CB Gold Inc.
TSX VENTURE : CBJ

CB Gold Inc.

May 11, 2011 07:30 ET

CB Gold Inc. Intersects High Grade Veins at the Vetas Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2011) -CB Gold Inc. (TSX VENTURE:CBJ) ("CB Gold" or the "Company") is pleased to provide summary results from its drilling program at its Vetas Gold Project, District of Santander, Colombia ("Vetas Gold Project"). The Vetas Gold Project is now being defined as a large porphyry system including all of the key fundamental elements of classic porphyry-style deposits – high-grade epithermal veins, bulk tonnage stockwork veins and thicker zones of porphyry dike material. Drilling of the epithermal vein targets continues to intercept multiple high-grade veins of mineable thickness, including the following eighteen high-grade veins at the Real Minera Vein System:

HoleIDFrom (m)To (m)Length (m)Au (g/t)Ag (g/t)AuEq (g/t)
RM-DDH11-0471.3073.201.904.334.884.42
and210.18211.601.421.3663.372.47
RM-DDH11-05200.20208.268.063.933.693.99
including200.20204.844.646.633.556.69
including200.20203.353.159.624.159.69
RM-DDH11-06232.37236.223.858.771.528.80
and245.57251.936.364.53165.837.44
including247.15249.932.789.44374.1716.01
RM-DDH11-0797.80104.006.201.092.961.14
and201.55203.151.601.7793.513.41
RM-DDH11-08100.20101.201.003.892.743.94
and146.60148.001.402.8523.673.27
RM-DDH11-0961.6062.901.305.8322.926.23
and71.3978.457.062.746.972.86
including76.4578.452.008.7118.749.04
and209.50213.804.305.14182.338.34
including211.55213.802.258.93337.4114.86
and225.65227.752.102.7752.263.69
RM-DDH11-10213.20220.207.001.6017.301.90
including216.40218.832.432.9438.873.62
including216.40218.001.604.1054.855.06
RM-DDH11-1197.20103.806.602.051.272.07
including102.40103.801.407.572.007.61
and112.00118.206.201.391.241.41
including115.10117.102.002.891.142.91
and133.50135.001.503.824.853.91
RM-DDH11-12233.00235.202.202.2567.773.44

In addition, final assays have been received for the previous announced holes RM-DDH10-01 to 03 and include:

HoleIDFrom (m)To (m)Length (m)Au (g/t)Ag (g/t)AuEq (g/t)
RM-DDH10-01179.00182.003.008.102.908.15
RM-DDH10-02208.00223.7515.751.8713.912.11
including208.00211.003.006.701.206.72
RM-DDH10-0386.7690.924.165.7110.025.89
including88.0090.922.928.1013.948.34
AuEq calculated using the 12 month trailing average for Au and Ag through March 1, 2011 (US$1268/oz Au and US$22.28/oz Ag). Using ratio of US$Au:US$Ag (56.9), assuming 100% recovery and no NSR the AuEq formula is: AuEq = Au g/t + (Ag g/t / 56.9).

The zone of high-grade veins with potentially economic grade thicknesses surrounding the intrusive structure at the eastern zone of the Vetas Gold Project has been extended to approximately 500m West – East and 650m North – South. Several intercepts contained cm-scale aggregates of visible gold. To date the vertical extent of the high-grade veins zone has been tested to a depth of only 250m.

The Vetas Gold Project consists of a number of existing mines (operations currently suspended) and exploration concessions, and its exploration and development activities are not affected by the proposed Regional Natural Park Paramo de Santurban.

El Dorado Vein System

Drilling has commenced at the El Dorado Vein System, approximately 750m west of the centre of the Real Minera zone, and the first two holes have intercepted the down-dip projection of the El Dorado Vein System, extending the mineralised envelope by over 125m. The core recovered from these holes is being logged and mineralised sections will be sent for assay. Previous underground sampling at El Dorado returned 260m of continuous strike length with a weighted average grade of 8.18 g/t Au and 55.6 g/t Ag (9.16 g/t AuEq). Step-out drilling at the El Dorado Vein System is planned to test the strike extension 1,000m south and 500m north of the known mineralisation with surface and underground mapping indicating the potential for up to 1,800m in total strike length.

Vetas Stock Work Zone

Drilling of the stock work zone previously identified by surface mapping and sampling (up to 5.87 g/t Au) has also commenced, with the first hole showing over 400m of stockwork mineralisation composed of quartz veins and quartz, fine pyrite, grey silica and molybdenite veinlets within a granodiorite porphyry host rock.

Vetas Gold Project Potential

The Vetas Gold Project is now being defined as a large porphyry system including all of the key fundamental elements of classic porphyry-style deposits:

  • High-grade epithermal veins found within an area of 2,500m x 2,000m;
  • Large zone of mineralised stockwork veins potentially 600m x 300m and 300m vertical extent; and,
  • At least one zone of thicker (between 6 and 20 metres) porphyry dike material found below the high grade veins at the Real Minera mine.

The newly discovered high-grade veins and porphyry material at Real Minera are located close to the existing mine access, between 100 and 400m into the hillside. Because of this, no shaft or spiral ramp infrastructure would be required to access these veins. A simple access by decline or horizontal adit would be sufficient.

The Company and its independent consultant SRK have begun the computer modelling work required for resource estimation, which will continue throughout 2011 as further drill results become available. One of the key parameters for constraining the resource model is the determination of a mineable width for the high-grade veins. SRK has advised the Company that widths as narrow as 1m can be practically mined using a shrinkage stope mining method.

Geophysics Survey

CB Gold's sub-contractor Arce Geofisica of Peru has now completed the fieldwork at Vetas and is processing the data collected.

Fabio Capponi, Chief Executive Officer noted, "We are very pleased that drilling continues to extend the zone of high grade veins, with excellent intercepts of high grade mineable widths. The Company is also focusing on drilling at El Dorado property, and look forward to the Vetas geophysics results, which we will be analyzing with our structural specialist Chris Lee. Based on our success to date, we will be ramping up our exploration program with a third drill rig."

Vetas Gold Project - Geochemistry:

All the samples taken by CB Gold at its Vetas Gold Project were analyzed by ALS Chemex in Lima, Peru. The Company has a standard QA/QC program which includes blank, certified reference material and duplicate samples. The QA/QC program has been reviewed by Cumbrex Exploraciones SAC, an independent consultant specialising in QA/QC work.

The scientific and technical information on which this news release has been based was reviewed by Ms. Dorinda Bair CPG Senior Geologist of SRK Consulting and a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About CB Gold Inc.

CB Gold is a mineral exploration company headquartered in Vancouver, British Columbia. CB Gold, through its wholly-owned subsidiary, Leyhat Colombia Sucursal, is actively pursuing the exploration and development of mineral properties in the Republic of Colombia.

For more information on CB Gold please visit our web site at www.cbgoldinc.com.

The securities of CB Gold described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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 news release.

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