My thoughts on this past week.VANCOUVER, BRITISH COLUMBIA, Jun 1, 2010 (Marketwire via COMTEX News Network) --
https://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=7757772
Caerus Resource Corporation ("the Company") (TSX VENTURE:CA) is pleased to announce it has entered into a Letter of Intent to acquire a 100% interest in the Buritica Gold Project, located adjacent to the Aragua Mine currently in gold production and owned by Continental Gold Limited. The Buritica Gold Project consists of a 326 hectare parcel located in the Buritica District, in the municipality of Buritica in western Antioquia, Colombia.
The Buritica Gold Project has the potential to host any and all types of mineralization observed elsewhere in the district, particularly those types present on the adjacent Continental Gold ground. A field crew is scheduled to complete a comprehensive sampling program on the project area in the immediate future.
TORONTO, ONTARIO, Jun 02, 2010 (MARKETWIRE via COMTEX News Network) –
https://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=7759361
Continental Gold Limited (TSX: CNL) ("Continental" or "The Company") is pleased to announce that it has begun an aggressive drill program at its flagship Buritica gold property near Medellin in northwestern Colombia. A total of four drills will be in operation - one underground and three surface drills, which are scheduled to complete a minimum 23,000 metre program by the end of 2010. Continental's previous 17,600 meters of drilling and 1200 meters of underground development have defined several high grade veins and a mineralized breccia body. The current drill campaign will complete step-out and infill drilling on the San Antonio, Sur, B, and Centena veins and a portion of the breccia. Additionally, several geochemical soil anomalies will be drill tested. This work, along with ongoing underground development, will form the basis of a resource calculation scheduled for early 2011.
So based on the two NR’s released in the last few days, Continental has agreed to let Caerus acquire 100% interest in Continental’s flagship project, Buritica, but I wonder why? Why would Ari agree to sell their most advance project to Caerus? It doesn’t make sense to me, unless Ari knows something about Burtica that is causing him to sell the project. I don’t think its money and the lack of it, if Ari really believed in it; he could have easily invested his own money into CNL’s project. Caerus will pay Continental $200K initially in 2010, $300K in 2011, and $700K in 2012 for this project.
And now that they have someone to buy the project, Continental is aggressively drilling Buritca to form a resource calculation by early 2011. Once that’s completed Ari can ask for more money in the future for this project, since the resources calculation would add significant value to the Burtica gold project.
My only guess on why Ari is selling this project is because he believes there is another more valuable project that CNL’s holding on to that they want to start surveying, sampling, and drilling on; may be its Berlin since it is touted on CNL’s website as being the next drill ready project for CNL.
Just my thoughts,
WahJai604