Mr. Stifano
Cordoba Minerals (TSXV:CDB) announced a significant but early stage copper-gold porphyry discovery in Colombia earlier, and it caught our attention enough to pick up a few shares at the open this morning (Do your own due diligence!).
Cordoba is currently in the process of amalgamating with Sabre Metals and Minatura to consolidate a 26,000 hectare land package called San Matias on Colombia’s Mid Cauca Gold Belt, subject to exchange approval.
We connected with Mario Stifano, CEO of Sabre Metals, who will be leading the combined entity, to discuss the discovery and the company’s upcoming plans. Stifano was excited, and in the middle of a busy morning communicating the discovery to the market. “You don’t see these kinds of grades at surface.”
While today’s intercepts were significant in their own right, Stifano believes a 13KM trend at the San Matias project will yield clusters of porphyry style deposits, which have the potential to become a producing mining district.
San Matias mag survey (Click for CDB corporate presentation)
“You can just see the chalcopyrite, it’s everywhere.” Stifano pointed out, then referring us to a mag survey on page 9 of the Cordoba’s corporate presentation (Pictured). “Everywhere we see this lighten up on the map, there's potential for a porphyry.” The company plans to drill at least 6000 meters next year (4000m at Montiel, and possibility 2000m at Costa Sul, 2km to the south). Trenching and geochemical work is ongoing.
According to Stifano, the location of the discovery is exceptional. The largest open pit nickel mine in the world (Sierra Matosa) is just 20 km away. A multiple open pit coal mining operation is just 10 KM away. “The beauty here is we’re beside infrastructure, town, roads, airport, power… We’re on the grid, effectively.”
A private company called Ashmont is also exploring in the area, Stifano said. They are in sediments, and not porphyry style systems, but have already identified over 3 million ounces at 1.3 g/t gold equivalent, demonstrating encouraging potential for the area.
Going forward, Chris Grainger will be leading the exploration effort at San Matias. Grainger recently left Continental Gold, where he delineated Colombia’s most valuable junior gold discovery, to join the new company.
The amalgamated company will emerge from the Cordoba vehicle, and although it hasn’t been named yet, ‘Quadrangle’ is a strong possibility. A new slate of directors will include Ari Sussman, CEO of Continental Gold, as Chairman. Bob Allen of Grupo de Bullet, one of Colombia’s most successful prospectors, will also be joining the board, as will current Cordoba CEO Simon Ridgway.
The amalgamation of the three companies should be complete by late January, Stifano told us, again subject to Exchange approval. There will be approximately 45 million shares outstanding after a 2:1 share consolidation of Cordoba. Stifano stressed that the combined company will be tightly held by strong shareholders.
The amalgamated company has $4 million currently on hand, and will raise $3-$10 million in the near term.
Stifano says he is hearing from investment bankers this morning, interested to help arrange the financing. His plan is to begin visiting investors as part of a big marketing push starting next week.
Mr. Stifel encouraged us to review Cordoba’s corporate presentation (PDF Download).
“I’m pumped”, he says, and I sense he’s grinning ear to ear. “Discoveries like this don’t come around often enough and we own all of it.”
This is not investment or professional advice of any kind. We own shares in Cordoba and are biased. Exploration stocks are extremely risky. Always do your own due diligence. We seek safe harbour.
