ESGold (CSE:ESAU,OTCQB:ESAUF) has signed a binding memorandum of understanding with Colombian firm Planta Magdalena to form a 50/50 joint venture on a fully permitted gold- and silver-bearing tailings project.
Under the agreement, ESGold will invest C$1.5 million for its stake and will retain a first right of refusal to acquire the remaining 50 percent interest from Planta Magdalena within 12 months.
The project is designed to replicate ESGold’s Montauban model in Québec, which focuses on generating cashflow by reprocessing legacy tailings, while providing environmental remediation.
Preliminary due diligence sampling of 27 tailings collected from the project, located in Colombia’s Bolívar department, returned encouraging results, including assays of 42.7 grams per metric ton (g/t) gold and 280 g/t silver.
Several samples exceeded 5 g/t gold and 190 g/t silver, highlighting the potential for high-grade recovery.
Bulk concentrate tests are underway, with final verification to be completed at Actlabs in Québec.
Bolívar is one of Colombia’s most prolific gold regions, with artisanal miners processing an estimated 300,000 metric tons of ore annually. ESGold, a self-described scalable clean mining and exploration innovation company, plans to apply modern, mercury-free recovery methods to improve yields while addressing environmental concerns.
“The region still processes hundreds of thousands of metric tons 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,” said Gordon Robb, CEO of ESGold. “This creates an immense opportunity for ESGold to apply modern, environmentally responsible recovery technology that can significantly improve yields while remediating legacy mine sites.”
Pending completion of technical and legal due diligence, ESGold aims to fast track the project toward production in 2026, establishing a second high-margin operation alongside Montauban.
Green revenue stream
It is estimated that there are 8,500 tailings facilities around the globe, holding more than 217 billion cubic meters of mine ‘waste.’ In an effort to reduce the amount of stored tailings and their environmental impact, tailings reprocessing is emerging as both an economic and sustainable revenue stream.
By extracting valuable residual metals, such as gold, copper and critical minerals, from legacy waste, companies can generate revenue while reducing the environmental footprint of tailings facilities.
The approach also aligns with sustainability goals, as it mitigates risks like tailings dam failures and restores degraded sites, turning longstanding liabilities into productive assets
Globally, the growing recognition of untapped value in tailings has spurred renewed interest and investment, with major miners — like Vale (NYSE:VALE) — and governments prioritizing tailings projects as part of circular mining strategies and critical minerals security.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.