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CB Gold Inc. reports financial results for the three and nine months ended September 30, 2011, and provides an update of exploration activities on our gold projects.
Details of financial results for the three and nine months ended September 30, 2011 are described in the Unaudited Condensed Consolidated Interim Financial Statements and corresponding Management Discussion and Analysis (“MD&A”) available on SEDAR at www.sedar.com. These documents are also available on our website, www.cbgoldinc.com. In this release, we provide a comparative summary of the quarter’s operational and financial highlights. All amounts are in Canadian dollars, unless otherwise indicated.
Highlights
• On October 24, 2011 and clarified on November 8, 2011 following a review by the British Colombia Securities Commission (“BCSC”), the company released the results for the first 194 metres of hole RM-DDH11-046, which showed mineralization of 7.57g/t Au and 1.48g/t Ag over 114.98m, including 2.09m at 316.67g/t Au and 26.20g/t Ag. The company was asked to apply a top-cut to show the effects of the high-grade sections of hole 46 on the grade of the overall intercept assuming (i) No top-cut, (ii) 60 g/t Au top-cut based on the top-cuts for resource estimates at nearby deposits (Ventana Gold Corp), and (iii) and an arbitrary cut-off of 15 g/t Au. The following table shows the results with applied top-cuts:
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No Top-cut 60 g/t Top-cut 15 g/t Top-cut
HoleID From (m) To (m) Length (m) Au (g/t) Ag (g/t) Au (g/t) Ag (g/t) Au (g/t) Ag (g/t)
RM-DDH11-046* 31.32 146.30 114.98 7.57 1.48 2.54 1.48 1.20 1.48
Including* 31.32 72.21 40.89 17.17 2.40 4.05 2.40 1.75 2.40
including 115.95 146.30 30.35 5.40 1.69 3.98 1.69 2.02 1.69
and 173.33 186.55 13.22 1.63 3.05 1.63 3.05 1.63 3.05
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*Includes 10.13 metres (6 samples) with average recovery of 53%.
Composite intervals were chosen using a combination of geological criteria and mineralization exceeding a cut-off grade of 0.15 g/t Au. The longest continuous interval of included waste material is 4.35 metres, from 43.45 to 47.80 metres. All intervals are reported as drilled thicknesses and are believed to be between 80-100% of the true widths of the mineralization.
*RM-DDH11-046 was drilled at 220o azimuth, -51o dip and a total depth of 45.1 metres.
The subsequent five holes from the same platform also logged significant zones of mineralization and intercepts of visible gold, as well as six holes from neighbouring platforms drilled into the stockwork. Hole 46 was drilled into a previously undefined structural corridor and is considered a new discovery.
• On November 2, 2011, the Company closed a non-brokered private placement of 10,000,000 units (“Units”) at a price of $1.10 per Unit, for gross proceeds of $11 million. The private placement was fully subscribed by Lumina Capital Limited Partnership.
Selected Financial Data
The following table shows selected comparative consolidated financial information for the three and nine months ended September 30, 2011 and 2010:
Financial Position September 30, 2011 December 31, 2010
________________________________________
Cash and cash equivalents, short term and restricted investments $ 7,960,603 $ 20,187,229
Mineral properties 17,508,895 13,437,909
Total Assets 25,857,738 34,111,099
Total Liabilities 1,996,666 3,107,762
Total Equity $ 23,861,072 $ 31,003,337
Operations September 30, 2011 September 30, 2010 September 30, 2011 September 30, 2010
________________________________________
Exploration $2,960,422 $523,064 $7,384,742 $1,413,517
General and administrative expenses 607,615 344,959 1,756,926 1,113,074
Professional and consulting fees 155,083 266,108 1,081,001 982,383
Share-based payments 329,519 180,145 983,417 721,992
Capital tax expense - - 445,439 -
Net loss, being comprehensive loss for the period $4,046,744 $1,307,527 $11,627,403 $3,883,969
Basic and diluted loss per share $0.03 $0.02 $0.09 $0.06
Exploration costs have been expensed for accounting purposes and are included in net loss and comprehensive loss.
