Vancouver, British Columbia, Canada, March 6th, 2012. Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce that assays have been received for four of eight holes from a drilling campaign currently underway at its Weepah gold project in Nevada were joint-venture partner Sniper Resources Ltd. (“Sniper”), can earn an initial 51% interest by undertaking staged annual exploration expenditures.
The Weepah gold project is located approximately 20 miles (12.4 km) west-southwest of Tonopah, Nevada, in Esmeralda County. Weepah is immediately adjacent to an historical open pit gold mine with past production from an open pit along a steep, northerly structure cutting Precambrian sedimentary rocks. Mining was first conducted there in the 1930’s. During the 1980’s, Sunshine Mining Company enlarged the pit and hauled the ore to a mill at the nearby 16-to-1 Mine which they were then operating.
Sniper reported that a 1,630 ft (497 m) Phase I angle drilling program comprising 8 shallow reverse circulation holes was completed on February 25th . The goal of the drilling is to extend and confirm continuity of the mineralization drilled early in 2011 by Columbus Gold. Results of the first four holes WP-19, WP-21, WP-22 and WP-23 in the current program, all returned significant gold intercepts and are highly encouraging. According to Sniper, initial (not yet verified) results appear to confirm the interpretation of, and extend the mineralized zone that was encountered in Columbus holes WP-05 to the north and southwest, in WP-04 to the west and in WP-08 to the southwest. True thicknesses and orientation of the gold mineralization are undetermined at this time but Sniper reports that the results justify further work.
Significant intercepts for the first four holes in the following table:
|Drill hole||From (ft)||To (ft)||Thickness||Average Grade
Sniper reports that results are expected soon from the remaining 4 holes and will be released as soon as practical.
The principal drill targets at Weepah are only a few hundred feet east of an historical open pit that produced over 100,000 oz gold but are quite different in geological character. The gold mineralization in Columbus’ and Sniper’s drilling occurs as replacements in sanded, or lightly silicified, and oxidized, Precambrian limestone/marble and siltstone/phyllite that is exposed in small outcrops through thin gravel cover on the north edge of an alluvial basin. Favorable (for gold mineralization) Precambrian silt and limestone beds lie immediately beneath shallow gravel cover over a wide area and are altered where exposed, with very anomalous gold values found locally. As earlier reported by Columbus, outcrop surface samples have yielded values from anomalous up to 10.29 g/t (0.30 opt) gold over 3.6 m (12 ft), and 17.14 g/t (0.50 opt) gold over 1.8 m (6 ft).
Mapping, along with ground magnetics and CSAMT geophysical surveys that were carried-out by Columbus indicate that the favourable geology extends beyond the area of historical drilling to the south and east for 1,200-1,500 m (4,000-5,000 ft) under what appears to be very shallow gravel cover.
Quality Assurance/Quality Control
Duplicate samples of approximately 5 and 10 pound nominal weights were collected during drilling from each 5 ft (1.5 m) interval using a cyclone and rotating hydraulic rotary splitter and one set was delivered for analysis to ALS Minerals laboratory facility in Reno, Nevada. ALS is an ISO certified assaying/geochemistry facility. Pulps were assayed at ALS using their “Au AA23” procedure (fire assay with atomic adsorption finish) with a 5 ppb Au detection limit. The duplicate samples were stored on site. Check assays will be performed as soon as possible by a separate lab.
All scientific and technical information contained in this news release has been reviewed and approved by Douglas H. McGibbon, a director and the Vice-President, Exploration of Sniper, who is a “qualified person” within the meaning of National Instrument 43-101.
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 earn-in agreements to 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. Columbus currently has 11 of its 25 strategically located gold projects in Nevada farmed-out to various mining companies.
About Sniper Resources
Sniper Resources Ltd. is engaged in the identification, acquisition and exploration of gold properties in the State of Nevada, USA. Sniper owns a 100% interest in the ReHot project and is currently earning a controlling interest in four strategically located Nevada gold projects, namely, Guild, Overland Pass, Weepah, and Laura. The founder and President of Sniper Resources Ltd. is Scott Baxter, who was also the founder and President of Tone Resources Ltd., a company acquired by Robert McEwen’s US Gold Corp in 2007.
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, and Columbus Gold’s or Sniper Resources’ 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 Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.