Vetas Gold Project
The Vetas Gold Project is a combination of small producing mines and detailed exploration over adjacent areas. Although historically there have been a number of small underground mines producing gold near the village of Vetas, District of Santander, the project is at an early stage of development. Prior to CB Gold's acquisition of the properties, at least eleven small underground mines were in production, but no systematic underground exploration and development, or surface exploration, was carried out on the property by previous owners.
CB Gold has acquired an interest in eleven mining titles, of which six are registered in the name of the Company. All eleven properties host quartz veins containing high grade gold and have historical production. In total, the project covers a total area of more than 1,000 hectares in Northeastern Colombia
In 2009, CB Gold commenced a systematic gold exploration program including investigation of gold showings, compilation of available mining and exploration data, lithogeochemical sampling of the stockwork area and geological mapping and lithogeochemical sampling and geophysics survey. Since September 2009, CB Gold has collected over 2000 samples including surface samples and samples from the 6,000m of existing underground workings to which CB Gold has access.
Gold mining and production in Colombia dates back to the era of the Spanish Conquistadores in the sixteenth century. From 1537 to 1820, 18% to 40% of total world gold production came from Colombia. During the past few decades, production increased from vein deposits of the Vetas-California district in the Eastern Cordillera. This led to increased exploration in the Santander Massif and to the discovery of the Angostura and La Bodega deposits.
Gold mining in the Vetas area dates back at least to the seventeenth century, when the local miners sent a shipment of gold to pay for the painting of Macarena in Cataluñia, Spain. By the end of the nineteenth century, a British company started underground mining at the San Bartolo Mine. A few years later, a French company, financed by the Rothschild Bank, carried out underground mining in the area and transported 26 bags of gold by mule teams.
Gold mining in the Vetas area has been carried out by tracked underground methods. In general, development is done by adits at various levels, drifting along narrow veins, mining from stopes and hauling the ore and waste by two-tonne cars along wooden and/or steel tracks. There are no written records of recent mining activities at the various underground mines, although local miners report that a total of 1 million to 2 million ounces of gold have been produced from the various underground mines in the Vetas area.
Accessibility, Physiography and Infrastructure
The Vetas Gold Project is located in the department of Santader, approximately 400 km northeast of Bogotá, the capital city of Colombia, and less than 100 km by road from Bucaramanga, the capital city in the department. Bucaramanga has a population of greater than 1 million and is serviced daily by multiple flights from Bogotá. Access to the Vetas Gold Project area is by paved and gravel road. Access from Bucaramanga to Berlin is by paved highway, a distance of 60 km. From Berlin, access to site is by gravel road, a distance of approximately 36 km. The mean temperature throughout the year is 22°C and ranges from 10°C to 30°C and directly related to elevation and weather. Exploration and mining in the Vetas area may be carried out throughout the year.
Infrastructure in Vetas includes electrical power, cell phone network and road building equipment. Water, both industrial and potable, is drawn from nearby streams. Diamond drilling equipment is brought from Bogotá.
Geology and Geochemistry
The area of the Vetas Gold Project is underlain by rocks of the Bucaramanga Complex, which comprises high grade metamorphic rocks. The Stockwork Zone and La Vereda Concession are also underlain by intrusive rocks of granodioritic, quartz diorite and dioritic composition and are interpreted to be related to the gold mineralization in the area. The lithologic units present in the Vetas area are described as Precambrian, Jurassic Intrusive and cretaceous sedimentary rocks and quaternary sediments.
The Vetas Gold Project is characterised by low to medium sulphidation, epithermal mineralisation exhibited as high grade quartz vein structures and lower grade, disseminated stockwork zones related to the emplacement of possible multiple porphyry systems. Porphyry related mineralisation covers an approximate area of 700m x 700m and is located near the center of mineralisation in the Vetas Mining District.