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Junior Columbian Miner Extends Footprint in Columbian Gold Space
By: AllPennyStocks.com News
December 21, 2011
Gold prices have managed to form a recovery this week after falling below $1,600 per troy ounce the week prior. The dip below $1,600 was the first time since a one day drop in late September that was part of a retracement from all-time highs of $1,925.10 earlier that month. Equally important was the flurry of analysts that came forth late last week calling for a good entry point in gold on the latest dip as related to long-term investments.
Whether bullion prices stay at these levels, dip some more or continue to one day break $2,000 an ounce, the fact remains that mining can be done at considerable profit margins with the precious yellow metal holding well above $1,000 per ounce. Vancouver-based CB Gold Inc. (TSX-Venture:CBJ) is looking to capitalize on its Columbian gold projects that are not only proving strong drill results, but the size of the CB’s flaghip Vetas Gold Project continues to expand. The Vetas Project is located in the District of Santander, Columbia, a mining-friendly area of mined visible gold and silver over the past 60 years. In addition to Vetax, CB’s property portfolio contains Le Vereda – Blue Sky (under exclusive option), which Geophysical studies have confirmed extended anomalies and large porphyry-style deposits; and Norte de Santander, a very early stage property.
A combination of at least eleven small producing mines and exploration in surrounding areas, the Vetas Project is still in early development compared to its true potential. CB intends to employ superior and systematic exploration and development processes to fully realize the mineralization of the property. The company has been exploring the property since 2009, collecting more than 2,000 samples from underground and surface before launching a 35,000 metre drill program in December 2010 that is winding to a close presently.
Strong and steady assays have come from the drilling program such as reported intercepts 114.98 metres at 7.57 g/t gold including 40.89 metres at 17.17 g/t gold in October. Just a sampling of other reports throughout the year including intercepts of 9.28 metres grading 11.62 g/t gold and 3.13 metres grading 26.77 g/t gold have come from Vetas.
Today, CB Gold took another step in advancing the property with more drill results and disclosing the acquisition of additional Columbian properties, further solidifying their footprint in the area. CB Gold has entered into agreements with the relevant owners of La Vereda and La Triada de Oro to acquire those properties for a combination of Company shares and cash. Per the terms, CB Gold will acquire 100% ownership of La Triada and 80% ownership of La Vereda with the right to acquire the additional 20% within three years from the closing of the transaction. Upon completion of the acquisitions CB Gold will own 11 properties in the Vetas Mining District.
Drilling results from the Vetas Project today featured more high grade gold cuts including 8.27 metres at 7.84 g/t gold and 20.90 metres at 1.17 g/t gold. Moreover, these latest results showed mineralization in hole 46 below previously-reported cuts, once again extending the known mineralized zone – a pattern that has been shown throughout the year as the drilling program has continued.
Shares of CBJ have already ripped northward in October on drill reports, surging from 60 cents to $2.03. The share value is remaining subdued with the news today, but with $18 million in cash on hand and a strong portfolio, CB Gold could be a strong play to watch in 2012. Proper due diligence is, as always, encouraged.
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