Columbus Gold (CGT.V) has announced another batch of drill results from its Paul Isnard gold project in French Guiana. This is a very important update as it looks like the average grade of the mineralized rocks is improving towards the West. A strike length of 2,500 meters has now been confirmed but Columbus Gold says that surface sampling and recon mapping are indicating the strike length could easily double to 5,000 meters.
The company is now waiting for the final 14 holes to be released and we expect an updated resource estimate to follow shortly thereafter. We are expecting to see the updated estimate to come in around 6 million ounces of gold, of which roughly 70% should be in the indicated category. A PEA should be published shortly after the resource estimate and that should give us a pretty good idea of the true value of the Paul Isnard project.
We still think Nordgold will try to secure full ownership of the project somewhere in the next 18-24 months and consider Columbus Gold to be one of the prime takeover targets this year.
> Click here to go to Columbus’ website
Disclosure: The author holds a long position in Columbus Gold. Please see our disclaimer for current positions.
