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Posts tagged ‘Columbus Gold Corp (CGT)’

Under the rainbows

February 5th, 2013

Columbus, Aquila/Hudbay and Evolving find gold in French Guiana, Michigan and Nevada

by Greg Klein

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To put some perspective on its Paul Isnard property in French Guiana, Columbus Gold TSXV:CGT likes to go back in time—roughly 225 million years. That’s before tectonic forces tore apart the planet’s one and only continent. The present-day Caribbean coast of South America was then joined to present-day northwestern Africa. Consequently there’s continuity, the company contends, between South America’s Guiana Shield and the Birimian Shield of gold-rich countries like Guinea, the Ivory Coast, Burkina Faso and Ghana. Thanks to that geology, Columbus has boosted its inferred resource by 184% to 5.37 million gold ounces.

As announced on February 5, the project’s Montagne d’Or resource update uses a low cutoff of 0.3 grams per tonne for a deposit starting at surface and reaching an average vertical depth of 247 metres. The company provided additional numbers for higher cutoff grades:

  • with a 0.3 g/t cutoff, 117.1 million tonnes averaging 1.43 g/t for 5.37 million ounces
  • with a 0.4 g/t cutoff, 111.2 million tonnes averaging 1.48 g/t for 5.3 million ounces
  • with a 0.5 g/t cutoff, 101.9 million tonnes averaging 1.58 g/t for 5.17 million ounces
  • with a 0.7 g/t cutoff, 81.7 million tonnes averaging 1.82 g/t for 4.78 million ounces
  • with a 1 g/t cutoff, 58.1 million tonnes averaging 2.22 g/t for 4.15 million ounces.
A rainbow seen from Evolving Gold’s Carlin project adds a storybook touch to geological exploration

A rainbow seen from Evolving Gold’s Carlin project
adds a storybook touch to mineral exploration.

The update uses a 16 g/t topcut as compared to the previous 1.89-million-ounce resource, which used a 30 g/t topcut and 0.4 g/t cutoff.

In a statement accompanying the announcement, Columbus chairman/CEO Robert Giustra said modelling “has also identified gaps within the deposit envelope where additional drilling has the potential to add ounces and where tighter drilling may upgrade some or all of the inferred resources to the indicated category. Additional expansion potential is also suggested by untested geochemical anomalies extending more than three kilometres along strike, by incompletely tested parallel zones of gold mineralization, and at depth.”

The 149-square-kilometre Paul Isnard project includes a 65-person camp with airstrip on a forest road connecting to a highway 115 kilometres from the port of St. Laurent.

Columbus shares opened February 5 at $0.355, seven cents above the previous close, and hit $0.425 before settling on a $0.365 close.

Another resource update, announced February 4, comes from Michigan’s Back Forty project, a 49/51 joint venture of Aquila Resources TSX:AQA and Hudbay Minerals TSX:HBM. The global resource shows:

  • measured and indicated resources of 987,236 gold ounces, 11.91 million silver ounces, 110.43 million copper pounds, 74.3 million lead pounds and 1.02 billion zinc pounds
  • an inferred resource of 155,885 gold ounces, 1.99 million silver ounces, 18.65 million copper pounds, 17.21 million lead pounds and 113.33 million zinc pounds.

The estimate provides separate numbers for open pit and underground resources. The open pit estimate shows:

  • measured and indicated resources of 640,663 gold ounces, 6.96 million silver ounces, 72.27 million copper pounds, 36.22 million lead pounds and 525.54 million zinc pounds.

The underground estimate shows:

  • measured and indicated resources of 346,572 gold ounces, 4.95 million silver ounces, 38.16 million copper pounds, 38.07 million lead pounds and 496.13 million zinc pounds

  • an inferred resource of 142,351 gold ounces, 1.82 million silver ounces, 18.02 million copper pounds, 15.9 million lead pounds and 103.7 million zinc pounds.

