Columbus Gold Advancing to Feasibility Study Stage at Montagne d'Or Gold Deposit
Vancouver, BC, Canada, July 28, 2015. Columbus Gold Corporation (CGT: TSX-V, CBGDF: OTCQX) (“Columbus Gold”) is pleased to announce that it and its partner Nord Gold N.V. have commenced a tender for the commissioning of a Feasibility Study (“FS”) on the Montagne d’Or Gold Deposit, Paul Isnard Project, French Guiana. Based on positive results from the recent completion of a Preliminary Economic Assessment, 6 (six) senior international mining engineering consulting firms have been invited to submit tenders. An announcement declaring the successful bid is expected in coming weeks. The targeted completion date for the Feasibility Study is Q4 2016.
The recently completed Preliminary Economic Assessment (“PEA”) indicated positive results for the Montagne d’Or Gold Deposit including an after-tax Net Present Value (8%) of US$324 million (CDN$415 million at CDN/USA 1.00:0.78 exchange), an after-tax internal rate of return of 23%, and approximately 273,000 ounces of gold produced per year in the first 10 years of production at an All-In Sustaining Capital Cost (“AISC”) per ounce of US$711.
Please refer to Columbus’s press release dated July 8, 2015 for complete information on the PEA announcement and also visit Columbus Gold’s website at:
The FS work 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 and the Paul Isnard mineral titles. Earn-in also includes completing a Feasibility Study no later than March, 2017. Spending in 2014 was $16 million, and is budgeted at US$10 million for 2015 which will include in-fill drilling to increase confidence in the resource and conversion of the Indicated resources to the Measured category, condemnation drilling of the proposed infrastructure sites, geotechnical and hydrogeological investigations, and advanced metallurgical test work to support processing plant design.
Bret Swanson and Bart Stryhas of SRK Consulting (U.S.), Inc. of Denver, CO who are both “Independent Qualified Persons” as defined by NI 43-101, have reviewed and approved the scientific and technical disclosure in this press 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:
|Todd Hanas||Peter A. Ball||Jorge Martinez|
|(866) 869-8072||(604) 634-0973||(604) 634-0970|
|Investor Relations||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 a new FS that the Company intends to commission; the time frame in which the Company expects to complete the tendering process for the commission of the FS; completion of the FS; and projected funding of exploration and development programs by Nord Gold N.V. pursuant to the terms of the option agreement and the related completion of the FS . 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 complete the FS by the proposed target date or at all; 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 FS by the stated deadline or at all; cost increases; availability of qualified workers and drill equipment; access to power supply sources and power prices; 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: ; 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; that political risk will remain on current levels; and ongoing relations with employees, partners and joint venturers. Although Columbus Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Columbus Gold undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.