 m. RINCÓN HONDO AND SIMILOA PROJECTS: Located in Chiriguaná, Cesar, these projects have recoverable reserves in the order of 170 million tonnes of thermal coal. At present, the corresponding environmental permits are in the process of being obtained. CERROLARGO CENTRO PROJECT: This project is located in the municipality of La Jagua de Ibirico, department of Cesar. It is a relatively small project with excellent quality coal. The environmental permits are in the process of being obtained.


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5.4. Prodeco Contact: Patricia de Manga Position: Procurement and Materials Manager Address: Carrera. 54 # 72-80, Ed. Ejecutivo Miss Universo, 7th Floor Phone: (575) 369 55 00 Mobile: 3106420576 City: Barranquilla, Atlántico E-mail: [email protected] Url: http://www.xstrata.com/

CORPORATE PROFILE: Prodeco is a thermal coal producing and exporting company owned by Xstrata, one of the most diversified mining groups in the world, with headquarters in Zug, Switzerland. Moreover, Xstrata also owns 33% of Carbones del Cerrejón Llc, which is reported on separately in this study.

AFFILIATE IN COLOMBIA: Comercializadora Internacional Productos de Colombia S. A. - C.I. Prodeco - (acquired from Glencore in 2009), is a company that is specialized in extracting and exporting Colombian coal, which has operated for over 40 years in the country. At present, there is a project for the repurchase of Prodeco by Glencore International.

CALENTURITAS MINE: A deposit with a potential of one hundred million tonnes of coal, located in the Calenturitas river basin in the Municipality of Becerril, department of Cesar. The property spans 4,000 hectares. Although annual production is 4.9 Mt, the Calenturitas Mine has a 10 Mt production capacity.

LA JAGUA MINE: Located in the municipality that bears its same name, in the department of Cesar, the mine produces 4.3 Mt per year at present and has a 6 Mt production capacity. This project integrates the mining operations of the following companies: Consorcio Minero Unido – CMU (acquired by Glencore in 2006), Carbones El Tesoro – CET (acquired by Glencore in 2007) and Carbones de La Jagua – CDL (acquired by Glencore in 2005), all acquired by Glencore and located in the Tucuy River basin in the municipalities of Becerril and La Jagua de Ibirico in the department of Cesar, 240 km away from the Santa Marta port area.

The integrated operation of the three mines began during the first quarter of 2009, offering operational efficiency and permitting mining access to the 133 Mt in reserves, the expectations being that production will increase from 4.5 Mt to 6 Mt in 2011.

The coal that is mined is transported by train to the ports in Santa Marta.

The company estimates that the useful life of the mine will extend through the year 2022.


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GALCA PROJECT: After having entered into a shared-risk contract with Galway Resources, Prodeco has commenced an initial program that consists of 19 drilling operations in this project, located in the department of Cesar.

INVESTMENTS: The Company expects to increase the joint exploitation of both mines, to reach 21 Mt by 2014, with projected investments through 2014 forecast at US$ 1.292 billion in mining equipment, transport equipment, the port, and other infrastructure works.


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5.5. Mineros S. A. Contact: Gonzalo Gómez Position: New Businesses Manager Address: Carrera 43ª # 14-109 Phone: (574) 266 57 57 City: Medellín, Antioquia E-Mail: [email protected] Url: http://www.mineros.com.co/sitio/

CORPORATE PROFILE: Mineros is a private company, dedicated to mining of precious metals, geared at generating the greatest value for its shareholders through growth in its mining operations, by means of an excellent comprehensive management system and framed in Corporate Social Responsibility. AREAS OF OPERATIONS: MINEROS concentrates its alluvial mining operations in profound alluviums in the Nechí River Valley, with an annual production of 120,000 ounces of gold. Moreover, in the area of underground mining, at present, MINEROS has the La Ye Mine, located in the Municipality of Zaragoza, sector of Naranjal, located 3.5 km southwest of the Mineros S.A. camp. The gold-bearing seam project has a production of approximately 35,000 ounces per year, and measured, indicated and inferred resources are in the order of 300,000 ounces of gold. Mine development and the erection of the ore production plant took place in 2008 and 2009, with a 500-tonne/day ore concentration capacity. SLAG UTILIZATION: In the department of Antioquia, the company has an ore reduction plant with a 6,200-tonne/month capacity to process the slag left from the exploitation of the El Zancudo Mine. INVESTMENTS: Mineros has considered the objective of going from an annual production of 113,158 ounces in 2009 to 500,000 ounces in 2020. EXPLORATION: In 2010, MINEROS has over 35 on-going exploration projects in 4 municipalities in the department of Antioquia. �Moreover, the company will continue to develop its growth plan, which began in 2009, with a horizon in operations in nearby locations in Latin America.


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5.6. Vale Contact: Marco Puccini Position: Manager Address: Calle 71B # 59-61 Of. 1204 Phone: (575) 361 49 01 City: Barranquilla, Atlántico E-Mail: [email protected] Url: http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?tpl=home

CORPORATE PROFILE: Vale, formerly known as Vale Do Rio Doce, is the second most diversified mining and metal company in the world, with a presence in 30 countries. It is the most important logistics operator in Brazil, with annual revenues of US$ 35 billion.

Moreover, it is the largest world producer of ferrous minerals and pellets, and one of the largest nickel producers. The company also produces copper, manganese, steel alloys, bauxite, alumina, aluminum and coal.

The company’s strategy in Colombia is the creation of a platform to increase its coal assets.

AFFILIATE IN COLOMBIA: Vale Colombia Ltda.

EL HATILLO MINE: In March 2009, Vale closed the purchase of this open pit coal mine, located in the municipalities of El Paso, Chiriguaná and La Jagua de Ibirico, in the department of Cesar, from Emcarbón S.A. (wholly owned affiliate of Inversiones Argos S.A.), for US$ 300 million, and attained an 8.43% shareholding in the Fenoco railway concession, which connects these mining concessions with the coal export ports located in the department of Magdalena.

During 2009, the mine produced 1.2 Mt of thermal coal. At present, an expansion is taking place, which is expected to permit reaching 3.2 Mt in 2010 and 4.5 Mt in 2011. The Las Cuevas coal deposit is located within the concession, which holds additional resources in the amount of 50 million tonnes, the exploitation of which is scheduled to permit reaching a production of 9.5 Mt by the year 2014.

The coal handling facilities, along with the various support facilities and infrastructure necessary for the Hatillo Corridor Mine operations include: a ROM coal storage area, ROM hopper, crusher, screening plant and stockpile, equipped with a linear stacker. Stockpiled coal is reclaimed with front-end loaders and placed in either over-the-road trucks, or a mobile reclaim hopper that feeds a train-loading silo.

A fully equipped analytical laboratory is located at the coal-handling site. Mine support facilities include a shop and warehouse, equipment yard, storage area for explosives and drainage control facilities.


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RAILWAY: Vale owns 8.43% of the Fenoco partnership and the right to transport up to 3.5Mt per year. At the moment, Vale has 3 locomotives with a towing locomotive, and 134 wagons, each with a capacity of 60 tonnes. This year, in order to increase hauling capacity, Vale is buying 2 locomotives and 125 wagons. RIO CORDOBA PORT PROCESS: Receiving Area of coal from the El Hatillo mine (railway and trucks). Stockpiles: Coal stocking in two 420m long by 15m height stockpiles. Each stockpile has a stocking capacity of 140kt to provide a total of 280kt. Shipping: 1,500t barges are loaded at the dock, then the coal is transported to a deep enough zone to load ships with a capacity of up to 150kt. Marine equipment: 4 1,500 t barges, 1 1,200t barge, and 2 3,000t barges (currently being acquired). 1 Tugboat 30 days availability and 1,000 HP, 1 Tugboat for every shipment with 2,000 HP, 1 Crane with 30 days availability and 12,000-tonne daily loading capacity. CERROLARGO SUR PROSPECT: Located in the Municipality of La Jagua de Ibirico, department of Cesar. This prospect has a potential of 500 million tonnes and is under exploration. OTHER PROSPECTS: The company has 57 outstanding mining concession applications, particularly for thermal coal and also for iron ore and copper.

INVESTMENTS: Investments in excess of US$ 1.5 billion are estimated, in order to reach a projected production in the order of 15 million tonnes in the period.


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5.7. Grupo EBX Contact: José Saade Position: General Manager, MPX Colombia S.A. Address: Av. Carrera 9 # 113-52, Of. 1803 Phone: (571) 592 22 77 City: Bogotá, D. C. E-Mail: [email protected] Url: http://www.ebx.com.br/grupoebx.php

CORPORATE PROFILE: The Brazilian Group EBX began its gold and iron mining activities during the decade of the 80s. Over the last few years, it has focused its efforts on the identification of investment opportunities in the infrastructure and natural resource sectors: MMX (minerals), MPX (energy), LLX (logistics), OGX (hydrocarbons) and OSX (oil services).

MPX Energía S. A. (BOVESPA: MPXE3), is a company that is listed in the Sao Paulo, Brazil stock market.

AFFILIATE IN COLOMBIA: MPX Colombia S.A.

