Colibri Resource Corp. (TSX-Venture:CBI)

Featured Company / Colibri Resource Corp.

Sometimes there are companies that make an investor do a double-take for one reason or another.  For Colibri Resource Corp. (TSX-Venture:CBI), there seems to be multiple reasons.  The situation is literally a case of 1+1+1=3, where each “1” is a project in Colibri’s portfolio and 3 represents the paltry $3 million market cap of the company.  Even an overarching view suggests the equation would be more fairly written along the lines of 1+1+1=60, or some other arbitrary number much larger than 3.

The flagship project of the Moncton, New Brunswick-based company is the Pilar Gold Property near Hermosillo, Sonora, Mexico.  The ownership of Pilar is via Colibri owning 100 percent of the right, title and interest in Minera Bestep S.A. de C.V., which holds 100 percent of the right, title and interest in Pilar and the Sun Project.

Pilar is an advanced exploration project hosting gold and silver in a deposit with open-pit, heap leach potential.  Previous optionees, that included Lundin Group (the parent to Lundin Mining (TSX:LUN) and Lundin Gold (TSX:LUG)), Santa Fe Mining and Canadian Gold Resources (acquired by Colibri in August 2017), have done a lot of the heavy lifting at Pilar, with extensive drilling and other exploration helping to delineate mineralization at the property.

Historically, the Pilar was home to small-scale mining dating back to the early 1900’s.

Data collected from the property includes more than 700 mapped rock chip samples (including 92 averaging 1.229 g/t gold), nearly two kilometers of three-meter channel sampling, 750 meters of additional trenches, over 7,500 meters of drilling during 1996-1997, about 7,200 meters of drilling under Colibri management and completed standard cyanide bottle roll testing.  Historic drill results provide a barrage of impressive intersects, including cuts up to 53.47 g/t gold and 53.4 g/t silver across 16.5 meters.

An in-house resource of the main zone estimates over 700,000 tons with a grade of 1.9 g/t gold.

The company is currently conducting drilling with a goal of reaching 10,000 meters total to expand upon previous drilling success, explore continuity, extension and depth to set future drill targets in a bigger bid to verify work done by Lundin and complete a preliminary economic assessment (PEA) for the property in 2018.  In August, Colibri hired the venerable geologist and 3D modeling expert PJ Lafleur to work on a new model for the property, which last month was created and confirmed to delineate new drill targets at Pilar.

Also in Sonora, Colibri is partnered with Agnico Eagle (TSX:AEM)(NYSE:AEM), a mining giant with an C$13.2 billion market capitalization, on the 6,000+ hectare Pitaya Project.  Agnico is the operator on the project and majority owner, holding 66.33%, while Colibri owns the remaining 33.67%.  The property is immediately adjacent to and on strike from Fesnillo’s Tajitos discovery, in which more than 328,000 ounces of gold have been announced. 

A FTSE 100 company, Fresnillo has a portfolio of world-class mines.  They are the largest silver producer in the world and Mexico’s largest gold producer.

In the latest drill campaign, about 7,300 meters of drilling (26 holes) was completed at Pitaya, with assays received from 23 holes and drilling still ongoing.  Highlights from the program demonstrate the potential for a low-cost, open-pit, heap leach mine.  Assays this year including cuts of 2.2 meters grading 20.96 g/t gold and 57.0 g/t silver and a litany of longer intercepts of lower-grade gold, such as 65.0 meters at 0.30 g/t gold.

Nearly $4 million was invested during 2011-2016 in drilling 30 holes (7,681 meters), mapping over 2,700 surface samples, assays and more that has defined nine drill targets at Pitaya, with four of those targets now drill tested.

Fresnillo and their aggressive drilling at Tajitos provides valuable insight to the potential of Pitaya.  For instance, in their 2012 annual report, Fresnillo reported 420,000 ounces of gold at a cut-off grade of 0.3 g/t gold.  The company noted the resource to remain open along strike, which continues into the Pitaya.

Colibri’s portfolio also contains the early-stage project called Evelyn located within the Sonora Gold Belt.  The property is about 35 kilometers south of Hecla’s exhausted La Choya mine (produced 300,000 ounces of gold), 9 kilometers from Fresnillo’s Noche Buena gold mine (average annual production: 390,000 ounces gold) and 29 kilometers east of Fresnillo’s massive La Herradura open pit mine (5.2 million ounces total gold reserves) that produced about 132,000 ounces of gold ($158.4 million at $1,200/oz) during the third quarter. 

Mapping and chip sampling from outcrops from about half of the 506-hectare project identified three different gold-bearing zones.  Assays from the samples ranged between 0.5 and 26.0 g/t gold.  While early in exploration, the property has some intriguing potential.

Colibri has about 40.6 million shares outstanding today and shares are trading at 9 cents each, equating to a market capitalization of approximately $3.6 million.  Leadership includes, amongst others, Chairman and CEO Ronald Goguen, the founder and former Chairman of Major Drilling International (TSX:MDI), a company with a market cap around $540 million; Director Ed Stringer, former CEO of Britannia Mine, which was acquired by Hudbay (TSX:HBM)(NYSE:HBM); and Director Roger Ducet, the former Director of Exploration for Agnico-Eagle Mines Mexico.

On its surface, this is not the type of portfolio, partnerships, neighboring companies or the caliber of a leadership team that would normally be found in a company with a $3.6 million market capitalization.  The mining community likes to use the word “anomaly” for potentially hidden value.  In that vein, Colibri still operating as a nanocap company certainly could qualify as an anomaly in its own right.

