The 1985 hectare Venecia Project was optioned by Colombia Crest Gold on March 30, 2011 from Colombian Mines Corp. (“Colombia Mines”). The agreement allows Colombia Crest to earn up to a 75% interest in the property located in Antioquia Province, Colombia.
This is the second acquisition by Colombia Crest in the gold-rich, 300-kilometre long Middle Cauca Belt that extends from AngloGold-Ashanti’s 13 million ounce La Colosa gold project through the Fredonia-Venecia projects to the north of Medellín.
The property adjoins the western edge of the La Mina concession, where Bellhaven Resources has recently announced drill intercepts of 70 to 230 m of 0.7 to 1.6 grams per tonne gold. Venecia lies approximately 20 km north of AngloGold Ashanti/B2Gold’s Quebradona gold-copper porphyry project, where drill intercepts of up to 380 m of 1.15 grams per tonne gold have been reported. The belt also hosts the 500 year-old Marmato mining district with NI 43-101 compliant resources currently at 9.7 million ounces of gold (see Medoro Resources Ltd website for the NI 43-101 report) and the giant 13-million-ounce La Colosa project, owned by AngloGold-Ashanti.
Geology within the Venecia property and surrounding area comprises a sequence of upper Tertiary andesitic volcanics (Combia formation) and underlying sediments (Amaga formation) intruded by numerous Miocene hypabyssal diorite-granodiorite porphyry intrusions. Primary regional structural trends oriented northwest, north-south and east-west dominate the structural geology of the region and are evidenced in the rectilinear pattern of the Cauca River drainage. Alteration is comprised of variably propylitic-alteredandesite porphyry lavas and tuff breccias. These are cut, in places, by narrow argillic- to phyllic-altered, silicified and disseminated pyrite mineralized fault zones.
Rock chip and soil sample data collected by Colombian Mines’ geologic team identified mineralized rock outcrops that have up to 3.8 grams per tonne (g/t) gold and up to 0.6% copper over a one metre channel width in an area of very sparse outcrop (see Colombian Mines Corporation news release of September 1, 2010). A total of 180 soil samples collected on a widely-spaced grid, confirmed that gold and copper trends from Venecia spread into the La Mina concession to the east, as well as trending north and west onto the Fredonia concessions owned by Colombia Crest.
Geophysics (magnetics and radiometrics) for the Venecia property is characterized by two large magnetically-anomalous regions with a pattern suggesting the presence of concealed porphyry intrusions. Soil geochemistry surveys over part of the property defined several gold (10–20 ppb Au) and copper anomalies, the shapes of which coincide with the trend and location of the geophysics anomalies.
Colombia Crest plans to do geological mapping, as well as additional soil and rock chip sampling over the two anomalous target areas, each of which cover almost 10 square kilometres. The results of this work will be used to generate high-quality drill targets.
Paved and gravel roads provide excellent year-round access to the Property from Medellín (2˝ hours) and Venecia (15 minutes). Adequate supplies of power and water are situated on and near the property and an adequate workforce is readily available from the nearby towns of Venecia, Fredonia and Bolombolo. The primary surface use of the property is agricultural, consisting of cattle grazing, coffee plantations and citrus groves.