Newmont, Agnico Eagle team up in Colombia

Anzá is a gold exploration project, comprising contracts and applications totalling 200 km2 located in the Mid-Cauca belt in Colombia.(Image courtesy of Orosur Mining.)

Newmont Mining (NYSE: NEM) (TSX: NGT), the world’s largest gold producer, and Canada’s Agnico Eagle (TSX, NYSE: AEM) have formed a 50-50 joint venture in Colombia to explore the Mid-Cauca belt, in the country’s northwest.

The partners will focus on the Anzá gold project, in which Newmont has earn-in rights, as well as other prospective gold targets of district-scale potential in Colombia.

Joint venture will focus on the Anzá project and other prospective “district-scale” gold targets in Colombia

Newmont reached a three-phase deal with Orosur Mining (TSX, AIM:OMI) in 2018, which granted it the right to earn up to a 75% stake in the Canadian junior’s Anzá project.

The asset, comprising contracts and applications totalling 200 square kilometres, is located 50 km west of Medellin and 60 km south from Zijin Mining’s Buritica operation.  

“Agnico Eagle has been actively looking at Colombia for some time, and this low-cost entry is consistent with our exploration strategy,” senior VP exploration Guy Gosselin said in a separate statement.

The executive added the partnership was also in line with the company’s existing investment in Royal Road Minerals (TSX-V: RYR), in which it has a 19.9% stake.

Agnico will solely fund the joint venture until it equals Newmont’s previous investment of about $2.9 million in the Anza project. After that, the parties will continue funding exploration activities on a 50-50 basis.

Newmont can’t get enough of Colombia, buys 19.9% of Orosur
The Anzá project is 50km west of the city of Medellín and 50km south of the Buriticá high- grade gold deposit, as well as other major projects. (Image courtesy of Orosur Mining.)

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