Cosigo Resources today provided an update onhttps://www.newswire.ca/en/releases/archive/May2011/03/c8738.html
Highlights:
- Cosigo's Machado Project is known to have hosted more than 100 historic artisanal gold mining operations
- MMI sampling has identified a large, approximately 5,000 m long, zone of anomalous gold at the centre of the Machado project
- Bulk samples have confirmed the presence of high-grade gold mineralisation with grades of up to 37.6 g/t gold
"We are very pleased to have recently completed our listing on the TSXVenture Exchange and are looking forward to an exciting year for Cosigoand our shareholders" says Dennis Milburn, President and CEO of Cosigo."We believe that our properties in the Taraira Gold Belt havetremendous gold potential and we are eager to carry out the firstmodern exploration program in the area."
Machado Project:
Cosigo's 100%-owned flagship project, the Machado Project, is located inthe Taraira Gold Belt in the Vaupes Province of southeastern Colombia.The Taraira Gold Belt consists of a series of sandstone ridgesstraddling the Colombian-Brazilian border in an area surrounding thesmall town of Taraira in Colombia. The ridges, many with astrike-length of tens of kilometers, generally stand ~100m above thesurrounding lowlands. Gold mineralization is known to occur in severalof these ridges and evidence of artisanal gold recovery operations iswidespread in the area.
The Machado Project is located on Machado ridge six kilometers west ofthe town of Taraira. A gold rush involving up to 10,000 artisanalminers in the late 1980s prompted a geological study of Machado ridgeby Mineralco S.A., the former Mining Department of Colombia. MineralcoS.A. reported more than 100 active artisanal mining operations in thearea and rock and sediment sampling reportedly showed goldmineralization to be wide-spread along Machado ridge. Following theMineralco study, a 9,973 hectare area was reserved by the Colombiangovernment and, in 2007, this area was put out for bid by thegovernment. Bids for the area were submitted by several gold explorers,including major gold companies. Cosigo's bid was successful leading tothe company's acquisition of the Machado Project.
Exploration work carried out by Cosigo to date has confirmed wide-spreadgold mineralization on the Machado Project. This work has includedpreliminary geological mapping, property-scale MMI sampling as well asgrab, channel and limited bulk sampling.
MMI Sampling:
More than 5,000 MMI samples have been completed on a 100 m by 100 m gridover the southernmost three quarters of the Machado Project. Resultshighlight a large zone of anomalous gold, centered over an oxidizedsandstone horizon at the centre of the Machado Project and extending ina NNW direction along strike for approximately 5 kilometers. Severalother areas with anomalous gold values have been identified on theproperty. These anomalies often coincide with the location of knownhistoric gold recovery operations. Approximately 4,500 additional MMIsamples have been collected on the Machado Project. These samples havebeen sent to SGS Canada Inc. in Toronto, ON where they will beprocessed.
Bulk Sampling:
Bulk samples have been collected from two historic adits located in anarea close to the center of the Machado Project. Three barrels of rockwere collected from the Chile Bajo adit and 18 barrels of sample werecollected from the Agamenon adit. The bulk samples were obtained byblasting by local artisanal miners. The blasting was observed by Cosigopersonnel on-site, who immediately after the blasting acquired thematerial liberated by the blast from the artisanal miners.
In the Agamenon adit, a panel measuring 190 cm by 119 cm by 80 cm wassampled. The sampled rock included material from narrow quartz veinswhile consisting mostly of silicified and haematized metasandstone. TheAgamenon adit roughly follows 40 degree SW dipping metasedimentarystrata to a depth of ~25 m and sample was obtained from approximately20 m below surface.
The second, 3 barrel, sample was obtained from the Chile Bajo adit,which is located 0.2 km SE of the Agamenon adit. The Chile Bajo aditfollows 45 degree SW dipping strata to a depth of approximately 30 m.The height of the Chile Bajo adit is 2 m and it is up to 8 m wide. Thesample represented a panel of approximately 200 cm by 100 cm by 30 cmof silicified, Fe-oxide stained metasandstone with an approximately 15cm wide quartz-vein cross-cutting the metasedimentary strata. Althoughnarrow quartz veins make up only a small fraction of the total weightof the samples their presence may have contributed significantly to thegold grade.
