Exploration work carried out to date has identified wide-spread gold mineralization on the Machado project. Initial rock, stream-sediment and soil sampling programs have been completed as well as preliminary geological mapping at a 1:10,000 scale. At least locally on the property, gold mineralization has been found to be high grade. Rock samples obtained by Cosigo have shown grades from trace up to 2,350 g/t gold. The most extensive known gold mineralization on the Machado project occurs at the centre of Cosigo's property at Cerro Rojo. In order to better understand the nature of the gold mineralization and to more effectively assess the gold grades, channel samples and bulk samples have been taken at this location. Gravity concentration of 840 kg and 617 kg bulk samples from 2 adits at Cerro Rojo showed grades as high as 37.6 g/t gold and confirmed the presence there of coarse gold (see May 3, 2011 News Release).
More than 5,000 MMI samples have been completed on a 100m by 100m grid over most of the Machado claim block centered over Cerro Rojo. Results highlight a large zone of anomalous gold, centered over an oxidized sandstone horizon in the Cerro Rojo area and extending in a NNW- direction along strike for approximately 5 kilometers. Several other areas with anomalous gold values have been identified on the property. These anomalies often coincide with the location of known historic gold recovery operations.
Work completed to date on the Machado project also includes the construction of a central 30-man tent camp and completion of a network of access trails.
For more information please refer to the Machado Project Technical
The Machado Project, Vaupes Department, Colombia technical report recommends a $4.25 Million exploration program for the Machado property. The aim of the recommended program is to determine the importance and extent of the known mineral occurrences as well as to identify and delineate other areas of interest. The bulk of the recommended work is focused on drilling the known gold occurrences at Cerro Rojo, Cerro Bombo and Peladero as well as areas highlighted by the results of the MMI survey.
All exploration work carried out by Cosigo on the Machado property so far has been completed in preparation for the planned drill program. The drill program will test the areas of known mineralization and anomalies highlighted by the MMI survey. Cosigo intends to drill at Machado using reverse circulation (RC) drills. RC as a drilling method is fast, cost-effective and the large sample volume achieved by the RC will be advantageous in an environment where coarse gold is present. Light-weight RC drilling equipment has already been mobilized to the Machado project in anticipation of the upcoming drill program. Permitting for drilling is well underway and Cosigo expects the forestry subtraction and native prior consult process to be completed shortly.
Dr. Joseph Montgomery, P.Eng., Executive Vice-President of Cosigo, is a Qualified Person under NI 43-101 and is responsible for the design and execution of the programs carried out by Cosigo in the Taraira Gold Belt. Dr. Montgomery has reviewed and approved the technical content of this website for compliance with NI 43-101. The technical information included on this website is sourced from "Technical Report, Machado Project, Vaupes Department, Colombia" prepared for Horseshoe Gold Mining Inc. by Raymond M. Ashley, P.Geoph. and dated January 16, 2011.