Vancouver, BC, Canada, May 29, 2009. Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold” or the “Company”) is pleased to announce that its 35.7% held subsidiary Columbus Silver Corporation (“Columbus Silver”) has released previously unreported significant drilling results following its review of drilling data from its 100% controlled Mogollon silver-gold project, Catron County, New Mexico. Columbus Silver, an exploration company with a growing portfolio of silver projects in the Western United States, was spun out of Columbus Gold under an initial public offering that closed in September 2008.
The drilling at Mogollon was carried-out by St. Joe Minerals, Cordex and John Livermore in three programs between 1982 and 1988 and consisted of 40,000 ft (12,192 m) of drilling in 53 rotary and core holes which were successful in outlining a partially delineated silver-gold deposit in the Queen vein containing approximately 845,000 tons (767,000 tonnes) with an average grade of 9.35 ounces per ton (“opt”) (320 grams per tonne (“gpt”)) silver and 0.15 opt (5.1 gpt) gold. Significant intercepts of gold and silver were also encountered in a number of other veins including Anna E, Last Chance, South Fork, Mascot and Graveyard. In addition, dozens of mineralized and potentially mineralized veins that have never been drill tested provide potential for considerable resource expansion in an epithermal vein system totaling more than 45 miles (72 km) of strike length and only 3 miles (4.8 km) have been developed. A property map is available at:
Significant intercepts of the drilling include:
|On the Consolidated area of the Queen vein:|
|Hole MGR-38||33 feet, true width, of 0.13 opt gold and 6.4 opt silver
10 meters, true width, of 4.4 gpt gold and 219 gpt silver
|Hole MGR-35||7 feet, true width, of 0.207 opt gold and 15.26 opt silver
2.1 meters, true width, of 7.1 gpt gold and 523 gpt silver
|Hole MGR-08||11 feet, true width, of 0.139 opt gold and 10.85 opt silver
3.4 meters, true width, of 4.7 gpt gold and 372 gpt silver
|Hole MGR-13||10 feet, true width, of 0.179 opt gold and 11.42 opt silver
3.0 meters, true width, of 6.1 gpt gold and 391 gpt silver
|On the south portion of the Queen vein:|
|Hole MGR-02||25 feet of 0.23 opt gold and 1.18 opt silver
7.6 meters of 7.9 gpt gold and 40 gpt silver
|Hole MGR-32||10 feet of 0.17 opt gold and 10.91 opt silver
3 meters of 5.8 gpt gold and 374 gpt silver
|On the Clifton area of the Queen vein:|
|Hole MGR-18||6 feet, true width, of 0.45 opt gold and 19.57 opt silver
1.8 meters, true width, of 15.4 gpt gold and 671 gpt silver
|On the Anna E. vein:|
|Hole MGR-30||5 feet of 0.415 opt gold and 15.49 opt silver
1.5 meters of 4.7 gpt gold and 372 gpt silver
|On the South Fork vein of the East Block|
|Hole M-2||6 feet of 0.085 opt gold and 4.83 opt silver
1.8 meters of 2.9 gpt gold and 165 gpt silver
A complete list of significant results is available at:www.columbusgoldcorp.com/i/pdf/nr/csc-2009-05-29-dr.pdf
The Mogollon district, located 75 miles (120 km) northwest of Silver City in southwest New Mexico, covers an extensive, silver-gold bearing epithermal vein field with historic production, largely from the Little Fanney and Last Chance mines during the period 1905 to 1925, and the Consolidated Mine from 1937 to 1942, of 15,700,000 ounces silver and 327,000 ounces gold from approximately 1.7 million tons (1.5 million tonnes) of ore. Mining ceased in 1942 due to the wartime cessation of all gold and silver mining in the United States.
The Mogollon silver-gold deposits are classic epithermal veins which demonstrate good continuity of grade and thickness for strike lengths of up to 4,000 ft (1,219 m) in the Little Fanney and Last Chance mines and through a remarkably consistent, elevation-controlled vertical range of about 1,000 ft (305 m). There are two sets of veins at Mogollon, an east-west set represented by the productive Little Fanney and Last Chance veins, and a north-south set represented by the Queen vein developed in the Consolidated Mine.
Columbus Silver has reported that its initial drilling program will focus on testing the east-west trending Gold Dust, Independence-Ida May and Anna E veins and confirmation, delineation and expansion of the silver-gold deposit in the Queen vein. The highly prospective east-west veins have near-surface characteristics similar to the historically productive Little Fanney and Last Chance veins but have only been explored by shallow workings above the highly predictable Mogollon productive zone.
The historic figures presented herein are not NI 43-101 compliant. They should not be relied upon and Columbus Silver has reported that it does not treat them as current.
QUALITY ASSURANCE/QUALITY CONTROL
Assays were determined by fire assay by the principal assayer Skyline Labs in Tucson, Arizona, with check assays performed at Rocky Mountain Geochemical Laboratory in Reno, Nevada, the fire assay lab of the Dee Gold Mine in Carlin, Nevada, and at Silver City Testing Laboratory in New Mexico. Ore grade samples were routinely checked at multiple labs, with checks on both original assay pulps and separate splits taken at the drill site.
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 content of this news release. Mr. Wallace is a VP of Columbus Gold’s and Columbus Silver’s U.S. subsidiaries and a partner of Cordilleran Exploration Company (“Cordex”), which is conducting exploration and project generation activities for Columbus Gold and Columbus Silver.
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 Gold controls a 100% interest, subject to royalties, in 25 gold projects strategically located along or near Nevada’s most productive gold trends. The Company also holds a significant equity interest in Columbus Silver Corporation, an exploration company with a growing portfolio of silver projects in the Western United States.
Columbus Gold’s and Columbus Silver’s project activities are managed on an exclusive basis 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 the United States. Columbus Gold 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 13 of its projects joint ventured to major and junior mining companies, including Barrick Gold and Agnico-Eagle Mines.
ON BEHALF OF THE BOARD,
Robert F. Giustra
President & CEO
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 release.
For more information contact:
604 638-3474 or
1 866 689-2599
This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 (“forward-looking statements”), respecting the Company’s exploration plans. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers; competition for mining properties; risks associated with exploration projects, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.