Forge Resources' 24/7 Push at La Estrella: A Coal Project on the Move

Forge Resources Corp. (CSE: FRG) is doubling down on its Colombian coal assets, ramping up infrastructure at the La Estrella project to enable 24-hour operations—a critical step toward accelerating development and unlocking value. With recent upgrades to electrical systems, roadways, and mining equipment, the company is positioning itself to capitalize on rising demand for metallurgical coal, a key ingredient in steel production. But can this infrastructure push translate into sustained investor returns, or is the project overexposed to volatile commodity markets?

Ask Aime: "Will Forge Resources' coal assets in Colombia lead to significant returns?"

The Infrastructure Overhaul: Lights, Cameras, and Heavy Machinery

The most immediate changes at La Estrella involve a dramatic expansion of operational capacity. Forge has installed two 200W solar floodlights and two 200W non-solar floodlights to illuminate the site, enabling round-the-clock mining. Five new security cameras monitor the area, while electrical poles now support uninterrupted power supply. These upgrades, paired with the restoration of a 10-kilometer shared roadway, have transformed logistics: widened and reinforced with road base materials, the route now handles heavy machinery and bulk shipments more efficiently.

The road project, a collaboration with Colombia’s municipalities of Betulia and Zapatoca, underscores the project’s community ties. Forge’s emphasis on local labor and sustainable materials in its planned mining camp further signals a strategy to reduce transit costs and build regional goodwill—a necessary step in volatile markets where social license to operate is critical.

Regulatory Green Lights, But Risks Remain

Crucially, La Estrella is “fully permitted” under Colombian law, with all regulatory approvals in place for its current development phase. This includes permits for the 170-meter decline—a key access point to eight high-quality coal seams (four metallurgical, four thermal)—and the upcoming 20,000-tonne bulk sampling program. The bulk sample, expected to validate coal quality and production feasibility, is a critical step toward proving the project’s commercial viability.

However, risks linger. While the project itself is greenlit, Forge’s ownership stake in Aion Mining—a 60% holding with an option to boost it to 80%—depends on Canadian Securities Exchange (CSE) approval of a share issuance. The transaction, valued at CAD $2.3 million, involves issuing 1.7 million shares at $0.91 each, a price tied to recent trading. If the CSE delays or rejects the deal, Forge’s control over La Estrella could falter.

Market Dynamics: Betting on Steel’s Appetite

Metallurgical coal’s fortunes are tied to global steel production, which surged in early 2025 as China’s infrastructure spending rebounded. Prices for high-grade coal hit $320/ton in Q1, up from $280/ton in late 2024—a trend Forge is banking on. However, the company’s success hinges on navigating two key uncertainties:

1. Commodity Volatility: If China’s steel demand slows or global energy transitions accelerate, coal prices could drop. Analysts note that metallurgical coal prices below $280/ton could jeopardize project economics.
2. Execution Risks: Past missteps, like an overlooked shareholding miscalculation in Aion Mining, highlight operational and financial oversight challenges.

The Investment Case: High Risk, High Reward

Forge’s aggressive development at La Estrella is a classic “high-risk, high-reward” play. On one hand, the project’s 2.1 million tons of proven reserves and strategic location in Colombia—a top coal exporter—offer strong long-term potential. The bulk sampling program, once complete, could attract joint venture partners or downstream buyers, de-risking the project.

On the other hand, investors must weigh execution risks against the company’s financial health. Forge’s $285,000 marketing agreement with Machai Capital aims to boost visibility, but its balance sheet faces pressure from the pending CSE approval and $714,000 in promissory notes at 6.5% interest.

Conclusion: A Project to Watch, but Not for the Faint-Hearted

Forge Resources’ push at La Estrella is undeniably ambitious. The infrastructure upgrades and 24-hour operations are on track to shorten the path to bulk sampling, a milestone that could unlock partnerships or production deals. With Colombia’s regulatory green light and rising metallurgical coal prices, the project’s fundamentals are solid—if markets cooperate.

However, investors must remain cautious. The CSE’s stance on the Aion stake transaction, coupled with the whims of global steel demand, could make or break Forge’s timeline. For those willing to bet on coal’s enduring role in the steel industry—and Forge’s ability to execute—La Estrella represents a speculative opportunity. But with shares down 15% year-to-date (as of Q2 2025) and metallurgical coal prices volatile, this is a high-stakes gamble best reserved for risk-tolerant portfolios.

In sum, La Estrella’s success hinges on two variables: regulatory approvals and commodity prices. Forge has checked the former off the list, but the latter remains a wild card. For now, the project is a move worth watching—but not yet a sure bet.