Mining Sector Finds High-Grade Gains in Colombia

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Soma Gold, Outcrop Gold and Silver, and Copper Giant. 
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Colombia's mining industry remained a central pillar of its national economy in recent years, contributing approximately 3% of the country's GDP and leading export activity with a reported value of US$20.38 billion in 2023, according to the Colombian Mining Association. Despite a shifting policy environment and mounting geopolitical pressure, the sector continued to attract global investment and attention, particularly for its deposits of coal, gold, nickel, and critical minerals vital to clean energy technology.

Colombia has positioned itself as a leader in Latin American mining, ranking as the region's top coal producer and the world's fifth-largest coal exporter with an annual output of 51 million tons, primarily thermal coal. The Cerrejón mine in La Guajira remained the country's largest mining operation and one of the largest globally. According to the Ministry of Mines and Energy, coal accounted for 64% of Colombia's mining GDP and supported approximately 130,000 jobs.

In addition to coal, Colombia's gold sector played a vital role, with around 70 tons exported in 2023 for an estimated US$3 billion. Key gold operations are concentrated in the Antioquia department, home to major mines such as Buriticá, Segovia, and Cisneros. Nickel also contributed significantly, with the Cerro Matoso mine in Córdoba producing 41,000 tons in 2022, making Colombia the top nickel producer in South America and the tenth-largest worldwide. Precious stones remained part of the country's mining identity, as Colombia retained its reputation as the world's foremost exporter of high-quality emeralds, generating US$84.85 million in export revenue in 2022.

Policy Shifts, Environmental Pressures, and Informal Mining Challenges

Despite these strengths, Colombia's mining landscape faced growing complexity. Environmental goals and energy transition policies reshaped industry oversight and expansion.

In 2024, a government decree granted environmental agencies the authority to halt or suspend mining activity, prompting concern among industry leaders. According to the Colombian Mining Association, the decree "overrides legal and constitutional norms and can be used arbitrarily and subjectively to hinder the development of new mining activities."

The government's broader strategy centered on transitioning from an extractive model to one based on mineral processing and industrial development. In September 2022, President Gustavo Petro emphasized a focus on critical minerals needed for renewable technologies, stating mining exploration should "see if there is lithium, more copper, cobalt, coltan, and manganese."

The list of strategic minerals, updated in November 2023 by the National Mining Agency, included copper, nickel, gold, metallurgical coal, and phosphate. According to a study by Colombia's Mining and Energy Planning Unit (UPME), copper reserves were estimated between 7.7 and 9.7 million tons. Professor Luis Hernán Sánchez Arredondo of the National University of Colombia noted that while Colombia's copper output was relatively low — 6,900 tons in 2022 — the country held significant long-term potential. He added, "In most cases, Colombia has the potential to find deposits to at least cover local needs."

The sector's evolution was not without friction. In February 2024, the government formally introduced a new public entity through the "Ecominerales" law to promote industrialization and formalization, particularly in response to widespread artisanal and illegal mining.

According to former Vice Minister of Mines Giovanni Franco Sepúlveda, only 15–20% of gold production was legal, while the rest stemmed from informal sources, largely driven by rising gold prices, which increased from US$1,270 per ounce in 2019 to US$2,371 in 2024.

Geopolitical and Community Dynamics Shape Sector Stability

Security and labor concerns remained ongoing issues. On July 8, IndustriALL reported that union leaders in Colombia's mining sector, particularly from Sintracarbón, faced renewed threats and harassment. These developments drew international attention to the risks associated with labor activism in the region. In response, IndustriALL general secretary Atle Høie stated, "We are extremely concerned and appalled by this new and blatant violation of fundamental human and trade union rights."

Diplomatic tensions added further uncertainty. According to a July 8, report by Oilprice.com, U.S.-Colombia relations deteriorated amid political accusations and the threat of decertification by Washington, potentially impacting U.S. energy and mining partnerships. Nevertheless, Colombian equities, including those in the mining sector, continued to perform strongly, buoyed in part by high gold prices, which had climbed to nearly US$3,310 per ounce.

