TORONTO - Collective Mining Ltd. (NYSE: CNL) (TSX: CNL) has announced significant assay results from its drilling program at the Apollo system within the Guayabales Project in Caldas, Colombia. The four directional diamond drill holes have extended the Apollo system southwest and verified the continuity of high-grade, porphyry-related carbonate base metal (CBM) vein zones at depths exceeding 1,000 meters.
The company's fully funded 40,000-meter drill program for 2024 has been progressing with five diamond drill rigs. Two rigs are currently dedicated to Apollo, two to the Trap system, and one to the Plutus Target.
Executive Chairman Ari Sussman stated that the drilling results at Apollo represent a milestone in understanding the system's continuity and grade at depth. He drew parallels between the CBM vein systems at Apollo and those at the neighboring Marmato and Buriticá mines.
Highlights from the drilling include hole APC99-D4 yielding 401.80 meters at 1.06 grams per ton (g/t) gold equivalent, including several high-grade CBM zones. Hole APC99-D2 reported 258.30 meters at 1.56 g/t gold equivalent, also including high-grade CBM zones. Drill hole APC99-D3, targeting the Apollo system's boundaries, showed 158.45 meters at 0.95 g/t gold equivalent with high-grade sections within. The fourth drill, APC99-D1, was abandoned before reaching the target depth due to technical issues.
The results contribute to the expansion of the internal block model and the understanding of the Apollo system's potential. The reported grades are uncut, and the true widths are not yet known.
Collective Mining, founded by the team behind Continental Gold Inc., focuses on the exploration of copper, silver, gold, and tungsten in Colombia. The company aims to expand the Apollo system and explore other targets within the Guayabales project.
The technical information in the press release has been reviewed and approved by David J. Reading, a Qualified Person under NI 43-101. The assay results were processed at ALS laboratory facilities in Medellin, Colombia, and Lima, Peru, following a rigorous QA/QC program.
This news release is based on a press release statement from Collective Mining Ltd. and contains forward-looking statements regarding the company's future operations and growth potential. These statements are not guarantees of future performance and are subject to risks and uncertainties.
InvestingPro Insights
As Collective Mining Ltd. (NYSE: CNL) continues to explore the potential of its Guayabales Project in Colombia, its financial health and market performance are crucial for investors tracking the company's progress. According to recent data from InvestingPro, the company holds a market capitalization of $231.91 million, reflecting its size and market value in the current economic landscape. Despite not having turned a profit over the last twelve months, the company has demonstrated a strong return over the last three months, with a 38.16% price total return, signaling a positive investor sentiment towards the company's recent activities and future prospects.
One of the key InvestingPro Tips for Collective Mining is its financial stability, as it holds more cash than debt on its balance sheet, which may provide a cushion for future exploration and development activities. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid position to meet its immediate financial commitments. On the other hand, investors should be aware of the company's weak gross profit margins and the analysts' consensus that profitability may not be achieved this year. These factors could influence the company's ability to fund its ambitious 40,000-meter drill program without additional financing.
For those considering an investment in Collective Mining, it's worth noting that the company is trading at a high Price / Book multiple of 11.0, which may indicate a premium compared to its tangible asset value. Furthermore, with a P/E ratio of -9.64 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -11.54, the company's earnings do not currently justify its share price, a situation often seen with companies that investors believe have strong future growth potential.
Collective Mining does not pay a dividend to shareholders, which is typical for companies focused on reinvesting earnings into growth opportunities rather than returning cash to shareholders. For those interested in a deeper analysis, InvestingPro offers additional tips on the company's financial metrics and future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.