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Posts tagged ‘Continental Gold Ltd (CNL)’

Supersized Coffee

December 13th, 2012

Gold news from Kaminak, Columbus and Continental

by Greg Klein

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Over three million inferred gold ounces mark the debut resource estimate from Kaminak Gold’s TSXV:KAM Coffee Project in Yukon’s White Gold District. With its initial resource complete and metallurgical studies continuing, the company’s ready to begin a PEA next year, according to a December 13 announcement.

Gold news from Kaminak, Columbus and Continental

Two and a half years’ work at Kaminak Gold’s Coffee Project paid off
with a maiden resource totalling 3.24 million gold ounces inferred.

Coffee’s base case resource uses a lower cutoff for oxide and transitional mineralization than for sulphide material, on the principle that oxide and transitional mineralization might be extracted through open-pit mining and heap-leach metallurgy. The resource contains 90% oxide and transitional material to a vertical depth of about 200 metres, the company stated, and 55% oxide and transitional to a depth of 100 metres.

The company added that the resource shows “relatively continuous, sub-vertical zones of gold mineralization” with potential for surface-, underground- or a combination of both mining techniques. The resource covers four zones of the Coffee Project.

Using a base case cutoff of 0.5 grams per tonne gold for both oxide and transitional mineralization, and 1 g/t for sulphide mineralization, the inferred resource totals:

  • 64.42 million tonnes averaging 1.56 g/t gold for 3.24 million gold ounces.

Using a 1 g/t cutoff for all types of mineralization, the inferred resource totals:

  • 36.52 million tonnes averaging 2.21 g/t for 2.6 million gold ounces.

Using a 1.5 g/t cutoff, the inferred resource totals:

  • 21.1 million tonnes averaging 2.93 g/t for 1.99 million gold ounces.

In a company statement Kaminak president/CEO Rob Carpenter said, “The drilling strike rate and continuity of the mineralized structures at shallow depths show that our strategy and targeting technique—that is, drilling gold-in-soil anomalies—is highly effective in this geological terrain. Based on the surface footprints of currently known gold-in-soil anomalies, Kaminak geologists see considerable expansion potential along strike from the current resource and elsewhere on the [60,700-hectare] Coffee Project.”

Kaminak has $16 million cash and no debt, the company stated. Its shares closed December 12 at $1.26, opened December 13 at $1.36 and reached a high of $1.47 before closing on $1.29.

In other December 13 news, Columbus Gold TSXV:CGT said a step-out hole at its Paul Isnard Project in French Guiana increases its resource potential. Assays for the hole showed 1.07 g/t gold over 40 metres (with a true width estimated at 75%), stopping at a down-hole depth of 180 metres.

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Continental reports Colombia Assays of 139.5 g/t Gold, 94 g/t Silver over 6.9m

March 8th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningContinental Gold Limited TSX:CNL announced drill results from its Buriticá project in Antioquia, Colombia. Highlights include

3.24 g/t gold and 49.5 g/t silver over 7.6 metres
1.2 g/t gold and 59.5 g/t silver over 10.8 metres
2.22 g/t gold and 19.2 g/t silver over 17.3 metres
6.37 g/t gold and 582.2 g/t silver over 1.4 metres
12.02 g/t gold and 11.8 g/t silver over 1.6 metres
37.89 g/t gold and 12.4 g/t silver over 8 metres
(including 141.1 g/t gold and 41 g/t silver over 2 metres)
7.94 g/t gold and 147.3 g/t silver over 3.1 metres
5.67 g/t gold and 30.4 g/t silver over 15.7 metres
15.23 g/t gold and 129.2 g/t silver over 3.4 metres
139.53 g/t gold and 94.2 g/t silver over 6.9 metres
(including 239.6 g/t gold and 160.3 g/t silver over 4 metres)
25.56 g/t gold and 182.4 g/t silver over 1 metre

The Buriticá project has an NI 43-101 mineral resource estimate of 630,000 ounces gold, 1.5 million ounces silver and 18.7 million pounds zinc in the measured and indicated categories. The project has inferred resources of 2.5 million ounces gold, 9.5 million ounces silver and 88 million pounds zinc.