Finally, environmental justice rulings also shaped the industry. On July 11, Colombia's Constitutional Court suspended new gold mining in the Yuruparí region to protect Indigenous communities impacted by mercury contamination. Mercury levels in local rivers were reported to be up to 17 times above safe limits. In response, Environment Minister Lena Yanina Estrada Añokazi stated, "The identity and survival of these peoples are at risk… due to the poisoning of the territory, the threats to their leaders and the lack of interagency coordination."

In remarks to Streetwise Reports on April 19, Geoff Hampson of Soma Gold Corp observed, "I agree that the country has become a more challenging place to do business since Petro has become President. The Government moves very slowly and shifting priorities sometimes makes it difficult to plan and execute business plans." He added that while security conditions had not changed significantly, "We have to be careful not to be 'in between.' We have beefed up our efforts to gain better intelligence and to communicate with the communities around us." Hampson emphasized the importance of community ties, noting, "Since we are one of the largest employers in the region . . .  it's in the interest of the community to keep us safe."

Against this backdrop of evolving regulation, environmental considerations, and ongoing foreign investment, several companies continued to advance mining operations across Colombia. These firms represent a cross-section of the sector, each navigating the country's complex landscape while contributing to the development of critical minerals and precious metals. The following companies illustrate how different operators are positioning themselves within Colombia's resource-rich regions.

Soma Gold Corp. 

Soma Gold Corp. (TSXV:SOMA; OTC:SMAGF; WKN:A2P4DU) operates the Cordero Mine within its Bagre Project in Antioquia, Colombia, where recent drilling extended the high-grade Venus Gap zone by 135 meters.

Key results included intercepts such as 6.0 meters at 7.5 g/t gold and 0.5 meters at 67.8 g/t gold. According to the company's Vice President of Exploration, these extensions are expected to add to the mine plan and support development at deeper levels of the deposit. The mineralization at Venus Gap is structurally controlled, with gold occurring in laminated quartz veins and micro-breccia zones associated with a regional fault system.

The Cordero Mine is part of a larger exploration and production strategy across a 410 square kilometer land package. Soma's operations follow a hub-and-spoke model supported by the El Bagre Mill and a planned restart of the El Limon Mill. In Q1 2025, Soma produced 6,594 gold equivalent ounces, generating US$13.47 million in adjusted EBITDA and US$3.17 million in net income from US$27.88 million in revenue. The company has outlined a production growth plan targeting 70,000 ounces annually by 2028, supported by mill expansion and ore-sorting upgrades.

Soma's commitment to ESG practices includes formalizing artisanal mining and leveraging hydropower, earning local recognition and community support, as mentioned above. The company's ongoing drilling campaign, paired with an upcoming resource estimate and a multi-phase expansion strategy, is part of a broader effort to build long-term value through sustainable development and resource growth.

In an April 11 report, Technical Analyst Clive Maund highlighted Soma Gold Corp.'s bullish chart setup, pointing to a "giant 5-year long Cup & Handle base pattern" that began during the 2020 market downturn. He described the company as "an immediate strong buy and hold for a long time," suggesting the technical structure aligned with broader gold sector momentum. Maund also cautioned that waiting for a perfect entry point could risk missing a potential breakout.

According to Refinitiv, 18.13% of the company is held by management and insiders. CEO and Chairman Geoffrey Hampson has 16.9%.

Strategic entities hold 44.24% with Conex Services Inc owning 43.68%.  A further 0.29% of control is vested in institutions. The rest is with retail investors.

Copper Giant Resources

Copper Giant Resources Corp. (CGNT:TSXV; LBCMF:OTCQB), formally Libero Copper and Gold Corp., is advancing its Mocoa copper-molybdenum project in southern Colombia, home to one of the largest undeveloped copper porphyry systems in the region.