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Reaping the harvest

January 18th, 2013

Golden Predator to become royalties and streaming company Gold Bullion Royalty Corp

by Greg Klein

(Update: Effective February 22, 2013, Golden Predator Corp began trading as Americas Bullion Royalty Corp TSX:AMB.)

In a late afternoon announcement January 18, Golden Predator Corp TSX:GPD proposed a new name and strategy. Currently an advanced-stage exploration company moving towards production, Golden Predator plans to become Gold Bullion Royalty Corp, a company “focused entirely on royalty creation.”

The newly formed Golden Predator Canada Corp would continue advancing Yukon’s Brewery Creek towards its targeted 2014 gold production.

The proposed new company, Golden Predator Canada Corp,
would continue advancing Yukon’s Brewery Creek towards
its targeted 2014 gold production.

The company stated it “intends to build on its existing portfolio of 34 projects to increase revenue and provide lower risk exposure to shareholders through a variety of gold and silver projects in which it will retain a royalty, metal stream or other interest.

“The company plans to divest Golden Predator Canada Corp, which will continue to advance the Brewery Creek Project, as well as a number of other significant properties across the Yukon. This proposed segregation of its two main business components, by spin-out or other mechanism, is designed to maximize shareholder value by allowing the market to independently value two very different businesses.”

How that will happen has yet to be determined. Pending tax and legal advice, the process could involve “a plan of arrangement, dividend or other suitable method” which would have shareholders owning both companies, which would be staffed independently. Golden Predator Canada Corp would apply for a TSX or TSXV listing.

The Gold Bullion portfolio already includes gross proceeds royalties on Midway Gold’s TSXV:MDW Pan and Gold Rock deposits, a 4% GPR on Barrick Gold’s TSX:ABX DTR property, a 1% GPR on a nearby Barrick property and a 2% NSR on Silver Predator’s TSX:SPD Taylor Silver project.

The statement added, “The company controls a royalty package of 34 North America properties, most of which are owned by Gold Bullion Royalty Corp and under lease to a variety of companies including Evolving Gold [TSX:EVG], Orsa Ventures [TSXV:ORN], Columbus Gold [TSXV:CGT],” among others.

“The royalty portfolio also includes several deeded royalties covering projects of McEwen Mining [TSX:MUX], NV Gold [TSXV:NVX] and Silver Scott Mines [OTCPK:SILS].” While the royalty packages brought in $799,762 last year, the company expects royalty revenue to increase as its portfolio grows and projects advance.

The royalty portfolio is “unique in the mineral development industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash),” the statement added.

Golden Predator Corp’s stock opened January 18 at $0.345, a penny higher than its previous close. The shares then reached $0.35 before closing on $0.33. With 153 million shares outstanding, the company had a press time market cap of $50.49 million.

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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Columbus reports French Guiana Gold Assays including 1.94 g/t over 130m

April 18th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningColumbus Gold Corporation TSXV:CGT announced drill results from the Montagne d’Or gold deposit of its Paul Isnard project in French Guiana. Highlights include

17.82 g/t gold over 2 metres
14.22 g/t over 2 metres
1.94 g/t over 130 metres (including 4.6 g/t over 49 metres)
1.69 g/t over 6 metres
8.47 g/t over 3 metres
1.37 g/t over 67 metres (including 6.57 g/t over 10 metres)
1.08 g/t over 52 metres

The Montagne d’Or deposit has an inferred NI 43-101 resource estimate of 1.9 million ounces gold.