View Company Profile

Contact:
Morgan Knowles
VP Investor Relations
416.583.5610

by Ted Niles

Continental reports Colombia Assays of 13.25 g/t Gold, 15.9 g/t Silver over 25m

February 1st, 2012

Resource Clips - essential news on junior gold mining and junior silver miningContinental Gold Ltd TSX:CNL announced results from its Buriticá Project in Antioquia Department, Colombia. Highlights include

13.25 g/t gold and 15.9 g/t silver over 25 metres
(including 52.8 g/t gold and 16.3 g/t silver over 4.5 metres)
6.49 g/t gold and 13.7 g/t silver over 17.4 metres
(including 15.51 g/t gold and 20 g/t silver over 1.6 metres)
13.26 g/t gold and 8.5 g/t silver over 6 metres
37.29 g/t gold and 142.3 g/t silver over 2 metres
9.08 g/t gold and 8.8 g/t silver over 6.5 metres
(including 108.16 g/t gold and 32 g/t silver over 0.4 metres)
13.5 g/t gold, 552.3 g/t silver and 0.02% zinc over 3.7 metres
(including 35.74 g/t gold, 1,062.2 g/t silver and 0.04% zinc over 1.3 metres)

CEO Ari Sussman commented, “Our exploration efforts at Buriticá continue to expand the mineralized footprint of the project. The initial deep hole at the Yaragua System and La Mano intercept bode well for an updated NI 43-101-compliant resource due to be released during the summer of 2012. The company is well funded for its exploration and development programs with a $58-million budget for 2012.”

View Company Profile

Contact:
Morgan Knowles
VP of Investor Relations
416.583.5610

by Greg Klein

Treasure Islands

January 30th, 2012

Miners Face Increasing Danger from Crime, Social Unrest and Violence

By Greg Klein

With 22 years’ experience in the British Special Forces, 10 of them with the Royal Marines and the other 12 with the SAS, Alan Bell is no stranger to conflict. Since founding the Toronto-based security company Globe Risk International in 1996, he’s provided his expertise and active involvement to a number of exploration and mining companies overseas. And he’s seen a few changes over the years.

“I remember when I started out in the 1990s, the old VPs of exploration used to go out into the mountains with their hammers and their boots and their trousers tucked into their socks. The old-school guys would go out there and say, ‘We don’t need any security.’ Well the world has changed dramatically since then.”

Miners Face Increasing Danger from Crime, Social Unrest and Violence

His admonition would apply to all resource companies but especially those of Canada, “the global leader in mineral exploration,” according to the Prospectors and Developers Association of Canada. Rising prices and limited supply push exploration into increasingly dangerous places, in a world that is itself becoming more troubled.

Companies often turn to Globe “when things go wrong,” Bell says. “They’ve got to spend a lot more time researching where they’re going and what they’re going to do. They’re running out of places to go, and the places that are left are where there’s problems.”

Bell’s company will visit the site of a proposed project to assess certain types of risk—not so much political risk, which might involve expropriation or a sudden and onerous tax/royalty regimen, but conflict in the form of crime, social unrest, sectarian violence or terrorism.

“There could be anything from suicide bombers to vehicle-exploding devices. We talk about what’s in the area. Can you get helicopters in there; what type of security do you need; who can assist you? We assess the local population, aviation, flight clearances, landing sites. Basically we develop a report for the client so they can see what their problems and options are before they bid on these contracts.

“We’ve had many clients who have looked at our reports and said, ‘Well this looks like an option, we’re willing to take a certain amount of risk,’ and they go in. Others say, ‘Shit, we’re not going to get involved in this, it’s too dangerous.’”

Bell started out with assignments in Latin America and Africa. In 2004, he began working on Canadian government contracts in Afghanistan. He employs a number of former Canadian military but trains locals to work as onsite security.

“We just finished a major project in northern Afghanistan for a Chinese company looking to start in March or April. What we will do, if they wish, is provide them with security to do their work. We’ll get a camp built for them, train the security team, get the vehicles. When they come over and start carrying out their exploration, we’ll support them from a security perspective as well.”

Precautions notwithstanding, not everything can be predicted, let alone prevented.