THERMAL COAL PROJECT IN LA GUAJIRA: The company has 68,000 hectares (168,000 acres) that are included in the Cerrejón Formation in the municipalities of San Juan, Fonseca and El Morro, department of La Guajira, south of the Cerrejón Complex, where three areas have been identified where thermal coal exploitation activities will commence as of 2012, with the goal of attaining 15 million tonnes (Mt) per annum in 2021, in three open pit mines (Cañaverales, Papayal and San Benito) and one underground mine (San Juan). In March 2010, the company announced resources in the amount of 1,740 Mt and reserves of 55.8 Mt. Estimated investments for these mining developments through 2021 shall be US$ 962 million.

COAL PORT PROJECT: Future production in the coal project in La Guajira shall be transported initially by truck along approximately 150 km to our own port on the Caribbean Sea at the Municipality of Dibulla, department of La Guajira, which shall have a capacity of 20 Mt per annum as of 2013. Until then, piers in the cities of Santa Marta and Ciénaga (Magdalena) will be used. Estimated investments for the port shall amount to US$ 400 million.

RAILROAD PROJECT: 3 alternatives are under study for the route for a railroad that is to operate as of 2016, with a transport capacity of 20 Mt per year. Investments are estimated at US$ 400 million.

CESAR PROSPECT: The Company is exploring for coal in 13,000 hectares (32,000 acres) in the municipalities of El Paso and Codazzi in the department of Cesar.


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LA BODEGA PROSPECT: Following the acquisition of 17.5% of Canadian exploration company Ventana Gold (TSX:VEN), EBX obtained participation through its AUX company in the exploration projects at the La Bodega prospect, particularly at the site known as La Mascota, considered by international experts as being world class.

The prospect, which includes the La Bodega, Coloro and El Cuatro properties, is located in the municipalities of Vetas and California, department of Santander. It spans 863 hectares (2,100 acres), where close to 64,000 meters have been drilled, finding assay values of up to 7.8 g/t.

Ventana Gold considers that the La Bodega prospect will reach an annual production of 500,000 ounces of gold, with extraction costs of US$ 295 per ounce.

VETAS-CALIFORNIA PROSPECT: This project, also belonging to Ventana Gold (TSX:VEN), has 3,710 hectares (9,200 acres), located in the municipalities of Vetas and California in the department of Santander.

The prospect is located in the Santander mountain mass on the Eastern mountain range, with outcrops of rocks of the Bucaramanga Formation (Precambrian).

OTHER PROSPECTS: The Company has 22 mining titles and 31 mining concession applications distributed throughout the country.

INVESTMENTS: In summary, for coal developments, the company estimates that, between 2010 and 2015, it will be investing US$ 376 million in mine exploitation and US$ 617 million in railroad and port infrastructure. Subsequently, between 2016 and 2020, it shall invest US$ 856 million more, reaching US$ 1.85 billion.

Investments in the country for gold shall be approximately US$ 35 million initially and could reach US$ 400 million during the period through the year 2020.


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5.8. Carbones San Fernando Contact: Jorge E. Buitrago Position: Mining Manager Address: Av. 6 Norte No. 47N-32 Phone: (572) 6652400 ext. 110 City: Cali, Colombia E-Mail: [email protected] CORPORATE PROFILE: Carbones San Fernando (CSF) is an affiliate of Genercauca S.A. ESP, an energy generation and marketing company throughout the Colombian territory. CSF was founded in 1961 and since then, has been dedicated to the underground exploitation of coal in the Municipality of Amagá, Antioquia. In the last 5 years, CSF has also developed mines in Jamundí, Valle del Cauca and in Cucunubá in Cundinamarca, and in 2009 produced close to 300,000 tonnes of coal. SAN JOAQUIN PROJECT: In 2007, the company started the exploitation of this project in Amagá, which consists of semi-mechanized underground mining in long pits, with production at present of 1,000 tones/day and a forecast of 2,500 tonnes/day by the end of 2011. INVESTMENTS: With the purpose of completing the mechanization of this mine, CSF plans a US$ 10 million investment for coal production.


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5.9. Carbones del Norte del Cesar – Norcarbón S. A. Contact: Hugo Tamayo Position: Manager Address: Carrera 28 # 134A-11 Phone: (574) 3135258 City: Bogotá, D. C. E-Mail: [email protected] URL: http://norcarbon.com.co (under construction)

CORPORATE PROFILE: Norcarbón is a company created with Colombian capital (Atlantic Coal and Geominas S. A.)

CERROLARGO NORTE MINE: During 2009, the company extracted 306,000 tonnes of thermal coal at this mine, located in the Municipality of La Jagua de Ibirico, department of Cesar. The project comprises two open pit exploitation areas, known as Cerro Largo Norte, with a maximum production of 96,000 tonnes per year, and Cerro Largo South, with 288,000 tonnes per year.

Exploitation is performed with open pit and underground mining. The operation is performed through mining operator companies under the company’s supervision and control.

Based on the limits established for open pit exploitation, there are reserves to be exploited in the order of 8.2 Mt with an average 7.7:1 stripping ratio, which will be exploited over the next 5 years.

During 2009, production capacity was 600,000 tonnes per year. It is expected to reach 800,000 tonnes in 2011 and shall stabilize as of 2012 at 1 million tonnes.

INVESTMENTS: No information.


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5.10. Minera El Roble –Miner S. A. Contact: Jorge Vera Position: Manager Address: Carrera 43A 1ª Sur-69 Of. 701 Tempo Building Phone: (574) 266 08 11 City: Medellín, Antioquia E-Mail: [email protected]

CORPORATE PROFILE: The Mina El Roble S.A. company is a national company, whose main activity is to obtain copper concentrates.

EL ROBLE MINE: This mine, owned by the Minera El Roble S. A. Company, is the only mine that produces significant copper volumes in Colombia. It is located 4 km north of the Municipality of Carmen de Atrato in the department of Chocó, where the mineralization consists of pyrite, yellow copper ore and pyrrhotite in quartz and carbonate veins.

Production at El Roble began in 1990, when the reserves were calculated at 1 Mt with average tenors of 4.41% of copper, 3.11 g/t of gold and 9.81 g/t of silver. At the time, the mine had a 14 kt/year production of concentrate, with 24% average copper content. The average annual production at this mine is 8 kt of copper concentrate.

Exploitation of the copper mineral that is carried out by the “Mina El Roble S.A.” company is performed in an underground manner, using the method of sinking blocks, achieving a 90% recovery of the deposit. The mine is scheduled to produce 96 tonnes of copper mineral per year, for which purpose it has compressors, drills, loaders, a locomotive, tipping skips, a bulldozer and a truck equipped with a crane. For beneficiation, crushers are used, as well as a ball mill, vibrating sieves, a flotation battery, concentrate condensers, drum filters and conveyor belts.

Close to 50% of production corresponds to gold and platinum and the 50% balance to copper.

INVESTMENTS: No information


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5.11. Carbones de Los Andes –Carboandes S. A. Contact: María Victoria Saade Position: Manager Address: Av. Calle 127 # 16A-76, Of. 403 - 404 Phone: (571) 627 93 46 City: Bogotá, D. C E-Mail: informació[email protected] Url: http://www.carboandes.com.co/portal/

CORPORATE PROFILE: Carboandes is a Colombian company involved in the productive chain of exploration, production and marketing of coal and other minerals.

RONDÓN PROJECT: This project is located in the Municipality of Rondón in the department of Boyacá and will have a portion of its coal exploitation as an open pit mine and another portion underground. At present, it is requesting the environmental license for the construction of this mine, in which US$ 3.4 million have been invested in the exploration process.

Aside from indicating that there are large reserves, the company has not made the project technical or financial information for the public.

OTHER PROJECTS: The Company has the Santa Lucía and Simácota projects, considered to have great strategic importance. However, the company does not offer information for commercial reasons.



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5.12. Greystar Resources Ltd. Sucursal Colombia Contact: Frederick Felder Position: Executive Vicepresident Address: Carrera 27 No. 36-14 Of 601 City: Bucaramanga, Santander Phone: (+577) 6347778 E-mail: [email protected] Url: www.greystar.com.co Current Development Project: ANGOSTURA GOLD PROJECT. Stage of development: Feasibility Study. The preliminary Feasibility Study was developed by GRD Minproc Limited, an Australian engineering and development company. Website: www.minproc.com Greystar´s wholly owned Angostura gold and silver deposit is located in the northeastern region of Colombia, some 450 km to the north of the capital city of Bogotá, and approximately 67 km northeast of the city of Bucaramanga. The Angostura deposit is a typical high sulphidation gold/silver deposit. Greystar is a Toronto Stock Exchange listed Canadian public company. Development is due to commence immediately on approval of the Environmental Impact Study with construction of production facilities scheduled to start-up in the first quarter of 2011. The construction phase is estimated in two and a half years, and the initial investment will be of around 640 million dollars. The total capital cost for the project is estimated in 945 million dollars. Angostura mining is an open pit operation. Mineral processing and plant design: The processing facility proposed for the Angostura gold project has been designed to include both heap leaching and flotation processes. The initial start-up (year 3) would entail processing of oxides, transitional and low sulphide material by heap leaching. In year 5, the operation would also start producing sulphide float concentrates and high sulphur mineralization for sale to third parties, from higher grade sulphide ore by milling and flotation process. The pregnant leach solutions (PLS) will be treated in a Merrill Crowe process plant for metal production. Smelting will take place in an electric induction, tilting crucible furnace to produce Dore. The following timeframe was devised, in order to establish the overall development of the project and key targets.


