Medoro gets better feel for Colombia Goldfield’s asset

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 this month in a friendly takeover that
is so likely to go through that Colombia Goldfields hardly blinked at the TSX’s announcement that it would delist the companies 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 of 0.82 grams gold and 4.65 grams of silver for 2.3 million oz. of gold and 13.2 million oz. of silver.

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

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

The first resource estimate was based on just 12,186 metres of drilling in 68 holes while the new estimate was based on 42,913 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 Medora takeover.

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

The Medoro offer, which was announced at the beginning of June, would see Medoro give 0.28 of one of its shares plus 0.009 of a warrant for each share of Colombia Goldfields.

A full warrant has a strike price of 50¢ and a term of two years.

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

In Toronto on Oct. 15 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.