Last September, for example, Semafo TSX:SMF shut down its Kiniero Gold Mine in Guinea and evacuated its expatriate employees after protests about foreign workers turned violent. The mine still hasn’t re-opened, although exploration resumed in late October.

In December 2010, Luna Gold TSXV:LGC lost 1,500 ounces of gold, worth over $2 million at the time, to an armed gang at its Aurizona Mine in Maranhao State, Brazil, about 2,000 kilometres north of Rio de Janeiro. Robbers failed in a second attempt last November, however, despite taking hostages. The captives were released unharmed, an outcome which the company attributes to precautions taken after the initial heist.

We knew that this was going to happen based on intelligence-gathering by our security people. We advised the local police. The police were on site at the time the outsiders came. And the police just stood by while they vandalized the place —Donald East

In March 2011 Torex Gold TSX:TXG suspended work at its Morelos Project in Guerrero State, 200 kilometres southwest of Mexico City, after the armed robbery of several of its trucks. No one was hurt, but employees were evacuated nonetheless. Operations have since resumed.

Last June Torex President/CEO Fred Stanford explained, “We’re in a little town that had no police, and it had never needed them. I think we injected enough money into the community that we attracted a criminal element…. There are now police, and we’re back and moving forward. The government’s been very good; the community wants the mine; and we’re negotiating now for land. No doubt there will be issues, but we’ve got a great partnership with the community.”

Other companies work in the thick of cartel country. US Gold’s TSX:UXG El Gallo Silver-Gold Project is slated for mid-2012 production in Sinaloa State on Mexico’s north-central coast. Senior VP Ian Ball said, “We have been very active there for three or four years and have been able to establish a pretty good relationship—and this might sound strange—with the cartel. You have to know who they are and inform them what you’re doing and where you’re moving to…. They don’t want you near their marijuana crops.”

When it comes to Colombia, Sunward Resources TSX:SWD COO David Forest can’t say enough good things about the country. “Geologically, there’s nothing like it,” he told ResourceClips.com last August. “There’s nothing on the planet with that kind of potential that’s so underexplored. Nothing happened there for 50 years. It’s phenomenal terrain, completely underexplored.”

He added that his flagship Titiribi Gold-Copper Project is in Antioquia Department, a region of northwest Colombia “which has very strong rule of law and tradition of order. We don’t have any security at site.” That confidence seems to be borne out by the presence of others. Neighbours include AngloGold Ashanti, Gran Colombia TSX:GCM, Colombian Mines TSX:CMJ, Continental Gold TSX:CNL, Bellhaven Copper and Gold TSX:BHV and Batero Gold TSX:BAT.

But while Forest emphasized, “The security and safety situation is fine in 90% of the country now,” there is that other 10%. It includes Sunward’s former Murindo-Mande Norte Project straddling the border between Antioquia and Choco departments. “There’s a number of issues including FARC [the Revolutionary Armed Forces of Colombia] and indigenous groups,” he said. “If you can name an issue in Colombia, that region’s got it. The prize, if and when we can get in there, is enormous. It’s an anomaly the size of Yaletown [a high-density Vancouver neighbourhood], with copper sticking out of the ground. For 30 years, everybody’s known about this unbelievable anomaly, but it’s remained a place where nothing happened. We’re working on getting in there and, if we can, it’ll be a lot of fun.” By December, however, Sunward had divested itself of the property.

Speaking from Bogotá, Gran Colombia COO Donald East waxes enthusiastic about his company’s Marmato Gold Project, now in prefeasibility and projected for 2015 production. If all goes to plan, it will be the company’s seventh operating mine in northern Colombia. Last October, however, the company shut down its Mazamorras Project in Nariño Department, in the southwest corner of the country, after a mob demolished the buildings.

“We knew that this was going to happen based on intelligence-gathering by our security people,” says East. “We advised the local police. The police were onsite at the time the outsiders came. And the police just stood by while they vandalized the place. We then complained to the government about that. In any country in the world you have to rely on some sort of legal protection for your assets. So I think that created a bit of a wake-up call for the government.”