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Year 1: Phase 0. Platform for crushing and milling facilities. Year 2: Preproduction phase 1. Construction and assembling of crushing plant. Year 3: Heap leaching process start-up. Year 5: Milling and flotation process start-up. Services, plant and equipment requirements The main surface mining equipment required for period 2011 to 2020 is as follows: 5 hydraulic shovels 29 yd3 capacity, 1 wheel loader 23 yd3 capacity, 41 trucks of 185 tons capacity, 6 bulldozers of 550 HP, 3 wheel dozers of 500 HP, 3 motor graders of 280 HP, 3 water trucks with 30,000 gallons tanks, 1 backhoe with a bucket capacity of 1 m3 and 6 rotary drilling equipment, crawler-mounted, with a pull down capacity of 45,000 pounds. Plants and ancillary facilities: Belt conveyors, crushing and milling facilities, heap leach pads, tanks, piping, valves, submersible pumps, tailings dam construction, Merril Crowe refinery plant, power supply, water supply, water diversion channels, water treatment plant, access and service roads, communication systems, control systems, fire protection systems, truck workshop, storage and handling of concentrates facilities at port site, and mine camp and administration facilities.


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5.13. Anglogold Ashanti Contact: Ramiro Santa Position: Corporative Affairs Vice-president Address: Calle 116 # 7-15 Piso 8. Phone: (571) 657 91 00 City: Bogotá E-mail: [email protected] Url: http://www.anglogoldashanticolombia.com/

CORPORATE PROFILE: A private South African gold mining affiliate of Paulson & Co., whose main listing is in the Johannesburg Stock Market, and is also listed in the Stock Markets in New York, London, Australia, Ghana, Euronext París and Euronext Brussels. Among its properties in Latin America, there is the gold and silver Cerro Vanguardia mine in Argentina, and the Morro Velho and Serra Grande mines in Brazil.

Since 2003, when it established itself in Colombia, the company and its associates have invested over US$ 140 million in greenfield type exploration. Since 2004, the systematic base exploration program in the country included the exploration with systematic sampling of active sediments, prospecting, and, in certain areas, air- transported geophysics in 112,000 square kilometres (km2) of the 113,000 square km2 that had previously been applied for. This work concluded with the return of 104,000 km2, 423 active mining concession contracts (8,250 km2), in which the forecast is the objective definition through pre-feasibility studies, 42 drilling targets, and two projects with a relevant importance: La Colosa (100% AngloGold) and Gramalote (49% AngloGold).

These prospects are operated directly by the company and with joint venture shared risk contracts with B2Gold, Mineros S. A., Mega Uranium and Glencore.

AFFILIATE IN COLOMBIA: AngloGold Ashanti Colombia S.A.

LA COLOSA PROJECT: This is a greenfield type project discovered by AngloGold Ashanti in 2006, that is located in the Municipality of Cajamarca in the department of Tolima and is 100% AngloGold. AngloGold Ashanti has forecast the entry into operation of this project for 2014, with 31 t annually, and its stabilization in 2017, at 25,5 t annually.

Based on the drilling performed and the modeling of the resources, it is considered that this is a gold-bearing porphyry system, with tenors exceeding 0.3 g/t and inferred resources in the amount of 12.3 million ounces.

The low copper content gold-bearing porphyry system at La Colosa is genetically associated with intrusive porphyritics that intrude Paleozoic schists. The mineralizations with the highest assays are associated with a group of porphyric intrusions and gaps, with sodium – calcium alterations, 5% pyrite and traces of yellow copper ore and molybdenite.


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GRAMALOTE PROJECT: This property is located in the Municipality of San Roque in Antioquia. Through a shared risk joint venture contract with B2Gold (51% B2Gold – 49% AngloGold Ashanti), in which B2Gold is the operator and performed the exploration of the area during 2009 by means of a drilling program.

The inferred gold-bearing resources are estimated at 74,375 million tonnes, with tenors of 1 g/t, for a total of 2.39 million ounces of gold (NI 43-101).

The property is contained within the medium grain tonalites and granodiorites in the Cretaceous Era batholith in Antioquia, and has had traditional artisan mining since pre-Columbian times. In 2008, the company completed a total of 30,189 m drilled with 90 diamond drilling bores that were added to the 12,312 m previously drilled by AngloGold in 2007.

The mineralization consists of an intrusive with stockwork and structurally controlled quartz and quartz pyrite veins.

QUEBRADONA PROJECT: The property, located in the Municipality of Jericó in the department of Antioquia, contains five gold-bearing porphyry systems. In 2008, B2Gold, the operator of the exploration, completed a 43 borehole drilling program with a total of 13,318 m in the areas of Aurora, Isabella, La Sola, Chaquiro and Tenedor.

The area is explored under a shared risk joint venture contract (B2Gold 51% - AngloGold 49%). AngloGold has a future option to increase its share to 51% or 65%.

OTHER PROSPECTS: The company has 649 mining titles, of which 245 were granted during 2009, and 2,702 applications for mining concessions.

INVESTMENTS: For the opening of the La Colosa mine, it is estimated that a US$ 2.0 billion investment will be required for the exploration phase, and US$ 2.5 billion additional investment to start up the mine.


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5.14. B2Gold Corp. Contact: Julián Villarruel Position: Corporate Affairs Director Address: Calle 113 No. 7-21 Office 1001 Tower A Phone: (571) 638 61 68 City: Bogotá, D. C. E-Mail: [email protected] Url: http://www.b2gold.com

CORPORATE PROFILE: B2Gold Corp. (TSX-BTO) is a company with headquarters in Vancouver, with two mines in Nicaragua and a strong portfolio of development and exploration objectives in Nicaragua, Colombia, Costa Rica and Eastern Russia.

B2Gold was founded as a private company in 2007 by the former administrative team of Bema Gold Corp., which grew from junior explorer to become an international producer and finally, was acquired by Kinross Gold Corp.

AFFILIATE IN COLOMBIA: Andean Avasca S. A.

QUEBRADONA PROJECT: The property, located in the Municipality of Jericó, department of Antioquia, contains five gold-bearing porphyry systems. In 2008, the company completed a 43 bore drilling program with a total of 13,318 m in the areas of Aurora, Isabella, La Sola, Chaquiro and Tenedor.

The area is explored under a shared risk joint venture contract (B2Gold 51% - AngloGold 49%).

GRAMALOTE PROJECT: This property is located in the Municipality of San Roque in Antioquia. Under a shared risk contract with AngloGold Ashanti (51% B2Gold – 49% AngloGold Ashanti), in which B2Gold, as the operator, performed the exploration of the area during 2009 through a drilling program. The company expects to commence production in 2014 with an annual extraction of 150 ounces of gold.

The inferred gold-bearing resources are estimated at 74,375 million tonnes with tenors of 1 g/t, for a total of 2.39 million ounces of gold (NI 43-101).

The property is contained within the medium grain tonalites and granodiorites in the Cretaceous Era batholith in Antioquia, and has had traditional artisan mining since pre-Columbian times. In 2008, the company completed a total of 30,189 m drilled in 90 diamond drilling bores, in addition to the 12,312 m that had previously been drilled by AngloGold in 2007.


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The mineralization consists of an intrusive with stockwork and structurally controlled quartz and quartz pyrite veins.

MOCOA PROJECT: B2Gold acquired 100% of the interests in this area, located in the department of Putumayo in the south of the country, which comprises the molybdenum and copper porphyry, from AngloGold Ashanti.

The United Nations and INGEOMINAS had performed a drilling program in the property (18,321 m) during the decade of the 70s and the 80s, indicating resources in the amount of 306 million tonnes, with 0.37% Cu and 0.061% Mo. These values were confirmed with the results of the drilling performed by the company during 2008.

INVESTMENTS: The Company hopes to have the Gramalote mine in operation in 2014, requiring an investment that is close to US$ 200 million. The company expects to invest close to US$ 20 million in the Mocoa project during the exploration phase.


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5.15. Continental Gold Ltd. Contact: Eduardo Otoya Position: General Manager Address: Calle 7 # 39-215 Phone: (57 4) 312 1026 City: Medellin Email: [email protected] Url: www.continentalgold.com CORPORATE PROFILE: Continental Gold is focused on gold exploration in Colombia. SUBSIDIARY IN COLOMBIA: CG de Colombia Ltda. BURITICÁ PROJECT: This is an advanced stage Project at the resource definition drilling stage. The project has 18,000 hectares in Antioquia to the northwest of Medellín in an area with excellent infrastructure and is a high-grade vein system related to a porphyry system. We have already drilled more than 17,000 meters and the budget for 2010 includes 22,000 meters more. BERLÍN PROJECT: This Project has 27,000 hectares and is located 100 km to the north of Medellín. It contains a system of wide mesothermal veins more than 10 km long. This project is at the first drilling phase and the company will drill at least 4,000 meters in 2010. OTHER PROJECTS: The Company has other projects in the department of Antioquia, such as Lunareja and Frontino, as well as the Santander project in Norte de Santander.


