Colibri is a Canadian exploration and mining company engaged in the acquisition and development of gold mining properties in Mexico. The Company’s exploration and mining portfolio is made up of five properties, encompassing over 9,000 hectares.
The projects are entirely focused on gold and silver in the state of Sonora in northwestern Mexico. The region is host to many historical and currently producing mines and the fact that the region continuously attracts some of the biggest global mining companies underscores its viability when it comes to mining operations.
Management and the Board of Directors of the Company is very strong and have a track record of success in gold exploration. Headed up by Ron Goguen (the founder of both Major Drilling and the Beaverbrook Antimony Mine) the team also highlights the current Chief Geologist for Anglo Gold Ashanti and a past Director of Exploration of Agnico Eagle Mining for Mexico.
Evelyn Project
The Evelyn Project is the Colibri flagship-mining project located in northern Sonora. The project sits on 506 hectares within the Caborca Gold Belt. The belt plays host to many significant gold mines including the Noche Buena Mine, which produced 167,200 ounces of gold in 2018 (9km from Evelyn) and La Herradura which produced 474,000 ounces in 2018 (25km from Evelyn). Colibri owns one of the very few remaining claims in the area not held by a major producer. In fact, La Herradura Mine is Mexico’s single largest producer of gold and is held by Fresnillo plc.
Colibri has already completed a property wide soil sample program, rock chip sampling, and localized geological mapping at the Evelyn project. The property hosts several historical artisanal mines, has never been drilled, and is poised to be a new discovery in well understood gold mining district.
Buoyed by the gold project’s high prospects, the Company recently engaged the services of AuroMetallum Geology Consulting Service. The firm is tasked with the responsibility of completing a full geological mapping of the property, which will provide valuable information which will be used to develop potential drill targets. The final report is expected in early November and the Company plans to commence drill program as soon as December of 2019.
The mapping study comes hot on the heels of the completion of a localized chip sampling survey in which samples returned as high as 4.81g/t AU and 4.19 g/t Au in an area with high levels of iron oxide staining and were taken about 1 kilometer north east of “Main Zone”. A sampling program of the Main Zone has returned samples as high as 43.1 g/t Au and has averaged 10 g/t Au in an exposed quartz vein measuring 180m at surface.
The Company anticipates announcing their maiden drill program at Evelyn in the very near term.
El Mezquite Gold Project
El Mezquite Gold Project is another of Colibri’s flagship gold project which is located within the Sierra Madre volcanic complex in eastern Sonora. The project is 180 hectares in size and considered to be highly prospective as a low-grade large tonnage gold project. It is worth noting that the project borders a mine being brought to production in 2020 by Minera Alamos and is on trend with mines operated by major producers such as Agnico Eagle Mining.
Exploration work on this yet to be drilled property has consisted of extensive chip sampling and a magnetic/3D IP survey which has identified a handful of high potential targets. Assay results taken from 321 chip samples have already shown many values of gold >0.1 ppm to 3.41 ppm and averaged 0.74 ppm of gold and 25.7ppm of Silver.
Colibri is planning to complete a further geological mapping study to identify drill targets for El Mezquite Gold Project. To date the Company has identified at least four key zones of alteration within the concession. The Company expects to complete property mapping and commence a maiden drill program at El Mezquite in the first quarter of 2020.
Pillar Gold Project
Even as Colibri continues to progress and build value at Evelyn and El Mezquite it has also laid out a strategy for its Pillar gold project in the Suaqui Grande area. The Company recently announced that it has optioned 51% of the project to another Canadian junior mining company in return for property work expenditures, cash, and a large share position in the other junior. This should allow Colibri to appreciate significant upside for its own shareholders from the project while not diluting the stock to pay for the exploration. The other junior has agreed to issue Colibri a total of 5 million shares of its stock, pay cash totalling $400,000, and spend $2.0 million in exploration on the property over a 5-year period
Pitaya Project
Currently for sale, Pitaya Project, is partially owned as part of a joint venture in partnership with Agnico Eagle Mining. Colibri owns 24.5% of the project, with Agnico holding a controlling stake at 75.5%. Located in Sonora Mexico, the prospective gold project sits on 6,564 hectares.
In December of 2017, Colibri confirmed an intercept of 20.96 g/t gold and 57.0 g/t silver across 2.2 meters.
The project has been the subject of exploration activities targeting down-dip projections of high-grade quartz veins that cut volcanic and sedimentary rocks. Geological mapping has indicated that gold must have been concentrated during the Laramide compression.
Colibri has deemed this property a non-core asset and has made an agreement with Agnico Eagle allowing Agnico to sell the property on its behalf.
The Future
With gold prices edging higher in 2019, Colibri could be in for impressive returns on investment by advancing their projects to resource calculation stages and preparing for future potential mining operations at any of their gold projects under development.
Colibri’s strategy of optioning its Pillar and selling Pitaya minimizes the need for potential near-term capital raises and ultimately results in injections of non-dilutive cash that can be used to advance their other 100% owned / highly prospective gold projects. The sale of non-core Pitaya Project, is a testament to management’s ability to advance the Company, capitalize on opportunities, and build value for its shareholders.
The Evelyn Project is set to be a near immediate driver for the company’s success and underlying shareholder value. It is one of the last claims of land in the Caborca area not currently held by a major producer and with financing being generated internally rather than through overly dilutive financings, we see blue sky potential. Steady news is expected from the Company for the foreseeable future as advancements are made and milestones achieved.
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