Cambridge Mineral Resources (CMR) has completed a feasibility study on its Quintana gold mine in Columbia, which revealed an increase in gold reserves and resources to 86,783 ounces.
The in situ value is estimated to be $58 million at current gold prices, and annual production from the mine is set to increase to around 15,500 ounces of gold and 6,500 ounces of silver within three years.
The mine, which is located in Columbia's foremost gold mining region, the Frontino Gold Belt, has been shown to have a gold grade as high as 150 grams per tonne.
"Quintana is the first in the series of CMR's gold mining projects in Colombia, and is part of a planned drive to achieve annual production in excess of 100,000 ounces of gold," said CMR managing director Colin Andrew.
"The outcome of the feasibility study on Quintana is excellent, as is the economic potential, and we believe these results are indicative of those to be expected with our future mines."
A recent report in the San Francisco Chronicle suggested a new gold rush may be imminent in Columbia, provided the country can limit its internal violence.
Its large gold reserves have not been exploited as much as they could have been, largely because of decades of conflict in the country.