Antioquia Gold Inc. ("Antioquia Gold" or the "Company") is pleased to announce that it intends to proceed with the development and construction of a 500 tpd underground gold mine at its Cisneros Project near Medellín, Colombia.
The Cisneros Project is located in the central area of the department of Antioquia, Colombia, approximately 55 kilometers northeast of Medellin. The Company has been actively exploring the Cisneros Project since 2007 and has drilled 209 drill holes to date, amounting to 45,400 meters of drilling. After taking into consideration the exploration results to date, the availability of funding, the low starting costs and other factors, the Company has determined that it should proceed with the development and construction of the mine. For more information regarding the Cisneros Project, please refer to the National Instrument 43-101 compliant technical report titled "Cisneros Gold Project, Antioquia Department, Colombia" dated October 14, 2013, a copy of which is available on SEDAR under the Company's profile at www.sedar.com.
Highlights of the project include:
- Capital Expenditures - management of the Company estimates that capital expenditures for the project to be approximately $40 million. It is expected that 50% of such capital expenditures will be funded via a shareholder loan, and 50% via cash flow from operations as the project moves forward;
- Project Schedule - set forth below is management's estimate of the time line for the project; however, project schedules are always subject to change:
- Civil Works and Infrastructure - Begin September, 2015; complete December, 2015
- Tunnel and Mine Development - Begin Sept, 2015; complete July, 2016
- Environmental & Mining Permit - December, 2015
- Civil Works and Infrastructure - May, 2016
- Tunnel and Mine Development - July, 2016
- Process Plant & Main Infrastructure
- Final Basic Engineering and Design - July, 2015
- Construction/Commissioning - July, 2016
The Company will be providing further details on a monthly basis through SEDAR and through its website, www.antioquiagoldinc.com.
The Company also announces that pusuant to its stock option plan, and subject to regulatory approval, it has granted 10,800,000 options to purchase common shares of the Company to directors, officers and certain key employees of the Corporation. These options expire five years from the date of grant and have an exercise price of $0.10 per share. Vital Energy has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available for the issuance of the options to the director and officer of the Corporation (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More Than 25% of Market Capitalization).
Mr. Jim Decker, P. Eng., Executive Vice President and Director of Antioquia Gold Inc. and a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this news release.