Ann: First Chuscal Drill Hole Completed, page-37

Interesting points re. Colombia from Copper Porphyry article link posted on another thread

Colombia



Colombia has a large mining footprint. Before Brazil and Peru took over, it was the largest gold producer in South America, outputting close to 100 million ounces.



Recent tax reforms by the Colombian government secure a competitive edge for investors.



In December 2018, the new elected government introduced a new bill, known as the financing law. It proposes a gradual reduction in taxes on businesses from the current 35% to 30% by 2022, as well as a new sales tax refund of 19% for capital goods such as machinery. The financing law also repeals the 4% surcharge imposed on corporate income, making the total tax rate 33% for 2019, as opposed to 37%. These tax reforms bode well for mining companies, both to those in production and those in rapid development phase with heavy investments leading to production.



Conclusion



As global gold production flatlines, proven in the first part of this article, major gold mining companies will need to work harder and be creative in how they replace their dwindling reserves.



Copper porphyries can offer both size and profitability. They are one of the few deposit types containing gold, and often other metals, that have both the scale and the potential for decent economics that a major mining company can feel comfortable going after to replace and add to their gold reserves.



Not only that, a major gold mining company can mine the copper and get the gold “for free”, in that they’re already spending capital and production costs on copper extraction, the gold is just the icing on the cake. By mining copper, they’re producing gold too, which is a nice way for a gold major to pad its bottom line in an era when finding and mining gold for profit has become harder and more expensive to do.



The world’s major gold miners are starting to get desperate in their search for gold. If you are the CEO of a junior resource company with a copper/ gold porphyry in British Columbia, or Colombia, don’t be surprised by whose calling.