Non-Objection from French Government to Acquisition by Columbus Gold of 1.9M oz. Paul Isnard Gold Project
Vancouver, British Columbia, Canada, March 10th, 2011. Columbus Gold Corporation (CGT: TSX-V) (the “Company” or “Columbus Gold”) is pleased to announce that the government of France has not objected to the proposed acquisition by Columbus Gold of the 1.9M oz. Paul Isnard gold project in French Guiana, first announced on December 3rd, 2010.
Columbus Gold is also pleased to report the completion of an additional important condition precedent with respect to the proposed acquisition, being the completion of a US$2 million fundraising by Columbus Gold which has been satisfied entirely pursuant to the exercise of outstanding share purchase warrants. The material remaining conditions precedent to the acquisition, are obtaining a positive title opinion on the property, and shareholder and TSX Venture Exchange (the “Exchange”) approval.
The Exchange has granted conditional approval to the proposed acquisition subject to certain conditions, including shareholder approval, and a successful Exchange review of the 43-101 Report (already filed) and of the Title Opinion (already obtained) on Paul Isnard.
An updated NI 43-101 Report on Paul Isnard was filed on SEDAR on February 28th and can be viewed at the following link:
The Paul Isnard gold project includes the Montagne d’Or gold deposit which consists of 1.9 million ounces gold from 36.7 million tonnes grading 1.6 gpt. The Montagne d’Or gold deposit is open along strike and at depth. Columbus Gold has an option to earn a 100% interest in Paul Isnard, subject to an underlying royalty.
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:
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 with Exchange approval, and the Company’s proposed drilling project. 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 obtain regulatory, shareholder, and Exchange approval of the transactions contemplated under the Agreement; the acceptability to the Exchange and shareholders to the transactions contemplated under the Agreement, including the component parts thereof; the ability to satisfy the other conditions precedent in the Agreement, including without limitation obtaining a positive title opinion; 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; general political risk in France and French Guiana; changes in the market; decisions respecting whether or not to pursue the transactions contemplated under the Agreement (either at the pre-approval stage, or post-approval stage, if ultimately approved); 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. 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 including without limitation obtaining a positive title opinion, and regulatory, TSX Venture Exchange, and shareholder approval of the transactions contemplated under the Agreement; that title to the property is as has been represented to the company and will be so reflected in a title opinion; that France and French Guiana will remain stable political environments; 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; 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; 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.