There’s nothing remarkable about the security company’s presence, East maintains. “Obviously on any mine you have security because you have assets. It’s just a local security company; that happens on every mine.”

East says he still doesn’t know who’s responsible for the attack or what motivated them. But he believes they were from outside the region and the attack was somehow linked to the local and regional elections that were about to take place. The local population, he says, supports the project for the sake of jobs as well as the social work the company performs. “We’re just going to let the thing wait until we feel the risks aren’t too great for any of our people to go back there. So it’s probably going to be next year before we start to re-visit that project. Mazamorras is not really critical to our current planning.”

Read Part II of this story here.

Continental reports Colombia Gold Assays up to 162.71 g/t over 3m

December 19th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningContinental Gold Limited TSX:CNL announced assays from its Buriticá project in Antioquia, Colombia. Results include

21.59 g/t gold over 1.5 metres
14.07 g/t gold and 248 g/t silver over 2 metres
1.7 g/t gold and 394 g/t silver over 1.2 metres
20.7 g/t gold and 24.5 g/t silver over 3 metres
14.72 g/t gold and 50.1 g/t silver over 7.7 metres
6.18 g/t gold over 33.7 metres
16.55 g/t gold over 2.7 metres
2.33 g/t gold and 32.3 g/t silver over 31.3 metres
11.79 g/t gold and 45.3 g/t silver over 4.9 metres
162.71 g/t gold and 40.9 g/t silver over 3 metres
62.04 g/t gold over 1.5 metres
12.25 g/t gold and 124.6 g/t silver over 5.9 metres
21.9 g/t gold and 102 g/t silver over 1 metre
30.3 g/t gold over 1.6 metres
360 g/t silver over 2.5 metres
12.06 g/t gold and 479.2 g/t silver over 12 metres

CEO Ari Sussman remarked, “Drilling continues to yield positive surprises and indicates to us that the number of ounces of gold and silver at Buriticá will continue to grow. Of particular interest are the high-grade intercepts at depth and also the apparent widening of mineralization to the west in the Yaragua system. These results will be followed up on once drilling resumes in January.”

View Company Profile

Contact:
Paul Begin
CFO
416.583.5610

by Ted Niles

Phenomenal Terrain

December 5th, 2011

Sunward Advances in Colombia

By Greg Klein

Talk to COO David Forest about Sunward Resources’ TSX:SWD Titiribi Gold-Copper Project, and you get why so many mining and exploration companies are moving into Colombia. “Geologically, there’s nothing like it,” he says. “There’s nothing on the planet with that kind of potential that’s so underexplored. Nothing happened there for 50 years. It’s phenomenal terrain, completely underexplored. The security and safety situation is fine in 90% of the country now.”

A look at last September’s Titiribi resource update supports his enthusiasm. Using a cutoff of 0.3 grams per tonne, the indicated category estimates 142.94 million tonnes grading 0.48 g/t gold for 2.2 million ounces gold and 0.15% copper for 465.9 million pounds copper. The inferred category projects 372.7 million tonnes grading 0.51 g/t gold for 6.08 million ounces gold and 0.08% copper for 645.7 million pounds copper.

Sunward Advances in Colombia

With gold in the ground and money to burn, drilling continues. “We’re up to nine rigs now, and we’re expecting to go to 11 over the next couple of months,” says Forest. “The company’s well financed; we’ve done some big financing over the last year and a half, so we’re going to push it pretty hard. We raised $51 million in January, and last April we did $25 million, and in total the company’s raised over $80 million.”

Assays released November 10 from the project’s Cerro Vetas zone include

  • 0.56 g/t gold and 0.12% copper over 315.2 metres
    (including 2.11 g/t gold and 0.34% copper over 22.5 metres)
  • 0.36 g/t gold and 0.24% copper over 135.5 metres
  • 0.33 g/t gold and 0.15% copper over 66.6 metres
  • 0.72 g/t gold over 27 metres
  • 0.47 g/t gold over 30 metres
  • 1.88 g/t gold over 7.5 metres

“These results were fairly groundbreaking for the project because it’s a bulk-tonnage porphyry, so the assumption was the grade was always around 0.5 and 0.2,” Forest explains. “We smashed through that about a year ago, discovering some zones that were above a gram, but this is the first time zones above two grams have been discovered, making a new benchmark for the grade on this project.