The three barrel sample from the Chile Bajo adit, totalling 840 kg, aswell as 617 kg of sample from two randomly selected barrels from theAgamenon adit were processed by gravity concentration at KnelsonResearch and Technology Centre ("Knelson") of Langley, B.C. The entiresamples were crushed to approximately -1/4". The crushed material wasthen blended and 10-12 kg subsamples from each bulk sample wereobtained using Knelson's laboratory rotary splitter. Each sub-samplewas pulped with water to approximately 60% solids by weight prior tobeing loaded into a laboratory rod mill and milled for 12 minutes toachieve an approximate feed P80 of 100 microns. The sub-samples werethen separately processed using Knelson's KC-MD3 concentrator.Concentrates as well as subsamples of the tailings stream weresubsequently assayed for gold by fire assay. The metallurgical reportsinclude a gravity recovery value as well as a calculated sub-samplegold head grade. Results are summarized below.
| Subsample # |
Calculated Gold Grade (g/t) |
Gravity Recovery (%) |
| (Agamenon Adit) KRTS 20564 A |
37.6 |
91.5 |
| (Agamenon Adit) KRTS 20564 B |
27.2 |
84.4 |
| (Chile Bajo Adit) KRTS 20542 A |
7.11 |
70.7 |
| (Chile Bajo Adit) KRTS 20542 B |
6.71 |
67.9 |
| (Chile Bajo Adit) KRTS 20542 C |
6.47 |
69.8 |
| (Chile Bajo Adit) KRTS 20542 D |
6.59 |
69.4 |
Processing of the bulk samples has provided Cosigo with concreteevidence of high grade gold mineralization at the center of the MachadoProject. The presence of free gold in the bulk samples is evident with67.9 - 91.5% of the gold in the samples having been recovered bygravity methods.
Planning for a first drill program at Machado is underway and twospecialized reverse circulation ("RC") drill rigs have been mobilizedto Colombia. The RC drills are considered ideal for the Machado Projectas their large sampling volume will be very beneficial in anenvironment with a presence of free gold. The RC drills are quick,mobile and highly cost-effective with a very small footprint ensuringminimal environmental impact. Permitting to allow for the start ofdrilling is nearing completion with the finalization of the requiredNative Prior Consults expected shortly.
A Cosigo corporate presentation can be found at www.cosigo.com and a NI 43-101 technical report for the Machado Project is availableon SEDAR. Dr. Joseph Montgomery, P.Eng., Executive Vice-President ofCosigo, is a Qualified Person under NI 43-101 and is responsible forthe design and execution of the programs carried out by Cosigo in theTaraira Gold Belt. Dr. Montgomery has reviewed and approved thetechnical content of this news release.
About Cosigo Resources:
Cosigo Resources Ltd. (TSX-V: CSG) is a Vancouver-based companyexploring for economic gold deposits in Colombia and Brazil. Cosigo hasassembled a strong team, well experienced in South America and in theexploration and mining-finance industries. The Company's flagshipproject is its 100-% owned Machado Project in the Taraira Gold Belt ofsoutheastern Colombia. Cosigo's ongoing work on the 9,973 hectareMachado Project is the first modern exploration program in an areaknown to have hosted more than 100 historic gold mining operations.
Cautionary Notice: This release may contain forward-looking statements regarding theCompany's business or financial condition, including the proposedcompletion of financings, use of proceeds and exploration programs.Actual results could differ materially from those described in thisnews release as a result of factors, including, but not limited to thefollowing: the timing and completion of financings, the actual use ofproceeds, the timing, results and success of exploration anddevelopment programs, financial arrangements, the ability to obtainadditional financing, developments in global resource markets,political developments, the timing of regulatory and environmentalapprovals and other factors. The Company cautions that these andsimilar statements involve risk and uncertainties, which could causeactual results to differ materially from those in the forward lookingstatement. Forward-looking statements are made in the context ofinformation available as of the date stated. The Company undertakes noobligations to update or revise such statements to reflect newcircumstances or unanticipated events as they occur, unless required byapplicable law.
On behalf of the Board of Directors
Cosigo Resources Ltd.
/s/"Dennis Milburn"
President & CEO