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5.16. Grupo de Bullet S. A. Inversiones Mineras Contact: Miller O´prey Position: Manager Address: Carrera 32 # 12A-11 Phone: (574) 354 24 44 City: Medellín, Antioquia E-Mail: [email protected] Url: http://www.gdebullet.com/

http://www.cgcolombia.com/

CORPORATE PROFILE: The Grupo de Bullet S. A. has been focused on the search of precious minerals in Colombia for over 30 years now.On the other hand, Continental Gold Corp. is a company with headquarters in Bermuda, which is associated with the de Bullet Group and that has seven properties in Colombia that add up to close to 100,000 hectares, including the Buriticá gold mine and two joint venture companies with AngloGold Ashanti in Santander, in the vicinity of La Bodega (Ventana Gold) and Angostura (Greystar Resources).

In October 2009, the company acquired control of Canadian company Cronus Resources Ltd. (TSX-V; CZR), with which it shall gain access to the Toronto Stock Market.

JOINT VENTURE PROJECTS: Other properties in the portfolio include to joint venture agreements with AngloGold Ashanti, known as Santander, which add up to 5,000 hectares in the vicinity of the La Bodega (Ventana Gold) and Angostura (Greystar Resources) projects.

OTHER PROSPECTS: The Bullet Group has nine gold mining prospects that that are being applied for at present.

INVESTMENTS: The Company estimates that it will be investing over US$ 100 million in the next few years in its various projects.


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5.17. Cosigo Resources. Contact: Andrés Rendle Position: Exploration Vice president City: Vancouver, Canada E-mail: [email protected]�Url: http://www.cosigoresources.com Contact: Diego Andrés Ramírez G.��Position: Legal Representative for Colombia�POB Box: 246010��Phone: (571) 2856199��City: Bogota E-mail: [email protected]�

CORPORATE PROFILE: Canadian junior organization that arose as the result of the union of the efforts of small miners, has Colombian participation, and is headquartered in Vancouver. The company is dedicated to the exploration of minerals under the focus on best practices in environmental, ethical and social aspects.�

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AFFILIATES IN COLOMBIA: Cosigo Resources Inc. and Cosigo Frontier Mining Corporation%�

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TARAIRA PROJECT: Exploration in an area with 9,973 hectares plus 900 m2, located in the jurisdiction of the Municipality of Taraira in the department of Vaupés, in the area of State investment known as Taraira, by means of the mining concession system established by Law 685 issued in 2001.�

The project is suspended and, since May 2008, procedures are being carried out before the Ministry of the Environment to extract it from the forestry reserve.�

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OTHER PROJECTS: The Company has three (3) mining titles. These titles are distributed as follows: one (1) title for gold in the Valle del Cauca and two (2) titles for gold in Vaupés.�

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INVESTMENTS: These have not yet been defined by the company.�


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5.18. Goldman Sachs Group Contact: Juan Carlos Gómez Position: Colombian Natural Resources Manager Address: Calle 113 # 7-80, 12th Floor Phone: (571) 658 50 50 City: Bogotá, D. C. Url: http://www2.goldmansachs.com/

CORPORATE PROFILE: Goldman Sachs JBWere is a financial services organization that offers a wide range of consulting services in investments, consulting, financing, safety, and project execution for a diversified group of clients, which includes corporation, financial institutions, governments and individual investment banking entities.

AFFILIATE IN COLOMBIA: Colombian Natural Resources I is the owner of La Francia and Colombian Natural Resources II owns La Francia II.

LA FRANCIA I MINE: In January 2010, the company closed the acquisition of the La Francia mine (also known as La Francia A/B), which was owned by CoalCorp Inc., who received US$ 100 million, and the La Francia II mine, which was owned by Adromi Capital, who received US$ 51 million.

In the purchase, Colombian Natural Resources I remained as the operator, agreeing to deliver a supply of 2.4 Mt per year to the new owner, under a contract worth US$ 50 million.

CoalCorp’s projects before the sale were to lead the La Francia production to six million tonnes; however, due to C. I. Prodeco S. A.’s announcement not to continue with the contract to transport its coal to Puerto Zúñiga in Santa Marta, and on account of the fact that the transaction is so recent, the new owner’s projections are not yet known.

The open pit La Francia coal mine is located in the Municipality of La Loma, department of Cesar. It has been operated since 2004 by Compañía Carbones del Cesar (a subsidiary of CoalCorp Inc.). At present, it has a 2.4 Mt per annum production capacity.

The coal is transported in trucks, a distance of about 200 km to the ports of Santa Marta and Barranquilla, or is sold at mine mouth.

The mine is in the Tertiary age Cesar – Ranchería basin, where all of the coal mines of Cesar and La Guajira (including the Cerrejón Complex) are found. The coal is contained in the Los Cuervos (Paleocene) Formation, which, in turn, is divided into the High, Medium and Low members, the Medium member being the


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bearer, which comprises a sequence of arcillites, siltstones and sandstones and up to 60 coal seams.

Based on technical report NI 43-1016 dated 2005, the quality of the coal indicates 5.15% ash, 11,456 BTU/lb and 0.67 sulfur content. The moisture content is generally high, and can be affected during rainy seasons, with the consequent reduction in calorific value.

LA FRANCIA II MINE: Also known as La Francia C/D, this mine is located in the Municipality of El Paso, department of Cesar. As in the case of the mine above, its coal is found in the Middle member of the Los Cuervos Foundation of the Paleocene Age. The seams that are present in the area exhibit continuity greater than 3.6 km, with dips of 22º to 33º towards the Southeast. Two seams with an average two-metre thickness are the ones that show the greatest mining potential in the area and are the ones that are being exploited at present in the La Francia I (A/B) mine7.

Structurally, the basin consists of a series synclines and anticlines in a Northeast – Southeast direction, which are intercepted by normal and inverse faults (El Hatillo and Descanso), as a result of post-depositational tectonic activity.

INVESTMENTS: Neither this company nor its operator has reported about forecast investments.

��6 SRK CONSULTING, 2007. Pre-feasibility study; Compañía Carbones del Cesar, La Francia mine. 90 pages. http://www.coalcorp.ca/common/uploads/1172027994-La%20Francia%20001_brig_Final.pdf 7 MARSTON & MARSTON INC. 2007. Technical report on the La Francia pit C/D. Colombia, South America. 125 pages. http://www.coalcorp.ca/common/uploads/1195001222-1_Final_LaFrancia_TechRpt_111207.pdf


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5.19. Coalcorp Mining Inc. Contact: Oscar Torres. Address: Calle 113 # 7-80 Piso 12 Phone: (571) 658 50 50 Ciudad: Bogotá, D. C. E-Mail: [email protected] Url: http://www.coalcorp.ca

CORPORATE PROFILE: CoalCorp Mining Inc. (TSX:CCJ) is a company with interests in mining exploration and development in Colombia, where it also has an 8% interest in the Ferrocarriles del Norte de Colombia (Fenoco) railroad.

After having sold off the La Francia I and La Francia II mines, the company is only left with its participation in the La Caypa mine as a mining asset in Colombia.

AFFILIATE IN COLOMBIA: Carbones Colombianos del Cerrejón S. A.

LA CAYPA MINE: This mine (60% CoalCorp, 40% Xira Investments Inc.) is located in the Municipality of Patilla, in the department of La Guajira, and has been in production since 1993. As of 1996, the mine has been operated by Carbones Colombianos del Cerrejón. The coal that is extracted, classified as highly volatile bituminous Type B and C, is transported 250 km by truck to the Carbosan port in Santa Marta.

The project developed to date, and its future expansion, comprises an open pit coal mining exploitation system in multiple pits, using the shovel – truck method, which refers to the equipment used in the extraction, loading and transport tasks for over- and inter-burden and coal.

The coal is contained in the Cerrejón Formation, which comprises an alternating sequence of sandstones, siltstones and coal, from the Triassic to Paleocene Age, with a thickness of approximately 900 m. According to a report issued by SKR Consulting (2005)8, proven reserves reach 8.8 Mt, which are prone to being increased with drilling programs.

The company, which during 2009 reached a production of 1.78 Mt, also has an 8.4% interest in the Ferrocarriles del Norte de Colombia – Fenoco railroad for coal transport.


��8 SRK CONSULTING INC. 2005. Pre-feasibility study: Carbones Colombianos del Cerrejon Mine. 52 pages. http://www.coalcorp.ca/common/uploads/1132952097-pre_feasibility_study_Cerrejon_mine.pdf


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5.20. Galway Resources Ltd. Contact: Alfonso Gómez Position: Administrative Director Address: Carrera 14 No 93 B- 29 of. 205 y 206 Phone: (571) 6225863 City: Bogotá, D. C. E-Mail: [email protected] Url: www.galwayresources.com

CORPORATE PROFILE: Galway Resources Ltd. (TSX-V:GWY) is focused on gold and coal exploration in Colombia.

