The Colombia-focused gold producer Aris Mining Corporation (TSX: ARIS) (OTCQX: TPRFF) reported record production at its Segovia operations, producing 24 per cent more gold in August than the previous months of 2023.
On Monday, the Vancouver miner announced that it had generated 19,403 ounces last month — the highest rate of monthly production since the company expanded its Maria Dama plant at the site last year.
Aris also significantly improved its average gold grade from the ore milled at the plant by 17 per cent compared to the previous months of the year at 11.7 grams per tonne — with an average recovery rate of 95.5 per cent. The company attributes this success to its completion of crusher repairs at the site and an improved supply of explosives in the country following previous issues being resolved.
“Aris Mining has a strong balance sheet and we believe we are on track to produce approximately 400,000 ounces of gold in Colombia in 2026, based on steady-state production from our Segovia operations and the expanded Marmato Mine, currently under construction,” said the company’s CEO Neil Woodyer.
“The ongoing 2023 exploration program at our Segovia operations has encountered 32 different mineralized vein structures near active mining operations, which is expected to continue Segovia’s history of growth and reserve replacement,” he added.
The Segovia operations span 2,906 hectares and contain three underground mines. The project’s Maria Dama plant is capable of processing 2,000 tonnes of ore per day.
The company plans to complete 84,500 metres of exploration drilling at the site this year and it is estimated to contain 755 kilo ounces of proven and probable gold. Aris expects to produce between 195 to 210 kilo ounces from the Segovia operations in 2023 and over 6 million ounces have been recovered from the site in the past century.
Approximately 1.5 million ounces have been produced at Segovia in the past 11 years at an average grade of 13.6 g/t Au.
Aris Mining was created through a merger with GCM Mining in September last year, the company was previously known as Aris Gold Corporation.
The company also recently obtained approval from regional environmental authorities for underground development of its Marmato Mine in Colombia, which is expected to increase gold production at the site by 500 per cent.
That project is valued at $280 million and is fully funded from a combination of the company’s cash balance and $122 million in stream funding from Wheaton Precious Metals Corp. (TSX: WPM).
Aris Mining has 137.2 million issued and outstanding shares with a market capitalization of $392 million.
The company’s shares rose by 10 per cent Monday to $3.18 on the Toronto Stock Exchange but have dropped by almost 20 per cent in the past six months.