VANCOUVER, July 30, 2014 /CNW/ - Cosigo Resources Ltd. (TSX-V: CSG) We are continuing to pursue asset financing options on our 10,000ha Machado Project in Colombia. As mentioned in an earlier letter, we believe we have the ability to explore and drill in all areas of the Project.
In Brazil, we are working with a well-respected merchant bank to arrange exploration funding and in addition, we are helping them develop government contacts in a Brazilian state for infrastructure projects in that state.
Native Communities have invited Cosigo to explore their 166,000ha territory which contains more than 400km of ridge geology similar to Machado. We now hold exclusive rights to explore and develop mining opportunities in this territory.
The La Vera ridge in Brazil hosts abundant historic workings and has never had modern exploration work. Cosigo's initial random grab samples returned 2.27 to 304g/t gold in several "reefs" of varying thickness. Channel sampling has traced gold mineralization in orthoquartzite for over 750m along strike with gold values up to 17.3g/t. Splits from a 200kg "mini-bulk sample" contained on average 3.5g/t gold with about 45% of the gold being coarse. (ie. >100um) Mineralization remains open-ended and rivals the Machado Project in size.
At Castanho, a 900m by 150m area is being worked by local miners. The majority of the exposed metasedimentary strata are gold-bearing with Cosigo's rock sampling returning gold values up to 298g/t. Additional gold recovery operations by natives occur along strike of this open-ended zone of gold mineralization. An interesting note for the town of Castanho is that its currency is gold.
Our current private placement of up to 5,000,000 units at $0.05 per unit is scheduled to close in August. Each unit consists of one share and one warrant. The warrant plus $0.10 will entitle the holder to purchase one additional share for a period of two years. We welcome investors to contact me for the required subscription forms and instructions.
One of our long term shareholders has agreed to match all other investors' commitments up to 25% as an indication of his confidence in the Cosigo venture.
I wish to thank all investors who have committed to investing in the current private placement and have returned their subscription forms and sent their money to our trust account.
We hope to be able to announce more details about our financing prospects this month.
Dennis W Milburn
President and CEO