Vancouver, British Columbia, Canada. December 15, 2010, Columbus Gold Corporation (CGT: TSX-V) (the “Company” or “Columbus Gold”) is pleased to provide the following exploration summary with respect to its Nevada projects for 2010 and upcoming plans for 2011.
Nevada Exploration Highlights
In 2010 Columbus Gold acquired 4 strategically located gold properties in Nevada from prospecting activities, 2 of which are located on the Battle Mountain Gold Trend and 2 on the Walker Lane Gold Trend, for a total of 22 gold properties situated in Nevada. The Company also optioned 4 of its properties into Joint Venture (JV) agreements for a total of 12 JV’d properties. In addition, Columbus Gold completed extensive mapping, sampling and geophysical work to delineate targets in preparation for an aggressive drilling campaign in 2011 planned to commence on as many as 11 of its Nevada gold projects. The following table details the drilling plans for 2011:
2011 DRILLING PLAN
|Property Name||Drill Holes Planned||Feet (Meters)|
|Petes Summit||10||5,000 (1,500m)|
|Browns Canyon||15||7,500 (2,300m)|
|Summit*||still in planning||still in planning|
|Overland Pass*||24||20,000 (6,100m)|
|Stevens Basin*||10-12||13,100 (4,000m)|
|Golden Mile*||6||3,000 (900m)|
|Utah Clipper/Crestview*||1||1,600 (500m)|
|White Horse Flats*||10-12||6,600 (2,000)|
*To be drilled by a Columbus Gold JV partner.
See the following link for a location map of projects where drilling in 2011 is planned: http://www.columbusgoldcorp.com/i/nr/2010-12-15-drilling-2011.jpg
“As a consequence of the financial crisis our exploration activity in the last few years has been restricted to prospecting and target identification and only very limited drilling. Capital preservation was the appropriate strategy during that period, however the extensive mapping, sampling, and geophysical work carried-out during that time, has resulted in the delineation of promising drill targets on numerous of our projects.”, stated Peter Kendrick, President for Columbus Gold. “2011 will be an unprecedented year for Columbus Gold with drilling on more properties in one year than in all the previous years combined since the Company’s formation.”
Highlights of notable projects where drilling is planned in 2011:
Stevens Basin is located on the Battle Mountain Gold trend near Barrick Gold’s Archimedes open pit gold mine. Sampling by Columbus Gold revealed a gold anomaly of about 760 m in length and 30-90m in width with a grades as high as 2.5 g/t. The anomalous zone is still open in several areas. An air magnetic geophysical survey and a detailed ground gravity geophysical survey (400 stations) were completed in the fall of 2010 and this data is being used to optimize drill sites for a phase I approximate 6,600 feet (2,000m) drill program of 10-12 holes planned as early in 2011 as weather permits. This could be followed by a phase II program of the same size later in the year. Navaho Gold is earning an initial 51% interest in the Steven’s Basin project by making $3 million in expenditures.
The Browns Canyon Project is located approximately 20 km (12 miles) west of Barrick Gold’s Archimedes open pit gold mine, in the highly prospective Battle Mountain Gold Trend known to contain over 100 million ounces of Gold with some two dozen gold mines throughout the trend. Recent sampling on the property yielded gold values up to 3 g/t along a zone of silicification, sparsely exposed through cover, with a strike length of 2,000 meters. The mineralization is Carlin-style, and geologic mapping and further sampling is underway. Seven widely-spaced historic drill holes are present. Most of the strike length of the mineralized zone is untested by drilling. Drilling is warranted by the results to date and is planned for late summer of 2011.
The Summit property is strategically positioned along strike and approximately 4,000 feet (1.2 km) from the northern end of the Long Canyon gold deposit of Fronteer Gold Inc. (where ongoing drilling continues to confirm the presence of high-grade oxide gold mineralization with a recent drill intercept result of 12.3 g/t over 50.4 metres announced on November 15th, 2010). Work by Columbus Gold’s JV partner Agnico-Eagle in 2010 included seventy nine rock chip samples and three diamond drill holes, with a total footage of 6,392 feet (1948 m). Anomalous gold values were reported in the drill results from a shear zone stratigraphically above the known favorable horizon of gold mineralization, and from a footwall of a bedding parallel structure. An anomalous mercury zone was encountered present in a karst breccia interpreted to be important to host Carlin-type gold mineralization on the nearby properties in the Pequop Mountains. Agnico-Eagle previously had performed geological mapping, collected 2,500 soil samples and 70 stream sediment samples, and completed seven rotary holes totalling 6,040 ft (1,830 meters) in their initial drilling program. Agnico-Eagle has indicated that they will continue their option to earn an interest in Summit and more drilling is planned for 2011. Agnico-Eagle can earn an initial 51% interest in Summit by making $3 million in exploration expenditures.
The Weepah property is located within the Walker Lane Gold Trend, it extends from historical mining, where recent production came from an open pit. New rock chip sampling yielded values up to 10.29 g/t (0.30opt) gold over 3.6m (12 ft), and 17.14 g/t (0.50 opt) gold over 1.8m (6 ft). The favorable geology extends to the south for 1,200 -1,500 metres (4,000-5,000 ft). Detailed mapping, a detailed ground magnetic survey, and 10 line km of Controlled Source Audio-frequency Magnetotellurics (CSAMT) geophysical surveying has yielded targets for a drill program consisting of 10,000 ft (3,050M) of drilling in approximately 20 RC drill holes. The drill program is permitted and is scheduled to begin in January of 2011.
The Eastside property is also located within the Walker Lane Gold Trend. Recent sampling (530 samples) of outcrop over 900 m (3,000 ft) of strike length along a zone of silicified breccia yielded gold values up to 7.95 g/t (0.23 opt). An exploration program consisting of 10,000 ft (3,050M) of RC drilling in 20 holes is permitted and planned for the spring of 2011.
To learn more about all 11 Columbus Gold projects where drilling is planned in 2011, please visit the following link:
Caution: A qualified person has not done sufficient work to classify the historical estimates contained in this press release, or in the presentation link above, as current mineral resources. The Company is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.
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 VP of Columbus Gold’s wholly-owned US operating subsidiary, Columbus Gold (U.S.) Corporation and is the principal 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 company pursuing early to advanced stage opportunities primarily in Nevada. The Company is an experienced project generator focused on advancing projects either through joint venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Exploration and generative activities are managed by Cordex owned and operated by Andy Wallace who has a long and successful history of gold discovery and mine development in Nevada. The Company currently has 12 of its 22 projects in Nevada joint ventured to major and junior mining companies, including Agnico-Eagle Mines Limited. The company presently also is in the process of acquiring an option to earn into an advanced stage project in French Guiana with a 43-101 compliant resource estimate of 2 million ounces and substantial expansion potential.
ON BEHALF OF THE BOARD,
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.
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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 drilling, joint venture earn-in to the Company’s properties, and the Company’s general 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; a Joint Venture partner’s ongoing willingness and ability to earn into a project; environmental compliance; cost increases; availability of qualified workers and drilling equipment; 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; the assumption that a Joint Venture partner will be willing and able to continue work on the project and to earn into same; availability of financing; power prices; ability to procure equipment and supplies including without limitation drill rigs; 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.