Segovia’s Second Mill Puts Ore Supply and Grade Control Ahead of Capacity

Aris Mining has moved the Segovia operations beyond their previous processing constraint. The second mill, commissioned in June 2025, increased installed capacity from 2,000 to 3,000 tonnes per day. The strategic question in 2026 is therefore no longer whether the plant can treat more material, but whether the underground mining system and contract-mining network can consistently deliver enough high-grade feed to use that capacity without weakening margins.

The company is guiding Segovia to produce 265,000 to 300,000 ounces of gold in 2026, compared with 227,762 ounces in 2025. That is a meaningful step-up for a mature Colombian district and depends on a combination of owner-mined ore and material purchased from formalised contract mining partners. Aris expects roughly 60% to 65% of 2026 production to come from owner mining, with the balance supplied by partners.

Capacity has been solved; feed quality has not

Segovia’s attraction is its grade. Aris reports proven and probable reserves of about 1.5 million ounces at 10.7 grams per tonne and measured and indicated resources of about 3.6 million ounces at 15.3 grams per tonne. Those grades create room for strong margins, but only if underground development, stope sequencing and dilution remain controlled as tonnes rise.

The owner-operated mines and the contract-mining network solve different problems. Owner mining gives Aris direct control over development, grade reconciliation and production scheduling. Contract partners broaden access to the district’s many narrow-vein workings and provide flexible feed, but they also introduce variability in delivery timing, grade and purchasing terms.

The expanded mill therefore changes the bottleneck rather than eliminating it. Before the expansion, ore could wait for plant capacity. Now unused plant capacity becomes a visible sign that mine development or partner supply is lagging. Conversely, filling the plant with lower-grade material merely to maximise tonnes could dilute the benefit of the expansion.

Formalisation is part of the operating model

Aris presents its contract-mining partnerships as an alternative to informal processing, where traditional recovery methods can capture less than half of the contained gold. Material delivered into the Segovia plant can achieve recoveries above 95%, increasing total metal recovered from the district and allowing partner miners to operate through a formal commercial channel.

That model is strategically useful in Colombia, but it requires traceability, security and reliable ore-purchasing controls. Investors should watch whether partner feed expands without creating compliance or working-capital problems, and whether the economics remain attractive when gold prices or local purchasing competition change.

The next evidence is operating consistency

The second mill has already established that Segovia can process more ore. The more important 2026 evidence will come from quarterly throughput, head grade, recovery and the split between owner-mined and partner material. Sustained production near the upper end of guidance would show that mine development and the district purchasing network have caught up with installed capacity.

Reserve replacement also matters. Segovia is a long-established district rather than a newly discovered orebody. The mine must continuously convert high-grade resources into mineable reserves and open enough underground headings to support a larger annual production rate.

For Aris, the expansion thesis now rests less on construction and more on operational discipline. Segovia’s 3,000-tonne-a-day plant is an asset only if the company can feed it with the right ore, at the right grade, without sacrificing safety, recovery or margin.