Vancouver, BC, Canada, February 19, 2014. Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce that recent drilling at its 100% controlled Eastside gold project in Esmeralda County, Nevada intercepted significant gold mineralization in all holes, with the best hole ES-27cutting 64 meters of 1.43 g/t gold, including 8 meters of 5.86 g/t gold. Drill hole ES-36 cut 48.8 meters of 0.92 g/t gold which also includes 28 meters of 22.5 g/t silver within the gold intercept. Full results of the phase III drilling program are available at the following link:
Phase III drilling at Eastside consisted of 12 vertical and angled, reverse circulation holes, totaling 2,944 meters (9,715 feet). The drilling was designed to follow-up on gold encountered in Phase II drilling, results of which were announced on October 17, 2013. A total of 36 holes consisting of 7,458 meters (24,610 feet) have been drilled at Eastside. The following drill plan shows all drilling to date with vertical projections of gold intercepts in the angle holes:
As illustrated in the map linked above, Columbus’ interpretation of the mineralization at Eastside consists of two separate zones of better-grade gold, namely the East and West Zones. The East and West zones are surrounded and overlain with lower grade and erratic “cloud” gold mineralization where they cut the highly-altered rhyolite of the Eastside Rhyolite Flow Dome Complex.
A set of east-west cross sections through the mineralized zones from south to north are available in the following link:
Gold intercepts in the West Zone occur associated with silicification and quartz stock works, and are along a steep, northerly-trending fault. Drill holes cutting the West Zone include ES-27, 31, 20, 33, 34, and 36. The West Zone is at least 600 meters (1,969 feet) long and remains completely open to the south of ES-27, the southernmost hole cutting the West Zone. The Zone is open to depth and surface sampling of sparse outcrops above the drilled zone indicates the Zone is likely open up-dip to the surface (125 Columbus surface samples ranging from 0 to 3.13 g/t Au).
The East Zone is also completely open to the south and to the southwest, and may remain open, at least at depth to the north. Here better grade gold mineralization is associated with brecciation, silicification and quartz stock works along or near one, and possibly two or more, northerly trending fault structures thought to have a west dip. Angle drill holes ES-21, ES-19, ES-14, ES-22, ES-4, ES-25 and ES-26, along with vertical hole ES-32 cut East Zone gold mineralization.
The area of potential low-grade “cloud” mineralization in rhyolite is interpreted from Columbus surface alteration mapping, float and outcrop sampling, and drilling. More than 200 surface samples of discontinuous outcrop and float in this area are highly variable in grade, but gold values are widespread and range from anomalous to 7.91 g/t gold. Columbus believes this “cloud” area should be drilled in detail, not only to better delineate the low-grade “cloud” gold zones, but to identify possible additional zones of better grade gold suggested by surface sampling.
In addition vertical, and near vertical, drill holes ES-28, ES-29, ES-30, and ES-32 were drilled in Phase III in the corridor between the East and West Zones to check for possible connections. These holes did not indicate a connection of better grade gold but did encounter significant thicknesses of “cloud” type, low-grade, gold mineralization. ES-32 was continued to a vertical depth of 337 meters (1,105 feet) and was successful in cutting a gold and silver zone below 287 meters (940 feet) of depth that is interpreted to be the down-dip extension of the East Zone. The hole was abandoned before cutting the entire zone due to drilling difficulties.
All gold intercepts in Eastside drill holes are logged as oxidized with the exception of the single, deep intercept of 287 meters (940 feet) vertically below the surface in hole ES-32, which is unoxidized and the gold and silver associated with zones of elevated pyrite.
Columbus currently believes the gold mineralization encountered in drilling at Eastside, along with the overlying “cloud” mineralization, may be minable by open pit at a reasonable stripping ratio, but much more drilling is necessary for confirmation.
Columbus is very encouraged by the upside potential at Eastside. Gold mineralization occurs in a discrete package of overlapping rhyolite flow dome complexes which were emplaced and/or erupted 7.2 million years ago. These flow dome complexes are confined to an outcrop belt about two miles wide and seven miles long which is enclosed within the Columbus claim block. Detailed mapping and sampling of the entire claim block by Columbus geologists has begun and is scheduled for completion by mid-2014. Preliminary results of this mapping has traced the faults, known to be important in the area of drilling, to the south for a distance of 1,600 meters (1 mile).
Permitting for additional drilling has begun with the Tonopah Office of the Bureau of Land Management for a major program of road building, drill site construction, and drilling. The aim is to complete a “blanket” permit covering 690 acres to allow for as many as several hundred drill holes with drilling planned to begin in the last half of 2014.
The Eastside Project has district scale potential, covering some 550 mining claims over 11,000 acres or 45 square kilometers (17.2 square miles). It has outstanding infrastructure for mining and processing. The project is 20 miles west of Tonopah, Nevada, and lies 6 miles north of paved highway US 95, the main road route from Las Vegas to Reno. A good gravel road, maintained by Esmeralda County, leads from the highway through the claim block. A major power transmission line passes through the claim block. The drilling area is on the east flank of the Monte Cristo Range and a portion of the claim block extends well into the adjacent flats which would provide excellent operating sites. The valley is known to have shallow water available in the same aquifer which provided water for milling the Tonopah ores in the early 1900’s. The area is high desert with sparse vegetation, and year-round drilling is possible.
See the following link for claim and infrastructure maps:
Preliminary metallurgical studies are also planned to commence soon, mainly bottle roll cyanide solubility tests, which are expected to be completed late in the second quarter of 2014.
Gold and silver assays were performed by American Assay Labs in Sparks, Nevada. American inserts blinds and standards in the drill hole assay string-generally 7% of all assays performed are of standards or blinds. Gold analyses are by fire assay with atomic absorption finish. Silver assays are first run by the induced coupled plasma method. Drill samples reporting silver above 7 grams per tonne are re-run using fire assay with gravimetric finish, and these fire assay results for silver are what is reported in this release in the attached table. In addition Columbus Gold takes a second sample at the rig during drilling of each interval for check sampling. Columbus has checked 40 Eastside drill intervals to date that were in good agreement with the assays reported in this release. Additional check sampling is ongoing and, if material differences occur, those will be reported.
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical content of this press release. Mr. Wallace is a director of Columbus Gold and the principal of Cordilleran Exploration Company (Cordex), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.
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, mapping, sampling, metallurgical studies, potential mining methods 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 Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.