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Columbus Gold: new IPO in Canada

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Chart ... update : 10day

 

bigem7.gif

 

(IPO- placement at C$0.85)

its parent with 25-30%, Hidefield, traded in London ... HIF-chart

 

 

Columbus Gold is a private gold exploration company which will shortly list on the TSX Venture exchange. The IPO is expected to raise C$5m for the company which would give it a market capitalisation of C$20m at listing.

 

The company's properties are concentrated in the US state of Nevada, which would be the world's third largest producer of gold if it were an independent country. Nevada accounts for 83% of the gold produced in the US, or 8.7% of world output in 2004. In 2004 Newmount Mining, Barrick Gold Corp. and Placer Dome collectively produced 5.4m oz of gold in Nevada. Recently the state has attracted quite a lot of attention amongst investors in junior companies through the consolidation activities of US Gold, which recently announced plans to buy four small exploration companies operating on the Cortez Trend in Nevada.

 

Columbus has an exclusive 3 year contract with Cordex Exploration Co., an independent exploration group who are well known in North America for their expertise in Nevada. Cordex are credited with a number of major multi-million ounce gold discoveries over their long history which stretches back to the 1960, detailed on slide 5 of the attached presentation. Cordex has an extensive exploration database dating back to 1969 with technical data on over 3,000 properties.

 

The company has a large portfolio of properties across Nevada, stretching into Arizona also. The properties are 100% owned, and a number are adjacent to large operating mines. The properties are detailed in the presentation and prospectus attached. The company is well funded, with CDN1.2m in the bank, and is in the midst of a drilling programme at present - 3,000 metres on its Golden Mile property.

 

Shareholders include two London listed companies, Hidefield Gold which owns 25% of the company, and Anglo-Pacific, as well as RAB Capital.

 

= = = = =

LINKS:

Corporate website : http://www.ColumbusGoldCorp.com

Apr. Presentation. : http://www.columbusgoldcorp.com/i/pdf/Colu..._April_2006.pdf

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TWO IMPORTANT parts of the CG story:

 

+ MANAGEMENT & the relationship with Cordex

===========

Columbus has an exclusive 3 year contract with Cordex, who will design, initiate and carry out generative activities on behalf of CG, as well as designing and operating the exploration programmes. The Cordex team (John Livermore, Pete Chapman, and Andy Wallace) are three of the most successful exploartion geologists in the USA, with several multi-million ounce gold discoveries to their credit. Cordex discovered: Pinson (1.8mn oz.), Dee (800k oz.), Marigold (4.0mn oz.), and Stonehouse/Lone Tree (5.0mn oz.) And John Livermore is considered the "father of invisible gold", since he was directly involved in Barrick's discovery of the Carlin deposit, which kicked Nevada gold into high gear some decades ago. Cordex is working for no salaries, but they will get a 2% royalty on any gold deposit they find. This provides a huge incentive for success.

 

CG has 13 projects in Nevada, and many are already to subject of JV interest from major gold miners

 

+ WHAT IS HAPPENING in Nevada

===============

Rod McEwan was the CEO, principle shareholder who built Goldcorp., one of the most consistently successful gold mining companies ever. He has made fortunes for his shareholders, and obviously has a huge following. He recently resigned as CEO of Goldcorp, to build a new company specialising in gold exploration in Nevada, a state which he feels has great promise. He started by purchasing a large stake in US Gold in mid-2005. Since then he has purchased shares in several other Nevada-based companies, and has now made a proposal to merge them into a single large entity.

 

Thanks to his historical reputation and a rising gold price, the result of this activity has been a huge appreciation in the share prices of all the companies that he propses to merge. And some other Nevada-oriented companies have gained too.

