Medoro Gets A Feel For Colombia Goldfields’ Asset

In mid-October Medoro Resources (MRS-V) and Colombia Goldfields (GOL-T) both put out press releases for the new resource estimate at the Marmato Mountain gold project in Colombia.

But it is almost a certainty that the asset will be in Medoro’s hands in just a week’s time.

Medoro is set to acquire Colombia Goldfields later in the month in a friendly takeover that is so likely to go through that Colombia Goldfields hardly blinked at the Toronto Stock Exchange’s announcement that it would delist the company’s shares on Nov. 13 for failure to meet its continued listing requirements.

As for the new resource estimate, results come from the Zona Alta deposit at Marmato and show a significant, albeit low grade, deposit.

Intense drilling managed to move much of the resource out of the inferred category and into the measured and indicated, but lost a bit on the grade in the process.

The site now hosts a deposit with a measured and indicated resource of 88.2 million tonnes grading 0.82 gram gold per tonne and 4.65 grams silver per tonne for a contained 2.3 million oz. gold and 13.2 million oz. silver.

In the inferred category there are another 27.6 million tonnes of 1.21 grams gold and 6.74 grams silver for 1.2 million oz. gold and 6.0 million oz. silver.

The first estimate, the results of which were released in May 2008, came up with an inferred resource of 75.8 million tonnes grading 1.05 grams gold and 5.76 grams silver, for 2.6 million oz. gold and 14 million oz. silver. A cut-off grade of 0.3 gram gold was used for both the original estimate and the update.

The first resource estimate was based on just 12,200 metres of drilling in 68 holes while the new estimate was based on 43,000 metres of diamond drilling in 201 holes.

As for the delisting of Colombia’s Goldfields shares, the timing of the announcement is a bit strange as the shareholders of the company have yet to vote on the Medoro takeover.

They were scheduled to do so on Oct. 23. The company says it expects the transaction to go through, making the de-listing a moot point.

The Medoro offer, which was announced in early June, would see Medoro give 0.28 of one of its shares plus 0.009 of a warrant for each Colombia Goldfields share. A full warrant has a 50¢ strike price and a two-year term.

The deal would leave Colombia Goldfields’ stockholders with roughly 25% of Medoro.

In Toronto on Oct. 15 — the day the resource news was released — Medoro shares were up a penny to 75¢ on 20,000 shares traded while Colombia Goldfield’s shares fell half a penny to 24¢ on 160,000 shares traded.

Meanwhile in Medoro’s boardroom: Robert Doyle has resigned as CEO, but remains a director; John W. W. Hick has been appointed CEO and a director; and Miguel de la Campa has resigned as director.