View Company Profile

Columbus Gold Corporation
Investor Relations

by Ted Niles

Columbus reports French Guiana Gold Results of 1.41 g/t over 127m

March 19th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningColumbus Gold Corp TSXV:CGT announced assays from its Paul Isnard Gold Project in French Guiana. Results include

1.41 g/t gold over 127 metres
(including 1.56 g/t over 110 metres)
0.76 g/t over 157 metres
(including 2.23 g/t over 15 metres)
27.51 g/t over 3 metres
0.55 g/t over 155 metres
(including 2.06 g/t over 11 metres)
0.74 g/t over 39 metres
(including 2.02 g/t over 29 metres)
0.82 g/t over 28 metres
(including 2.16 g/t over 7 metres)

Columbus holds an option to earn a 100% interest in Paul Isnard subject to underlying third-party royalties. CEO Robert Giustra commented: “These latest drill results confirm continuity of gold mineralization between widely spaced historic holes which are up to 200 metres apart. They complement the results announced on March 2 by reaffirming that gold mineralization extends to 200 metres vertical depth from surface not only in historically drilled areas but also in areas with wide undrilled gaps and 50 metres to the west of the exiting 1.9-million-ounce deposit envelope. Given the positive outcome of the drilling results to date, we have resolved to secure a second drill rig as soon as possible to accelerate the program.”

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Investor Relations

by Greg Klein

Major Attraction

March 14th, 2012

Miners Pay Close Attention as Sniper Drills Nevada Gold

By Greg Klein

Sniper Resources’ TSXV:SIP CEO Scott Baxter says Nevada has earned his loyalty. That’s where Baxter’s former company, Tone Resources, hit paydirt — not just for himself, but for Rob McEwen’s US Gold (now McEwen Mining TSX:MUX). McEwen acquired Tone in 2007. “I made him a huge return on his investment,” Baxter says. “And you know what? Today’s a new day, and I want to do it all over again.”

Now the majors are looking at Sniper‘s flagship Weepah Gold Property. Initial results announced March 5 coincided with PDAC and, Baxter says, “generated interest instantly on arrival.” As a result, “Three of the top 10 mining companies asked me for CAs [confidentiality agreements] specific to Weepah.”

Located in Nevada’s Walker Lane Mineral Belt, Weepah is a joint venture with Columbus Gold Corp TSXV:CGT, which drilled the property last year. Under their agreement, Sniper pays Columbus $30,000 in cash, $60,000 in shares and spends $3 million on exploration over three years for a 51% interest. Sniper can earn an additional 19% by taking the project to feasibility. “It’s the same with most of my projects,” says Baxter. “I go to 51%, then 70%, because that’s what the majors require.”

Miners Pay Close Attention as Sniper Drills Nevada Gold

March 5 Weepah results include

1.18 g/t gold over 38.1 metres
(including 3.8 g/t over 4.6 metres)
1.19 g/t over 27.5 metres
0.25 g/t over 36.6 metres
(including 1.88 g/t over 1.5 metres)
0.34 g/t over 22.9 metres

Three days later, Sniper released the final four holes, including

0.46 g/t gold over 47.3 metres
(including 21.8 g/t over 1.5 metres)
0.25 g/t over 38.1 metres
0.2 g/t over 9.2 metres
0.18 g/t over 16.8 metres

RC drilling resumes March 20. “You can drill through the winter in this part of Nevada,” Baxter points out. “There’s no deep snow. You’ll use more fuel, and your batteries won’t last as long, but so what?” This program could sink up to a dozen holes followed by a third round of drilling to calculate a resource, he explains.

He’s emphatic about priorities. “I don’t promote much because you have to spend money in the ground to have something to promote. Too many guys are promoting and promoting and promoting. But they forget to drill. I’ve seen juniors that have a booth at all the shows, and they haven’t effing drilled in three years. I warn people, ‘I don’t do banquets; I don’t do golf tournaments; and 75% to 80% of every dollar goes into the ground.’ The first quarter of this year, 81 cents of every dollar went into the ground. I have a million dollars of my money up.”

CAs aside, Weepah’s assays drew some unwanted advances. “Unfortunately, half the calls I got were from IR guys looking for contracts. Well you know, I didn’t raise this money to pay you. This money’s going in the ground, and that’s what the shareholders are in for. Think I’m going to let you watch me for six grand a month? Nice try.”

