Development under way on Santa Gertrudis placer gold property

Exploration and development is under way on the Santa Gertrudis placer gold property in Colombia, says owner Western International Explorations (COATS). Santa Gertrudis, Western International’s 90% owned subsidiary, retains 100% ownership of the 10,000- hectare land parcel in the heart of the Cauca River placer mining belt. A local mining company will process a minimum of 1,500 cubic metres of material per day from a 1,700-hectare portion of the property. Operations are planned to expand to include a total of 4,000 hectares. The operator, Minera Los Colonos, has agreed to pay a 3% production royalty.

Western International says it is confident that similar agreements can be made with other local operators interested in developing placer deposits on the property.

Nearby, at the El Carmen property held by Dual Resources (VSE), the situation is not as favorable. Despite encouraging results from a drilling and trenching program, Western International has decided not to proceed with an earn-in option, because of financial and logistical constraints.