NOTE: The 43-101 report referenced in this news release has been updated.
Please click on the following link to view the latest, updated report:
www.columbusgoldcorp.com/s/TechnicalReports.asp

Vancouver, British Columbia, Canada, January 17, 2011. Columbus Gold Corporation (CGT: TSX-V) (the “Company” or “Columbus Gold”) is pleased to announce that it has filed a NI 43-101 compliant technical report on its Paul Isnard Gold Project in French Guiana which includes the 1.9 million ounce Montagne D’Or gold deposit. 

The technical report was completed by SRK Consulting and includes an Inferred resource estimate of the Montagne D’Or gold deposit which consists of 1.9 million ounces gold from 36.7 mt grading 1.6 gpt. The Montagne D’Or gold deposit is open along strike and at depth.

The technical report has been filed on SEDAR and can also be viewed on Columbus Gold’s website at the following link: 

http://www.columbusgoldcorp.com/i/pdf/techrep-2011-01-13-Paul-Isnard.pdf

The Paul Isnard project is located approximately 180 km west of the capital city of Cayenne, French Guiana and consists of eight mining permits totaling 135 km2 and a pending application for two additional mining permits totaling a further 14.4 km2. The Paul Isnard project area has been an important centre of alluvial and colluvial gold mining operations since the late 19th century with reported estimated production of about two million ounces.

The project occurs within the northernmost of two east-west trending Proterozoic greenstone belts making up the French Guiana sector of the Guiana Shield. The greenstone terrain hosts important gold deposits in French Guiana and neighboring countries, including Rosebel in Suriname, and is generally considered to represent an extension of the productive and much more extensively explored and developed Birimian System greenstone belts of West Africa.

Modern exploration focused on primary gold mineralization at Paul Isnard has been limited but includes geological, geochemical and geophysical surveys, and 75 diamond core holes totaling 12,983 metres, carried out by Golden Star Resources largely from 1995 to 2007. Most of this work, including 60 holes for 11,454 metres, has been directed at the Montagne d’Or gold deposit which consists of a linear mineralized body within laminated felsic volcanic rocks outlined and partially delineated for a strike length of 3,000 metres and dip length up to 200 metres. The deposit consists of two closely spaced, mineralized layers, respectively averaging about 65 and 35 metres in thickness, and multiple smaller, sub parallel gold-bearing bands and stringer zones. 

The Columbus program will be focused on the Montagne d’Or deposit where infill drilling is planned to convert Inferred resources to Measured and Indicated categories, and holes drilled at greater depths and along strike are planned in order to increase the mineral resources. Numerous less developed gold prospects and untested geochemical anomalies which occur throughout the project area will also be evaluated.

Columbus Gold’s independent consultant and Qualified Person, John Prochnau (P. Geo), B.Sc. (Mining Engineering), M.Sc. (Geology), has reviewed and approved the technical content of this news release.

ON BEHALF OF THE BOARD,
Robert F. Giustra
Chairman & 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:

Peter Kendrick
President
604-638-3474 or
1-888-818-1364
info@columbusgoldcorp.com

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 Agreement, the conditions precedent in connection therewith, and the Company’s fund-raising 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 success or failure of the Company’s or Auplata’s due diligence inquiries; ability to obtain regulatory, shareholder, and TSX Venture Exchange approval of the transactions contemplated under the Agreement; the ability to pass the transactions contemplated under the Agreement through applicable French law; the ability to obtain applicable exemptions from prospectus and registration requirements in connection with the issuance of securities of the Company; the ability to satisfy the conditions precedent contained in the Agreement, including without limitation the ability to obtain a positive title opinion, and complete fundraising; the ability to complete milestones under the Agreement (if ultimately approved) in order to earn into the property, including without limitation the ability to obtain qualified workers, financing, permits, approvals, equipment, and ultimately a Bankable Feasibility Study in connection therewith; ability to obtain alternate financing; changes in the market; decisions respecting whether or not to pursue the transactions contemplated under the Agreement (either at the due diligence stage, pre-approval stage, or post-approval stage, if ultimately approved); non-performance by contractual counterparties; 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; that the Company and Auplata will be able to successfully complete the conditions precedent to the Agreement, including without limitation the ability to obtain a positive title opinion, complete required fundraisings including with Pelican, and the ability to obtain regulatory, TSX Venture Exchange, and shareholder approval of the transactions contemplated under the Agreement; that due diligence will be successful for both the Company and Auplata; that the Company will be able to complete necessary milestones under the Agreement in a timely and successful fashion; that French law will allow the transactions contemplated under the Agreement to succeed; that the Company will desire to continue earning into the Property over time; the ability to locate sufficient financing for ongoing operations; and general market conditions. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.