I don’t do banquets; I don’t do golf tournaments; and 75% to 80% of every dollar goes into the ground —Scott Baxter

Baxter attributes the majors’ interest partly to the company’s co-founder and geologist, Doug McGibbon. “He’s a guy they’d love to hire,” Baxter says. With over 30 years’ experience in the state, McGibbon has discovered or added more than 10 million gold ounces to Nevada operations such as Marigold, Pinson, the Lone Tree Mine and the Daisy Gold Mine.

“I always use Nevada guys,” says Baxter. “Otherwise, it’s like bringing in a Las Vegas realtor to buy Vancouver real estate. In Nevada, the ore bodies are so much different than Alaska or northern Ontario.” He adds, “One other thing about Doug and I is that this is the only company we do.”

Sniper also holds options on three other Columbus gold properties in Nevada. Earlier this year, Sniper sank 18 holes into Overland Pass, another 51% earn-in. The project sits in the southeast extension of the Carlin Trend, next to Barrick’s TSX:ABX Bald Mountain Mine lands. Assays have yet to be released.

Sniper holds a 70% option on the Laura Project, situated on Nevada’s Cortez Trend. The property underwent sampling and drilling in the early 1990s. “I can buy the other 30% for 200,000 shares, but I want to do some geophysics on it, then drill it,” Baxter says.

Columbus‘s Guild Project is a Carlin-type target that Sniper trenched and RC drilled last year under a 51% earn-in. Sniper describes its wholly-owned ReHot claims as “more of a wildcat prospect.” In all, Sniper controls 304 claims covering 2,460 hectares.

At press time Sniper had 31 million shares outstanding at $0.15 for a market cap of $4.7 million. Baxter holds 20.5% of the shares, with an additional 5.5% held by other insiders. Sniper announced March 2 a private placement of up to 3.4 million shares at $0.15 to raise up to $510,000. Proceeds will go to Weepah drilling and working capital.

Sniper, Columbus report Nevada Results of 1.18 g/t Gold over 38.1m

March 6th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSniper Resources Ltd TSXV:SIP in joint venture with Columbus Gold Corp TSXV:CGT announced results from their Weepah Gold Property in Esmeralda County, Nevada. Highlights include

1.18 g/t gold over 38.1 metres
(including 3.8 g/t over 4.6 metres)
1.19 g/t over 27.5 metres
(including 1.7 g/t over 4.6 metres)
0.25 g/t over 36.6 metres
(including 1.88 g/t over 1.5 metres)
0.34 g/t over 22.9 metres
(including 0.7 g/t over 3.1 metres)

Sniper can earn an initial 51% interest in the project by undertaking staged annual exploration expenditures.

View Company Profile

Sniper Resources Ltd
Scott Baxter

Columbus Gold Corp
Investor Relations

by Greg Klein

Columbus reports French Guiana Results including 1.97 g/t Gold over 102m

March 2nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningColumbus Gold Corp TSXV:CGT announced assays from its Paul Isnard Gold Project in French Guiana. Results include

1.97 g/t gold over 102 metres
(including 7.39 g/t over 23 metres)
1.6 g/t over 85 metres
(including 6.02 g/t over 10 metres)
1.21 g/t over 80 metres
(including 28.74 g/t over 2 metres)
0.86 g/t over 91 metres
2.07 g/t over 32 metres
(including 3.85 g/t over 15 metres)
1.5 g/t over 29 metres

CEO Robert Giustra commented, “These drill results validate Columbus Gold’s approach to adding ounces with a lower-risk drilling program designed to infill and extend the mineralized zones to 200 metres vertical depth from surface, a depth amenable to open-pit mining. Interestingly, some of the widths of the mineralized zones reported in these initial holes exceed our expectations and reinforce our high level of confidence with respect to the ultimate size potential of the Montagne d’Or Gold Deposit at Paul Isnard.”

View Company Profile

Columbus Gold Corp
Investor Relations

by Greg Klein