Columbus Gold (CGT.V) has announced it plans to get back in the field at Eastside on February 25th to follow up on some earlier exploration results that indicated the total mineralized envelope is larger than we originally assumed. The company has now designed a 14,500 meter drill program consisting of 4,850 meters of core drilling and 9,700 meters of RC drilling whereby the core holes will be pre-drilled by RC holes where after the core rig will complete the deeper holes. This strategy should reduce the exploration costs and allow Columbus Gold to test the system at depth at a very reasonable cost.
And the ‘deeper’ zones of Eastside is where the value of the project could be unlocked. 90% of the previously drilled ‘deeper’ holes at Eastside ended in mineralization, and the analysis of these intercepts indicates the system was formed at a higher temperature. Should Columbus Gold discover a higher-grade system, then all odds are off and our bold statement of discovering a multi-million ounce ore body could be validated. But of course, we will have to wait for the drill results!
Columbus Gold also has some other properties in Nevada, and its Australian joint venture partner Carnavale Resources (ASX:CAV) has provided Columbus (and the market) with the assay results from a previous exploration program, which consisted of 4 holes. There was an interesting intercept of 17 meters containing just over 4 ounces of silver per tonne as well as almost 3.4% ZnPb. Carnavale is earning an initial 51% stake in Red Hills by spending C$2M on exploration by August, where after it could choose to spend an additional C$7M to increase that stake to 75%.