Columbus Gold (CGT.V) has announced it the fourth drill rig it has ordered has arrived on site and has immediately started to drill more exploration holes at the Paul Isnard project. This will be necessary to increase the drill rate as both Columbus Gold and its joint venture partner Nordgold (NORD.L) want to complete a feasibility study at the project before the end of next year. In order to achieve all deadlines related to the feasibility study, the current drill program should be finished by the end of the first quarter next year.
Nordgold is pretty serious about advancing this project as fast as possible as it looks like it needs something to spend its high free cash flow on as the company continues to repurchase its own shares for cancellation. Nordgold will have spent $30M by the end of this year to buy back approximately 10.5M GDR’s on the London Stock Exchange.
Meanwhile, there was another very positive development in French Guiana as the central government in Paris has given another gold mining operation the green light to use cyanide at its mining operation. That’s an extremely important fact as one of the comments we received the most was the question whether or not France would allow cyanide to be used at mining projects. As another company has now received the official nod, Columbus Gold could benefit from a second-mover’s advantage as the majority of the heavy lifting has been completed by the other company, creating a precedent.Go to Columbus’ website
Disclosure: The author holds a long position in Columbus Gold. Columbus is a sponsor of the website. Please see our disclaimer for current positions.