Columbus Gold (CGT.V) has announced SRK Consulting – which was engaged to complete a preliminary economic assessment on the Paul Isnard project- has identified some issues with the resource estimate which was completed by Coffey. According to Columbus Gold, the new calculation will very likely have a ‘material’ impact on the grade and amount of ounces contained in the resource estimate, and a new resource estimate will be ready by the end of this month.
This is obviously a very surprising event, as Coffey is a very reputable firm in the mining sector. We will know more on May 30th when the new resource estimate is expected, and we hope the impact will remain limited to 25% of the amount of ounces and average grade. Nordgold is expected to wire another payment of $4.2M by May 21st, and we expect this payment to go through, as the most recent drill results at Paul Isnard continue to confirm the mineralization.
Disclosure: The author currently has no position in Columbus Gold but might re-initiate a long-position. Please see our disclaimer for current positions.