 

Nevada Gold Exploration companies

================

The following companies have little or no production. Some have ounces of gold resources, but their value is mostly in their exciting potential for Gold exploration in Nevada. *(companies that McEwan is merging)

Symb.: Company---- : ShsO/S C$Price : MarketCap

-------: ------------------- : --------- :--------- : ------------

USGL-: US Gold*........ : 33.3mn : $10.00 : C$ 387 mn

WKR.v: White Knight*..: 59.3mn : C$2.66 : C$ 158 mn

NPG.v: Nevada Pacific*: 62.9mn : C$1.77 : C$ 111 mn

RSM.v: Royal Standard: 58.3mn : C$1.46 : C$ 39.9 mn

MAD.v: Miranda Gold.. : 35.3mn : C$2.00 : C$ 70.6 mn

KDX.v: Klondex Min'ls..: 17.2mn : C$3.25 : C$ 55.9 mn

VIT.v: Victoria Res.......: 53.0mn : C$0.63 : C$ 33.4 mn

CGR.v: Coral Gold*.... : 5.11mn : C$6.20 : C$ 31.7 mn

TNS.v: Tone Res.*...... : 16.6mn : C$2.21 : C$ 36.7 mn

JPN.v: J-Pacific Gold.... : 45.8mn : C$0.40 : C$ 18.3 mn

-IPO-: Columbus Gold. : 19.9mn : C$0.85 : C$ 16.9 mn : including C$6.2mn Cash !

GOT.v: Golden Oasis.... : 12.2mn : C$0.67 : C$ 8.17mn

R.v - : Romarco Min'ls.. : 47.2mn : C$0.28 : C$ 13.2mn

=== : ===========: ===== : ==== :

 

Link to: Large map

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PROJECTS IN COLUMBUS

=================

(Nevada)

CG has 9 projects in Nevada, all are 100% owned. Their plan is to retain the seven "upper plate" projects, which require only shallow drilling to test their potential:

 

+ Golden Mile : about 100k Gold oz. resource, which can be increased thru drilling. in fact, the property has been drilled already. The material from the drilling has been bagged, and is awaiting closure of the financing, to begin assays. The assay result should be coming within a few weeks after the IPO.

.. and:

+ Guild, Linka, Summit, Silver District,

 

The six "lower plate" projects will need (expensive) deep drilling to test their potential. The idea is to JV these projects with other parties who have the capital need to develop them, should they have the potential to become mines:

 

+ Upper Clipper & Orbit* : very well located, on-trend with the pipeline complex, and sandwiched between three historic mines (Utah mine, Boss mine, and Clipper mine) Limited historical exploration. Discussion with majors already underway.

.. and:

+ Chert Cliff*, and Dutch Flat*

+ Laura, Crestview

 

(Arizona)

Four projects:

+ Silver District : Historic production, exploration prior 1992 delineated 19mn oz. Silver, of which 10mn oz is controlled by GC. The company wants to consolidate the district, and do some drilling to bring the resource up to 30million Silver ounces. At that point, they may sell, JV, or spin it off.

 

+ Clara, Clanton Hills, and Four Metals*

 

*(for these projects, discussions for farmout or JV are well advanced)

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THE OWNERSHIP of CG, is another positive:

 

+ Management, incl. Hidefield : 32%

+ Global Resource Investments (Rick Rule's group) : 35%

 

Various newsletter writers (Laurence Roulston, Doug Casey, etc.) are shareholders

 

This will help insure that the company get noticed

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cgt

 

was due to launch today but problems collecting paper work has delayed it a few days.

 

Plenty of news backed up and this should be released as soon company floats and should ensure the share price keeps going up.

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Starts trading next week,

but I think they really missed a great window this week, thanks to the delay

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Vancouver, British Columbia, Canada. May 23, 2006. The Directors of Columbus Gold Corporation (CGTTSX-V) ("Columbus" or the "Company") are pleased to announce the completion of the Company's Initial Public Offering ("IPO") and commencement of trading of the Company's shares on the TSX Venture Exchange (the "Exchange") under the symbol CGT, as of May 24, 2006.

 

Completion of the IPO follows the filing and acceptance of the Company's prospectus by the Exchange and the British Columbia, Alberta and Ontario Securities Commissions. The prospectus was dated March 31, 2006 and may be viewed on SEDAR (www.sedar.com)

 

The IPO has resulted in the Company issuing 5,882,352 units at a price of $0.85 per unit for gross proceeds of $5 million. Each unit consists of one common share and one non-transferable common share purchase warrant entitling the holder to acquire an additional common share of the Company at a price of $1.25 for a period of 18 months from completion of the IPO.