He continues, “We were looking at doing a scoping study, but now that we’ve discovered these higher-grade zones, the feeling is we might do more drilling and figure out what we’ve got before we start wrapping economics around it. So at this point, the plan is mostly just drill. We’ll work on expanding the resource, then we’ll decide what we want to do on the economic side.”

According to Forest, Titiribi’s infrastructure is excellent. “We’re 70 kilometres from Medellin on a four-lane paved highway. It’s a historic mining area, so there’s power to the site. We’re very well positioned.”

And so are many others. Titiribi’s position in Colombia’s Middle Cauca Gold Belt put Sunward in proximity to juniors and majors alike. Gran Colombia TSX:GCM has begun trial mining at its Zancudo high-grade underground gold project and plans to complete prefeasibility for its nearby open-pit Marmato Gold Project in early 2012. AngloGold Ashanti proposes to start building a $3-billion Colosa Gold Mine in 2014. Those in the exploration stage include Colombian Mines TSX:CMJ at the former Yarumalito Gold-Copper Mine, Continental TSX:CNL at its Buriticá Gold-Silver-Zinc Project, Bellhaven TSX:BHV at La Mina Gold-Copper Project and Batero TSX:BAT at the Quinchia Gold-Copper Project.

As the above suggests, the “historic” mining area Forest refers to is actually prehistoric. Archeologists have found gold figurines old enough to make Columbus seem like recent news.

We’re up to nine rigs now, and we’re expecting to go to 11 over the next couple of months. The company’s well financed; we’ve done some big financing over the last year and a half, so we’re going to push it pretty hard —David Forest

The region is also “probably one of the best operating environments in Colombia,” Forest says. “It’s in Antioquia, which has very strong rule of law and tradition of order. We don’t have any security at site.”

The company doesn’t have security at its other project either—but for entirely the opposite reason.

“Murindo-Mande Norte is at the other end of the spectrum,” Forest concedes. “It’s the only part of the Cordillera, from Alaska down to Tierra del Fuego, that doesn’t have a road going through it, because it’s basically swamp. Access is tough. There’s a number of issues including FARC [the Revolutionary Armed Forces of Colombia] and indigenous groups. If you can name an issue in Colombia, that region’s got it. The prize, if and when we can get in there, is enormous. It’s an anomaly the size of Yaletown [a high-density Vancouver neighbourhood], with copper sticking out of the ground. For 30 years, everybody’s known about this unbelievable anomaly, but it’s remained a place where nothing happened. We’re working on getting in there and, if we can, it’ll be a lot of fun.”

Regardless, the combination of Sunward’s management team and Titiribi’s potential attracts some big players. “The company’s well-financed through our affiliations with the Electrum Group and Paulson & Co out of New York,” Forest emphasizes. “Those guys own a big chunk, and management owns 30%, so it’s a very tightly controlled company. Amongst the top 10 shareholders, we control 70% or 80% of the company now. All the people working on this are shareholders and are working alongside the other shareholders.”

As of November 1, Sunward had cash on hand of $60 million. At press time, the company had 136.9 million shares trading at $2 a share for a market cap of $273.8 million.

Continental reports Colombia Results of 83.84 g/t Gold, 285 g/t Silver over 10.2m

November 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningContinental Gold Limited TSX:CNL announced assays from the Veta Sur system of its Buriticá project in Antioquia Department, Colombia. Highlights include

83.84 g/t gold and 285 g/t silver over 10.2 metres
(including 187.06 g/t gold and 627 g/t silver over 4.25 metres)
11.84 g/t gold and 16 g/t silver over 12 metres
(including 100.3 g/t gold, 216 g/t silver and 0.03% zinc over 0.4 metres)
25.1 g/t gold, 40 g/t silver and 0.01% zinc over 4.1 metres
(including 35.11 g/t gold, 47 g/t silver and 0.02% zinc over 0.5 metres)
9.06 g/t gold and 8 g/t silver over 9.8 metres
(including 56.04 g/t gold and 32 g/t silver over 0.4 metres)
21.46 g/t gold and 3.2 g/t silver over 3 metres
37.53 g/t gold and 55 g/t silver over 1.5 metres

CEO Ari Sussman remarked, “Continental is at an exciting point in our path towards production in 2014. BUSY210 and BUSY221 have validated our exploration model for Buriticá and we are looking forward to continued expansion of our high-grade mineralized footprint. The year 2012 will be exciting for the company as we focus on both definition and expansion drilling of the Veta Sur and Yaragua systems, as well as exploratory drilling of at least four new geochemical targets.”

