The Melbourne based mining company, Metminco Limited (ASX: MNC) today released the update on the status of the Grant of the Exploration Licence application at the Chuscal Gold Project in Colombia.
The company highlighted that on 15 March 2019 it has completed the socialisation of the proposed grant (Audiencia Publica). The Colombian Mining Authority (National Mining Authority or ANM) reportedly ran the process. This was conducted in Quinchia. This is the final stage before the issue of the Exploration License contract.
With this in the bag, the Chuscal exploration licence application could now be arranged by the ANM and the same is expected to finish in sixty days. The company and its joint venture partner AngloGold Ashanti are in regular correspondence with the mining authority, ANM and the shareholders will be updated of the EL grant progress.
The company further stated that following the grant of the ELs, the company anticipates mobilising and undertaking its first drilling program of around 2,500m of diamond drilling. This test is conducted to verify the Chuscal porphyry gold target. This program is expected to occur post the completion of the merger with Andes, with June 2019 being the company’s target date.
Metminco’s earning potential from the Chuscal project is around 51%. Chuscal is situated approximately around 2km from Miraflores plant in the Quinchia Gold Project in Mid-Cauca Gold belt in Colombia. Chuscal consists of an extensive, undrilled surface gold geochemical anomaly reporting a high-grade sample result. The company also highlighted that an informal miner had driven several adits approximately 80m below the surface into the prospect. The channel sampling of these samples revealed two mineralisation populations.
The company, in its release, also highlighted on the joint venture details between Metminco and AngloGold. The JV was formed in December 2018 and covered three licences. Of the three licences, two large licence applications are in the final stage of getting the award, and the same is expected to be finalised by Q2 2019. Drilling permits are currently being sought, and drilling would be commenced post the merger with Andes is completed and the grand of the Chuscal licences.
In another update, the company recently announced raising of $1 million to aid the proposed Andes merger, details on the same could be read here.
The stock has delivered a YTD return of -33.33%. On a short-term basis, the stock has delivered a return of -50.00% in the past six months.
The shares of MNC closed the day flat at A$0.002 on ASX (As on 20 March 2019).
Metminco Limited’s (ASX: MNC) market capitalization is circa $2.38 million. The total number of outstanding shares is ~1.19 billion. The avg. trading volume is 1,462,137. The Stock’s 52-week high price is A$0.017, and the 52-week low price is A$0.002. As per the latest ASX declaration, the company’s EPS stood at 0.201 AUD.