 

Global Securities Corporation acted as the agent (the "Agent") for the offering and in connection with the offering, received a cash commission of $284,568, agent's warrants to purchase 334,785 common shares at a price of $1.25 per share exercisable for a period of 18 months from completion of the IPO and a corporate finance fee of $25,000. The Company's Transfer Agent is Computershare Investor Services Inc.

 

The net proceeds of the offering will in part be used for exploration on the Company's Utah Clipper Property and to provide working capital for ongoing operations, which include mineral rights acquisitions, exploration and general overhead expenses.

 

Following completion of the IPO there are 19,944,356 common shares issued and outstanding, of which 4,497,634 shares are held in escrow in accordance with applicable securities laws. The Company has also granted incentive stock options to directors, officers, consultants and employees to purchase up to an aggregate of 1,990,000 common shares at a price of $0.85 per common shares expiring five years from completion of the IPO.

 

The current directors and officers of the Company are: Robert F. Giustra, President and Director, Kenneth P. Judge, Director, John F. Prochnau, Director, Gil Atzmon, Director, Sean McGrath, CFO and Jacqueline

Collins, Corporate Secretary.

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NICE action in Columbus today!

 

Closed up 33.3% : c$1.20 Change: +c$0.30 / Volume: 332,400

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=======================================================================

Columbus Gold Intercepts 3.1 Metres Of 28.94 G/T Gold At Golden

Mile Project

=======================================================================

 

Vancouver, British Columbia, Canada. August 14, 2006. Columbus Gold

Corporation (CGT: TSX-V) ("Columbus Gold" or the "Company") is pleased

to announce that significant gold mineralization has been encountered

in a recently completed drilling program at its Golden Mile gold

project (the "Property") in western Nevada. The drilling program

consisted of 2,345 metres (m) in fifteen holes; important intercepts

include 7.6 m of 4.2 g/t gold in drill hole MI-6 and 9.1 m averaging

13.8 g/t gold in drill hole MI-12, including 3.1 m of 28.94 g/t gold.

 

Gold mineralization at the project area occurs within irregularly

distributed skarn zones for 350 m in a northeasterly direction, and to

a depth of 100 m along a variably altered and mineralized contact

between Cretaceous quartz monzonite and calcareous sediments of the

Triassic Luning and Jurassic Dunlop formations. The zone remains open

to the northeast and at depth.

 

Eleven holes in the current program targeted a mineralized zone which

was mined on a small scale in the 1930's and was partially delineated

through limited drilling by earlier operators. Results from seven holes

which penetrated the mineralized zone are summarized as follows.

 

 

Drill Hole * From To Width** Au

(m) (m) (m) (g/t)

MI-1 0 3.1 3.1 0.98

29.5 37.1 7.6 1.03

MI-2 0 15.2 15.2 2.36

91.5 96.1 4.6 1.63

MI-3 0 6.2 6.2 1.85

MI-4 No Values > 1 g/t

MI-6 62.0 69.6 7.6 4.19

MI-8 0 3.1 3.1 2.25

MI-12 52.9 62.0 9.1 13.81

including 56.0 59.1 3.1 28.94

 

 

* Four of the eleven holes targeting the mineralized zone failed to

reach target depth due to difficult drilling conditions in hard, broken

rock.

** The reported drill intercepts are believed to represent near true

widths but interpretation is difficult due to the irregular nature of

the mineralized skarn zones.

 

An additional four holes tested geological and geophysical targets

outside the known mineralized zone and intercepted weakly anomalous

gold mineralization.

 

The Company is now planning a follow-up drilling program, designed to

test for additional gold mineralization below 100 m depth and along

strike to the northeast of the mineralized zone. This program is

expected to commence in early fall of this year.

 

QUALITY ASSURANCE/QUALITY CONTROL

Gold assays were determined by fire assay with an AA finish at American

Assay Laboratories in Sparks, Nevada. American Assay performed internal

check assaying on about 7% of the samples. In addition, check analyses

were performed on a second split of about 7% of the samples. The second

split was collected at the drill rig at the same time as the first, and

retained for check assaying. All samples grading more than 1 g/t gold

were checked in this manner, and some replicate assaying of the second

split also was performed. The replicate analyses indicated variations

in grade, most likely due to coarse gold particles, particularly in

some of the samples grading 4 g/t gold or more. Assays reported on the

above table are arithmetic averages of all available assays for a given

interval.

