As expected, Nordgold has made the $4.2M payment to Columbus Gold (CGT.V) last month as part of its earn-in agreement to acquire a 50.01% stake in Columbus’ Paul Isnard gold project in French Guiana. The drill program is progressing well, and the results which have been released to date are very encouraging and continue to indicate the Paul Isnard project could be a very big mineralized system.
Meanwhile, Columbus Gold has re-appointed Coffey to recalculate the NI43-compliant resource estimate at Paul Isnard. This is somewhat surprising as SRK (which was appointed to complete PEA later this year) found inconsistencies in Coffey’s methodology, which should now be solved. We expect an updated resource estimate within the next few weeks and hope the impact on the amount of ounces and average grade will remain limited.
Disclosure: The author holds a long position in Columbus Gold. Please see our disclaimer for current positions.