Columbus Gold (OTCQX:CBGDF) has announced it has mobilized a third drill rig for its Paul Isnard project in French Guiana. The rig has already arrived in French Guiana and cleared customs, so I would expect it to start drilling by the end of this month to further expand the mineral resources and to increase the confidence in the currently known resources.
This is quite an important development as it will speed up the drill process in French Guiana. Keep in mind Columbus Gold currently has a 4.3 million ounce resource at an average grade of 1g/t in the most recent resource estimate. This is quite decent for an open pit mine, but I do expect this number to increase substantially, as the resource was open in several directions. Together with its joint venture partner Nordgold, Columbus Gold is currently drilling in excess of 26,000 meters at Paul Isnard, of which 15,000 meters still have to be drilled.
The Paul Isnard project is probably one of the most exciting exploration projects in the world right now. It has had its issues as the independent consultant made an error in calculating the previous resource estimate, but I'm very confident this year's drill program will increase the resources again to 5Moz+. I expect a resource update later this year, followed by a PEA in H1 2015.
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