Collective Mining (TSX, Nasdaq: CNL) shares fell 9% Wednesday after the company outlined a first resource containing 4.1 million oz. of gold at its Apollo deposit in Colombia, even as analysts said the scale was broadly in line with expectations.
The site contains 37 million indicated tonnes grading 1.38 grams gold per tonne, 24.4 grams silver per tonne, 0.14% copper and 0.011% tungsten trioxide for 1.64 million oz. gold, 29 million oz. silver, 115 million lb. copper and 3,887 tonnes of tungsten trioxide, Collective said.
Inferred resources add 48.2 million tonnes at 1.6 grams gold, 8.39 grams silver, 0.03% copper and 0.002% tungsten trioxide for 2.47 million oz. gold, 13 million oz. silver, 32 million lb. copper and 1,081 tonnes tungsten trioxide.
“Similar to Buriticá, where the resource grew over time with continued drilling, I see substantial opportunity to expand Apollo through our ongoing aggressive drill program,” Executive Chairman Ari Sussman said in a release. “Results announced since the resource database cut-off demonstrate extensions to mineralization at multiple elevations including the near-surface Shallow Halo zone, the new Northern Breccia Extension and the western side of the Ramp zone.”
The estimate is based on 114,520 metres of drilling in 265 holes through March 31, leaving about 40,000 metres drilled since then outside the resource. That includes the high-grade northern extension Collective reported last week, as well as drilling that has been steadily expanding the Ramp zone. The company plans another resource in the first quarter of 2028, followed by a preliminary economic assessment in the second half of that year.
Shares in Collective Mining fell 9.4% to $21.11 apiece in Toronto by mid-afternoon Wednesday, valuing the company at $1.96 billion (US$1.4 billion). They’ve traded between $13.76 and $30.12 over the last 12 months.
Pit and Ramp
Apollo’s resource is split between a conceptual open pit, an upper underground zone and the deeper Ramp zone.
The open pit contains 22.5 million indicated tonnes grading 1.02 grams gold, 30.2 grams silver, 0.20% copper and 0.015% tungsten trioxide. Inferred resources total 25.9 million tonnes at 0.6 gram gold, 8.98 grams silver, 0.03% copper and 0.003% tungsten trioxide. The conceptual pit has a 3.4-to-1 strip ratio.
Ramp stands out for grade. Indicated resources below 1,000 metres elevation total 1.29 million tonnes grading 4.52 grams gold, 9.85 grams silver and 0.03% copper. Inferred resources add 6.04 million tonnes grading 5.2 grams gold, 7.72 grams silver and 0.02% copper.
The zone is a key value driver because it holds 37% of Apollo’s inferred gold-equivalent ounces in just 13% of its inferred tonnes, National Bank Financial mining analyst Don DeMarco said in a note. About 79% of the interpreted 1.5-km circumference hasn’t yet been drilled densely enough for inclusion in the resource.
The overall 5.4-million-oz. gold-equivalent inventory was broadly consistent with Collective’s guidance, DeMarco said. It put Apollo in what he called the “world-class wheelhouse.”
National Bank estimates the bulk grades could support conceptual production of about 250,000 gold-equivalent oz. a year at a 10,000- to 15,000-tonne-per-day operation, although a mine plan and PEA haven’t yet been completed. The bank rates Collective outperform with a $32 target.
Scotiabank mining analyst Ovais Habib also called the resource positive, pointing to the high-grade open-pit inventory and Ramp as supporting the potential for both open-pit and underground development. Scotiabank rates Collective sector outperform with a $35 target.
More drilling excluded
The estimate doesn’t include the Northern Breccia Extension reported Sept. 1, where drilling cut 141.4 metres grading 4.75 grams gold per tonne, including 38 metres at 15.25 grams, about 100 metres north of the previously known Apollo system. See a 3-D image here.
Nor does it capture other post-March drilling in the Shallow Halo or western Ramp areas. Three rigs are testing the shallow zone, while higher-capacity rigs are being mobilized to test Ramp at depth. Collective has 13 rigs operating across Guayabales.
Collective aims to start construction of an underground exploration adit this quarter and submit its environmental licence application in the second half of 2027. It targets a feasibility study in mid-2029 and early works and construction later that year, subject to studies, financing and approvals.
Collective has accelerated exploration since Agnico Eagle Mines (TSX, NYSE: AEM) invested $63.4 million in late 2025. The company also shifted its executive headquarters from Toronto to Miami in March to move closer to its Colombian operations and U.S. capital markets.
Apollo has been expanding rapidly since its 2022 discovery. Ramp drilling in May returned 23.1 metres grading 4.61 grams gold per tonne and 11 grams silver, while another hole included 5.3 metres at 37.04 grams gold and 28 grams silver.
More recently, metallurgical testing returned recoveries of 95% for gold, 92% for silver, 85% for copper and 70% for tungsten using conventional processing methods.
Source: https://www.mining.com/collective-shares-slide-on-apollos-4-1m-oz-gold-resource/
