Staff Insights

Colombia: The Ideal Inaugural Candidate for NatGold™ Industry Legislation

At the International NatGold Council, we view Colombia as the ideal candidate to pioneer the implementation of NatGold, or natural gold legislation. This perspective is based on Colombia’s unparalleled combination of rich biodiversity, a long-standing history enriched with gold, and a commitment to political stability and environmental preservation.

A Biodiversity Powerhouse

Colombia, the world’s second-most biodiverse country, is a rich treasure trove of ecosystems and species. Home to about 10% of the Amazon rainforest, it contributes significantly to global oxygen production and biodiversity conservation. Its páramo ecosystems, unique to the northern Andes, are vital freshwater sources with unparalleled water-regulating capabilities. The country’s diverse landscapes, from lush Amazonian rainforests and towering Andean mountains to its extensive Caribbean and Pacific coastlines, support an extraordinary variety of life.

Colombia’s dedication to its natural heritage is evident in its numerous national parks and protected areas, safeguarding its rich biodiversity. As an active participant in international environmental organizations, Colombia adheres to global conservation standards, showcasing its role as an environmental steward on the world stage.

Gold-Rich History

Colombia’s gold potential is significant, ranking as the 17th largest gold producer globally and third in Latin America. With gold exports in 2022 amounting to 70.7 tons, valued at $2.9 billion, gold stands as one of Colombia’s principal exports. The country is a hub for major international gold explorers and producers, such as AngloGold Ashanti, B2Gold, and Aris Mining, evidencing its pivotal role in the global gold market.

The artisanal and small-scale gold mining (ASGM) sector, a crucial component of Colombia’s gold industry, employs approximately 350,000 people and contributes an estimated 87% of the country’s total gold output. Colombia’s tropical climate offers favorable conditions for the exploration, development, and certification of gold resources, especially in regions with a robust ASGM presence, where the transition from informal to formal gold operations is increasingly common.

Colombia: The Natural Global Leader

Colombia’s position as the longest-standing democracy in Latin America and a member of the OECD, alongside Chile, underscores its political stability and commitment to sustainable development. This foundation makes Colombia an ideal candidate for pioneering NatGold legislation, which seeks to harmonize the country’s rich natural and mineral resources with sustainable, environmentally friendly practices.

The implementation of NatGold legislation in Colombia could set a global precedent, offering a model for other nations to follow. It represents a shift towards a more sustainable and ecologically sensitive approach to gold mining, where the intrinsic value of gold is leveraged without necessitating physical extraction. This aligns perfectly with Colombia’s environmental ethos and its efforts to preserve its unparalleled natural heritage.

In summary, Colombia’s unique combination of biodiversity, gold resources, and political stability positions it as the perfect pioneer for NatGold legislation. This forward-thinking approach promises to redefine the global gold industry, offering a sustainable, ESG-friendly pathway to harnessing gold’s enduring value, while ensuring the protection of one of the planet’s most vital and vibrant ecosystems.

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Do mining claims on U.S. federal lands managed by the U.S. Bureau of Land Management (BLM) require the establishment of legislation in conformity with NatGold legislative policies before they can be tokenized in the NatGold ecosystem?2024-04-21T13:20:59+00:00

While U.S. Patented Land Claims offer a clear pathway for tokenization within the NatGold industry, given the presence of certified gold resources, the opportunity to obtain new Patented Land Claims was effectively closed in 1994. That year, the United States Congress enacted a moratorium that significantly restricted the issuance of new mineral patents, although it grandfathered existing claims that had fulfilled all requirements before its enactment.

To develop a truly global NatGold market, there is an urgent need for NatGold legislation that accommodates the digital mining of all certified gold resources. This legislation is critical not only at the federal and state levels in the United States but also internationally, aiming to establish a cohesive, globally recognized standard for the NatGold industry.

What are the distinct roles of the Canadian Securities Administrators (CSA) and the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) in relation to NI 43-101 reports?2024-04-20T23:31:01+00:00

The roles of the Canadian Securities Administrators (CSA) and the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) in the context of National Instrument 43-101 (NI 43-101) are distinct yet complementary:

1. Canadian Securities Administrators (CSA):

Regulatory Role: The CSA is responsible for regulating securities laws in Canada, including the enforcement of NI 43-101. Its primary function is to ensure compliance with the rules and standards set for the public disclosure of scientific and technical information on mineral projects.

