Collective Mining: Advancing a District-Scale Copper-Gold Discovery in Colombia

• Collective Mining is focused on making large-scale copper and gold discoveries in Colombia at their Guayabales project. Recent drilling has yielded impressive intercepts of gold, silver and copper.
• The mining equities market has been in a bear market since 2012, but is poised for a reversal as commodity prices rise and we enter a recession. Gold and precious metals can see rapid rises when the economy turns.
• The Guayabales discovery keeps getting better with more drilling, with positive surprises and high grades over long intervals, indicative of a potential mine. More rigs would be added if the market was stronger.
• The deposit is approximately 50% gold, 25% silver and 25% copper. Veining has helped increase the typical grades. Institutional ownership is currently low at around 17%.
• Management believes this could be an even bigger deposit than previous successes. With 2 years of cash, Collective aims to demonstrate growth in 2023 and attract investment at better valuations.

About Collective Mining

Collective Mining is a Canadian exploration company focused on making large-scale copper and gold discoveries in Colombia. The company's flagship project is Guayabales, located in a pro-mining region of Colombia, where it has made a porphyry copper-gold discovery. Collective Mining is led by Chairman Ari Sussman, who has a track record of success in mining exploration.

Interview with Ari Sussman, Executive Chairman of Collective Mining

The Opportunity at Guayabales

Guayabales is exhibiting promising bulk tonnage copper-gold intercepts from surface, with higher than usual gold grades for a porphyry system. This is due to late-stage high grade gold-silver-lead-zinc veins that have overprinted the porphyry mineralization. The combination of bulk tonnage and high grade has yielded intercepts averaging 1-2 g/t gold over long intervals. As Sussman states, "The more we drill the better it gets, and that's the telltale sign of a mine."

With a current market cap around $275M, Sussman believes there is substantial upside for Collective Mining as they continue to delineate the size and scope of the deposit. He notes, "We sold our last company for almost $2 billion. I think this is going to be bigger and better."

Exploration Approach

Collective Mining employs expert consultants to rigorously evaluate and target its projects. At Guayabales, the company has systematically tested multiple targets, hitting discovery at four out of five so far. With the current success, Sussman aims to continue aggressive exploration, adding more rigs if market conditions improve.

Collective Mining is well funded, with around $23M cash on hand and a low burn rate providing 1.5-2 years of operating runway. This allows them to maintain the drilling pace to fully delineate Guayabales, rather than having to pause for financing.

Current Market Conditions

The mining equity markets have been depressed, but commodity prices remain strong. Sussman believes we are at the tail end of a typical 10 year bear cycle for mining stocks. He expects a recession and pullback for gold, but sees substantial upside when economic recovery and inflation inevitably drive metals higher. With few buyers at recent industry conferences, Sussman takes this as a contrarian bullish indicator.

Conclusion

For investors with a high risk tolerance, Collective Mining provides leveraged upside potential from exploration success at its large copper-gold project. The company exhibits clear technical expertise, is well funded, and is operating in a proven mining jurisdiction during a discovery phase. As additional promising results are announced, Collective has substantial room for market cap expansion. However, successful exploration is not guaranteed, and Collective Mining remains an early stage exploration play. Investors should size positions accordingly and be comfortable with the binary, high reward but high risk nature of exploration investing.