The project contains an inferred resource of 636 million tonnes grading 0.45% copper equivalent, representing 4.6 billion pounds of copper and 511 million pounds of molybdenum. In March 2025, the company expanded its 14,000-meter drill program with a second rig to accelerate resource growth and improve geological understanding. Although the latest public update came in March, the scale of the deposit and infrastructure upgrades suggest continued momentum.

Analyst Taylor Combaluzier of Red Cloud Securities wrote in a February 27 research note that Mocoa has a "very large, mineralized footprint with excellent expansion potential," highlighting a breccia domain that extends more than 1,000 meters below surface. He added that results from ongoing drilling "should bolster a future MRE update at Mocoa." On February 24, John Newell of Newell & Associates emphasized that mineralization remains open along strike and at depth, calling the project's exploration upside "significant" and noting that additional discoveries and resource expansion could support a potential re-rating of the stock.

Copper Giant's inclusion in the 2025 TSX Venture 50, announced in February, reflected increased investor interest, aided by insider-led financings and continued exploration activity. With copper playing a key role in global electrification and supply forecasts pointing to long-term deficits, Mocoa remains a strategically positioned asset in the copper space.

According to the company, 29% of Copper Giant is owned by management, insiders, and affiliates, including 11% held by Guistra.

About 18% is held by institutions.

13% is held by High Net Worth (HNW) investors, 4.5% by Anglo Asian Mining Plc, and 35.5% is retail.

Refinitiv reports that other major shareholders include Harris with 0.93% and directors Ernest Mast with 0.08% and Rob Van Egmond with 0.07%.

Copper Giant has a market cap of CA$13.91 million. Its 52-week range is CA$0.20-0.66.

Outcrop Silver & Gold Corp.

Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DE) is advancing its flagship Santa Ana silver project in Colombia, where recent technical and exploration developments have strengthened its profile as a high-grade silver play.

On June 17, the company announced that sensor-based ore sorting tests at the La Porfia vein improved silver-equivalent grades by 20% while preserving over 99% of both silver and gold. CEO Ian Harris called the test results "exceptional," highlighting their potential to lower operating costs and environmental impact.

Following this, on June 24, the company added a third drill rig to accelerate its fully funded 24,000-meter campaign. Over 12,300 meters had already been completed at that point, with drilling aimed at expanding high-grade targets along a 17-kilometer corridor. Outcrop has signed 170 land-use agreements so far in 2025, enabling expanded access and supporting the company's community-focused development model. 

Analyst Stuart McDougall of Research Capital reaffirmed a "Speculative Buy" rating and a CA$0.50 target price on June 18, citing the strong metallurgical results and the potential for a 75% expansion in resource volume. He referred to Santa Ana as "an exceptional project in the making." McDougall also highlighted mineralized intercepts at targets like Guadual and Los Mangos that could add further upside beyond the current resource estimate.

On June 24, Jeff Clark of The Gold Advisor called the addition of a third drill rig "compelling," emphasizing that it was "dedicated exclusively to new discovery drilling." He highlighted Outcrop's success in securing 170 land-use agreements and praised the company's "strong community relationships and local team leadership."

Outcrop's April 2023 NI 43-101 report outlined 24.2 million ounces silver equivalent in the indicated category and 13.5 million ounces in the inferred category, with average indicated grades of 614 g/t AgEq. The company plans to include newer targets in its upcoming resource update, supporting its strategy to grow high-grade zones along a broader 30-kilometer trend.

Refinitiv provided a breakdown of Outcrop Silver & Gold Corp.'s ownership and share structure, where management and insiders own approximately 6.88% of the company.

Eric Sprott. owns 21% of the company as a strategic investor, stated Refinitiv. The rest is institutional, HNW and retail.

The company has 376.2million shares outstanding and 276.2 million free float traded shares, while the company has a market cap of CA$115 million and trades in a 52-week range between CA$0.16 and CA$0.35.