Esgold enters MOU for Colombian tailings project

Executive Summary

• Esgold Corp. has entered into a binding memorandum of understanding (MOU) with Planta Magdalena SAS to form a 50/50 joint venture for the development and reprocessing of gold- and silver-bearing tailings in Bolivar, Colombia.
• The transaction involves an initial $1.5-million contribution from Esgold for a 50% interest, with a first right of refusal to acquire the remaining 50% within 12 months at fair market value.
• Initial due diligence sampling of 27 tailings samples revealed high-grade intercepts, including up to 42.683 g/t Au, supporting the company's "tailings-to-cash-flow" model with a target start-up in 2026.

Key Details

• Transaction Structure: Esgold contributes $1.5 million for a 50% interest in the joint venture. Esgold holds a first right of refusal to purchase the remaining 50% within 12 months at fair market value determined by an independent third-party appraisal.
• Permitting Status: Planta Magdalena SAS holds permits to commence tailings production. Esgold is conducting independent verification of all permits and licenses as part of due diligence prior to a definitive agreement.
• Sample Results (Due Diligence Screening): 27 tailings samples were collected and assayed by Actlabs. Highlights include:
  • SS806: 42.683 g/t Au
  • SS816: 19.284 g/t Au
  • SS817: 18.332 g/t Au
  • SS825: 10.787 g/t Au
  • Eight of 27 samples assayed above 5 g/t Au.
  • Multiple samples returned silver values exceeding 190 g/t Ag.
• Strategic Rationale: The project aims to replicate Esgold’s low-capital-expenditure, high-margin model from Montauban (Quebec). It targets remediation of legacy mine sites using modern, mercury-free processing technology, addressing environmental harm from artisanal mining.
• Production Timeline: Subject to definitive agreement, verification, and commissioning, the target start-up for the Bolivar operation is 2026.
• Next Steps:
  • Finalize definitive agreement following legal, technical, and financial due diligence (title, lien, litigation, licensing).
  • Conduct qualified-person-supervised site visits in early September for systematic sampling and QA/QC.
  • Finalize bulk sample concentrate tests at Montauban facilities to confirm recovery rates.
  • Continue construction and commissioning at the Montauban project in Quebec.

Notable Quotes

• "The region still processes hundreds of thousands of tonnes of ore annually, yet much of it is handled using rudimentary mercury amalgamation methods that leave behind a substantial amount of gold and silver in the tailings. This creates an immense opportunity for Esgold to apply modern, environmentally responsible recovery technology that can significantly improve yields while remediating legacy mine sites." — Gordon Robb, CEO
• "This is a permitted project in one of South America's most prolific gold districts, with the potential to quickly generate high-margin cash flow using our modern, environmentally responsible processing. The initial sample results are encouraging, and we're eager to complete the next stages of technical and legal due diligence." — Paul Mastantuono, Chairman and COO