CGT... Canaccord Morning Coffee.........
Columbus Gold* (CGT : TSX-V : $1.08), Net Change: 0.18, % Change: 20.00%, Volume: 1,287,940
IMACLOSEOLOGYPLAY. Columbus Gold gave the market a day to pick up on its closeology, before deciding to take matters
into its own hands. On Thursday, Newmont Mining (NEM) agreed to acquire Fronteer Gold (FRG) for approximately $2.3
billion. Under the Plan of Arrangement, shareholders of Fronteer Gold will receive $14.00 in cash and one common share in a
"newco" called Pilot Gold, for each common share of Fronteer Gold. Shares of Fronteer shot up almost 40% on Thursday, while
Columbus Gold's stock price moved up alongside most many junior gold stories. That is, until the company reminded investors
that its Summit gold project is adjacent to Fronteer Gold’s Long Canyon Project. Fronteer Gold owns a 100% interest in the
development-stage Long Canyon project, which is located approximately one hundred miles from Newmont's existing
infrastructure in Nevada. The proximity of Long Canyon to Newmont's Nevada operations provides the potential for significant
development and operating synergies. So why stop there? Columbus Gold's Summit Project is strategically located along strike
of the Long Canyon gold deposit currently estimated at 1.4 million oz. gold measured & indicated (18.4 Mt at 2.36 g/t) and
800,000 oz. gold inferred (11.2 Mt at 2.24 g/t). Better yet, step-out drilling by Fronteer at Long Canyon continues to move in
the direction of Columbus Gold's Summit Project and is now about 457 m away from the Summit property boundary. Columbus
Gold's JV partner, Agnico-Eagle Mines (AEM), is planning to commence a drilling program at Summit in the first half of 2011
consisting of approximately 1,980 m of drilling. Agnico-Eagle can earn an initial 51% interest in Summit by completing $3
million in exploration expenditures. |
