Colorado Resources (CXO.V) has announced a maiden resource estimate at its North ROK project in British Columbia, Canada. North ROK has an interesting location as it’s just 15 kilometers away from Imperial Metals’ (III.TO) Red Chris project.
Using a cutoff grade of 0.20% CuEq, the NI43-compliant resource estimate shows almost 700 million pounds of copper and almost 1.2 million ounces of gold. Should we increase the cutoff grade to 0.35%CuEq, the amount of contained metals drops to just shy of 400 million pounds of copper and 700,000 ounces of gold. The average rock value per tonne using the lower cutoff grade is approximately $26/t, increasing to $40/t when using the higher cutoff grade.
This first resource estimate is quite encouraging, but we still aren’t buyers of the stock yet, as the word on the street in Vancouver is that the company turned down a $7M financing at C$1.40/share (this has not been confirmed as the email sent to the company requesting a comment on this matter has remained unanswered). It’s obviously always easier to talk in hindsight, but when you get offered a fistful of dollars as an exploration company, you should just take it and spend it wisely.
> Click here to read the press release
Disclosure: The author holds no position in Colorado Resources. Please see our disclaimer for current positions.
