Wednesday, 21st June 2006 (2539 views)

Tao Minerals is close to gaining mining licenses for two Colombian projects, with potential to yield over 3 million ounces of gold.

The two licenses, which are in their final stages, would also allow the company to site a large processing plant in the same area.

Initial assays of the first property have shown returns of between 1.5 and 4.8 g/t gold

Jim Sikora, president of Tao Minerals, said of the deal: "These acquisitions represent a further major step in our strategy to establish a major gold mining operation in this region of south-western Colombia."

Based on the average grade of the assays, and on this density extended to a further 100m beyond the 100m checked so far, the company estimates 3.3 million ounces of gold could be produced.

At today's spot price of $575 an ounce that would return the company close to $2 billion.

Gold's price has rebounded recently as political uncertainties in North Korea have led traders to look for a relatively safe haven to store their assets.

 

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