View Company Profile

Contact:
Paul Begin
CFO
416.583.5610

by Greg Klein

Continental reports Colombia Assays of 137.5 g/t Gold, 24 g/t Silver over 8.1m

October 20th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningContinental Gold Limited TSX:CNL announced results from the Yaragua and Veta Sur systems of its Buriticá project in Antioquia Department, Colombia. Assays include

137.5 g/t gold and 24 g/t silver over 8.1 metres
(including 368.6 g/t gold and 31 g/t silver over 1.4 metres)
13.1 g/t gold over 2.8 metres
13.5 g/t gold over 2.2 metres
4.6 g/t gold over 6.2 metres
20.7 g/t gold and 14 g/t silver over 3 metres
20 g/t gold and 33 g/t silver over 30 metres
(including 57 g/t gold and 102 g/t silver over 5 metres)
25.4 g/t gold and 33 g/t silver over 2.7 metres
250 g/t silver over 1 metre
16.6 g/t gold and 95 g/t silver over 1 metre
15.9 g/t gold and over 1.3 metres.

The Buriticá project has an NI 43-101 resource estimate of 630,000 ounces gold, 1.5 million ounces silver and 18.7 million pounds zinc in the measured and indicated categories, and 2.5 million ounces gold, 9.5 million ounces silver and 88 million pounds zinc inferred.

View Company Profile

Contact:
Elina Chow
Director, Investor Relations
416.583.5611

by Ted Niles

Continental reports Colombia Assays including 43.97 g/t Gold over 10.8m

March 22nd, 2011

Continental Gold Limited TSX:CNL announced drill results from its Buritica Project in Antioquia, Colombia. Highlights include 43.97 g/t gold and 54 g/t silver over 10.8 metres (including 123.08 g/t gold and 131 g/t silver over 3.4 metres), 17.17 g/t gold and 214 g/t silver over 10.7 metres, 364.49 g/t gold and 154 g/t silver over 1.3 metres, 135.88 g/t gold and 114 g/t silver over 4 metres (including 449.9 g/t gold and 373 g/t silver over 1.2 metres), and 22.79 g/t gold and 21 g/t silver over 3.3 metres.

The Buritica Project is located 75 kilometres northwest from Medellín in Antioquia Department. The project is accessible by paved road with power and water available. The project is located near the town of Buriticá in a district that was an important gold producing area during the Spanish colonial period.

View Company Profile

Contact:
Elina Chow
Director, Investor Relations
416.583.5611

by Ted Niles

Continental reports Colombia Assays up to 28.26 g/t Gold, 364 g/t Silver over 10m

February 16th, 2011

Continental Gold Limited TSX:CNL announced assay results from its Buritica Gold Project in Antioquia, Colombia. Highlights include 28.26 g/t gold and 364.6 g/t silver over 10 metres, 39.15 g/t gold and 44.8 g/t silver over 7.5 metres, 48.11 g/t gold and 435.3 g/t silver over 2.7 metres, 150.95 g/t gold and 15 g/t silver over 1.2 metres, 95.26 g/t gold and 23.7 g/t silver over 3.3 metres, 43.65 g/t gold and 33.5 g/t silver over 2.6 metres, and 34.48 g/t gold and 21.4 g/t silver over 3.2 metres.

The 2011 drill program is underway with eight drills currently working on the property. Current underground development work is creating access for deeper underground drilling during the second half of the year. To date 47,000 metres of diamond drilling has been completed on the property.

View Company Profile

Contact:
Elina Chow
Director, Investor Relations
416.400.0149

by Ted Niles