|May 03, 2011|
Cosigo Resources Ltd. -- Machado Exploration Update
|NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES|
Vancouver, British Columbia, May 3, 2011 -- Cosigo Resources Ltd. (TSXV: CSG) ("Cosigo" or the "Company") today provided an update on the company's activities in the Taraira Gold Belt of southeastern Colombia.
Cosigo's 100%-owned flagship project, the Machado Project, is located in the Taraira Gold Belt in the Vaupes Province of southeastern Colombia. The Taraira Gold Belt consists of a series of sandstone ridges straddling the Colombian-Brazilian border in an area surrounding the small town of Taraira in Colombia. The ridges, many with a strike-length of tens of kilometers, generally stand ~100m above the surrounding lowlands. Gold mineralization is known to occur in several of these ridges and evidence of artisanal gold recovery operations is widespread in the area.
The Machado Project is located on Machado ridge six kilometers west of the town of Taraira. A gold rush involving up to 10,000 artisanal miners in the late 1980s prompted a geological study of Machado ridge by Mineralco S.A., the former Mining Department of Colombia. Mineralco S.A. reported more than 100 active artisanal mining operations in the area and rock and sediment sampling reportedly showed gold mineralization to be wide-spread along Machado ridge. Following the Mineralco study, a 9,973 hectare area was reserved by the Colombian government and, in 2007, this area was put out for bid by the government. Bids for the area were submitted by several gold explorers, including major gold companies. Cosigo's bid was successful leading to the company's acquisition of the Machado Project.
Exploration work carried out by Cosigo to date has confirmed wide-spread gold mineralization on the Machado Project. This work has included preliminary geological mapping, property-scale MMI sampling as well as grab, channel and limited bulk sampling.
More than 5,000 MMI samples have been completed on a 100 m by 100 m grid over the southernmost three quarters of the Machado Project. Results highlight a large zone of anomalous gold, centered over an oxidized sandstone horizon at the centre of the Machado Project and extending in a NNW direction along strike for approximately 5 kilometers. Several other areas with anomalous gold values have been identified on the property. These anomalies often coincide with the location of known historic gold recovery operations. Approximately 4,500 additional MMI samples have been collected on the Machado Project. These samples have been sent to SGS Canada Inc. in Toronto, ON where they will be processed.
Bulk samples have been collected from two historic adits located in an area close to the center of the Machado Project. Three barrels of rock were collected from the Chile Bajo adit and 18 barrels of sample were collected from the Agamenon adit. The bulk samples were obtained by blasting by local artisanal miners. The blasting was observed by Cosigo personnel on-site, who immediately after the blasting acquired the material liberated by the blast from the artisanal miners.
In the Agamenon adit, a panel measuring 190 cm by 119 cm by 80 cm was sampled. The sampled rock included material from narrow quartz veins while consisting mostly of silicified and haematized metasandstone. The Agamenon adit roughly follows 40 degree SW dipping metasedimentary strata to a depth of ~25 m and sample was obtained from approximately 20 m below surface.
The second, 3 barrel, sample was obtained from the Chile Bajo adit, which is located 0.2 km SE of the Agamenon adit. The Chile Bajo adit follows 45 degree SW dipping strata to a depth of approximately 30 m. The height of the Chile Bajo adit is 2 m and it is up to 8 m wide. The sample represented a panel of approximately 200 cm by 100 cm by 30 cm of silicified, Fe-oxide stained metasandstone with an approximately 15 cm wide quartz-vein cross-cutting the metasedimentary strata. Although narrow quartz veins make up only a small fraction of the total weight of the samples their presence may have contributed significantly to the gold grade.
The three barrel sample from the Chile Bajo adit, totalling 840 kg, as well as 617 kg of sample from two randomly selected barrels from the Agamenon adit were processed by gravity concentration at Knelson Research and Technology Centre ("Knelson") of Langley, B.C. The entire samples were crushed to approximately -1/4". The crushed material was then blended and 10-12 kg subsamples from each bulk sample were obtained using Knelson's laboratory rotary splitter. Each sub-sample was pulped with water to approximately 60% solids by weight prior to being loaded into a laboratory rod mill and milled for 12 minutes to achieve an approximate feed P80 of 100 microns. The sub-samples were then separately processed using Knelson's KC-MD3 concentrator. Concentrates as well as subsamples of the tailings stream were subsequently assayed for gold by fire assay. The metallurgical reports include a gravity recovery value as well as a calculated sub-sample gold head grade. Results are summarized below.
Processing of the bulk samples has provided Cosigo with concrete evidence of high grade gold mineralization at the center of the Machado Project. The presence of free gold in the bulk samples is evident with 67.9 -- 91.5% of the gold in the samples having been recovered by gravity methods.
Planning for a first drill program at Machado is underway and two specialized reverse circulation ("RC") drill rigs have been mobilized to Colombia. The RC drills are considered ideal for the Machado Project as their large sampling volume will be very beneficial in an environment with a presence of free gold. The RC drills are quick, mobile and highly cost-effective with a very small footprint ensuring minimal environmental impact. Permitting to allow for the start of drilling is nearing completion with the finalization of the required Native Prior Consults expected shortly.
A Cosigo corporate presentation can be found at www.cosigo.com and a NI 43-101 technical report for the Machado Project is available on SEDAR. Dr. Joseph Montgomery, P.Eng., Executive Vice-President of Cosigo, is a Qualified Person under NI 43-101 and is responsible for the design and execution of the programs carried out by Cosigo in the Taraira Gold Belt. Dr. Montgomery has reviewed and approved the technical content of this news release.
About Cosigo Resources:
Cosigo Resources Ltd. (TSX-V: CSG) is a Vancouver-based company exploring for economic gold deposits in Colombia and Brazil. Cosigo has assembled a strong team, well experienced in South America and in the exploration and mining-finance industries. The Company's flagship project is its 100-% owned Machado Project in the Taraira Gold Belt of southeastern Colombia. Cosigo's ongoing work on the 9,973 hectare Machado Project is the first modern exploration program in an area known to have hosted more than 100 historic gold mining operations.
Cautionary Notice: This release may contain forward-looking statements regarding the Company's business or financial condition, including the proposed completion of financings, use of proceeds and exploration programs. Actual results could differ materially from those described in this news release as a result of factors, including, but not limited to the following: the timing and completion of financings, the actual use of proceeds, the timing, results and success of exploration and development programs, financial arrangements, the ability to obtain additional financing, developments in global resource markets, political developments, the timing of regulatory and environmental approvals and other factors. The Company cautions that these and similar statements involve risk and uncertainties, which could cause actual results to differ materially from those in the forward looking statement. Forward--looking statements are made in the context of information available as of the date stated. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.
On behalf of the Board of Directors
Cosigo Resources Ltd.
President & CEO
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 of this release
For further information, please contact:
Cosigo Resources Ltd.
Dennis Milburn, President & CEO
Tel: 877-866-8688 (North America)
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