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ESGold Corp (CSE: ESAU) is expanding their horizons, announcing this morning that they have entered into a memorandum of understanding for a high-grade tailings project in Colombia. The venture, if it proceeds, would see ESGold expand their portfolio with a second permitted project aimed at cash flow, grow, and tailings remediation in South America.
The terms of the MOU outline an arrangement whereby ESGold would enter a joint venture with Planta Magdalena, a Columbian corporation, for the development and reprocessing of fully permitted gold and silver bearing tailings in Bolivar, Columbia.
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ESGold has agreed to commit $1.5 million for a 50% joint venture interest in the venture, with a right of first refusal to repurchase the remaining 50% interest within 12 months at fair market value.
Preliminary due diligence fire assay sampling of tailings has already been completed, with concentrate tests on those tailings in the process of being finalized before being sent off for testing. Initial sampling consisted of 27 samples, of which eight tested above 5 g/t gold and as high as 42.68 g/t gold, while multiple samples exceeded silver grades of 190 g/t, sampling as high as 280.63 g/t silver.
WATCH: The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.
Bulk sample concentrate tests are in the process of being arranged. The proposed circuit and recovery parameters meanwhile are to be finalized upon a site visit.
The JV has been designed to replicate the low-capex, high-margin tailings model in place at Montauban, while remediating legacy mine sites and improving the local environment in the process. Permits are said to already be held by Planta for tailings production, while subject to a definitive agreement, ESGold intends to get the operation running in 2026, adding a second high-margin operation to their portfolio.
“Bolívar has a long and storied history as one of Colombia’s most prolific gold-producing regions, with decades of artisanal and small-scale mining contributing significantly to the country’s overall output. The region still processes hundreds of thousands of tonnes of ore annually, yet much of it is handled using rudimentary mercury amalgamation methods that leave behind a substantial amount of gold and silver in the tailings. This creates an immense opportunity for ESGold to apply modern, environmentally responsible recovery technology that can significantly improve yields while remediating legacy mine sites,” commented Gordon Robb, CEO of ESGold, on the announcement.
Next steps for the arrangement include the signing of a joint venture, technical verification of the project, bulk concentrate testing, and implementation planning, alongside the continuation of construction and commissioning work at Montauban.
ESGold last traded at $0.82 on the CSE.
FULL DISCLOSURE: ESGold Corp is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is long the equity of ESGold Corp. The author has been compensated to cover ESGold Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