 

DIRECT INTEREST ACQUIRED IN GOLDEN MILE

The Company is also pleased to announce that it has acquired outright

the 19 unpatented mining claims that form the Golden Mile Property and

thereby has reduced the combined underlying net smelter returns

royalties ("NSR") on the unpatented mining claims from 3.5% to 2%. In

addition, the NSR royalties on the five patented mining claims that

form the Property have been reduced by 0.5%. Under the terms of the

agreement (the "Agreement") with John Prochnau, Company Director and

Barbara Prochnau (the "Vendors'), the Company will pay US$26,250 and

reserve a 1.5% NSR in the name of the Vendors, which is part of the

combined 2.0% NSR referenced above. In the event that Columbus Gold

holds any part of the unpatented mining claims as at December 26, 2009,

the Company will pay the Vendors a one time bonus of US$100,000 in the

form of cash or common shares of Columbus Gold, at the election of the

Company. The Agreement is subject to TSX approval.

 

ABOUT GOLDEN MILE

The Golden Mile Property consists of 24 mineral claims, covering

approximately 380 acres, located along the Walker Lane Gold Trend in

Southwest Nevada. Subject to net smelter returns royalties, Columbus

Gold owns a 100 percent interest in the Property. Golden Mile produced

approximately ten thousand tonnes grading 12 g/t gold in the 1930's.

Geophysical surveys and limited drilling carried out in the 1970's and

1980's defined skarn, breccia and disseminated gold mineralization and

included a drill intercept of 16 g/t gold along 29.5m, which included

47 g/t gold over 9.1m. The geologic setting at Golden Mile is similar

to the productive Fortitude (Newmont) and McCoy (Kinross) mines on the

Battle Mountain Trend. Golden Mile has the potential to host a high

temperature gold skarn deposit hosted by Mesozoic limestones intruded

by Cretaceous to Tertiary granite. John Prochnau B.Sc. (Mining

Engineering), M.Sc. (Geology), and Director of Columbus Gold is the

Qualified Person who reviewed and approved the contents of this news

release.

 

ABOUT COLUMBUS GOLD

Columbus Gold Corporation is a gold exploration and development Company

operating principally in Nevada. The Company has an experienced

management group with a strong background in all aspects of the

acquisition, exploration, development and financing of precious metal

mining projects. Columbus owns 100% interests, subject to royalties, in

11 gold projects strategically located along or near Nevada's most

productive gold trends and 4 non-core silver and copper projects in

Arizona. The Company's project activities are managed by Cordilleran

Exploration Company ("Cordex"), owned and operated by John Livermore

and Andy Wallace who have a long and distinguished history of gold

discovery and mine development in Nevada.

 

The Company maintains active generative (prospecting) and evaluation

programs and, as a key element of strategy, broadens exposure,

minimizes risk and maintains focus on high priority prospects while

seeking industry finance through joint ventures on selected projects.

The Company currently has a number of its projects joint ventured to

major and junior mining companies.

 

ON BEHALF OF THE BOARD,

Robert Giustra

President, CEO & Director

 

The TSX Venture Exchange does not accept responsibility for the

adequacy or accuracy of this release.

 

For more information contact:

Ray Lagace

Investor Relations

604-638-3474

info@columbusgoldcorp.com

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Those are GOOD RESULTS.

I am surprised to see the price no higher

 

0.76 Change: -0.02

 

= = =

 

MI-12 52.9 62.0 9.1 13.81

including 56.0 59.1 3.1 28.94

 

100-Box calc: 9.1 x 13.81 = 125.7

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Those are GOOD RESULTS.

I am surprised to see the price no higher

 

I know. I'm equally mystified. Guess the word just needs to be spread. That or nobody's buying Juniors at the moment.

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CGT is finding more of an audience for its news...

