Vancouver, BC, Canada, December 30, 2015. Columbus Gold Corporation (CGT: TSX-V, CBGDF: OTCQX) (“Columbus”) is pleased to announce that it intends to engage Tractebel Engineering to complete a study on potentially connecting Columbus Gold’s 100% owned Montagne d’Or Gold Project located in French Guiana to the national power grid. The power study is part of the ongoing Feasibility Study that commenced in October 2015. Tractebel is being awarded the contract pursuant to a tender that included a number of leading engineering firms. They have 3,300 employees worldwide and are controlled by GDF Suez a French multinational utility company.
The base case assumption in the amended Preliminary Economic Assessment, which was completed by SRK Consulting (U.S.) Inc. in August 2015 (the “PEA”), anticipates that energy will be generated on- site at a cost of approximately US$0.20/kWh. The Tractebel study will review the viability of connecting Montagne d’Or to the national power grid along the existing road. It is anticipated that a grid connection could reduce energy costs by up to 45% or US$0.11/kWh, resulting in significant savings over the life of the mine, noting that energy is one of the largest components of operating costs.
The power study is being funded by Nord Gold N.V. (LSE: NORD LI) as part of a minimum US$30 million exploration and development program pursuant to which they can earn a 50.01% interest in Montagne d’Or by funding completion of a Feasibility Study.
The PEA is preliminary in nature. The PEA includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized. A copy of the PEA is filed under Columbus’ profile on SEDAR at www.sedar.com.
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:
Peter A. Ball
Senior Vice President
VP Communications & Technology
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: the expected completion date of a feasibility study and the anticipated completion of a power study. 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 including, without limitation, the accuracy of interpretations; mineral reserve and resource estimates (including the risk of assumption and methodology errors and ability to complete a new resource estimate by the proposed target date or at all); the ability to meet proposed schedules for the completion of metallurgical tests; dependence on third parties for services; non-performance by contractual counterparties; title risks; risks associated with Nord Gold N.V. electing not to exercise its option and make the related option payments and the ability to complete the feasibility study, and all components thereof, by the stated deadline or at all; 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, suppliers, optionees and joint venturers. The foregoing list is not exhaustive and Columbus undertakes no obligation to update any of the foregoing except as required by law.