The problems of dealing with small-scale miners are not just cultural and territorial, they can be difficult to help. Canada Gold recently announced “the Colombia pre-investment study initiated in May 2010 has concluded with mixed results. This study confirmed the Colombian Government’s desire through legislation and incentives to assist foreign investment in the small scale mining sector, however, the six regions investigated did not produce sufficient ore supply commitments required to financially justify Canada Gold building a modern mineral processing facility.”
Canada Gold is currently reviewing its business strategy with respect to purchasing ore from small scale miners and processing this ore using a modern facility. “The failure to monetise the $10 million holdings of the Grafton Resources Fund by our 100% controlled subsidiary has negatively impacted our ability to execute the original Canada Gold business plan. The company has reviewed numerous opportunities in Peru, Colombia and elsewhere, however, no firm projects have been identified to date. Reviews of potential new opportunities of brown fields and advanced staged projects are ongoing.”
Canada Gold was formed for the express purpose of developing mineral processing facilities in independent small scale and artisanal mining communities. By providing local miners with access to advanced ore processing techniques, the company’s mineral processing model seeks to assist these mining communities in establishing sustainable socio-economic standards by encouraging entrepreneurship, curtailing health and safety risks, improving access to education and equipment, reducing environmental degradation, and minimising the pressures contributing to child labor.
Canada Gold facilities will provide alternative processing options to small unregulated mercury amalgamation techniques and the associated health and environmental impacts accruing from these small scale processing activities.
Much of the developing world has significant informal artisanal small scale mining communities, often working with low health, safety and environmental standards, but also having significant social and economic influence. The organization of Communities and Small Scale Mining (CASM) suggests between 13 and 20 million men, women and children from over 50 developing countries are active in small scale activities, with 100 million more dependent on this sector for their livelihood