 

0.94 Change:+0.03 / Volume: 70,000

 

If we get more good news, and a decent rally in Gold in September,

I can certainly see Columbus up testing the high at $1.25 within a few weeks

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Guest Guest

Columbus are hosting a lunch on oct 5th in London, anyone going? Not sure I can spare the time

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Nice POP in CGT ! : 10d.chart

 

Up $0.30 to $1.35, that's about 30%

 

On an announcement of some new JV's

 

CGT continues to build value- a textbook example of a "generative company"

 

Still have most of my many shares from the pp, plus ALL the wts.

May let a few go today, but I like the strong volume here

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SUBJECT: Casey's explorer's league Posted By: lussier73

Post Time: 9/13/2006 00:06

 

Bio of John Prochnau (taken from Casey's explorer's league publication)

explorerlogo.gif

 

John Prochnau's quiet demeanor belies the fact that he may be one of the most successful resource project finders alive today. How successful? During the 1990s, while managing Brancote Holdings, he assembled a global portfolio of more than fifty exploration to development stage mineral properties in the U.S., Canada, Ireland, Australia, South America and South Asia, all 100 percent financed by industry partners as part of a low-risk, commercial strategy, prior to the breakthrough Esquel gold discovery in Argentina.

 

After getting a degree in mining engineering in 1964, paid for by summers in the bush whacking rocks for exploration firms, John decided that the only thing he wanted to engineer was resource deals, and he dived headlong into geology and prospecting. Even from a tender age, his instinctive understanding of faults, folds, and financing set him apart from other geologists, although it did prompt him to part ways with a few employers whose programs didn't jive with his "Midas" sense. Following his nose for gold, however, proved a good career move when he uncovered a million ounces at Nevada's Alligator Ridge.

 

After this success, John became a virtual mine-making machine; a guy likely to be found squinting through the darkness in an underground tunnel, learning the geological secrets of a deposit from the bottom up, or looking for project opportunities in London, Toronto, or Denver. He's been involved in at least ten important finds or projects leading to mine development – a success ratio that is truly outstanding in exploration annals.

 

Little wonder his consulting company gets calls from around the world, and he serves technical advisory positions for numerous companies including Anglo Pacific Group and Minfin Investments. And just to keep things interesting, he founded and manages Hidefield Gold, an explorer combing Brazil and Argentina for the next big find while providing advice and project opportunities for associate companies active in gold and energy in North America. With John, a new, major discovery seems to be a matter not of if but when.

 

@: http://www.stockhouse.com/bullboards/viewm...p;navd=fwd&

 

2/

SUBJECT: Casey Posted By: lussier73

Post Time: 9/13/2006 00:08

 

taken from Explorers' League Dispatch, Vol. II; No. 5:

"The Latest X-Leaguer Opportunity

 

Speaking of Nevada, keep an eye out over the coming weeks for the IPO of John Prochnau’s Columbus Gold. Last July, we told you about Columbus and its Utah Clipper project, which lies immediately north of the 12-million-ounce Pipeline deposit. At that time John told us, “The likelihood of finding a classical Carlin-Pipeline-style orebody on those claims is probably about as good as you can get.”

 

Having John’s expertise on side is a great thing. But making Columbus even stronger is its partnership with Cordex Exploration, run by legendary Nevada geos John Livermore and Andy Wallace. These men are credited with discovering several of Nevada’s major mines, including opening up the Carlin trend, the play that made Nevada a major modern gold producer.

 

The coming together of these rockhounds in Columbus bodes very well for the company’s chances of a major find. It’s anticipated that the company will begin trading on May 8… keep an eye out."

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yes. nice action - hit $1.75.

 

the news was that they acquired more property in nevada.

 

these guys just keep adding value.

they acquire properties, do some work- sometimes even drilling,

and then jv them out.

 

result: other people's money is getting spent creating even more value

 

this is the classice "Generative explorer", and that's why i own it.

 

i still have 60% of my original position, and 100% of the warrants

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Nice one. I sold out my original position slightly too early, but I still have 100% of the warrants. These expire in November this year, so I may actually start exercising some of them and cashing in, just in case there is a pullback in mining shares or shares generally.

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