Columbus Gold (CGT.V) has just announced an inferred resource estimate of 5.17Moz of gold (using a 0.5g/t cutoff versus the company’s proposed 0.3g/t cutoff) which is more than double our expected 2.5Moz. The average grade is a very respectable 1.6g/t which makes the Paul Isnard project definitely one of the most exciting projects in the 5Moz+ category.
More importantly, gold has been encountered over a strike length of 3,500 meter, and we expect Columbus Gold to drill-test this strike length in order to expand the current resource estimate. As all ounces are currently in the inferred category, Columbus will probably try to upgrade part of the inferred ounces into the measured and indicated category.
Based on a current shareprice of C$.35, Columbus Gold is trading at a value of $7/oz in the ground, which is incredibly cheap.
Disclosure: The author holds a long position in Columbus Gold Corp. Please see our disclaimer for current positions.
