Establishing a Gold Processing Platform in Colombia
Buenos Aires, Cauca, Colombia
The El Yarumo Gold Processing Plant represents an opportunity for Gem Resources plc to establish a presence in Colombia’s gold processing sector through the acquisition of an existing operation with installed infrastructure, an experienced local workforce and established commercial relationships.
Located in the established gold-producing region of Buenos Aires, Cauca, El Yarumo processes gold-bearing material through a flotation circuit to produce saleable gold concentrate. Based on management information provided to the Board, the operation generates revenue and is profitable at an operational
level.
Unlike a greenfield development, El Yarumo offers Gem Resources an existing operational foundation from which to pursue a programme of rehabilitation, plant optimisation and staged capacity improvements.
Gem Resources has entered into a conditional agreement to acquire 100% of CREC Material Co S.A.S., the Colombian company through which the El Yarumo operation is conducted, for consideration of £750,000, satisfied entirely through the issue of new Gem Resources shares.
The transaction remains subject to conditions precedent and has not yet completed.
See the Mine in Action
The Yarumo Gold Plant: With bags of concentrate drying ahead of shipment via the Port of Buenaventura. The hard-rock quartz-gold vein material pictured on the ground is mined by our team and blended with lower-grade feed to produce concentrate grading 20–25 g/t gold.
El Yarumo at a Glance
Subject to successful Completion, the acquisition would provide Gem Resources with:
- Established processing infrastructure: An operational gold flotation plant with an installed equipment base suitable for rehabilitation and optimisation.
- Existing operating capability: A trained local workforce, established operating procedures and commercial relationships.
- Near-term improvement potential: A second processing line available for rehabilitation and recommissioning.
- Gold-producing location: A position within an established Colombian gold mining district, with opportunities to secure additional legally permitted feed.
- Capital-efficient development: The opportunity to improve existing infrastructure rather than incur the full cost and development period associated with constructing a new plant.
- Further development opportunities: Potential improvements in gold recovery, concentrate quality, plant availability and downstream processing.
The Company’s initial priority following Completion would be to strengthen the existing operation, improve plant reliability and progressively increase sustainable throughput.
Unlocking the Potential of El Yarumo
The Board believes El Yarumo offers several practical opportunities to improve operational performance and develop a larger gold processing business.
An independent technical assessment undertaken by specialist mineral processing engineers P&T, Principia y Tinta S.A.S., on 14 July 2026 identified an existing equipment base capable of supporting a staged rehabilitation and optimisation programme without requiring wholesale replacement of the principal processing equipment.
The plant currently operates one of its two processing lines, with an independently estimated sustainable dry-feed capacity of approximately 2.5 tonnes per hour.
Following rehabilitation and recommissioning of the second processing line, the engineers estimate that combined feed capacity could increase to approximately 3.7 tonnes per hour. These figures are engineering estimates rather than guaranteed production levels.
The assessment provides a practical starting point for a phased improvement programme focused on increasing equipment availability, removing processing bottlenecks and improving operational efficiency.
Historical information provided by local operators indicates that the plant has processed gold-bearing feed generally grading approximately 3–5 g/t Au. These grades have not been independently verified by Gem Resources and will be subject to systematic sampling and metallurgical accounting following
Completion.
During due diligence, management also reported a historical or installed processing capability of approximately 12 tonnes per hour. This figure has not been independently verified as a sustainable operating rate and is materially above the independent engineers’ assessment of current and near-term
capacity. Longer-term achievable throughput will be evaluated through the Company’s proposed optimisation programme.