VANCOUVER, BC--(Marketwired - February 15, 2017) - CB Gold Inc. (TSX VENTURE: CBJ) is pleased to announce the acquisition of a strategic block of six exploitation mining concessions totalling 126 hectares in the prolific California-Vetas Gold District located in Santander, Colombia. The six properties, which collectively comprise the California Gold Project, are adjacent to and along strike from concessions which contain La Bodega gold deposit currently being developed by Mubadala Development. The last public NI 43-101 Technical Report for La Bodega was issued by Ventana Gold dated effective November 8, 2010 and reported an Inferred resource of 3.47M ounces of gold.1
One of the acquired concessions was previously optioned by Calvista Gold which conducted a nine hole diamond drill program during 2011 and 2012. These results were incorporated in a NI 43-101 Technical Report on the California Gold Project dated effective October 11, 2012 and included intercepts:2
Table 1: California Gold Project Drill Intersections
|| || ||From (m)
|| || ||To (m)
|| || ||Width (m)
|| || ||Au (g/t)
| || || || || || || || || || || |
CB Gold plans to advance the California Gold Project toward economic feasibility by the delineation of high-grade vein resources exploitable by modern underground mining methods. This work will initially involve compiling existing data, detailed underground mapping of existing mine workings, detailed underground channel sampling, and prioritizing targets for subsequent drifting along with surface and underground diamond drilling as soon as possible.
The California Gold Project is located approximately ten kilometres from CB Gold's existing Vetas Gold Project, potentially resulting in operational synergies including processing at a central mill.
CB Gold has an option to purchase 100% of six exploitation mining concessions from local miners for consideration of US $5,683,764 and US $7,561,746 which is payable in shares of CB Gold. Initial payments of US $345,127 and $501,626 payable in shares of CB Gold are due upon closing. The balance of the payments are due over a two year period subsequent to title transfer. An additional payment is due three years from the date of title transfer equivalent to 1.5% of the value of gold and silver Measured and Indicated resources included in a NI 43-101 Technical Report.
About the California Gold Project
The California Gold Project comprises 126 hectares within the prolific California-Vetas Gold District, which also contains the multi-million ounce La Bodega and Angostura gold deposits. The property is located approximately 55 kilometres northeast of Bucaramanga, which is the capital of the Department of Santander in Colombia. Elevation ranges from 2,400 to 2,700 metres above sea level, far below the Paramo boundaries.
California is situated in the Santander Massif of the eastern cordillera of the Andes Mountains. The massif is comprised of Precambrian gneisses, schists, quartzites and migmatites of the Guyana Shield. Intermediate to granitic instrusives of the Santander Plutonic Group were emplaced during a period of uplift in the Jurassic/Triassic era. Porphyry instrusive stocks and dikes in the immediate areas of mineralization may be as young as Tertiary in age. Regional faulting parallels the topographic fabric with the crustal-scale northwest trending Bucaramanga-Santa Marta wrench fault and the northeast trending Rio Cucutilla fault zone defining the principal structural trends.
The gold-silver-copper mineralization in the California Gold Project is part of the same, large mineralizing system localized along a regional northeast-trending fault zone that also hosts the adjacent La Bodega deposit. Mineralization occurs in northeast, northwest and east-west striking, generally steeply north-dipping faulted structures containing high grade veins up to two metres in width. Vein mineralogy includes pyrite, chalcopyrite, sphalerite, and copper sulphides, with traces of silver minerals and sometimes visible gold.
Vetas Gold Project
CB Gold has amended the acquisition agreement for the San Bartolo and San Antonio properties, which together with other properties collectively comprise the Vetas Gold Project. A portion of the properties were affected by the delineation of the Paramo boundaries and the outstanding amount payable has been adjusted accordingly. As final payment, CB Gold has agreed to issue 3,450,000 common shares and pay US $500,000 in cash with respect to the San Bartolo Property and issue 116,700 common shares with respect to the San Antonio property.
The technical information contained in this news release has been reviewed and approved by Red Eagle Mining's Vice President of Exploration, Jeff Toohey P.Eng., who is a "Qualified Person" as defined under NI 43-101.
The transactions are subject to the approval of the TSX Venture Exchange.
About CB Gold
CB Gold is a well-financed precious metals exploration and development corporation majority owned by gold producer Red Eagle Mining Corporation. CB Gold has an experienced exploration and mine development team focused on building shareholder value through acquiring and developing high grade gold and silver projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. CB Gold owns 100% of the California Gold, Vetas Gold and Santa Ana Silver Projects, which consist of numerous historic and existing mines and where exploration is currently underway to delineate high-grade vein resources exploitable by modern underground mining methods.
For further information, please contact Ian Slater, Chief Executive Officer or:
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 - 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Information set forth in this news release includes forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the terms and completion of the proposed sale transaction are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: failure to satisfy all conditions precedent to the transaction, including disinterested shareholder approval and stock exchange regulatory approval, and the additional risks identified in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings with Canadian securities regulators. Forward looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
1 See the Technical Report titled "Preliminary Assessment La Bodega Project" dated effective November 8, 2010 available under Ventana Gold Corp.'s SEDAR profile.
2 See the Technical Report titled "Updated technical Report on the California Gold Project" dated effective October 11, 2012 available under AUX Canada Acquisition 3 Sarl.'s SEDAR profile.