Drilling Commences on Columbus Gold's Paul Isnard Gold Project, French Guiana
Vancouver, British Columbia, Canada, December 7th, 2011. Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce that drilling has commenced at its Paul Isnard Gold Project in French Guiana. The first two holes are completed and the third hole is about to get underway.
In recent press announcements Columbus Gold disclosed: i) the purchase of an option to acquire the existing outstanding royalty on the Paul Isnard project, and ii) an amendment providing for Columbus Gold to acquire an immediate 100% interest in Paul Isnard. As a consequence of the critical importance of reaching those agreements, management of Columbus Gold felt it was prudent to delay commencement of drilling, in an effort to preserve leverage in negotiations. Columbus Gold is now committed to carrying-out an aggressive drilling campaign and will aim to accelerate the program by engaging a second drill rig as soon as one can be obtained. Based upon performance of earlier programs at Montagne d’Or, production of about 2,500 meters per month, per drill rig, on a 24 hour basis, is anticipated.
The initial program is focused on the Montagne d’Or gold deposit which hosts a 43-101 compliant inferred gold resource of 1.9 million ounces within 36.7 million tonnes grading 1.6 gpt gold. The Montagne d’Or deposit is a steeply-dipping tabular body averaging about 70 meters thickness and partially outlined by earlier drill holes for a strike length of 2,000 meters and depth of 100-150 meters. The deposit and inferred resource are open at depth, along strike and internally between widely spaced holes. The planned initial drill program, consisting of 15,000 meters in about 50 holes, is designed to increase the gold resource by drilling the deposit systematically to a depth of 200 meters and laterally along open strike extensions. The denser drill pattern, with holes at roughly 50 meter centres, is also expected to convert certain of the inferred resource to indicated and measured categories.
Future drill programs will target potential extensions of the Montagne d’Or deposit indicated by untested geochemical anomalies extending more than 2.5 km along strike, incompletely tested parallel zones of gold mineralization, and other untested or incompletely tested gold prospects and geochemical anomalies throughout the large Paul Isnard property.
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.
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. Columbus Gold’s president, Andy Wallace has a long and successful history of gold discovery and mine development. The company currently has 12 of its 25 strategically located gold projects in Nevada joint-ventured to major and junior mining companies.
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.
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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, customs treatment of the drill rig, the hiring of a second drill rig, 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 second drill rig’s compliance with French Guiana’s customs requirements; the ability of the second drill rig to clear French Guiana customs in a timely fashion; the desirability of Columbus Gold to obtain a second drill rig; the availability of a second drill rig (including without limitation its ability to arrive on site for example by clearing French Guiana customs); 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: that the second drill rig will clear French Guiana customs, and do so in a timely fashion; that if desired, a second drill rig will be available and will be able to arrive on site; that the design of the drill plan is appropriate for the site; 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.