Columbus Gold Begins US$11.8 Million Work Program at Paul Isnard 5.4 Million Oz. Gold Project, French Guiana
Vancouver, B.C., November 19, 2013 - Columbus Gold Corp. (CGT: TSX-V) (“Columbus Gold”) is pleased to announce that it has commenced a US$11.8 million work program at its 5.37 million ounce inferred Montagne d’Or gold deposit at the Paul Isnard Project in French Guiana.
The 14 month program is being entirely funded by Nord Gold N.V., which can earn a 50.01% interest in Montagne d’Or and other licenses at Paul Isnard by spending a minimum of $30 million and completing a bankable feasibility study in a three year period.
Among other things, the program will include 27,600 meters of diamond core drilling anticipated to begin next week, detailed metallurgy, and baseline environmental studies, with the aim of completing a resource update and a preliminary economic assessment (PEA) by the end of 2014.
The Phase II drill program is designed to complete a 50-meter spacing array to a vertical depth of 200 meters along the full strike extent of the current resources, with select 25-metre in-fill. The denser 25-metre to 50 meter drill pattern is expected to internally increase the resources between widely spaced holes, convert much of the inferred resource to the indicated and measured categories, and provide confidence in the grade-width distribution.
Based upon performance of earlier programs at Montagne d’Or, production of about 2,000 meters per month, utilizing a single drill rig on a 24 hour basis, is anticipated, however a second drill is presently being sourced and is anticipated to arrive in early 2014.
The Montagne d’Or gold deposit is estimated to contain NI 43-101 compliant inferred resources of 117.1 million tonnes grading 1.43 gpt gold for 5.37 million ounces gold using a 0.3 gpt cut off (58.1 million at 2.22 gpt for 4.15 M oz. gold using a 1.0 gpt cut off) (Coffey Mining, 2012, refer to news release dated February 5, 2013). The sulfide-gold mineralization is hosted within a 600 meter thick deformed and altered bimodal felsic-mafic volcano-sedimentary sequence and occurs in a series of east-west-striking, steeply south-dipping, parallel zones presently defined over a lateral distance of 2,250 meters and from surface to 200-250 meters vertical depth. The principal Upper Felsic and Lower Favorable mineral zones have an average thickness of 50 and 17.5 metres, respectively.
Rock Lefrançois, P.Geo. (OGQ), Columbus Gold’s Chief Operating Officer and Qualified Person under National Instrument 43-101, has reviewed and approved the technical content of this news release. For additional technical details on the Project, please see Columbus Gold’s news release dated February 5, 2013.
ON BEHALF OF THE BOARD,
Robert F. Giustra
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 Columbus Gold’s: proposed drilling programs; plans to complete a PEA; and 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: 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 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.