Cosigo Resources Ltd. (TSX: V.CSG, Stock Forum) has been notified by the Colombian Ministry of Environment that a forestry reserve subtraction has been granted to the company on its Machado project in southeast Colombia.
Gold mineralization is known to occur at Machado ridge over much of the 20 kilometer strike-length covered by Cosigo's property.
According to the Cosigo Resources press release, the granting of the subtraction will allow Cosigo to mobilize for an initial drilling program on the 9,973 hectare Machado project.
The subtraction is subject to a number of conditions, which will impact Cosigo's upcoming exploration program.
These include restricting drilling operations to an area of 45.6 hectares. The limited size of the subtracted area will allow for initial, albeit only partial, exploration of the several mineralized zones identified at Machado.
Furthermore, the subtraction allows for a total of 42 drill holes and is restricted to a duration of three months following the day the forestry reserve subtraction is published in the official publication of the Colombian government. Cosigo expects this to happen within the next 10 days.
Remote locations such as Machado often require a mobilization period of one to two months prior to the commencement of a drilling program.
Fortunately, Cosigo has moved most of the equipment necessary for drilling to Colombia during the last couple of years. Cosigo has sufficient funding to complete its initial drilling program in an environmentally sustainable manner and on a geologically appropriate and logical basis.
Cosigo is a Vancouver-based company exploring for gold deposits in Colombia and Brazil.
On Monday, Cosigo soared 18.8% and was trading at $0.19 a share. The company had a market cap of $13.9 million, based on 73.1 million shares outstanding. The 52-week high and low was $0.29 and $0.09 respectively.