SUBSIDIARY iN COLOMBIA: Galway Resources Holdco Ltda.

GALCA PROJECT: This coal project comprises 77 mining concessions that cover a total of 32,000 hectares (79,073 acres), located between the municipalities of Aguachica and San Alberto in the department of Cesar, selected on the basis of seismic logs and geological studies derived from drilling for oil. The project has a favorable infrastructure, given that the Fenoco railroad concession goes through the areas, and both the Magdalena River and the national highway to the Caribbean coast and its ports go by the Western border of the project property.

The project development is carried out through a joint venture contract with Prodeco (a Colombian subsidiary of Xstrata), which has commenced with an initial program with 19 drillings, concentrated in two areas in the northernmost and southern border of the property, which are considered as the areas with the largest surface coal potential.

CALIFORNIA PROJECT: Galway has obtained mining titles over 335.6 hectares (829 acres) in the gold-bearing district in the Municipality of California, department of Santander. The properties are located 1.5 km to the Southeast of the Ventana Gold La Bodega project and 3 km from the Greystar Resources Angostura project.

The company has announced the results of the sampling program for Phase I, where it took 1,500 samples, of which 952 were analyzed, and has completed the historical data. At present, the company is demarcating the drilling objectives.

The high degree of mineralization, exceeding 6 m of 63 g/t of gold, and 451 g/t of silver, was included in the sampling. The main sections of the area are: El Dorado, Machuca and Pié de Gallo.

OTHER PROJECTS: The Company has prospects in the department of Cundinamarca for the exploration of coking coal (30,360 acres) and for thermal coal in La Guajira (8,200 acres) and Cesar (6,980 acres).


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The company has 60 mining titles, 53 of which were granted during 2009, as well as 102 mining applications.

INVESTMENTS: For the Galca project feasibility studies, the company has announced a total initial investment in the amount of US$ 7.5 million.


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5.21. Medoro Resources Ltd. Contact: Linda Dorrington Position: Director, Investor Relations Address: Cra 11A No. 94-45. 8th Floor, North Wing. Phone: (57 1) 743 2140 ext 116. Mobile: 1 416 917 1664. City: Bogotá - Colombia E-mail: [email protected] URL: http://www.medororesources.com/

CORPORATE PROFILE: Medoro Resources Ltd. (TSX-V: MRS) is a mining project exploration and development company with an emphasis on Colombia and with headquarters in Toronto, aimed towards the acquisition of interesting gold-bearing properties, to develop them. Moreover, the company has properties in Venezuela and other areas in South America.

AFFILIATE IN COLOMBIA: Medoro Resources Colombia Inc.

MARMATO MINING DISTRICT PROJECT: According to the technical report, based on Standard 43-101, the Medoro mines possess measured and indicated resources in the amount of 7.49 million ounces of gold, based on 80,000 metres of diamond drillings performed in 379 different places with the necessary technical specifications with respect to cutting grades (0.3), which permits measuring and calculating the future production capacity of the mine, estimated at 250,000 ounces per year, in comparison with the 25,000 ounces extracted in 2009. The company estimates that it has 15 million ounces in gold resources.

ZONA ALTA PROJECT: Located in the upper area of the Municipality of Marmato, it was acquired from Colombia Goldfields Ltd. in October 2009. Technical report NI 43-101 was delivered the same month, giving an account of measured and estimated gold resources in the amount of 2.3 million ounces, contained in 88.2 million tonnes, with an average tenor of 0.82 g/t. Furthermore, estimated resources exceed one million ounces contained in 27.6 million tonnes, with an average tenor of 1.21 g/t.

The company has stated that it is ready to commence exploration and drilling activities in Zona Alta in order to continue with a program based on the results, which allows updating and expanding its gold resources in the region.

Medoro Resources has announced investments in the amount of US$ 100 million in the drilling phase.

ECHANDÍA MINE PROJECT: With the purchase of close to 100% of the shares of Colombia Gold plc., a private company with headquarters in the United Kingdom, Medoro has acquired the Echandía gold-bearing property adjacent to Zona Alta.


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Based on the aforementioned technical report, submitted in January 2010, the measured and indicated gold resources have been estimated at 1.08 million ounces (48.5 million tonnes with average tenors of 0.69 g/t) and inferred resources estimated at 0.274 million ounces of gold (10.6 million tonnes with an average tenor of 0.8 g/t).

ZONA BAJA PROJECT: As part of its consolidation in the region, Medoro has signed a letter of intent for the acquisition of all of the shares of Mineros Nacionales S. A., which possesses a mine and an ore concentration plant in the area known as Zona Baja in the Marmato mining district. This acquisition is to take place in mid-February 2010.

Zona Baja is located directly below Zona Alta and contains a gold mine that is in operation, with its ore concentration plant, which is producing close to 25,000 ounces of gold at present, according to Mineros Nacionales S. A. reports.

Technical report NI 43-101 has been commissioned by Medoro and its delivery is foreseen to take place during the first quarter of 2010.

FRONTINO GOLD MINES MINE: The acquisition by Medoro Resources of the Frontino Gold Mines underground exploitation mine located in the Northeastern Antioquia mining district in the Municipality of Segovia in the amount of approximately US$ 180 million was officially announced in February.

Based on the information provided during the press conference, the company estimates that, in order to adapt production to its needs, an investment of US$ 100 million will be necessary, distributed as follows: US$ 50 million in exploration, and US$ 50 million in adapting the mine to industrial safety and environmental protection standards. Moreover, investments in the range of US$ 600 to 700 million are foreseen during the next three years in order to increase production from 60,000 ounces to 400,000 ounces per year.

Estimated reserves are 250,000 ounces, but the company expects that the exploration activities will permit reporting a significant increase in this figure.

INVESTMENTS: The Company plans to invest US$ 100 million in the development of the Marmato mining district project. For the expansion of Frontino Gold Mines, an estimated US$ 700 million will be invested in the next three years.


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5.22. Colombian Mines Corp. Contact: Gloria Carrington Position: Manager Address: Cr.20 # 2SUR-240 Casa 121, San Sebastian del alameda Phone: (574) 3175673 City: Medellín, Antioquia E-Mail: [email protected] URL: http://www.colombianminescorp.com

CORPORATE PROFILE: Colombian Mines Corp. (TSX-V: CMJ), with headquarters in Vancouver, was incorporated in the Province of British Columbia – Canada in 2006, and in the same year, it merged with Corporación Minera de Colombia S.A. to assess, acquire and develop mining projects in Colombia.

AFFILIATE IN COLOMBIA: Corporación Minera de Colombia S. A.

ANORÍ PROJECT: In an area surrounding the Solferino project (Yamana Gold Corp.), in the municipalities of Anorí and Amalfi, in the Northeastern Antioquia mining district, the company has 2,535 hectares in which it has commenced an exploration process.

RÍO NEGRO PROSPECT: The reconnaissance samples report for this project, located in the Vetas – California mining district in the department of Santander, indicates values of 6.6 g/t of gold along 0.25 m of a structural lineal structure in a northeasterly direction. Another sample for the same structure indicated 3.2 g/t of gold along 0.45 m.

The mineralized structures run parallel to the La Mascota (Ventana Gold) and Angostura (Greystar Resources) deposits.

The company plans to develop sampling channels, geological maps and geochemical and geophysical studies, particularly in lesser exposed areas in the property.

YARUMALITO PROSPECT: Located in the Marmato mining district in the departments of Antioquia and Caldas.

Colombian Mines Corp. has an agreement for an option to acquire 100% of the 1,425 hectares that make up Yarumalito.

According to company reports, since its discovery in 1988, close to 13,000 ounces of gold have been produced in the property through small-scale mining.


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NUN-CISNEROS PROJECT: The project is located in the northeast of Antioquia into Antioquia batholith. It comprises three mining concessions covering 4491.5 hectares altogether. The area of interest is a mesothermal deposit with controlled mineralization by fractures.

CERRO DE COBRE PROJECT: Located near to the Guavio Hydroelectric Generation Plant in the department of Cundinamarca, this project is in the preliminary analysis stage for copper mineralizations contained in gapped carbonated sediments. At this time, soil samples are being taken.

EL DOVIO PROJECT: Consists of a concession application for 9,295 hectares located in the municipality of El Dovio in the Valle del Cauca.

The known mineralization is hosted in a Cañasgordas formation also hosts the VMS type deposit “El Roble” to the northeast. The historical exploration identified an area of mineralization between 2-15 meters thick that can have an extension in the direction of up to 1km. Recent sampling conducted by the company obtained values of 9.29 grams of gold per tonne (g7t Au), 54.3 grams of silver per ton (54.3 g7t Ag) and 10.25 Copper. Other examples of material previously collected in mine yielded values up to 25.33 g / t Au, 60.1g / t Ag and 12.8% Copper. The historical exploration indicates an ore body with average values of 4-5 g / t Au, 20 g / t Ag, 2% copper and 2% zinc.

The deposit of interest rate Besshi-VMS is similar to “El Roble”, along with a mineral source area preserved. The company plans to rehabilitate the tunnels and make soil sampling to define the perforation zones.

