Paul Harris, editor and publisher of Colombia Gold Letter, knows Colombia well and realizes that the country requires more investor patience than many are willing to give. Harris says that the next 12–24 months will largely determine Colombia’s long-term perception as a mining jurisdiction, but is quick to add that some current stories are already panning out. In this interview with The Gold Report, Harris discusses some companies getting the best out of Colombia and others that hope to.
The Gold Report: You recently attended the Precious Metals Summit and Denver Gold Forum in Colorado. What sense did you get of investor sentiment toward Colombia at those events?
Paul Harris: It was a mixed bag.
The recent announcement by Continental Gold Inc. (CNL:TSX; CGOOF:OTCQX) that it had to change its environmental licensing strategy from the regional to the national level basically signaled “country risk” to a lot of investors. The question remains: Can you get projects permitted there? There are many positives in Colombia. Red Eagle Mining Corp. (RD:TSX.V) got its San Ramon gold project permitted and the company has since broken ground on construction. Cordoba Minerals Corp. (CDB:TSX.V) is also progressing with its San Matias copper-gold exploration project in Cordoba Province. But it is a mixed bag in general.
TGR: What’s your sense of the current government attitude toward mining investment? Are its actions at odds with public statements?
PH: Over the last 10 years, the government’s attitude toward mining investment has been positive inasmuch as the message has always been “We want mining investment.” The government recognizes that mining can help advance and develop the country. The issue is that there’s a big gap between what the government says it wants and the practical implementation of those desires.
“Red Eagle Mining Corp.