Vancouver, British Columbia, Canada, September 21st, 2011. Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce that Phase II drilling has commenced at its Guild Project, located approx. 74.5 miles northeast of Tonopah, in Nye County, Nevada, where joint venture partner Sniper Resources Ltd., is earning an initial 51% interest by undertaking staged annual exploration expenditures totaling US$2 million by October 2nd, 2012.
Sniper reports that four to six RC holes are planned in this round of drilling and that hole depths are expected to be less than 500 feet for at least three of the four drill sites.
Carlin-style gold mineralization is the target at Guild where a silicified ledge in Ordovician limestone carries gold values (thirty samples average 0.054 opt gold) over 180 feet of its 2,300 ft total strike length. The jasperoid ledge formed along a northerly-trending structure which appears to extend south under what is thought to be a thin veneer of post-ore volcanic rocks.
A number of untested drill targets have been identified at Guild from geochemical sampling and mapping programs, and a gravity survey as well as several line miles of CSAMT were completed to identify important overlaid structures. The principal target is an ore-controlling structure which extends for 1 mile under shallow post-ore cover between the main Guild gold showing and a jasperoid in an area to the south, where it crosses the inferred position of the Roberts Mountain Thrust Fault. In addition, the structure is interpreted to cut the Mississippian Webb Formation in the south end of the block (host for the Rain, Dee, and various other Nevada disseminated gold mines). Preliminary reconnaissance has also identified hydrothermal alteration in the form of silicification and barite veining in the Webb.
The current drilling is designed to test for extensions of gold mineralization encountered in Phase I drilling completed in early 2011. Drill holes GI-11, GI-16 and GI-17 in Phase I drilling returned intervals of potentially leach-grade gold beginning at surface in oxidized host rock. Drill hole GI-11 averaged 0.008 opt gold from 0-50 feet down the hole with a high assay of 0.024 opt gold at 20-25 feet. Drill hole GI-16 averaged 0.011 opt from 0-40 feet down the hole with a high of 0.038 opt at 10-15 feet. Drill hole GI-17 averaged 0.009 opt from 0-15 feet down the hole with a high of 0.016 opt from 0-5 feet.
Quality Assurance/Quality Control
Samples for each interval to be assayed were delivered for analysis by ALS Global in Sparks, Nevada, an ISO-accredited analytical laboratory. In the lab, sample splits were assayed using ALS’ “AuAA23” analytical option for gold, with one assay-ton samples used for fire assay/atomic adsorption (a.a.) finish, which provides a lower detection limit of 5 parts per billion. The duplicate bags from the drill holes were saved on site for verification or other subsequent testing. Results from the drill holes have been verified by American Assay Laboratories, also in Sparks Nevada, using Fire/aa methods with a 2 ppb lower limit. Both of these laboratories have internal qa/qc programs including blanks, standards, and duplicates.
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 Resources Ltd., 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 joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Exploration activities are managed by Cordex which is owned and operated by Andy Wallace who has a long and successful history of gold discovery and mine development. Columbus Gold currently has 12 of its 26 strategically located gold projects in Nevada joint-ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.
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.