Gemini Exploration (GXPI.OB) is a mining exploration company developing its operations in Colombia, historically known as one of the largest gold-producing countries in the world. Gemini currently has two mining properties in the region: La Planada and La Tapata.
La Planada is a gold property in which Gemini holds 100 percent interest. High grade gold veins are known to exist, as the region was mined in the past. The property is located 80 km from Pasto, the capital of the Nariño Province, which is in the center of one of Colombia’s premier, underdeveloped gold sectors. Due to the distance from the city, there is enough open area to build the needed infrastructure to support the mining operations.
La Planada has excellent rock exposure to accommodate open pit mining with highly visible surface mineralization. There are various elevations being explored on the property, with five sets of veinlets crosscutting vein zones. The primary veins have been found to range from 0.4 meters to 2 meters in width. Secondary veins have been found every 1 to 2 meters with widths ranging from 3 cm to 20 cm. Additionally, the primary veins trend 25 degrees north to 30 degrees west, on a 10-degree dip.
Preliminary findings determined that an average grade of 1.4 to 4 grams per tonne of gold can be found to an elevation of 100 meters. The company is hypothesizing that the mineralization findings to 100 meters may continue to a depth of 200 meters. If the exploration confirms the hypothesis, Gemini intends to mine the entire block for processing. A block with dimensions of 200m deep by 300m wide by 400m long with an estimated average of 2.45 grams per cubic centimeter would produce 59 million tons of ore with a cutoff grade of 1.5g per ton gold. A yield of this amount would translate to over 3.1 million troy ounces of gold. Equating these estimates to the entire La Planada property would represent a yield of over 3 million troy ounces of gold, which would convert to about $3 billion dollars.
La Tapata is an 80-percent owned property in Colombia’s El Bagre-Zargosa mining district. The property is 42 km from the municipality of El Bagre. As with La Planada, access to La Tapata is mainly via open roadways, but there is a government military base about 6km away.
The facility is currently being mined with antiquated equipment resulting in a low percentage of gold. Gemini plans to build a modern processing facility to increase the efficiency at the site to produce greater yields of gold, silver, copper, and lead, all of which have been found on the property.
The main exposed vein at La Tapata measures up to 2 meters thick with a 45 degree dip. Visible, massive sulphides are exposed and run between 2 percent to 70 percent. Samples have been pulled along a 30-meter section of the main vein and resulted in amounts between 15 to 250 grams per tonne of gold.
Gemini has two major mining properties with the potential of huge returns. It is up to management to maximize the efficiency at each site to recover the largest rate of gold and other precious metals.
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