Colombian

[Tackler]

Its been trading down from the RTO placement price. Unfortunetly they are not as far along in thier program as I was hopeing.

Cosigo Resources completes 5,000 MMI samples at Machado

2011-05-03 09:13 ET - News Release

Mr. Dennis Milburn reports

COSIGO RESOURCES LTD. - MACHADO EXPLORATION UPDATE

Cosigo Resources Ltd. has provided an update on the company's activities in the Taraira gold belt of southeastern Colombia.

Highlights:

Cosigo's Machado project is known to have hosted more than 100 historic artisanal gold mining operations.
MMI (mobile metal ion) sampling has identified a large, approximately 5,000-metre-long zone of anomalous gold at the centre of the Machado project.
Bulk samples have confirmed the presence of high-grade gold mineralization with grades of up to 37.6 grams per tonne (g/t) gold.

"We are very pleased to have recently completed our listing on the TSX Venture Exchange and are looking forward to an exciting year for Cosigo and our shareholders," says Dennis Milburn, president and chief executive officer of Cosigo. "We believe that our properties in the Taraira gold belt have tremendous gold potential, and we are eager to carry out the first modern exploration program in the area."

Machado project

Cosigo's 100-per-cent-owned flagship project, the Machado project, is located in the Taraira gold belt in the Vaupes province of southeastern Colombia. The Taraira gold belt consists of a series of sandstone ridges straddling the Colombian-Brazilian border in an area surrounding the small town of Taraira in Colombia. The ridges, many with a strike length of tens of kilometres, generally stand about 100 metres above the surrounding lowlands. Gold mineralization is known to occur in several of these ridges, and evidence of artisanal gold recovery operations is widespread in the area.

The Machado project is located on Machado ridge six kilometres west of the town of Taraira. A gold rush involving up to 10,000 artisanal miners in the late 1980s prompted a geological study of Machado ridge by Mineralco SA, the former Mining Department of Colombia. Mineralco SA reported more than 100 active artisanal mining operations in the area, and rock and sediment sampling reportedly showed gold mineralization to be widespread along Machado ridge. Following the Mineralco study, a 9,973-hectare area was reserved by the Colombian government, and in 2007 this area was put out for bid by the government. Bids for the area were submitted by several gold explorers, including major gold companies. Cosigo's bid was successful leading to the company's acquisition of the Machado project.

Exploration work carried out by Cosigo to date has confirmed widespread gold mineralization on the Machado project. This work has included preliminary geological mapping, property-scale MMI sampling as well as grab, channel and limited bulk sampling.

MMI sampling

More than 5,000 MMI samples have been completed on a 100-metre-by-100-metre grid over the southernmost three quarters of the Machado project. Results highlight a large zone of anomalous gold, centred over an oxidized sandstone horizon at the centre of the Machado project and extending in a north-northwest direction along strike for approximately five kilometres. 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. Approximately 4,500 additional MMI samples have been collected on the Machado project. These samples have been sent to SGS Canada Inc. in Toronto, Ont., where they will be processed.

Bulk sampling

Bulk samples have been collected from two historic adits located in an area close to the centre of the Machado project. Three barrels of rock were collected from the Chile Bajo adit, and 18 barrels of samples were collected from the Agamenon adit. The bulk samples were obtained by blasting by local artisanal miners. The blasting was observed by Cosigo personnel on-site, who immediately after the blasting acquired the material liberated by the blast from the artisanal miners.

In the Agamenon adit, a panel measuring 190 centimetres by 119 centimetres by 80 centimetres was sampled. The sampled rock included material from narrow quartz veins while consisting mostly of silicified and haematized metasandstone. The Agamenon adit roughly follows 40-degree-southwest-dipping metasedimentary strata to a depth of about 25 metres, and a sample was obtained from approximately 20 metres below surface.

The second, three-barrel sample was obtained from the Chile Bajo adit, which is located 0.2 kilometre southeast of the Agamenon adit. The Chile Bajo adit follows 45-degree-southwest-dipping strata to a depth of approximately 30 metres. The height of the Chile Bajo adit is two metres, and it is up to eight metres wide. The sample represented a panel of approximately 200 centimetres by 100 centimetres by 30 centimetres of silicified, iron-oxide-stained metasandstone with an approximately 15-centimetre-wide quartz vein crosscutting the metasedimentary strata. Although narrow quartz veins make up only a small fraction of the total weight of the samples, their presence may have contributed significantly to the gold grade.

The three-barrel sample from the Chile Bajo adit, totalling 840 kilograms, as well as 617 kilograms of sample from two randomly selected barrels from the Agamenon adit were processed by gravity concentration at Knelson Research and Technology Centre of Langley, B.C. The entire samples were crushed to approximately minus one-quarter inch. The crushed material was then blended, and 10-to-12-kilogram subsamples from each bulk sample were obtained using Knelson's laboratory rotary splitter. Each subsample was pulped with water to approximately 60-per-cent solids by weight prior to being loaded into a laboratory rod mill and milled for 12 minutes to achieve an approximate feed P80 of 100 microns. The subsamples were then separately processed using Knelson's KC-MD3 concentrator. Concentrates as well as subsamples of the tailings stream were subsequently assayed for gold by fire assay. The metallurgical reports include a gravity recovery value as well as a calculated subsample gold head grade. Results are summarized in the associated table.


SAMPLING RESULTS

Subsample No. Calculated gold grade (g/t) Gravity recovery (%)

(Agamenon adit) KRTS 20564 A 37.6 91.5
(Agamenon adit) KRTS 20564 B 27.2 84.4
(Chile Bajo adit) KRTS 20542 A 7.11 70.7
(Chile Bajo adit) KRTS 20542 B 6.71 67.9
(Chile Bajo adit) KRTS 20542 C 6.47 69.8
(Chile Bajo adit) KRTS 20542 D 6.59 69.4



Processing of the bulk samples has provided Cosigo with concrete evidence of high-grade gold mineralization at the centre of the Machado project. The presence of free gold in the bulk samples is evident with 67.9 per cent to 91.5 per cent of the gold in the samples having been recovered by gravity methods.

Planning for a first drill program at Machado is under way, and two specialized reverse circulation (RC) drill rigs have been mobilized to Colombia. The RC drills are considered ideal for the Machado project as their large sampling volume will be very beneficial in an environment with a presence of free gold. The RC drills are quick, mobile and highly cost-effective with a very small footprint ensuring minimal environmental impact. Permitting to allow for the start of drilling is nearing completion with the finalization of the required native prior consults expected shortly.
A Cosigo corporate presentation can be found at the company's website, and a National Instrument 43-101 technical report for the Machado project is available on SEDAR. Dr. Joseph Montgomery, PEng, 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 news release.