Fenixoro Gold Stock Price, News & Analysis

FenixOro Gold Corp (OTC PINK: FDVXF; CSE: FENX; Frankfurt: 8FD) is a Canadian gold exploration company focused on acquiring and exploring gold projects in Colombia. According to the company’s disclosures, its strategy centers on gold projects with what it describes as world class exploration potential in some of the most prolific gold producing regions of Colombia.

The company’s flagship asset is the Abriaqui project in Antioquia State at the northern end of the Mid-Cauca gold belt. FenixOro states that Abriaqui is located approximately 15 kilometers west of the Buritica project (now operated by Zijin-Continental Gold). Company materials note that the geological characteristics of Abriaqui and Buritica are similar, referencing the “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” dated December 5, 2019.

Flagship Abriaqui gold project

FenixOro reports that Abriaqui hosts numerous high-grade gold-silver veins. The company has divided the property into northern, central and southern blocks or zones and has carried out multiple phases of drilling and underground sampling. It has described a significant discovery of a high grade, “Buritica style” gold deposit at Abriaqui following a Phase 1 drilling program, with a Phase 2 drilling program subsequently commenced.

Company news releases describe more than 100 gold-bearing veins delineated across three main areas, with two prominent families of sub-vertical veins drilled in the northern block. FenixOro has discussed resource potential at Abriaqui based on drilling and channel sampling but also states that there are currently no NI 43-101 compliant mineral resources or reserves in the project area and that additional drilling would be required to define such resources.

Exploration results and high-grade discoveries

FenixOro has reported multiple high-grade intercepts and channel samples at Abriaqui. Examples disclosed by the company include:

• Mine channel sampling on the Romperopa group of veins, including 2.16 meters at 21.01 g/t gold and an interval containing a single assay of 425 g/t gold.
• Drill intersections in the Central Vein Zone such as 1.25 meters at 23.55 g/t gold and 2.40 meters at 5.69 g/t gold in hole P021.
• Intervals in the northern block such as 9.95 meters at 2.3 g/t gold including 1.55 meters at 8.53 g/t gold in hole P023, cited as an example of thicker veinlet zones.

In the Southern Vein Zone, early drilling (holes 017, 020 and 023) is reported to have intersected 7–10 veins per hole, with several assays in excess of 10 g/t gold and higher silver-to-gold ratios than in the northern part of the property. FenixOro has also described a newly recognized style of mineralization associated with actinolite-albite veinlets and visible gold in hole P019, which it compares to features seen in porphyry gold systems in Colombia, while noting that no porphyry-style mineralization has been identified at Abriaqui to date.

Prospera Vein and Southern Block potential

A notable development disclosed by FenixOro is the discovery of the high-grade Prospera Vein in the Southern Block of Abriaqui. Underground sampling along a continuous 100-meter mine working on Prospera reported an average of 39.2 g/t gold and 254 g/t silver in the massive sulfide core of the vein, with additional mineralization in altered diorite wall rocks. The company notes that this represents the highest grades of gold and silver recorded on the project and has identified Prospera as an important target for subsequent drilling.

FenixOro reports that the Prospera vein is associated with coincident topographic, magnetic and soil gold anomalies, suggesting a potential strike length of at least 500 meters and a vertical range of high-grade mineralization of approximately 1,500 meters at Abriaqui, from the top of the ridge to the deepest drill intercept cited in company materials.

Central Vein Zone and Santa Teresa structure

In the Central Vein Zone, FenixOro has described the extension of the Santa Teresa Vein across the Cascada Fault, based on drilling in hole P019. The company reports that this extends the known strike length of potentially ore-grade mineralization on Santa Teresa to a minimum of 1,000 meters, open in both directions, and implies expanded potential for other northwest-trending veins such as Orquidea and Romperopa.

FenixOro’s updates emphasize that the Central Vein Zone had not previously been included in its internal resource potential estimates and that new drilling in this area may influence future modeling of the project.

