VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 03/23/12 — CB Gold Inc. (TSX VENTURE: CBJ) („CB Gold“ or the „Company“) reports financial results for the year ended December 31, 2011, and provides an update of exploration activities on our gold projects.
Details of financial results for the year ended December 31, 2011 are included in the Audited Consolidated Financial Statements and corresponding Management Discussion and Analysis („MD&A“) available on SEDAR at . These documents are also available on our website, . In this release, we provide a comparative summary of the year-s operational and financial highlights. All amounts are in Canadian dollars, unless otherwise indicated.
Highlights
Drilling and Exploration Results
Corporate Developments
Selected Financial Data
The following table shows selected comparative consolidated financial information for the year ended December 31, 2011 and 2010:
Exploration costs have been expensed for accounting purposes and are included in net loss and comprehensive loss.
For the year ended December 31, 2011 the Company incurred a net loss of $17.7 million compared to the net loss of $7.6 million for the year ended December 31, 2010. The increase in net loss was primarily due to an increase in exploration expenses on the Company-s Vetas Gold Project in Colombia, general and administrative expenses, non-cash share-based payments, and capital tax as the Company ramped up its operations.
As the Company has no operating revenues, it relies on current cash reserves and financing transactions to meet its current and budgeted exploration and operating activities. Funds raised have been used mainly for exploration activities and mineral property acquisitions at the Vetas Gold Project and the Norte de Santander Gold Project.
Working capital of $14.2 million at December 31, 2011 includes cash of $15.4 million and accounts payable and accrued liabilities of $1.2 million. Total assets at December 31, 2011 include $17.8 million in mineral properties.
Update on Exploration
CB Gold continues to focus drilling on the Vetas Gold Project, with more than 31,000m of diamond core drilling completed to date. There are currently three drill rigs operating on site, with a fourth rig expected to be added at the end of the first quarter of 2012, to continue to define the potential dimensions of the project through testing known and potential new zones of mineralization. The success of the 2011 geophysics survey has resulted in additional targets being added to the Vetas Gold Project drilling program. Extensions along strike and at depth of several areas have also been confirmed.
As a result of the discovery of multiple occurrences of significant mineralization, including visible gold in the stockwork zone, the Company is now assessing its options for the 2012 drilling program and how to best deploy the four rigs. The discovery of high grade structures at Real Minera in the stockwork zone is an exciting development for the Company and requires further exploration. Drilling in 2012 will continue to define the potential and dimension of the Vetas Project through testing of known and potential new zones of mineralization. The Company plans 55,000m of drilling in 2012 at its Vetas Gold project and is aiming to have an initial NI 43-101 compliant resource statement by the end of 2012.
The Company is also aggressively pursuing due diligence and acquisition of the remaining properties held under exclusivity agreement and the potential acquisition of new ones in order to consolidate the Vetas mining district, as well as working with the mining authorities to consolidate the various titles and permits relating to these properties.
About CB Gold Inc.:
CB Gold is a mineral exploration company headquartered in Vancouver, British Columbia. CB Gold, through its wholly-owned subsidiary, Leyhat Colombia Sucursal, is actively pursuing the exploration and development of mineral properties in the Republic of Colombia. The Vetas Gold Project consists of a number of existing mines (operations currently suspended) and exploration concessions, and its exploration and development activities are not affected by the proposed Regional Natural Park Paramo de Santurban.
Cautionary Note Regarding Forward-Looking Statements
The securities of CB Gold described herein have not been a nd will not be registered under the United States Securities Act of 1933, as amended (the „U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company-s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contacts: CB Gold Inc. Orin Baranowsky V.P. Investor Relations +1 (416) 847-1845
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