Columbus Gold Comes to a Fork in the Road

Precious metals expert Bob Moriarty explains why he sees Columbus Gold’s present situation as a win-win for investors.

Yogi Berra may or may not have said, “When you come to a fork in the road, take it.” If he didn’t say it, he probably should have. Columbus Gold Corp. (CGT:TSX; CBGDF:OTCQX) is coming to a fork in the road. The road to the left leads to gold and riches for their shareholders. To the right the road takes shareholders to gold and riches.

I explained the basics of the five million ounce Paul Isnard gold project located in French Guiana back in early November of 2014. Little has changed except the share price has gone from $0.35 then to $0.87 now, they have added a lot of gold, moved their plan B Nevada project to just a smidgen under one million ounces of gold in a 43-101 and historic resource and have new neighbors in French Guiana named Barrick and Newmont. Other than that, it’s just your ordinary boring “Great Management” story.

“Columbus Gold Corp. has what you might think of as a golden future.”

Columbus now expects the feasibility study to be completed by March of this year. At completion, their Russian partner, Nordgold will control 55.01% of the property. One shareholder, Alexey Mordashov owns 90% of Nordgold. When the feasibility study completes, Nordgold and Columbus come to a fork in the road.

Nordgold operates nine gold mines today located in Russia, Africa and Kazakhstan. Mordashov takes 90% of the dividends from the nine gold mines. Nothing suggests he needs another gold mine. Since he gets 90% of the profit from the mines, maybe he might be more interested in getting 90% of the 55.1% interest …read more

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