Columbus Gold Corp CGTFF

RE:RE:RE:RE:RE:Take over when?

[goldhunter11]

Just to recap our current understanding from various posters... and add my guesswork/interpretation wrt  the additional drilling by CGT.
1. Current understanding:
- N has 90 days after BFS to decides if it wants to proceed with production, during the next 2 week, before 16 June 2017. If N decides not to proceed with production it will have to sell 0.1% of Montagne d'Or Project (the Project) back to CBT and the JV will become a 50-50 JV
- CBT has 45 days to respond, before end of July 2017.

2. Some guesswork/ Interpretation:
Agreed that the information presented by CGT on the ownership of the Project is as clear as mud.
Actually, it may be considered as a clever piece of writing which is giving out just enough information as teaser, but holding back some key pieces just to keep people guessing. However, my crystal ball seems to detect the following:
- The JV between N and CGT is based on the BFS which describes the property that has a deposit of ~5MozAu (3.9 Indicated and 1.1 Inf).
- The contour of the depsosit is clearly marked in the NR (13 Feb, 2017).  The additional drilling in the 3 areas ( potential east, west and north extension)  is outside this contour. But the one for potential depth extension (hole 01) is surely inside the pit. So, any finding of new resources at depth would belong to this JV?
- May be not. First, when CGT arranged the PP for ~$5M it did not seem to bother to get permission or asking for an agreement from N to chip in as part of the JV, specially for hole 01. Second, perhaps there was a prior agreement that the JV would be based on the RE as defined in the BFS, i.e. an open-pitable mine as designed using the Whittle pit model as described in this Technical Report. There was some hint that the data used in the RE came from drilling ~250m, the usual depth for open-pit mining.
- The deep hole, as shown in the same NR is beyond ~250m depth. This hole is planned for 750m in length hence too deep for open pit mining. If they found and extension of mineralization then it has to be a UG operation (outside the scope of the current JV).

Based on the above, I would speculate that any extra yellow stuff found outside the current pit shell would belong to CGT. May be it would be wise for CGT  not to release the new results too soon.
Note: The Tech Report has some interesting pictures (e.g. Fig 4-2 showing multiple "subpits" and Fig 16-5  for various slopes and depth in Whittle model).
GH