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CB Gold Announces Financial and Operating Results for the Third Quarter Ended September 30, 2012
By: Marketwired .
Nov. 28, 2012 07:13 PM
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/29/12 -- CB Gold Inc. (TSX VENTURE:CBJ) ("CB Gold" or the "Company") provides an update of exploration activities and reports financial results for the three and nine months ended September 30, 2012.
Details of financial results for the three and nine months ended September 30, 2012 are included in the Unaudited Consolidated Financial Statements and corresponding Management's Discussion and Analysis ("MD&A") available on SEDAR at www.sedar.com. These documents are also available on our website, www.cbgoldinc.com. In this release, we provide a comparative summary of the quarter's operational and financial highlights. All amounts are in Canadian dollars, unless otherwise indicated.
Update on Exploration Activities
CB Gold continues to focus on drilling at its 100% owned Vetas Gold Project. The success of the 2011 geophysics surveying at Vetas and La Vereda has resulted in additional targets being added to the drilling program, which will continue to define the potential and dimension of the Vetas Project through testing of known and potential new zones of mineralization.
During the nine months ended September 30, 2012, the Company has completed more than 25,000m of drilling and more than 60,000m of drilling since the program commenced in 2010. Further drill results will be released upon receipt of the final assay certificates.
Corporate Developments and Exploration Results
On January 18, 2012 the Company released drilling results from its Real Minera property at its Vetas Gold Project, including intercepts of 16.87m at 17.07 g/t Au (hole 56) and 10.48m at 2.31 g/t Au (hole 56).
On January 26, 2012, CB Gold Inc. received the registration of the concession contract for its 100% owned Real Minera property in Vetas. The Real Minera property was converted to a concession contract with an initial 20 year tenure, securing the long-term development potential of the property. The duration of the concession contract can be extended for an additional 20 years after the initial 20 year term.
On February 1, 2012, the Company reported summary geochemical and geophysical survey results at the newly acquired La Vereda concession at its Vetas Gold Project, identifying a major anomaly characterized by high chargeability and low resistivity (3-D images and plan view sections can be viewed at www.cbgoldinc.com). The geophysics anomaly at La Vereda is approximately 2,000 meters long and up to 700 meters wide and is interpreted as an extension of the epithermal style mineralization found at surface, with the high chargeability indicating the presence of potential sulphide mineralization at depth. The anomaly strikes northeast/southwest, similar to many mineralized structures in the Vetas - California District.
On February 27, 2012, the Company released drilling results from its Vetas Gold Project, including intercepts of 23.76m at 1.28 g/t Au (hole 67) and 13.72m at 1.45 g/t Au (hole 67) and 1.78m at 211.82 g/t Au (hole 62).
On May 23, 2012, the Company released additional drilling results from the 2011 and 2012 drilling program at its Vetas Gold Project, including intercepts of 4.75m at 29.42 g/t Au (hole 81), 15.24m at 1.48 g/t Au (hole 78) and 3.70m at 10.37 g/t Au (hole 88).
On May 24, 2012, Hernan Martinez was appointed to the Company's Audit Committee. Mr. Martinez has been a Director of CB Gold since 2010 and has significant experience both as a Director and as a senior executive of public and private resource companies. The appointment of Mr. Martinez to the Audit Committee will further strengthen the Company's corporate governance practices.
On June 1, 2012, the Company released the findings of a structural study undertaken by SRK Consulting that was commissioned by the company at the end of 2011. The study was undertaken to gain a better understanding of the structural controls and tectonic settings at the project to assist the drilling program and confirmed the key focus of the Company's drilling program.
On August 20, 2012, the company released drilling results from the 2011 and 2012 drilling programs at its Vetas Gold Project, including intercepts of 1.43m at 36.41 g/t Au (hole 97), 1.88m at 7.14 g/t Au and 404.13 g/t Ag (hole 90) and 0.86m at 93.55 g/t Au (hole 91).
On September 4, 2012, the Company released drilling results from the 2012 drilling program which show continued intercepts of high grade mineralization at the Vetas Gold Project, including 15.50m at 17.29 g/t Au, 3.31m at 78.14g/t Au (hole 119), and 12.62m at 0.98 g/t Au (hole 113).
As at September 30, 2012, the Company through the completion of acquisition agreements (the "Acquisition Agreements"), has acquired eleven mineral properties which form part of the Vetas Gold Project. Seven of the mineral properties acquired were already registered in the name of the Company before the National Mining Registry. The mining authority has issued resolutions approving the transfer of the remaining four mineral properties to Leyhat and the Company expects the registration before the National Mining Registry to be completed during the current and next fiscal years while the remaining payments are subject to certain conditions to be met by title holders.
On October 15, 2012, the Company released additional drilling results from the 2012 drilling program including 8.25m at 31.35 g/t Au (hole 121) and 3.37m at 19.83 g/t Au (hole 106A).
On November 19, 2012 CB Gold entered into an agreement with BMO Nesbitt Burns Inc. ("BMO Capital Markets"), under which BMO Capital Markets agreed to buy on a bought deal basis by way of a short form prospectus 11,120,000 Common Shares at a price of $0.90 per common share for gross proceeds of $10,008,000. In addition, CB Gold has agreed to grant BMO Capital Markets an option, exercisable at any time until 30 days following the closing of the offering, to purchase up to an additional 1,668,000 Common Shares to cover over-allotments, if any. In the event that the option is exercised in its entirety, the gross proceeds of the offering to CB Gold will be $11,509,200.
The offering is expected to close on or about December 10, 2012 and is subject to customary conditions and receipt by CB Gold of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Selected Financial Data
The following items summarize the key operating and financial highlights for the three and nine months ended September 30, 2012, and 2011:
In thousands of Canadian dollars --------------------------------------------------------------------------- September December Financial Position 30, 2012 31, 2011 --------------------------------------------------------------------------- Cash and cash equivalents $ 5,317 $ 15,297 Mineral properties 17,454 17,801 Total Assets 23,163 33,455 Total Liabilities 1,937 1,451 Total Equity 21,226 32,004 In thousands of Canadian dollars --------------------------------------------------------------------------- Three months ended Nine months ended September September September September Operations 30, 2012 30, 2011 30, 2012 30,2011 --------------------------------------------------------------------------- Exploration $ 2,784 $ 2,960 $ 9,748 $ 7,385 General and administrative expenses 583 614 2,170 1,776 Professional and consulting fees 254 149 773 1,062 Share-based payments (non-cash) 368 330 1,185 983 Capital tax expense - - - 445 Net loss, being comprehensive loss for the period 3,930 4,047 13,863 11,627 Basic and diluted loss per share $ 0.03 $ 0.03 $ 0.10 $ 0.09
About CB Gold Inc.:
CB Gold is a mineral exploration company headquartered in Vancouver, British Columbia. CB Gold, through its wholly-owned subsidiary, Leyhat Colombia Sucursal, is actively pursuing the exploration and development of mineral properties in the Republic of Colombia. The Vetas Gold Project consists of a number of existing mines (operations currently suspended) and exploration concessions, and its exploration and development activities are not affected by the proposed Regional Natural Park Paramo de Santurban.
For more information on CB Gold please visit our web site at www.cbgoldinc.com.
Cautionary Note Regarding Forward-Looking Statements
The securities of CB Gold described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
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 or accuracy of this news release.
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