Gold Market: A Perfect Storm

Gold prices have been on a tear, hitting an all time high of USD $3,167 per ounce in early 2025. But there's something even more interesting happening... 

Central banks are buying gold at an unprecedented pace – purchasing over 1,000 tons for the third year in a row in 2024.

In fact, demand surged in late 2024: central banks snatched up 333 tons in Q4 alone, a 54% jump year-over-year.

This spree marks the third straight year of 1,000+ tons added to reserves.

The Gold Rush of 2024

The precious metal’s surge has shocked markets, with prices climbing nearly 30% in 2024, the biggest annual gain since 2010. Goldman Sachs sees even bigger gains ahead, projecting USD $3,100 per ounce by the end of 2025 (up from a previous $2,890 forecast). 

But there's a problem... Supply can’t keep up with exploding demand. Total global gold demand (including over-the-counter trading) hit an all-time high of 4,974.5 tons in 2024. Investment demand reached a four-year peak of 1,180 tons last year as investors flocked to gold ETFs and bars. Even the technology sector increased its gold consumption by 21 tons in 2024, largely driven by growth in electronics and AI applications.

The Perfect Storm for Gold 

Three major catalysts are driving this gold cycle are: 

● Central bank buying exploded on London’s OTC gold market after Russian assets were frozen in 2022 . For example, in October 2023 central banks bought 64 tons on the London market (versus a ~17 ton monthly average before 2022) – a clear sign that nations are racing to diversify reserves. 

● Global tensions and 60+ elections in 2024 sent investors rushing to gold’s safety. Geopolitical conflicts, trade disputes, and a wave of elections around the world have greatly boosted safe-haven demand for gold. As one World Gold Council analyst noted, these factors are encouraging investors to turn to gold for its proven track record as a safe haven asset. 

● The Fed’s expected rate cuts in 2025 could send gold prices even higher. With U.S. monetary policy poised to ease, analysts predict lower real interest rates will fuel even more demand for gold. Goldman Sachs estimates that a 100 basis-point Fed rate cut can boost gold prices by roughly 7%, creating a powerful tailwind for the metal.

This creates a once in a lifetime opportunity for small-cap gold stocks with prime assets. Here’s why... 

Institutional money is pouring in while supply remains tight – mine production has been growing at a mere ~1% annually, barely moving the needle. In our view, companies controlling strategic gold assets such as Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) stand ready to capture massive value in this bull market. 

The HIDDEN Gems in Colombia’s Gold Rush 

Colombian mining companies are reporting stunning gold grades – from 1.78 g/t up to 12.00 g/t Au in Proven Reserves. But most investors are missing something big...

Quimbaya Gold has quietly positioned itself in the mineral-rich heartland of Antioquia (Colombia’s top gold-producing region). Antioquia alone accounts for roughly half of Colombia’s gold output (around 1 Moz per year) and hosts numerous high-grade mines. This is exactly where a junior explorer would want to be for the next major discovery. 

The Crown Jewel: Tahami Project 

Quimbaya’s flagship Tahami project covers 622 hectares in northeast Antioquia. This isn't just any property – it sits in a region famous for both porphyry and epithermal gold deposits, and most importantly, it lies adjacent and on-trend to Aris Mining’s Segovia mine. Segovia is a historic district that has produced 1.7 Moz of gold since 2011 at an average grade of 12.2 g/t, and currently has reserve grades of ~10.8 g/t Au, ranking as one of the world’s highest-grade gold mines.

Tahami’s strategic proximity to this operation gives Quimbaya a huge advantage – they are exploring the same infamously rich geologic belt that has yielded multi-million-ounce high-grade veins for over 150 years. 

But here's what really caught our attention... 

Recent surface sampling at Tahami North showed exceptional grades of up to 5.86 g/t gold and 133 g/t silver. The company isn’t stopping there – they’ve launched a LIDAR survey at Tahami South to identify hidden structural targets, showing their commitment to innovational exploration techniques.

Money, Money, Money… 

Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) just pulled off something remarkable – closing an upsized private placement of USD $3.00 million. We won't be surprised to see this funding accelerate their growth plans. In fact, due to strong investor demand, the company increased the financing to $3M from an initial smaller target. This fresh capital injection provides a healthy treasury for aggressive exploration and drilling across Quimbaya’s projects.

