Continental Gold Set to Complete Permitting Within Two Months
Via TD Securities equity research:
- Over the weekend, Continental Gold announced that its was on track to complete permitting for its Buriticá (100%) gold project in Colombia, by the end of Q2/15.
- Management suggested that for an update expected at the end of Q2/15 it has an internal target of seeing mineral resources grow by up to 1 Moz overall, with a M&I resource goal of 3+ Moz.
- We note that the company has been successful in growing resources from 3.1 Moz at 12.3 g/t (Jun 2011) to 5.4 Moz at 9.9 g/t (Jun 2012) to 7.0 Moz at 8.7 g/t (Dec 2013).
- Moreover, Continental announced that following the completion of permitting and an updated mineral resource (mid-2015), that it may initiate a feasibility study on Buriticá, with the goal of completing the study by mid-2016.
- According to the company, if completed, and assuming the study yields positive economics, financing and construction would take place ahead of planned production in 2018.
Technically speaking the Continental Gold (CNL.TO) chart is promising:
A breakout above resistance near $2.30 should minimally target $2.60-$2.80. More importantly, a decisive move above $2.30 would signify that a long-term bottom has indeed been put in place and a nascent uptrend has begun.