December 13, 2012
President's Letter December 2012
I want to extend to everyone our best wishes for the holiday season as well as take this opportunity to keep you abreast of our activities in Brazil and Colombia.
In Brazil, Cosigo has recently signed a Declaration of Intent to form a Preliminary Agreement of Exploration and Cooperation with the Indigenous Community of Jose Mormes Serra Traira. The signing of this agreement is an important step in the process of receiving approvals to develop exploration and mining opportunities in some of the most prolific gold-producing areas of northwestern Brazil.
A Memorandum of Understanding and a Letter of Intent with the Indigenous Communities of northwestern Brazil are already in place. The new agreement reaffirms the previous commitments and relationships between the Indigenous Communities and outlines a future exploration agreement between the Indigenous Community of Jose Mormes Serra Traira and Cosigo. Under the agreement, the Indigenous Community will retain a 25% interest and Cosigo will acquire a 75% interest in any mineral project it discovers within an exclusive, approximately 200,000 ha, area of interest. This area of interest is centrally located in the Taraira Gold Belt and is host to numerous gold occurrences in a geologic setting very similar to that of Cosigo's Machado project in Colombia.
The outlined future exploration agreement will be put in place following the receipt of permits and approvals from Brazilian authorities. Currently, exploration and mining of natural resources within indigenous areas of Brazil are unregulated and subject to the approval of the Brazilian state. The recently signed agreement enables the Indigenous Community to apply directly to Brazilian authorities for approval of exploration in their territory.
Cosigo understands that the Forestry Reserve Subtraction file regarding its Machado project in Colombia is currently on the desk of the Minister of the Environment. All public meeting requirements, reports and approvals have been completed by Cosigo. Our staff remains in close contact with the Colombian authorities while final approval is awaited.
Outside of the Taraira Gold Belt, Cosigo holds a mineral license in the Cauca province of southwestern Colombia. The license, referred to as the Damian project, is situated in an area of current and historic artisanal mining. Cosigo has recently been informed by Colombian authorities that the license has been approved for exploration. Cosigo is currently preparing its plans for the Damian project. Since the project is located outside of Cosigo's main focus area, the company may decide to look for a partner to conduct future exploration.
We remain committed to securing additional opportunities within the Taraira Gold Belt and will keep you informed of our progress.
Dennis W. Milburn
President & CEO