|April 03, 2013|
President's Letter April 2013
Cosigo's management attended the Prospectors & Developers Association of Canada (PDAC) convention held annually in Toronto. Many meetings were held with institutional investors, major gold mining companies, retail investors and shareholders. Keen interest has been shown by several of these groups and individuals. After signing confidentiality agreements, Cosigo is providing additional information and cooperation with these potential investors.
In late December a professional consultant completed an anthropological and archeological study within a central portion of the Machado Project. The Ministry of Interior accepted the finished report and declared without reservations, that the area is void of any anthropological or archeological evidence that would necessitate impact studies, either for exploration or exploitation. This declaration will be registered in the public government library for future anthropological reference. The report can also be used as part of any future feasibility study. The report has now been forwarded to the Ministry of Mines for their approval.
In regards to the Machado forestry subtraction approval for drilling, Cosigo has been informed that the application process has been completed to their specifications and that nothing further will be required. The Ministry of Environment has a very large number of forestry subtraction applications pending. The application file for the Machado Project remains in the hands of the Minister of the Environment.
Permission has been granted for surface sampling on the Machado Project and Cosigo is now awaiting the delivery to Canada of another batch of Mobile Metal Ion (MMI) samples for immediate analysis.
Progress in Brazil continues since the signing with the Indigenous Community Vila Jose Mormes Serra Traira agreement. Cosigo and the Jose Mormes Serra Traira Indigenous Community are now in the process of arranging meetings with the appropriate ministries located in Manaus, the state capital of Amazonas, and also in Brasilia, the national capital. The objective is to execute the steps required in the process of attaining exploration approval. Cosigo has scheduled a meeting with the Governor of the State of Amazonas in mid-April. The Cosigo agreement with the Indigenous Community grants Cosigo the exclusive right to explore and develop mining projects in an area with more than 400 square kilometers of prospective geology. This agreement covers both the North Traira and South Traira Projects.
NORTH TRAIRA PROJECT
In late 2012 Cosigo received some representative samples and information on the geological setting from this area. The North Traira Project is a 900 meter x 150 meter exposed area that has been worked on the surface by artisanal miners. The majority of the zone is exposed meta-sedimentary strata that are gold-bearing. Initial grab sampling of several strata, returned gold assay results of up to 298 grams per tonne. All grab samples were taken at random representing a cross-section of the structure and exposed strata. Mineralization is said to continue along strike.
SOUTH TRAIRA PROJECT
South Traira Project has similar geology to the Machado Project. Cosigo received six random grab samples that returned gold assay results of up to 6.8 grams per tonne. The site is also subjected to artisanal mining. Previous channel sampling traced gold mineralization for over 750 meters along strike with gold values up to 17.3 grams per tonne. Samples from a 200 kilogram "Mini-bulk sample", received by Cosigo, contained an average of 3.5 grams per tonne gold although no visible gold was observed in the 200 kilogram sample. Screening of the samples show that a fair portion (average 45%) of the gold is coarse (i.e. greater than 100 microns). Mineralization is said to be open-ended along strike.
The 'Ghost Net Project' that was suggested by our Alaskan native guest, to rehabilitate and improve fish habitat, has begun. The objective is to recover lost fishing nets so that they don't keep fishing as 'ghost nets' thereby destroying valuable fish stock. The work group for this project has reported back that they have already retrieved their first fouled net. This important environmental clean-up of part of the Amazon River system will continue.
Dennis W. Milburn
President & CEO