Gold Co. Validates Major Gold Opportunity in Colombia

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Esgold Corp.'s (ESAU:CSE; SEKZF:OTC; N4UP:FSE) geological and engineering team has traveled to Colombia to initiate on-site validation and due diligence at the Planta Magdalena project, the company announced in a release.

This field program follows a memorandum of understanding (MOI) signed August 20 and marks the next step in confirming the site's high-grade tailings potential and broader exploration opportunities in the Bolivar region.

"With our technical team now on the ground in Colombia, we're moving from intent to execution," said Esgold Chief Executive Officer Gordon Robb. "This is the critical phase where we validate the data first-hand from confirming grades and metallurgy to evaluating site infrastructure and broader geological potential."

Robb continued, "We're also eagerly awaiting lab results confirming concentrate results for both Colombia and Quebec samples, which will help verify the metallurgy behind our clean-processing model. This marks an exciting step forward in Esgold's strategy to build a scalable, multijurisdictional platform for responsible gold and silver production."

Validation and Technical Program Objectives

Esgold said its field team, which includes geological and metallurgical experts, will focus on:

• Confirming historical tailings grades and verifying the estimated tonnage and composition of material at the Planta Magdalena site.
• Evaluating site infrastructure and logistics to determine throughput potential and integration within Esgold's processing and clean-mining model.
• Reviewing exploration potential within the surrounding Bolivar concession area, where historical reports indicate multiple mineralized zones and extensive artisanal workings.
• Finalizing technical due diligence to support the potential transition of the MOU into a definitive joint venture agreement.

Esgold also confirmed that bulk samples from both Colombia and Quebec have been sent to ALS Global in Val d'Or for independent metallurgical analysis. On-site geological and metallurgical work will also be conducted to finalize the processing circuit and recovery limits in preparation for site commissioning.

Results are expected soon and will be crucial in confirming gold and silver recoveries under Esgold's proprietary clean-processing framework, the company said.

Company: Why This Matters

The on-site validation at Planta Magdalena advances the MOU announced in August toward a definitive partnership, the company said.

Bulk samples from Colombia and Quebec are in the lab, with results pending to verify recoveries and support near-term production readiness.

Field teams will also assess the potential for district-scale mineralization within the broader Bolivar region.

"With catalysts galore in the form of near-term production and exploration upside, we're happy to maintain our full position in Esgold," Krauth said.

Esgold said it remains fully financed to execute its initiatives without dilution while continuing construction at Montauban, targeting first production in 2026.

"The Colombia validation program represents a major point in the company's evolution into a diversified, cashflow-generating precious metal company," Esgold said in the release. "By combining clean reprocessing of legacy materials with systematic exploration of undertested districts, the company continues to advance a model built on efficiency, scalability, and shareholder value."

Esgold said it is a fully permitted, fully financed, preproduction mining company advancing a scalable clean mining model across North and South America. The company's flagship Montauban gold-silver project in Quebec is under construction with production anticipated in 2026.

Esgold is also advancing the joint venture in Colombia, validating one of South America's most prolific gold regions for tailings reprocessing and systematic exploration.

'Catalysts Galore'

On October 8, Peter Krauth of the Silver Advisor noted, "Everyone knows Montauban as Esgold's high-grade, shovel-ready project located in Quebec. Now management is planting its flag in sunny Colombia, where validation work is unlocking a new chapter in the company's growth story."

Using funds from a recently completed CA$8 million financing, the Esgold team has traveled to Colombia to validate what is likely to become their new project, Planta Magdalena. Situated in the Department of Bolívar, Planta Magdalena is already showing promise. The field program allows Esgold to conduct its due diligence before advancing the transaction.

While the geological and engineering teams are on-site at Planta Magdalena, they aim to confirm historical tailings grades and verify tonnage and material composition. They will also assess infrastructure and logistics, a crucial step in determining throughput capacity and how seamlessly the project can integrate into Esgold's clean-processing model, Krauth wrote.

Additionally, the team will explore regional opportunities across Bolívar, where historical reports and artisanal workings suggest multiple gold and silver mineralized zones.

"All things considered, the Colombian validation program represents a major point in Esgold's evolution into a diversified, cash-flow-generating precious metals company," Krauth noted. "Results are expected shortly and will play a key role in confirming gold and silver recoveries under Esgold's proprietary clean-processing framework. Therefore, with a clear runway to first production by year-end at Montauban, and now with new South American upside added to the mix, Esgold looks extremely robust heading into 2026."

Esgold shares were up 1% after the release of the news as silver inched closer to the US$50 line, which it has since crossed.

"With catalysts galore in the form of near-term production and exploration upside, we're happy to maintain our full position in Esgold, as management expands its footprint to South America," Krauth said.

The Catalyst: Gold and Silver Remaining Strong

Gold remained strong on Friday, extending its weekly winning streak as expectations for further Federal Reserve rate cuts and ongoing economic uncertainty continued to drive demand for safe-haven assets, according to a report by Arslan Ali for FX Empire on October 10.

Despite some profit-taking and a stronger dollar earlier in the week, gold maintained its bullish stance, supported by lower yields and signs of slowing U.S. growth, Ali wrote. Minutes from the Fed's September meeting and comments from Chair Jerome Powell indicated that policymakers are increasingly cautious about overtightening amid moderating inflation and fragile labor market data.

According to CME FedWatch, there is a 68% probability of a rate cut in October and a 79% chance of another in December. Lower rates typically reduce the opportunity cost of holding non-yielding assets like gold, keeping investor interest steady.

"When growth slows and rates fall, gold tends to outperform broader assets," Julio Moreno, head of research at CryptoQuant, told Ali.

Silver also benefited from the changing macroeconomic environment, finally notching a new record high after decades, CNN's John Towfighi reported October 9. Industrial demand remained robust, particularly in the solar and electronics sectors, where consumption has increased over 2% year-on-year, according to the Silver Institute. This dual role, as both a monetary and industrial asset, has helped silver outperform broader commodities in recent weeks, according to Ali.

This year, traders have gravitated towards tangible assets like gold and silver as secure investments and hedges against geopolitical instability and economic uncertainty, the CNN report noted. Concerns range from tariffs and inflation to worries about Federal Reserve independence and government debt burdens.

Silver has been on a significant upswing, buoyed by the momentum from gold's record-breaking rally. The metal is seen as a more affordable alternative to gold, which recently reached US$4,000 a troy ounce for the first time.

"There's just a lot of concern about the global economy, and when that happens, people turn to hard assets like silver," Michael DiRienzo, CEO of the Silver Institute, previously told CNN. "Silver tends to follow gold upwards."

Ownership and Share Structure

According to the company, about 65% is owned by friends and affiliates, about 10% is owned by management, about 5% is institutional, and about 20% is public float.

Top investors include Peter Bradley Kitchen with 2.22%, Paul Mastantuono with 2.2%, Tony J. Giuliano with 0.98%, the CEO Robb with 0.55%, and Andre Gauthier with 0.33%.

Its market cap is with 91.44 million shares outstanding. It trades in a 52-week range of CA$0.12 and CA$1.44.