The company made another smart move, bringing on Ricardo Sierra as Vice-President of Exploration. In our view, this significantly strengthens their technical team. Sierra is a seasoned geologist who has led major discoveries in Colombia – exactly the expertise Quimbaya needs to unlock Tahami’s full potential. 

The Numbers Don’t Lie 

Global gold miners face rising costs – average all-in sustaining costs (AISC) hit ~$1,388 per ounce in Q2 2024. But here’s the opportunity... current gold prices (hovering around $1,950-$2,000) give producers fat margins averaging about $950 per ounce. 

South American operations look even better, with regional AISC at $1,372 per ounce(Q4 2023 data). In other words, miners in Latin America enjoy lower costs and wider margins than the global average. This reflects extremely well for Quimbaya down the line – operating in Colombia means potential costs well below global benchmarks, boosting the margin upside if/when production commences. 

Where is Quimbaya’s Edge? 

► Strategic position in Colombia’s established mining districts – Quimbaya’s projects are in proven gold belts with producing mines next door. They benefit from existing roads, power, and skilled labor in these districts, reducing development risk. 

► Colombia ranks as the world’s 14th largest gold producer – and the country’s gold output has been growing at a massive 11% CAGR over the past five years. This trend of rising production reflects improving mining conditions and new projects coming online. Quimbaya sits in the right place at exactly the right time. 

This suggests Quimbaya is positioned to ride a wave of growth in Colombia’s gold sector. Few junior miners can claim a foothold in such a high-potential region and have the team, the land package, and the partnerships to capitalize on it like Quimbaya can. 

The Political Landscape 

Mining companies now face a stark reality – project timelines average 20–25 years from discovery to production. This long lead time often intersects multiple political cycles, which can introduce uncertainty. But Colombia tells a different story... 

The country’s mining sector shows remarkable strength. Despite global challenges, Colombia has maintained a generally pro-mining stance in recent years. In 2023-2024, while over 50 national elections worldwide shook mining policies (leading to higher taxes or stricter regulations in some jurisdictions), Colombia remained relatively stable. Yes, there are always local community and permitting considerations, but compared to the upheavals seen in places like Mexico (royalty hikes and permit freezes) and West Africa (political coups), Colombia stands among the more mining-friendly jurisdictions. The country offers clear permitting processes and established mining codes – exactly what serious mining investors need for confidence.

Recent global trends underscore this stability: in an environment where new regulations have hit mining concessions across multiple regions and environmental compliance is more crucial than ever, Colombia has continued to encourage responsible mining investment. We see this in the continued growth of its gold output and the successful development of new mines by major companies. 

Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) strategic edge lies in leveraging Colombia’s stability. The company’s approach to risk management emphasizes strong community relationships and adherence to high environmental standards (they engage early with local stakeholders and use advanced environmental monitoring). This proactive strategy suggests exceptional potential for value creation while maintaining tight controls. Of course, no mining venture is without risk – and investors should always weigh these factors carefully – but Quimbaya is checking the right boxes to mitigate them. 

Quimbaya’s Strategic Edge 

In our view, Quimbaya holds three powerful advantages: 

1. Prime position in Colombia’s established mining districts. The company’s projects are surrounded by multi-million-ounce mines and known deposits, drastically improving the odds of success due to shared geology. 
2. Strong local community relationships. Quimbaya’s team includes members with decades of experience working with Colombian communities. This helps streamline permitting and on-the-ground operations, avoiding the social conflicts that often derail projects elsewhere. 
3. Advanced environmental management systems. By employing modern exploration tools and adhering to international best practices (an approach validated by a recent SRK risk assessment), Quimbaya ensures it can meet or exceed regulatory requirements, preventing costly delays.

Colombia stands out as a relatively mining-friendly jurisdiction, offering stable regulations compared to recent issues in Mexico and parts of Africa. This means clear permitting processes and established mining codes – the stage is set for Quimbaya to flourish when others are facing uncertainty.

The company’s thoughtful approach to risk management signals a path to unlocking tremendous value while operating responsibly. But remember – mining always carries risks, and investors should analyse this carefullly. However, Quimbaya Gold (CSE: $QIM | OTC: $QIMGF), is taking diligent steps to address them head-on. 

