Vancouver, British Columbia, Canada. September 28th, 2011, Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce that drilling has commenced at its Browns Canyon gold project, located approx. 20 km (12 miles) west of Barrick Gold’s Archimedes open pit gold mine, in the highly prospective Battle Mountain Gold Trend of Nevada, which is known to contain over 100 million ounces of gold with some two dozen gold mines throughout the trend.
The program will consist of up to 16 RC holes in up to 2,730 m (9,000 ft) of drilling. The project is 100% controlled by Columbus Gold subject to an underlying royalty. A location map can be viewed at the following link:
Preliminary sampling at Browns Canyon 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 (6,600 ft). The mineralization is Carlin-style, hosted in Devonian and Mississippian limestones, shales and siltstones. Follow-up geologic mapping and geochemical grid sampling was performed in 2011 with four hundred samples along the silicified zone defining a coherent gold anomaly (from 10 ppb to 3 g/t gold) about 2,000 meters long and reaching up to 390 meters at its widest point (6,600 by 1,300 ft). This anomaly becomes covered on the north end for about 600 meters (2,000 ft) and then reappears, albeit more weakly and less coherent, on the strike for another 900 meters (2,970 ft). The overall anomaly could be as much as 3,500 meters (11,550 ft) long on strike if it continues in bedrock below the covered area. A map of the anomaly is available at the following link:
Limited historical drilling in the project area was by completed by Cordex in 1985 and consisted of seven vertical holes ranging from 38 to 168 m (125 to 555 ft) of depth; the holes were drilled without the benefit of the results of grid sampling. The wider part of the geochemical anomaly which was defined in the recent 2011 sampling program lies north of the main area of historical drilling. The best intercept in the historical holes was 9 m of 0.82 gpt gold.
Geologic mapping indicates the better gold grades may be related to steeper beds and structures more properly tested with angled drill holes. The 2011 drill program will consist entirely of angle drilling, with many of the holes arranged on panels, or fences, across the full width of the geochemical anomaly.
ABOUT COLUMBUS GOLD
Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific 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 activities are managed by Cordex which is owned and operated by Andy Wallace who has a long and successful history of gold discovery and mine development. Columbus Gold currently has 13 of its 26 strategically located gold projects in Nevada joint-ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.
ON BEHALF OF THE BOARD,
Chairman & CEO
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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, and Columbus Gold’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; environmental compliance; cost increases; availability of qualified workers and drill 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; 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 Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.