El Porvenir Mine and processing facilities

In a later news release, FenixOro announced that it had executed a definitive agreement to obtain the El Porvenir Mine and a processing facility, along with a contiguous land package, with the intention of consolidating these assets with Abriaqui. The company describes El Porvenir as the largest historic producer in the district, with approximately 1,500 meters of lateral development on four levels along a principal vein and seven additional gold-bearing veins identified.

FenixOro states that the El Porvenir Mine is fully permitted for exploitation and has an on-site processing facility with capability to expand to 60 tonnes per day. It also refers to a 525-hectare mining title in the package that includes a 35-hectare parcel in the final stages of permitting for a new 300 tonne per day processing facility. A non-NI 43-101-compliant resource calculation commissioned for the main vein at El Porvenir, based on channel sampling, is cited by the company as totaling 80,000 ounces of gold in all categories, with drilling on strike and at depth expected by the company to increase this number.

According to FenixOro, combining Abriaqui with El Porvenir and associated titles would expand the project area to almost 2,000 hectares and unify mineralized areas from the historic Prospera Mine in the southeast through the northern block of Abriaqui to the northwest extension where El Porvenir lies. The company describes this as adding near-term production capabilities and cash flow potential, while also enhancing exploration upside.

Other assets and initiatives

In addition to Abriaqui and the El Porvenir transaction, FenixOro has disclosed ownership of the Escondida Mine, described as a fully permitted, producing high-grade gold mine in Antioquia that is undergoing an investment and expansion plan. The company has also announced plans to produce special edition collectible gold coins using gold mined legally by local miners from veins within the Abriaqui project area, highlighting the long history of artisanal mining in the region and the use of water-and-gravity techniques without chemicals or explosives.

Location and geological setting

FenixOro situates Abriaqui within the Mid-Cauca gold belt of Colombia, a geological trend that it notes has seen multiple large gold discoveries over the past decade, including Buritica and AngloGold’s Nuevo Chaquiro and La Colosa projects. Company materials emphasize similarities in geological characteristics between Abriaqui and Buritica, including vein styles and grades, as documented in the referenced NI 43-101 technical report.

The company repeatedly notes that there are no NI 43-101 compliant resources or reserves currently defined at Abriaqui and that its analysis of drill and channel results is intended to estimate potential for future resources, which would require significant additional drilling.

Capital markets and corporate status

FenixOro Gold Corp’s common shares have been referenced in company news as trading on the Canadian Securities Exchange under the symbol FENX, on the OTCQB or OTC PINK market in the United States under the symbol FDVXF, and on the Frankfurt exchange under the symbol 8FD. In a more recent disclosure, the company stated that it was seeking financing and working to complete the necessary filings to resume trading of its common shares on the Canadian Securities Exchange and the OTC in the United States, following a cease trade order.

FenixOro has also announced private placement financings to fund its drilling programs at Abriaqui, including non-brokered private placements of units consisting of common shares and warrants, with proceeds intended for Phase 2 drilling and exploration of new targets such as the Prospera Vein and the southern block.

Exploration leadership

The company highlights the experience of its Vice President of Exploration, Stuart Moller, who is described as a Qualified Person under NI 43-101 and a Fellow of the Society of Economic Geologists. FenixOro notes that he led the discovery team at Buritica for Continental Gold between 2007 and 2011 and has decades of experience in exploration for precious and other metals, including extensive work in Colombia.

Technical information in FenixOro’s news releases is stated to have been prepared or supervised by this Qualified Person, and the company describes its sampling, assay and quality control procedures, including use of certified laboratories in Medellin and Lima, insertion of blanks, duplicates and standards, and storage of core and sample rejects.

Risk and forward-looking considerations

FenixOro’s public communications include cautionary statements that many of its disclosures regarding potential resources, future drilling, production capabilities and economic significance of results are forward-looking in nature and subject to risks and uncertainties. The company notes that actual results and future events could differ materially from those anticipated and that there can be no assurance that planned drill programs or permitting processes will be completed as expected or that resource potential estimates will translate into economically viable mining operations.