Newmont Farms Into Columbus Gold Nevada Gold Property
Vancouver, British Columbia, Canada. September 20th, 2007. Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold” or the “Company”) is pleased to announce that the Company has entered into an agreement (the “Agreement”) with Newmont Mining Corporation (“Newmont”) (NMC: TSE & NEM: NYSE) to explore and develop Columbus Gold’s 100% controlled Scraper Springs property (the “Property”). The Property is located on the northern extension of Nevada’s prolific Carlin Trend.
Under the terms of the Agreement, Newmont can earn a 51% interest in the Scraper Springs Property by undertaking staged work expenditures totaling US$5 million over a five year period. By satisfying certain additional requirements Newmont can earn up to an additional 24% for an aggregate interest of 75% in the Property.
The Scraper Springs Property consists of 276 unpatented mineral claims and 405 hectares (ha) (1,000 acres) of patented land, covering approximately 2,710 ha (6,700 acres) in total. The Property is 72 kilometers (km) (45 miles) north of Battle Mountain, Nevada, and is located directly on the northern extension of the Carlin Trend of gold deposits.
The Property covers a volcanic center cored by a quartz monzonite intrusive, dated at 38.9 mybp, which cuts Upper Plate Vinini Formation cherts and siltstones. The area was first explored by Western States Minerals, which drilled 13 holes to a maximum vertical depth of 198 meters (m) (650 feet). Western States drill hole SS-1 encountered a strongly anomalous gold zone from 93 to 143 m (305 to 470 feet), including 26 m (85 feet) of 0.86 grams/tonne (g/t) Au from 98 to 123 m (320-425 feet). Cordex later drilled twelve widely-spaced rotary holes, mostly to depths less than 183 m (600 feet). One hole was drilled to 579 m (1,900 feet), and encountered what was interpreted to be altered rocks of the Lower Plate of the Roberts Mountain Thrust at a vertical depth of 503 m (1,650 feet). The Lower Plate rocks were mostly silicified, and contained anomalous gold, copper to 0.2% over 15 m (50 feet), and zinc to greater than 1% over 1.5 m (five feet) intervals.
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical contents of this news release. Mr. Wallace is a partner of Cordilleran Exploration Company (“Cordex”), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.
ABOUT COLUMBUS GOLD
Columbus Gold Corporation is a gold exploration and development Company operating principally in Nevada. The Company has an experienced management group with a strong background in all aspects of the acquisition, exploration, development and financing of precious metal mining projects. Columbus controls a 100% interest, subject to royalties, in 23 gold projects strategically located along or near Nevada’s most productive gold trends and 5 silver and copper projects located in Arizona and Utah. The Company’s project activities are managed by Cordilleran Exploration Company (“Cordex”), owned and operated by John Livermore and Andy Wallace who have a long and successful history of gold discovery and mine development in Nevada.
The Company maintains active generative (prospecting) and evaluation programs and, as a key element of strategy, broadens exposure, minimizes risk and maintains focus on high priority prospects while seeking industry finance through joint ventures on selected projects. The Company currently has 11 of its projects joint ventured to major and junior mining companies.
ON BEHALF OF THE BOARD,
Robert F. Giustra
President & CEO, Director
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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