VENECIA PROJECT: The Venecia Project consists of 2,600 hectares located south of the department of Antioquia near the municipality of Venecia. The property is adjacent to the porphyry gold-copper La Mina. The geology of the project consists of metamorphosed rocks of the volcano-sedimentary formation Cañasgordas north of the project while the southern and central areas are dominated by very young rocks of Tertiary age volcano-sedimentary formation Combia that have been intruded by stocks Eocene diorite. Recent work of the company has identified a large area not documented mineralized and altered outcrops.

The area of interest is porphyry copper-gold similar to La Mina in the vicinity of the project Yarumalito of the company. The company currently anticipates soil sampling and channel outcrops on the property.

OTHER PROSPECTS: The Company has 16 mining of which 14 were awarded during 2009 and 100 applications distributed across the country. INVESTMENTS: The Company’s investment for 2010 will be approximately USD$ 3,000,000.


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5.23. Anglo American Plc Contact: David Fincham Position: President Address: Carrera 13 # 94A-44, Of. 302 Phone: (571) 623 75 23 City: Bogotá, D. C. E-Mail: [email protected] ; [email protected] URL: http://www.angloamerican.co.uk/

CORPORATE PROFILE: A mining company with headquarters in London (LSE:AAL). Anglo American is one of the leading and most diversified producers of raw materials in the world. It produces platinum, diamonds (through a 45% share in the De Beers Group), coal, base metals (copper, zinc, nickel, etc.), and construction materials.

In Colombia, it owns 33% of the El Cerrejón mine, which is reported on separately in this report, and 100% of the Acandí project.

AFFILIATE IN COLOMBIA: Anglo American Exploración Colombia S. A.

ACANDÍ PROJECT: By means of a public tender held in August 2007, the company obtained the right to explore and exploit an area with 1,651 hectares (4,080 acres) located in the Municipality of Acandí, department of Chocó. On account of this award, the company shall pay the Colombian State Col$ 700 million for the use of the information, with a 2% additional consideration to the payment of royalties during the exploitation stage of the project.

OTHER PROSPECTS: The Company has 28 mining titles, of which 21 were awarded during 2009, plus 231 mining concession applications distributed throughout the country.

INVESTMENTS: No reports are available on the investment amounts because they require authorization from their headquarters to release them.


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5.24. Cordillera Exploraciones Contact : Hamyr González Position: Exploration Manager Address: Carrera 13 # 94ª-44 Of. 302 Phone: (571) 7455000 City: Bogotá, D. C. E-mail: [email protected]

CORPORATE PROFILE: is a subsidiary of Glencore International AG that is a private company that is owned by its managing directors and employees, with headquarters in Baar, Switzerland. The company operates in 50 countries through 60 offices and, in Latin America, has a presence in Colombia, Ecuador, Peru, Bolivia, Paraguay, Brazil, Uruguay, Argentina and Chile, Colombia being one of the most important countries for this multinational company’s operations.

This company is one of the world’s largest suppliers of a wide range of commodities and raw materials (metals, minerals and coal, crude oil and its derivatives, and agricultural products). Among its main clients are the automotive industry, power generation, steel production and mineral processing industries.

AFFILIATE IN COLOMBIA: Cordillera Exploraciones S. A.


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5.25. Inversiones Argos Contact: Agustín Rabat Position: Technical Center Manager Address: Carrera 7 # 71-21 Tower A, 5th Floor Phone: (571) 606 94 00 Ext. 1186 City: Bogotá, D. C. E-Mail: [email protected] Url: http://www.argoscom.co/wps/portal

CORPORATE PROFILE: Argos is the leader in the Colombian cement industry, with a 51% market share. It is the fourth cement producer in Latin America, with investments in Panama, Haiti and Dominican Republic. It is the sixth concrete producer in the United States and, furthermore, exports cement and clinker to 27 countries.

In Colombia, Argos is the largest transporter of land cargo. Within the expansion process and assurance or resources, Argos has is own electricity generation plants for its productive processes, which provide the company with a 250 MW installed capacity, thus controlling the availability and cost of this input.

PRODUCTION: In Colombia, the company has an annual 1.7 million cubic metre production capacity, with 40 production plants and 230 cement mixers for transport.

Moreover, Argos has eight aggregate (gravel and sand) plants, strategic inputs for the production of concrete, which add up to a capacity of 810 tonnes per hour and are distributed as follows: 1) Arroyo de Piedra plant in Barranquilla, department of Atlántico; 2) Sierra Vieja plant in Barranquilla, department of Atlántico; 3) Medellín – Bogotá Highway plant in Bello, department of Antioquia; 4) Vereda Cabildo plant in Girardota, department of Antioquia; 5) Cali Plant in Yumbo, department of Valle del Cauca; 6) Guayabetal plant in Guayabetal, department of Cundinamarca; 7) Tolú plant in Tolú, department of Sucre, and 8) Valledupar plant in Valledupar, department of Cesar.

INVESTMENTS: The company has proposed to the Shareholders Assembly the destination of US$ 400 million from the profits during 2009 for investment; however, no indication has been made on how much of this amount will be invested in mining expansion.


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5.26. Holcim Ltd. Contact: Victoria Eugenia Vargas Position: Corporate Affairs Director Address: Calle 113 # 7-45, Torre B, 12th Floor, Teleport Business Park Building Phone: (57-1) 6295558, ext. 2302 City: Bogotá, D. C E-Mail: [email protected] Url: http://www.holcim.com.co

CORPORATE PROFILE: Holcim (Colombia) S.A. is a company that belongs to the Swiss Holcim Group, leader in the worldwide cement industry and one of the main suppliers of cement, concrete and aggregates, in addition to all services related with construction. It has majority and minority interests in around 70 countries in all continents and a payroll of more than 90,000 employees around the world.

In Colombia, the company’s work is concentrated in the production and marketing of maximum quality cement and concrete and in the extraction and handling of alluvial and limestone materials (aggregates); specialized services in transport of materials and products through Transcem S.A.; and the service of ecological final disposal of industrial wastes through Eco-Procesamiento Ltda.

AFFILIATE IN COLOMBIA: Holcim Colombia S.A.

CHOCONTÁ AGGREGATE QUARRY: The Chocontá Plant is located at kilometer 65 on the Bogotá - Tunja highway (5 km away from Chocontá, Cundinamarca), Retiro de los Blancos district, aggregate quarry.

MANAS AGGREGATE QUARRY: Located in the city of Bogotá at the Av. Boyacá # 76-08 Sur.

Both plants have mining machinery for the processing of exploitation, crushing, classification and washing of alluvial and limestone materials. Moreover, both plants are certified with the ISO 9001:2000 Standard in the case of stone aggregates and with the ISO 14001 Standard for environmental care.

INVESTMENTS: No response.


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5.27. Ventana Gold Corp. Contact: Blanca Estella Frías Address: Carrera 27 # 36-14, Centro Empresarial Suramericana, Of. 312 Phone: (577) 634 30 80 City: Bucaramanga, Santander E-Mail: [email protected] Url: http://www.ventanagold.com

CORPORATE PROFILE: Ventana Gold Corp (TSX:VEN) is an exploration company specializing in precious minerals, with properties in Colombia and its headquarters in Vancouver.

AFFILIATE IN COLOMBIA: CVS Exploration Ltda.

LA BODEGA PROSPECT: After the acquisition of 17.5% of Ventana Gold, EBX obtained participation in the exploration projects at the La Bodega prospects, particularly in the location known as La Mascota, which is considered to be world class.

The prospect, which includes the La Bodega, Coloro and El Cuatro properties, is located in the municipalities of Vetas and California, department of Santander. It comprises 863 hectares (2,100 acres), where close to 64,000 metres have been drilled, finding assays as high as 7.8 g/t.

Four areas of interest have been discovered: La Bodega, considered to be an extension of Greystar Resources’ Angostura property; La Mascota, a high assay mineralization located southeast of the area; Las Mercedes, which is being drilled at present and is located South of La Mascota; and Aserradero, discovered in June 2009.

Ventana Gold considers that an annual production of 500,000 ounces of gold will be reached in the La Bodega prospect, with a cost of extraction of US$ 295 per ounce.

CAL-VETAS PROSPECT: This prospect has 3,710 hectares (9,200 acres), located in the municipalities of Vetas and California in the department of Santander. The results of the analyses of the active sediment samples encourage the drilling program that is being undertaken at present.

INVESTMENTS: The investments to open the operation are estimated at US$ 400 million.


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5.28. Votorantim Siderurgia Contact: Luis Parra Position: President Address: Calle 100 # 13-21, 6th Floor Phone: (571) 651 73 00 City: Bogotá, D. C. E-Mail: [email protected] Url: http://www.pazdelrio.com.co/

CORPORATE PROFILE: Votorantim Siderurgia belongs to the Votorantim Group, a privately held, closed capital company dedicated to the production of electrolytic nickel, zinc, and steel bars in Brazil. Furthermore, it is engaged in providing business administration services, economic feasibility studies for investments, manufacturing projects for mining and other industries, participation in other companies, import and exports in general, the sale of primary products, manufactured and semi-manufactured.

