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11/8/11

The CB Gold (CBJ.v) clarification and Brent Cook's comments from October 30th

In light of this news release from CB Gold (CBJ.v) tonight that "clarifies" (and if we understand 'clarify' in its literary form to mean 'shine light on obscure or badly lit areas' it certainly fits the bill), that nice Mister Brent Cook guy from Exploration Insights has given your humble scribe permission to re-print his comments on CBJ.v and its original NR. He published what you see below on October 30th and in light of tonight's news it's well worth a read.

Finally, I wanted to spend a little time on CB Gold (CBJ.TSX-V) and their spectacular drill hole from the Vetas property in Colombia. Drill hole RM-046 intersected 114.98 meters grading 7.57 grams per tonne gold, including 40.89 meters grading 17.17 grams per tonne gold. The company notes one assay interval near the top of the hole averaged 316.67 grams per tonne gold over 2.09 meters. If we pull the 2.09 meters grading 316.67 g/t Au out of the 40.89 meter high grade interval near the top of the hole, using our handy dandy drill interval calculator, we are left with 38.8 meters grading 1.04 g/t Au. It does not appear CBJ used any top cut in their calculations (refer to Geo-Insights page 34).
In CB Gold’s press release they recognize two principal vein types: stockwork and grey quartz pyrite. The veins are associated with intense alteration overprinting an early stage of alteration. The mineralization seems to be related to a structural corridor along the contact of a granodiorite and gneiss. The company has completed five additional holes from the same drill location and six more from a nearby drill platform. Assays are pending, including for “holes which contain comparably encouraging visual indications of mineralization, including intercepts with visible gold at both Real Minera and El Dorado Zones”. Hmmmm…
So there you have it. No maps, no sections or detailed drill assays. The company has, understandably, been swamped with phone calls, and I have been unable to talk to anyone with some knowledge of the geology, mineralization, drill spacing, etc. There is, therefore, no way I can judge the importance of this drill hole or make a recommendation to you based on facts. We don't know if they are drilling down a relatively narrow structure that offers no size potential, or across it. Is it a pipe of mineralization and, if so, of what dimensions? The Vetas district is well known for its narrow high grade veins, but to my knowledge has not demonstrated the potential for large bulk mineable gold mineralization. Are they smearing high grades, or is the mineralization evenly distributed?
Three days after releasing the results of drill hole 46, CBJ announced an $11 million non-brokered private placement with Lumina Capital at $1.10. Lumina Capital is a limited partnership headed by Ross Beaty that includes many of the people that were instrumental in the success of Lumina Copper. I know the geologists at Lumina and trust their judgment. I would guess they had access to considerably more information than the public by way of a confidentiality agreement. Lumina’s involvement is a strong endorsement of the project. I only wish we knew more.
IKN back and I'd like to add just one thing to the mix here; most people connect Lumina Capital to the wildly successful deals it's done with Ventana Gold and the likes. I do too of course, but I also remember Lumina wading into Blue Sky Uranium (BSK.v)....so it just goes to show.