XAUg and CREC: CREC is the operator with two standalone-accounting lines — A (existing traditional line) and B (XAUg new-line financing).
Mine & CREC
This page uses the spine "CREC operator → Line A existing vs Line B XAUg" to explain the mine's reality, strategic intent and operating status. The full registry and parameters follow below.
Line A · Key operating data (Aug 2026 actuals)
1
line in operation
running continuously
running continuously
104
t / month
Aug 2026 shipments
Aug 2026 shipments
20.47
g / t
assayed grade
assayed grade
2,129
g
monthly gold equivalent
monthly gold equivalent
Strategic intent (Line B): anchored to the existing operator; funds earmarked for new lines, do not enter CREC's existing business or repay its debt. Each USD 1,000,000 raised kicks off one new line; USD 1M per line replicates the existing line and can be upgraded to higher capacity.
How the two lines relate
Line A · existing
Running today: 100+ tonnes of ore traded per month, assayed grade ~20 g/t, ~2,100 g gold equivalent per month; operating and assay data published monthly.
Line B · XAUg new line
Proceeds earmarked for construction, production from month 6, same process and same ore source; accounted separately, never mixed with CREC's existing business.
Entity and title
Company registration and title structure: the cooperative holds the mining title and a specialised company operates under lease, with responsibilities defined by notarized lease.
| Item | Detail |
|---|---|
| Company | CREC MATERIAL CO S.A.S |
| Entity type | S.A.S (simplified joint-stock company, the mainstream Colombian commercial form) |
| Tax ID · NIT | 901049019-1 |
| Registered seat | Buenos Aires, Cauca, Colombia |
| Legal representative | JAILER FERNANDO MURILLO |
| Status | Active; no dissolution, suspension, administrative penalty or share freeze; annual chamber of commerce review completed on schedule |
| Term | No fixed end date (perpetual) |
| Business scope | Underground mining of gold, silver and copper, drift development, mine engineering; crushing, grinding, flotation, gold concentrate processing, compliant tailings disposal; domestic trading and cross-border import/export of concentrate and precious-metal ore; procurement and storage of equipment, reagents and safety supplies; leasing of mine land, plants and tunnels |
| Tax | RUT unified tax registration issued by DIAN, covering precious-metal import/export and mining; able to invoice, claim export rebates, and pay mining royalties (regalías) and environmental levies |
| Export qualification | Holds precious-metal export qualification; may file concentrate shipments with customs directly |
| Title holder | Local miners cooperative COOMULTIMINEROS — holds the mining title, handles licence renewal, community liaison and local filings; no day-to-day operation, no operating cost |
| Operator | CREC MATERIAL CO S.A.S — exclusive use rights under notarized long-term lease; mining, processing, equipment maintenance, staffing and export trade; operating cost accounted separately and result of concentrate sales retained |
Location and capacity
| Parameter | Value |
|---|---|
| Location | Loma Alta, Buenos Aires, Cauca, Colombia |
| Licensed area | 63.76764 ha (637,676 m²), single block, 13 boundary points with GPS-UTM coordinates; no mining beyond boundaries |
| Mining method | Underground drifts; classified as a small mine |
| Licensed mineral | Gold (originally applied for gold with silver by-product; gold confirmed after environmental assessment) |
| Land use | 2022 municipal certificate: the plot is zoned for mining, not for residential or agricultural use |
| Line in operation | 1 complete processing line, running continuously |
| Steady-state output | ~100 t / month gold concentrate (single-line monthly capacity) |
| Actual shipments, Aug 2026 | 104 t (4 containers × ~26 t) |
| Concentrate grade | 20.47 g/t, with associated silver and copper (third-party assay, Shandong Zhaoyuan) |
| Route | Buenaventura → Qingdao (COSCO carrier; customs HS 2616, bill of lading, weight note and container numbers on file) |
Export and settlement
STEP 1
Processing done
Concentrate loaded
STEP 2
Buyer advance
Part payment before loading
STEP 3
Shipment arrives
Delivered to domestic port
STEP 4
Third-party check
Weight and gold grade verified
STEP 5
Balance settled
Single batch closed
A medium-to-long term gold concentrate purchase framework agreement is in place with a domestic precious metals trading company. Main cost items: wages, mine lease, explosives and reagents, power and fuel, ocean freight, import/export taxes and fees, and administration and maintenance.
Compliance documents
| Document | Content | Issuing / approving body |
|---|---|---|
| Mining licence 19,140 | Licensed area 63.76764 ha, gold mining permit, 10-year term | INGEOMINAS (Colombian geological and mining authority) |
| Environmental management plan (PMA) | Resolution 0545, covering mining, processing, tailings, wastewater, dust and closure | CRC (regional environmental authority of Cauca) |
| Municipal land-use certificate | Plot zoned for mining, not residential or agricultural | Buenos Aires municipal planning office (2022) |
| Notarized lease agreement | Exclusive use rights to the mine, two processing plants and production land | Local notary |
| Owner's sublease authorisation | Written consent to sublet, recognising all lease agreements | Original owner (notarized) |
| Concentrate assay report | 20.47 g/t gold, with associated silver and copper | Shandong Zhaoyuan precious metals laboratory |
| Shipping and customs documents | Bill of lading, customs declaration (HS 2616), weight note, container voucher | COSCO / Colombian customs |
| Company registration and tax files | Certificate of existence and legal representative, RUT tax registration | Buenos Aires chamber of commerce / DIAN |
Environmental approval: absent material expansion, the PMA approval remains valid with no re-filing; new lines require a supplementary environmental filing. INGEOMINAS and CRC have completed site inspections.
Leases and resource estimate
Under industry standards, a resource estimate must use in-situ grade and be confirmed by a competent report. The tables below are parametric estimates provided to indicate scale and basis.
| Leased asset | Term |
|---|---|
| El Encanto underground mine | Signed 2014, 20-year term (to 2034) |
| Yarumo plant, El Chileno plant, mine, 5 ha land and 1,998 m² plot (package) | Master lease agreement, renewed to 2037 |
| Parameter | Value | Note |
|---|---|---|
| Area | 63.7676 ha | Consistent with the licensed area |
| Average mining depth | 15 m | Assumption in the materials; to be confirmed by exploration |
| Ore bulk density | 2.6 t/m³ | Industry-standard assumption |
| Derived ore tonnage | ~24.87 Mt | Area × depth × density |
| In-situ grade | Contained metal | Moz troy | Basis |
|---|---|---|---|
| 5 g/t | 124.35 t | 399.8 | Int'l underground average · low |
| 6 g/t | 149.22 t | 479.7 | Int'l underground average · mid |
| 7 g/t | 174.09 t | 559.7 | Int'l underground average · high |
Note: the above is a parametric estimate and does not constitute a resource or reserve statement under NI 43-101 / JORC / S-K 1300.
In-situ metal value is the product of contained metal and the spot gold price, before mining, processing, transport, administration costs and taxes, and before capital expenditure, mining dilution and attrition, smelting deductions and the time value of money; it is not equivalent to recoverable economic value or a mineral asset valuation. 20.47 g/t is an assay result for gold concentrate (processed sand), i.e. a product grade, not in-situ grade.
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