AFFILIATE IN COLOMBIA: Paz del Río S. A.

ACERÍAS PAZ DEL RÍO: Votorantim Siderurgia owns 72.67% of this company, founded 60 years ago and dedicated to the exploration, exploitation and transformation of iron ore, limestone and coal into steel products and its derivatives in iron and steel processes.

The productive process comprises four major stages: Mining, Primary Manufacture (sintering, coking and blast furnace), steel manufacture (converters and electric furnace) and lamination. Over the last 15 years, its production has been slightly above 300,000 tonnes/year. Despite variations in the price of fuels and other inputs, its availability and other factors that affect the plant’s production, these volumes have been quite stable.

The company expects to increase production from 380,000 tonnes to 700,000 tonnes of steel per year in 2012, for which reason the lamination mill trains need to be modernized, a regeneration room for the blast furnace will be built, the operation of the gantries for transport of pig iron will be improved, and differential milling will be implemented.

The iron deposits are of an oothic lithic nature, mainly lithic and principally hematite, and are characterized by various stratigraphic levels of the inferior and middle Tertiary Era. However, the economically exploitable deposits correspond to the Concentration Formation and their age is considered to be of the Middle Eocene – Oligocene era. The iron strata exhibit 4 m to 7 m thicknesses and are found interspersed in horizons of conglomerates, sandstones and clay.

• EL UVO MINE. Underground exploitation mine with an average annual production of 1,500 tonnes of iron.


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• EL UCHE MINE. Open pit exploitation mine with an average annual production of 1,200 tonnes of iron.

• LA CHAPA MINE. Underground exploitation mine that contributes close to 10% of the coking coal consumed. The rest of the coal is purchased from mines near the operation.

OTHER PROSPECTS: The Company has 233 mining titles, of which 194 were granted during 2009, as well as 476 applications for mining concessions.

INVESTMENTS: The Company has announced investments in the amount of US$ 30 million for the modernization of its iron and steel plant.


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5.29. Yamana Gold Contact: Franyo A. Zapata. Position: Exploration Manager – Colombia Address: Av. Cisternas 610. La Serena – Chile. Phone: (56-51) 220695 Anexo 200 Mobile: (56-9) 8 4192946 Chile. Mobile: (57) 3134953179 Colombia. E-mail: [email protected] URL: http://www.yamana.com/

CORPORATE PROFILE: Yamana Gold (TSX:YRI; NYSE:AUY; LSE:YAU) is a company specialized in exploration, with headquarters in Canada, with properties and exploration projects in Brazil, Argentina, Chile, Mexico and Colombia. Its objective is the consolidation of opportunities in gold-bearing properties in the Americas.

SOLFERINO PROJECT: The Company acquired from Colombian Mines Corporation, a mining concession and its associated small production mine known as Solferino, located in the Northeastern Antioquia mining district, in the Municipality of Anorí, department of Antioquia, in the center of Colombia. The Solferino mine was initially by the Compagnie Française de Segovia in 1880 and is still in operation, with a 10 tonne production per day, with tenors between 20 g/t to 40 g/t.

Prior and recent underground work has permitted the definition of a system with a 200 m length and a minimum 70 m vertical expression. The company has identified and sampled two main high-tenor quartz seams.

INVESTMENTS: Yamana has forecast a one million dollar investment for 2010 in a five thousand metre drilling program. The exploration program at Solferino shall be focused on determining the potential of the mineral resource.

The budget of this company for investments in Latin America beginning in 2010 is US$ 80 million.


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5.30. Miranda Gold Corp. Contact: Kenneth D. Cunningham Position: President & CEO Address: 5900Philoree Lane. Reno Nevada. USA 89511. Phone: 775 849 2347 Mobile: 775 560 2347 E-mail: [email protected] URL: http://www.mirandagold.com/s/Colombia.asp

CORPORATE PROFILE: Miranda Gold Corp. (TSX-V:MAD) is a Nevada exploration company that has an emphasis on gold. The following are among its previous partners: Barrick Gold Exploration Inc., Newmont Mining Inc., Newcrest Resources Inc. and Placer Dome Inc.

In December 2009, Miranda Gold Corp. announced an association agreement with Expo Gold Colombia S. A. (100% Red Eagle Mining Corp.), who contributed 45 mining titles in order to commence exploration projects in Colombia. In January 2010, ExpoGold was acquired by Red Eagle Mining Corp. The addition of projects in Colombia to the company’s portfolio is a strategic decision in keeping with the need to increase the value of the shares through the discovery of world class gold- bearing deposits in an unexplored jurisdiction.

AFFILIATE IN COLOMBIA: Expo Gold Colombia S. A.

PAVO REAL PROJECT: This project is located in the department of Tolima, 20 km away from the city of Ibagué and 45 km southeast of the AngloGold Ashanti La Colosa project.

INVESTMENTS: In January 2010, a joint venture was entered into with Red Eagle Mining Corp. in the amount of US$ 700,000 to commence exploration works in the area. Investments in the Pavo Real project beginning in 2010 will be one million dollars per year during four years.


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5.31. Orofino Gold Corp. Contact: John Martin Position: Manager Address: 1702 Chinachem Tower 34-37 Connaught Road Central Phone: +852 3106 3332 City: Hong Kong, China E-Mail: [email protected] URL: http://orofinogold.com/

CORPORATE PROFILE: Orofino Gold Corp. (OTC-PK:ORFG) is an international company specialized in the acquisition, exploration and development of gold- bearing properties in Mexico and Colombia.

SENDEROS DE ORO PROJECT: This project is located in the South of Bolívar and the company has publicly stated that, based on preliminary results obtained, this will be another success story, since it is in the vicinity of Ventana Gold, having similar structures, high tenors and disseminated surface deposits contained in intrusive rocks of the Mesozoic Era.

The company considers that it has inferred resources of four million ounces of gold in a 63-hectare area, and contained in a granodiorite with tenors of 0.22 g/t of gold.

INVESTMENTS: The Company has announced a US$ 10 million investment between 2010 and 2015, which shall be invested in the studies required for the feasibility of the project.


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5.32. Oroandes Resource Corp. Contact: Nick Daniel Position: External Relations Address: 910-510 Burrard Street Phone: 604.662.8186 City: Vancouver, Canadá E-Mail: [email protected] URL: http://oroandes.com/

CORPORATE PROFILE: In July 2008, Avalanche Minerals Ltd. changed its name to Oroandes Resource Corp. (TSX-V:OAR). This company, with headquarters in Toronto, has gold-bearing properties in Colombia and Ecuador.

AFFILIATE IN COLOMBIA: Avalanche Minerals Colombia S. A.

ALTO EL TORO PROJECT: Located in the Municipality of El Líbano, in the department of Tolima, this project has 3,606 hectares located on the Eastern flank of the Eastern mountain range.

The property has two small scale mines known as Líbano and Sirpe (El Gran Porvenir), which have been permitted to continue operating, with a maximum production of 80 and 50 tonnes per day, respectively. Both mines can be acquired in advance if OroAndes decides to accelerate the payments.

Traditional mining in the region has centered in quartz and sulfur veins associated with intrusive igneous events that affected the carbonated shales of the Cajamarca Complex, whose thickness ranges from 2.5 m to 4.5 m and extend 3.5 km inside of the property. Recent investigations have revealed other mineralizes veins that are close to each other.

The independent report prepared by SRK Exploration Services confirms the presence of epithermal characteristics and notes that the area may compromise an epithermal poly-metallic system of veins and seams.

INVESTMENTS: The report on investment amounts is not available.


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5.33. Bandera Gold Contact: Daniel Quartas Position: Project Director Address: Suite 6, 3908-97st Edmonton, Alberta Canada, T6E 6N2 Phone: 1-877-642-7622 E-Mail: [email protected] Url: http://www.banderagold.com

CORPORATE PROFILE: Bandera Gold Ltd. (TSX-V: BGL) is a Canadian exploration company with interests in North and South America. Bandera has 10 properties in the department of Antioquia where it has been operating since 2004.

AFFILIATE IN COLOMBIA: Nueva California S. A.

BELMIRA PROJECT: Located in the Municipality of Belmira, department of Antioquia, in an area with over 150 years of records in mining activity.

At present, it is in the process of assessing the information for the preparation of the NI 43-101 technical report; however, the company has reported the following results:

Geochemical and active sediment samplings show that gold-bearing mineralization is broadly distributed throughout the property. The potential for exploration has been estimated at one million tonnes, with which it is possible to plan a small underground exploitation. In accordance with the economic parameters and estimates performed, the mineral resources to be defined should count with tenors in the order of 10 g/t in order to be of economic interest. A 4,000 metre drilling program with 16 bores has been planned in the areas of Finlandia, Reventón and Buenaventura, with a cost of approximately US$ 1.2 million.

INVESTMENTS: The Company does not reveal the amount of its investments; it only indicates that, at present, its average costs are US$ 1.2 million per year.


