COMPANY INTRODUCTION
Quimbaya Gold is a new junior exploration company founded in 2020 with the intention to develop an asset base for gold exploration and development in Columbia. The Company listed on the Canadian stock exchange (CSE: QJM) in early 2022 with the symbol QIM. This listing continues as the primary for the Company. The Company is also sited on the OTCQB: QIMGF since February 2024, and the Frankfurt Exchange (FSE: K05).
Quimbaya acquired its first project claim group, the Berrio Property, in late 2020. This project is located in the Antioquia District of Columbia. This District is host to most of Columbia’s significant mining operations and remains an area with active discoveries and resource expansions. The Company built up its land in this District with two other project claim groups, Tahami, near the Segovia mining center and the Matamec located south of Medellin. Today the Company holds titles and applications covering over 59,000 ha in this prospective region.
Quimbaya’s projects cover areas prospective for orogenic and epithermal gold deposits related to the major and splay structures of the region. Numerous prospects and small-scale locally operated mines are in the region and on the Company’s claim groups. Limited modern exploration work has been completed on the claim groups at this time. The Company focused on its strategy of building a targeted land package in the Country for the first few years of its operations. The Company managed low-cost and fast claim acquisition through access to proprietary staking software, allowing Quimbaya a timing advantage to pick up the most prospective land ahead of other companies. It is now ready to commence its first drilling campaign on a mining title claim in the Segovia area, the Tahami South, adjacent to the Aris Gold project land.
The initial drill program is targeting the expected extension of the mine veins at the Aris Segovia project onto the Company’s titles. This is a planned 4000 m program. We expect this program to generate an indication of the continuity of the mineralized vein extensions and start building a mineral inventory. The Company is focusing its exploration on its highest probability targets to produce positive results that could lead to value generation through discovery, transactions and possibly development. Based on this positive outlook, we recommend Quimbaya as a buy with a high risk profile due to the early stage of its asset base with no compliant resources. Our initial fair market value 2025 target for the stock is $1.00 per share.
Investment Highlights
- Company overview: Quimbaya Gold holds a strategically positioned, large land package in the historically significant Segovia mining camp adjacent to active gold production operations. The Company is commencing its first drill program targeting high-grade veins along a known trend from nearby resource-rich veins in Segovia.
- Exploration plan: The initial 4,000-meter drill program, focused on confirming high-grade gold veins, will provide early indications of a gold resource. The exploration is backed by a technical advisory team with extensive local expertise who are responsible for land acquisition, program design, and ongoing project evaluation.
- Partnerships and funding: Quimbaya has secured a significant partnership with Independence Drilling S.A., Colombia’s largest drilling contractor, committing to 100,000 meters of drilling in exchange for shares that ensure the project progresses to the -resource stage. A recent financing round raised C$2.79 million, providing operational and exploration funding, as well as mitigating market downside risks.
- Strategic position and market potential: Quimbaya is exploring opportunities to formalize partnerships with local miners to generate cash flow by feeding production expansion in Segovia. With a tight capital structure and strong institutional and insider support,-the stock is positioned for significant price movements on positive exploration and drill results.
- Recommendation: We recommend Quimbaya Gold as a buy for investors seeking exposure to high-impact gold exploration in Colombia’s Segovia mining camp. With gold prices at new highs, the Company’s upcoming drill program presents a promising opportunity. Our initial target price for the stock is $1.00.
