Columbus Gold Corp CGTFF

RE:RE:RE:RE:RE:John Helmer Article

[123buyholdhope]

I agree with the possible outcomes discussed but as a CBGDF shareholder I am hoping (praying) that Guistra is much more proactive/aggressive with this company and its resources. I agree that Nord will at some stage look to take out CBGDF in FG but having watched NG in their past dealings with Carlisle and Northquest I am also sure that they will go for a very lowball offer (rather looking at a premium to the present SP vs. actual payment for the value of gold ozs available) In the past NG have gone direct to company shareholders in an effort to bypass board opposition, and have driven through all opposition (including court action) to gain their target. Companies involved with NG have become ‘prey’ by sitting and waiting.
 
I expect Guistra to play all the cards he has available (which are several) and drive the process. We know that Newmont and Iamgold (still the largest CBGDF shareholder?) have serious assets in Suriname/FG. Also Barrick has been cited as being in the area. These companies are looking to replenish diminishing assets and have serious money for investment available. As indicated the CBGDF FG 5+ mill ozs field is a significant gold deposit, but CBGDF is now rushing to identify a much larger area of potential gold beyond the FG pit (hence the recent financings including the 8 mill shares to Beacon which may now be holding the SP at around $0.63 as Beacon seeks to distribute them). Past reports have talked of CBGDF FG in the 7 – 10 mill ozs so this is a very serious asset with CBGDF holding 45%. The FG BFS is due by March 17^th. If as indicated CBGDF then has 3 months before declaring its intentions re., its level of involvement in the FG mine, then bringing more FG ozs ‘”to market” will only increase the value to interested parties.
 
Further, Giustra has also said on a past video presentation that he does not want a JV for the Nevada Eastside gold project. We know already that Nevada holds an inferred resource of approx. 720,000 ozs (that does not include the almost 100% more ozs that were also identified but not included in the resource according to Guistra) and the new approx.., 220,000 historical ozs gained with the recently acquired land package (therefore 1.5 mill + ozs in approx.., 2% of the Eastside district; only 1 of 7 identified targets partially drilled so far). Guistra does not strike me as a miner but rather an investor/explorer/seller as his record has shown (rather like his cousin Frank who I have no proof of but a feeling is also invested in CBGDF as one of the past unnamed individual investors who have taken positions in CBGDF).
 
Will CEO Guistra look to raise $150-200 mill to help finance a FG mine or will he move as an explorer/seller and look to package both FG and Eastside for sale to a major? Newmont and Barrick are obvious contenders with their money and experience in both mining environments (both have also done company partnerships in mines – and NG would have no clout with them, or if NG did not like it could sell out to such a joint partner). Could we say in the long run 3 mill + ozs for CBGDF in FG and another 3 – 6 mill ozs in Eastside (with the iconic Cordex and Andy Wallace available to ‘drive’ Eastside). With a possible stronger looking future for gold and with very good exploration potential in both CBGDF sites a major could pick up these mills of ozs at a premium (which would still make CBGDF shareholders extremely happy – e.g., minimum packaged 6 mill ozs at $100 per oz = $600 mill = $3.50 - $4 per share).
 
I don’t get the sense that Guistra is really interested in turning CBGDF into a mining company having to raise mills of $$ to both mine FG and continue to explore Eastside for several more years. A major could have mining going on and be generating cash flow in both these sites within two years (while still further exploring/adding ozs in both sites; especially Eastside). Guistra cannot allow NG to set the ‘action’ in FG and does not have to do so with the assets CBGDF has. Both he and Andy Wallace have many connections with the majors and CBGDF is a company that can be sold attractively to one of them well within their budgets (with free ozs yet to be identified), but way out of NGs price range/interest.
 
Only time will tell.