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5.34. Bearing Gold Corp. Contact: Rafael Guillermo Silva Silva Position: Manager Address: Calle 49 # 28-10 Of. 401 Phone: (577) 578 24 93 City: Bucaramanga, Santander E-Mail: [email protected] Url: http://www.bearinggold.ca

CORPORATE PROFILE: Bearing Gold Corp. (CDNX:SRW) is a company with headquarters in Alberta, Virginia, dedicated to the exploration, evaluation and application for mining properties.

AFFILIATE IN COLOMBIA: El Dorado Minerals Associated Ltd.

CERRO PLATEADO PROJECT: 495 hectares located in the Municipality of Frontino, department of Antioquia, on the Western mountain range. There is traditional craft mining on the property. At present, the company is in the detailed sampling stage in order to define the most important areas. The company has planned bringing the project on stream in 2012, with an annual production of 0,8 t.

INVESTMENTS: Dorado Minerals Associated Ltd. has not reported the investments that it will make.


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5.35. Bellhaven Copper & Gold Contact: Nestor Darío Londoño Position: Manager Address: Carrera 48 # 44-20 Phone: (574) 862 79 20 City: Medellín, Antioquia E-mail: [email protected] Url: http://www.bellhavencg.com

CORPORATE PROFILE: the Bellhaven Copper & Gold Mining Company (TSX-V:BHV) possesses a well-diversified portfolio of securities, with several gold and copper projects in Panama. Four of the existing projects already have a resource (in general terms, in accordance with NI 43-101), which will be expanded rapidly with future drilling programs. At present, the focus is, on the one hand, on the Cerro Chorcha project, which exhibits a magnificent exploration potential. On the other hand, the company has acquired the Cerro Quema project, which it plans to put into production within the next two years.

In Colombia, the company has five mining concession applications and two contracts.

AFFILIATE IN COLOMBIA: Aurum Exploration Inc. Colombia

SOUTH OF BOLÍVAR PROJECT: The Jovo and Ventura prospects are located in the south of the department of Bolívar. In total, they comprise 6,400 hectares. At present, the gold is being produced from a precious metal mineralization in an epithermal system.

Preliminary sampling at the traditional artisan mines located in the areas has determined tenors of 102 g/t of gold and 633 g/t of silver.

SANTA MARÍA PROJECT: Located at the Municipality of Gómez Plata in the department of Antioquia, where the company forecasts a one million dollar investment in exploration and development.

INVESTMENTS: One million dollars are forecast for the Santa María project.


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5.36. El Zancudo Mining Contact: Ezequiel Jannus Position: Manager Phone: (574) 571 57 79 City: Envigado, Antioquia E-Mail: [email protected]; [email protected];

[email protected]

CORPORATE PROFILE: A private company whose objective is to acquire and develop properties with gold mineralizations in South and Central America. The company is dedicated to the exploration, development and production of alluvial and seam mines in Colombia and Panama.

In January 2010, the company was sold to a company – the name of which, as of now, has not been disclosed – that has, amongst its shareholders, members of the board of directors of Coal Corp., Medoro Resources and Pacific Rubiales Energy.

AFFILIATE IN COLOMBIA: Compañía Minera El Zancudo S. A.

EL ZANCUDO MINE: The El Zancudo mine is located in the Colombian Andean region, on the Western flank of the Central mountain chain, in the Municipality of Titiribí, department of Antioquia. Among the metallic minerals of greater interest, that are worth mentioning: arsenopyrite, pyrite, sphalerite, tetrahedrite, bournonite, galena, gold and silver.

EL EJE MINE: This artisan mine is located in the Municipality of Barranco de Loba, department of Bolívar. It is contained within a 35-hectare mining concession. The economic potential of the deposits include meso-epithermal veins and stockworks of veins, in addition to alluvial gold.

LA PRIMERA PROJECT: is located Northeast of the Municipality of Titiribí, department of Antioquia. It consists of two adjacent mining concessions that cover an area of 62.35 hectares and 53.07 hectares, respectively. The placer deposits of the project include both alluvial and coluvial types.

INVESTMENTS: The Company is in the process of assessing the expansion of the project, reason for which it still does not have investment cost estimates.


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5.37. Cadan Resources Corp. Contact: Pedro Morán Address: Suite 1720 – 1111 West Georgia Street Vancouver, BC V6E 4M3 Phone: (604) 687-0760 E-mail: [email protected] Url: http://www.cadanresources.com CORPORATE PROFILE: Cadan Resources Corp. (TSX-V:CXD), formerly known as Sur American Gold, is a gold and copper exploration company with interests in the Philippines and in Colombia, where it has been since 1995. AFFILIATE IN COLOMBIA: Exploradora La Esperanza S.A. MINA RICA PROJECT: Located in the Municipality of Quinchía, department of Risaralda. It consists of an epithermal auroargentiferous deposit that is under exploration. GAVIA PROJECT: Located in the Municipality of Riosucio, department of Caldas. It consists of an epithermal auroargentiferous deposit that is under exploration. INVESTMENTS: No reports on future investments are available.


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5.38. Gemini Exploration Contact: Juan Fernando Restrepo Position: Manager Address: Carrera 48 # 12 sur - 148, Of. 301 Phone: (574) 313 98 11 City: Medellín, Antioquia Url: http://www.geminiexploration.com

CORPORATE PROFILE: Gemini Exploration (OTCBB:GXPI) is a mining exploration company that carries out its operations in Colombia, where it has two properties at present.

AFFILIATE IN COLOMBIA: Minera Primecap Geological Services S.A.

LA PLANADA PROJECT: This project, 100% Gemini, is located in the Municipality of Sotomayor (Los Andes), department of Nariño, in an area that has been recognized historically for the presence of high-tenor gold veins and where traditional mining has existed.

The project foresees undertaking open pit mining. The main seams have thicknesses that range between 0.4 m and 2 m, while the secondary ones, with spacing between 1 m and 2 m, have thicknesses between 3 cm and 20 cm. The main seams have a N25º to 30ºW trend, with a 10º dip.

The preliminary results have indicated tenors between 1.4 g/t and 4 g/t of gold. The company considers that the depth of the mineralization reaches 100 m, with the possibility of reaching up to 200 m. If this hypothesis were to be true, Gemini expects to have resources in the amount of 59 million tonnes, with a cut-off assay of 1.5 g/t, that is to say, resources in the amount of 3.1 million Troy ounces of gold.

LA TAPATA PROJECT: This property is located in the municipalities of El Bagre and Zaragoza, in the department of Antioquia. The company foresees building modern facilities in order to increase the efficiency in the production of gold, silver and copper.

INVESTMENTS: No information


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5.39. Caerus Resources Corp. Contact: Adrian F. C. Hobkirk Position: Investor Relations Address: 1525 - 57 Avenue West Suite 212� Phone: 604 218-2716 City: Vancouver, B.C. Canada V6P 6E9 E-Mail: [email protected] URL: http://www.resourceexploration.com/index.html

CORPORATE PROFILE: Caerus Resource Corporation (TSX-V: CA) is an exploration company of base and precious metals with headquarters in Canada and a successful record of findings in its history.

With the acquisition of 100% of White Gold Corp. and its Colombian subsidiary Barracuda Gold Ltd., the company acquired a valuable portfolio of mining projects in Colombia.

The company has expanded gold exploration contracts in Colombia and signed a letter of intent with the Minera El Pino company to take over the El Pino mine in the municipality of Maceo, Antioquia.

The operation will be implemented through the payment of USD 960,000 in cash and the delivery by the present owners of 250,000 shares of this U.S. Company.

COLOMBIAN SUBSIDIARY: Minera Ophir S.A. and Oro Barracuda Ltd.

CACHIRA PROJECT: This 500-hectare project in the municipality of Cachira in the department of Norte de Santander department is in a region with significant recent gold discoveries, such as the Angostura project (Greystar Resources) and the La Bodega project (Ventana Gold Resources). Moreover, the company has applied for six mining concessions for a total of 11,040 hectares.

TOLIMA-QUINDÍO PROSPECT: Caerus has 38,000 hectares to the South, West and East of AngloGold Ashanti’s La Colosa project.

BURITICA PROSPECT: The Company has 500 acres near the town Buriticá in Antioquia and adjacent to the Continental Gold Ltd. gold project. The gold in this area is contained in gaps and mesothermal veins in porphyry gold. It has now been commissioned by the NI 43-101 technical report.

EL PINO: Caerus Resources revealed at its headquarters in Vancouver that Minera El Pino also processes around 2.5 tons per day of material that is visually identified and then crushed and separated by the gravity method.

The foreign company will make new geological studies to determine the current reserves of the concession, taking into account the history of exploitation.


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Before this agreement, the project was under the control of AngloGold Ashanti, through its subsidiary Kedahda, which in 2007 determined that, under small-scale conditions, El Pino could produce 0.967 grams of gold per ton of material.

The agreement between Caerus Resource and Empresa Minera El Pino is subject to approval by the authorities of the Canadian stock market and the government of Colombia.

OTHERS PROSPECTS: The Company has 35 mining titles of which 29 were awarded during 2009 and 292 applications for gold, distributed throughout the country. In addition, through its subsidiary Minera Ophir, it has requested multiple licenses for concessions covering 11,040 hectares from Ingeominas.

INVESTMENTS: The Company has not disclosed figures for investments planned in forthcoming years.

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