Corporate Snapshot:
Colibri Resource Corp.
Stock Symbol: CBI
Stock Exchange: TSX-Venture
Sector: Basic Materials
52 Week High: $0.2800
52 Week Low: $0.0800

Current Stock Quote / Chart / News: Click here

Information as of January 03, 2018

Sometimes there are companies that make an investor do a double-take for one reason or another.  For Colibri Resource Corp. (TSX-Venture:CBI), there seems to be multiple reasons.  The situation is literally a case of 1+1+1=3, where each “1” is a project in Colibri’s portfolio and 3 represents the paltry $3 million market cap of the company.  Even an overarching view suggests the equation would be more fairly written along the lines of 1+1+1=60, or some other arbitrary number much larger than 3.

The flagship project of the Moncton, New Brunswick-based company is the Pilar Gold Property near Hermosillo, Sonora, Mexico.  The ownership of Pilar is via Colibri owning 100 percent of the right, title and interest in Minera Bestep S.A. de C.V., which holds 100 percent of the right, title and interest in Pilar and the Sun Project.

Pilar is an advanced exploration project hosting gold and silver in a deposit with open-pit, heap leach potential.  Previous optionees, that included Lundin Group (the parent to Lundin Mining (TSX:LUN) and Lundin Gold (TSX:LUG)), Santa Fe Mining and Canadian Gold Resources (acquired by Colibri in August 2017), have done a lot of the heavy lifting at Pilar, with extensive drilling and other exploration helping to delineate mineralization at the property.

Historically, the Pilar was home to small-scale mining dating back to the early 1900’s.

Data collected from the property includes more than 700 mapped rock chip samples (including 92 averaging 1.229 g/t gold), nearly two kilometers of three-meter channel sampling, 750 meters of additional trenches, over 7,500 meters of drilling during 1996-1997, about 7,200 meters of drilling under Colibri management and completed standard cyanide bottle roll testing.  Historic drill results provide a barrage of impressive intersects, including cuts up to 53.47 g/t gold and 53.4 g/t silver across 16.5 meters.

An in-house resource of the main zone estimates over 700,000 tons with a grade of 1.9 g/t gold.

The company is currently conducting drilling with a goal of reaching 10,000 meters total to expand upon previous drilling success, explore continuity, extension and depth to set future drill targets in a bigger bid to verify work done by Lundin and complete a preliminary economic assessment (PEA) for the property in 2018.  In August, Colibri hired the venerable geologist and 3D modeling expert PJ Lafleur to work on a new model for the property, which last month was created and confirmed to delineate new drill targets at Pilar.

Also in Sonora, Colibri is partnered with Agnico Eagle (TSX:AEM)(NYSE:AEM), a mining giant with an C$13.2 billion market capitalization, on the 6,000+ hectare Pitaya Project.  Agnico is the operator on the project and majority owner, holding 66.33%, while Colibri owns the remaining 33.67%.  The property is immediately adjacent to and on strike from Fesnillo’s Tajitos discovery, in which more than 328,000 ounces of gold have been announced. 

A FTSE 100 company, Fresnillo has a portfolio of world-class mines.  They are the largest silver producer in the world and Mexico’s largest gold producer.

In the latest drill campaign, about 7,300 meters of drilling (26 holes) was completed at Pitaya, with assays received from 23 holes and drilling still ongoing.  Highlights from the program demonstrate the potential for a low-cost, open-pit, heap leach mine.  Assays this year including cuts of 2.2 meters grading 20.96 g/t gold and 57.0 g/t silver and a litany of longer intercepts of lower-grade gold, such as 65.0 meters at 0.30 g/t gold.

Nearly $4 million was invested during 2011-2016 in drilling 30 holes (7,681 meters), mapping over 2,700 surface samples, assays and more that has defined nine drill targets at Pitaya, with four of those targets now drill tested.

Fresnillo and their aggressive drilling at Tajitos provides valuable insight to the potential of Pitaya.  For instance, in their 2012 annual report, Fresnillo reported 420,000 ounces of gold at a cut-off grade of 0.3 g/t gold.  The company noted the resource to remain open along strike, which continues into the Pitaya.

Colibri’s portfolio also contains the early-stage project called Evelyn located within the Sonora Gold Belt.  The property is about 35 kilometers south of Hecla’s exhausted La Choya mine (produced 300,000 ounces of gold), 9 kilometers from Fresnillo’s Noche Buena gold mine (average annual production: 390,000 ounces gold) and 29 kilometers east of Fresnillo’s massive La Herradura open pit mine (5.2 million ounces total gold reserves) that produced about 132,000 ounces of gold ($158.4 million at $1,200/oz) during the third quarter. 

Mapping and chip sampling from outcrops from about half of the 506-hectare project identified three different gold-bearing zones.  Assays from the samples ranged between 0.5 and 26.0 g/t gold.  While early in exploration, the property has some intriguing potential.

Colibri has about 40.6 million shares outstanding today and shares are trading at 9 cents each, equating to a market capitalization of approximately $3.6 million.  Leadership includes, amongst others, Chairman and CEO Ronald Goguen, the founder and former Chairman of Major Drilling International (TSX:MDI), a company with a market cap around $540 million; Director Ed Stringer, former CEO of Britannia Mine, which was acquired by Hudbay (TSX:HBM)(NYSE:HBM); and Director Roger Ducet, the former Director of Exploration for Agnico-Eagle Mines Mexico.

On its surface, this is not the type of portfolio, partnerships, neighboring companies or the caliber of a leadership team that would normally be found in a company with a $3.6 million market capitalization.  The mining community likes to use the word “anomaly” for potentially hidden value.  In that vein, Colibri still operating as a nanocap company certainly could qualify as an anomaly in its own right.


Forward Looking Statements

This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. Colibri Resource Corp. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Colibri Resource Corp.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Colibri Resource Corp. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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