Investor Protection: The CSA aims to protect investors by ensuring that the disclosures about mineral projects are truthful, complete, and comply with the regulations, thus helping investors make informed decisions.

2. Canadian Institute of Mining, Metallurgy, and Petroleum (CIM):

Standards Development: The CIM is instrumental in developing the definitions and standards that are incorporated into NI 43-101. They provide the framework and guidelines used to report on mineral resources and reserves.

Expertise and Guidance: CIM offers guidance based on the expertise of professionals in the mining industry. This includes best practices in documentation and reporting that companies must follow to align with NI 43-101 standards.Essentially, while the CIM provides the technical definitions and standards, the CSA enforces these standards within the legal framework of the Canadian securities market, ensuring that all public disclosures meet these established criteria. This system ensures that both the technical accuracy and regulatory compliance are maintained in the reporting of mineral projects.

How important is maintaining good governance and a strong reputation for the International NatGold Council?2024-04-20T23:27:13+00:00

At the International NatGold Council, maintaining good governance and a strong reputation is paramount. These principles ensure that we operate with transparency, accountability, and integrity—key to building trust among stakeholders such as industry sponsors, affiliates, partners, government legislators, and the broader community. This trust is essential for fostering collaborations and gaining regulatory and public support.

A strong reputation boosts our credibility and authority, promoting high standards within the NatGold industry. It attracts quality partnerships and encourages participation from key ESG industry players, enhancing our ability to effect positive changes and advocate for sustainable practices. Therefore, robust governance and a solid reputation are vital for advancing our mission to nurture a responsible and prosperous NatGold industry.

How significantly has Canada’s NI 43-101 Technical Report influenced the design of CRIRSCO’s International Reporting Template (IRT)?2024-04-20T23:41:36+00:00

Canada’s National Instrument 43-101 (NI 43-101) has had a significant influence on the design of CRIRSCO’s International Reporting Template (IRT). Developed by the Canadian Securities Administrators, NI 43-101 sets stringent guidelines for the public disclosure of scientific and technical information related to mineral projects, which emphasize transparency, accountability, and detailed reporting. The comprehensive nature of NI 43-101, particularly its rigorous requirements for Qualified Persons and its structured approach to defining mineral resources and reserves, served as a model for many of the principles incorporated into the IRT.

This influence ensures that the IRT aligns with the high standards of reporting established by NI 43-101, facilitating consistency and comparability among international mining reports and aiding in the global harmonization of mineral resource and reserve reporting standards. This alignment is crucial for fostering trust and confidence among investors and regulators in the mining industry worldwide.

What is the gold-silver ratio utilized in the NatGold Model to calculate NI 43-101 certified gold equivalent resources, and how is it calculated?2024-05-01T18:14:09+00:00

Historically, the gold-silver ratio has been about 47:1 for most of the past century, but it has averaged around 60:1 over the past 20 years. In the last decade, this trend has widened, and it is not uncommon to see the ratio exceed 80:1. Most monetary metal analysts recognize that, due to the store of value nature of both gold and silver, when the ratio expands above 80:1, investors tend to sell their gold holdings to buy silver, and vice versa when the ratio falls below the 60:1 level.

For the NatGold tokenization model, the International NatGold Council has adopted a conservative approach by setting the gold-silver ratio at 90:1. This setting means that one ounce of certified gold resources is equivalent to 90 ounces of certified silver resources, regardless of the classification—whether inferred, indicated, or measured.

For example, if 90,000 ounces of NI 43-101 certified silver resources are present in the indicated resource category, the 90:1 gold-silver ratio set by the International NatGold Council would yield a 1,000-ounce certified gold equivalent in the indicated category. This enables the title owner to tokenize the 1,000 ounces of gold equivalent indicated resources according to the established exchange ratios used by OroEx Corp. when digitally mining the resources into NatGold coins.