Columbus Gold Corp CGTFF

For What It's Worth

[ukermann]

Newmont made an "investment" today in Continental Gold going up to the ceiling of 19.9% at a cost to them of $109 million. That being said, if one were to extend that offer thru (x 5) we come a value of $545 million.
Now, why is that important to us? I see lots of simalarities, starting with proven and probable z's coming in at 3.7 million. They're undergound, we're up top. They also need to build it out, like us, although I would imagine our needs being above will be cheaper. So assuming 45% of the $545 million valuation, if it were us, would leave CBGDF $245, or about $1.53 a share US. That would not include Nevada. Kind of a barometer of where the market is at.

[ukermann]

I hate responding to my own post, as I feel I'm jamming the board, but I'll consider this as a continuation of the previous note. Many of us have asked what are our Nevada properties worth? We're drilling, getting occasional "hits", but certainly no big GSV type finds. Who we are lines up more like NuLegacy (NUG). I'm an investor there, and I'm not pumping them, but

[tigris72poo]

 Uke, your analogs are interesting but not totally comparable.  (I own CGT, NUG and GSV but not CNL). Re your comparison of East Side with NUG:  NUG has been validated by credible investors such as Oceana (16%), Barrick (11%) and Tocqueville (10%).  #astside has not been able to attract a credible partner so far.  I hope they do, but until then I would not give them a

[AltaRounder]

I don't think Guistra would sell at anything near 1.50 cdn. He has said they can get the NPV easily over 400 MM US with infill drilling and capital optimization. If CBG doesn't participate in mine construction Nord would have to pay 100% of the mine construction costs of say 400 M and Columbus would still own 18% (Est. Diluted ownership) of the reserves by doing nothing. Either way Nord

[ukermann]

So another comparison sets itself up today, as Eldorado takes out Integra for $C590 million. Big boys need tier z's, and if you have what they want in a nice safe district, they'll pay. All the easy clean easy stuff going quick. Do I hear $650????

[AltaRounder]

Ukermann. I think the FG pit constrainted resource could draw a 650MM/cdn bid in this market. It will be really interesting to see what CBG drills up at Gustave that they started in February. I get the sense the Bluesky potential of FG is very high and a nice optionality for potential investors. On another note: I found the Newmont private placement with Continental Gold at a premium bringing

[BullStockington]

Ukermann - I'm not overly familiar with either of the firms you mention, but I defiinitely agree there are some major similarities with Continental. However; I took a quick glance at their feasibility study and noticed a few key differences with similar assumptions. Notably, an NPV of 800m for Continental, IRR of 30, and payback period of ~4 vs. ~2 years. So, while I agree our current share

[ukermann]

BullStock: You're correct in your observations that there are some differences between the two, but I expect with more exploration being done around the perifery of the known deposit and the infill drilling to add more z's, we will soon get to the 4 million + proven and probable classification. Natrally then the NPV will start to climb significantly. What jumps out at me when you look at