The MASSIVE Growth Ahead 

Something BIG is happening at Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) Gold... 

The company just locked in 4,000 meters of drilling (minimum) on a 100% share-based deal with Independence Drilling. We believe this partnership changes everything. 

Independence is the biggest drilling contractor in Colombia – they wouldn’t accept stock as payment (worth approx. C$1.2M for the first 4,000 m) if they didn’t think this drill program could take Quimbaya’s share price to a whole new level. The fact that an industry leader is literally investing its services into Quimbaya speaks volumes. It’s an unprecedented vote of confidence, and it means Quimbaya can advance exploration aggressively without diluting cash reserves. This effectively turbocharges the company’s growth trajectory going into 2025. 

The 2025 Drilling Campaign

Quimbaya’s approach mirrors American Pacific’s successful 2024 program, which hit zones grading 12.10 g/t Au and 6.97% Cu at the Madison project. Like American Pacific, Quimbaya is targeting high-grade feeder zones that can deliver game-changing results. Their upcoming drill campaign will focus on the most promising targets delineated by recent sampling and LIDAR data.

Quimbaya’s approach mirrors American Pacific’s successful 2024 program, which hit zones grading 12.10 g/t Au and 6.97% Cu at the Madison project. Like American Pacific, Quimbaya is targeting high-grade feeder zones that can deliver game-changing results. Their upcoming drill campaign will focus on the most promising targets delineated by recent sampling and LIDAR data.

The Growth Opportunity

The global mining landscape screams opportunity for those who can act. Consider these trends:
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● The top 10 gold miners saw their reserve life plunge 33% in the past decade. Majors are desperate for new discoveries to shore up their pipelines.

● Industry-wide under investment in exploration has created a looming supply squeeze. Simply put, not enough gold has been found to replace what’s being mined.

● Producers are enjoying high margins (~$950/oz) thanks to strong prices, which means cashed-up majors can easily fund acquisitions of promising projects.

We won’t be surprised to see Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) emerge as a major player. Their projects sit in Colombia’s established mining infrastructure, where production keeps growing and big players already operate. In addition, central bank gold buying surged 14% through Q3 2023– a sign that macro demand remains robust and supportive of high gold prices. All this creates a ripe environment for a well-positioned junior like Quimbaya (CSE: $QIM | OTC: $QIMGF) to be in the M&A spotlight.

In our view, Quimbaya’s strategic partnerships and systematic exploration approach position them perfectly for what’s coming next. They have the land, the team, the cash, and now the drills turning to potentially deliver the kind of high-grade results that larger gold companies covet.

In Summary

Gold prices are smashing all time highs ($3,100 per Oz) and look poised to climb even further. But most investors are missing something HUGE...

Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) controls 59,057 hectares in Colombia’s richest gold region.
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The numbers tell the story:
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● High-grade samples: Surface samples show exceptional grades up to 5.86 g/t gold.
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● Massive drilling underway: An unprecedented 100,000 meters of drilling has been secured via partnership with Independence Drilling.

● Strong insider ownership:60% insider/institutional ownership signals unwavering confidence from those who know the company best.

But here’s what makes this truly special...

Colombia’s established mining infrastructure and growing production profile gives Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) a massive advantage. Their operational costs are expected to sit well below global averages (thanks to the region’s favorable economics), creating potential for substantial margins if a discovery advances to production. Meanwhile, industry giants are starved for new high-grade projects – exactly what Quimbaya is on the hunt for.

We believe Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) represents one of the most overlooked opportunities in the small-cap gold space. Three factors make this clear:

● Prime mining territory in a proven gold region.
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● Strategic partnerships with industry leaders, providing capital and expertise.

● Multiple catalysts (drill results, resource growth, potential JV or takeout) ready to drive growth through 2025.

The opportunity looks compelling. But you need to act fast...

As gold prices surge toward new highs, companies like Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) won’t stay under the radar much longer. Once the broader market catches on to what’s unfolding in Antioquia, Quimbaya Gold (CSE: $QIM | OTC: $QIMGF) stock could witness a surge like we have never seen before.

Bottom line: All the pieces are in place – a booming gold market, record demand, a top-notch project next to a legendary mine, and a drilling campaign that could deliver game-changing news. Quimbaya Gold is the kind of opportunity that savvy resource investors dream about. Don’t miss it.