Collective drills best hole yet at Guayabales

Collective Mining (TSX, NYSE: CNL) has drilled the best intercept yet at its Guayabales project in western Colombia, with one hole returning a result as high as 23.36 grams gold per tonne, the company said.

Hole APC104-D5, drilled into the Apollo porphyry system returned 497.35 metres grading 2.68 grams gold and 20 grams silver from 147.3 metres depth, Collective said in a release on Monday. That hole included 106.35 metres at 8.12 grams gold and 57 grams silver, and 24.85 metres grading 23.36 grams gold and 120 grams silver.

“The geology of the Guayabales project is truly remarkable with the Apollo system being the shining light in a very bright sky,” Collective’s executive chair Ari Sussman said. “The intercept in drill hole APC104-D5 highlights a spectacular high-grade, broad mineralized sub-zone which is still open in all directions, and we are looking forward to expanding this zone shallower and deeper with upcoming drill holes.”

‘Consistent high-grades’

Collective has been consistently drilling such high-grade sub-zones after it switched to drilling at orthogonal, or perpendicular angles, BMO Capital Markets analyst Andrew Mikitchook wrote in a note on Monday.  

That drilling method has revealed “the true high-grade nature of the mineralization,” Collective said.

It first tried drilling at such angles in December and again last month, Mikitchook noted. 

“This third high-grade subzone intercept increases the confidence in Collective’s updated model,” he said. “We are consistently seeing Collective add value through exploration at Apollo.”

Company shares gained 1.1% to $8.66 apiece on Tuesday morning in Toronto, giving Collective a market capitalization of $672.23 million. Over the last year, its shares have increased 128.6%, in a range of $3.02 to $8.99.

New area, model expansion

Hole APC104-D5 also pierced a new high-grade area at the footwall contact between the Apollo breccia body and country rock, Collective said. An assay from there returned 15 metres grading 5.50 grams gold and 1 gram silver from 764.45 metres depth.  

Two other infill holes slightly expanded the Apollo block model to the southwest by 15 metres. Noteworthy assays include 351.35 metres grading 1.69 grams gold and 19 grams silver from 98.05 metres depth in hole APC104-D3, including 83.15 metres at 3.45 grams gold and 39 grams silver; and 176.4 metres grading 2.47 grams gold and 42 silver from 161.15 metres depth in hole APC104-D4, including 27.95 metres at 4.8 grams gold and 23 grams silver.

Seventh drill planned

Collective has six drill rigs turning as part of this year’s fully funded 60,000-metre drill program.  Four rigs are drilling at Apollo, one at the Trap target about 3.5 km northeast of Apollo, and another rig at the San Antonio project, 4 km east of Guayabales. A seventh rig is expected to start drilling next month at Apollo.

About 108,000 metres of diamond drilling has been completed so far at Guayabales, including 72,500 metres at Apollo. Assay results from nine drill holes are expected before the end of the first quarter.

The Guayabales project is adjacent to the Pan American Highway and to Aris Mining’s (TSX: ARIS; NYSE-AM: ARMN) Marmato mine. Agnico Eagle Mines (TSX, NYSE: AEM) holds a 7.5% stake in Collective.