CB Gold Inc.
TSX VENTURE : CBJ

CB Gold Inc.

December 16, 2010 09:16 ET

CB Gold Inc. Provides A Summary of Exploration Results from September 2009 to Date

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - CB Gold Inc. (TSX VENTURE:CBJ) ("CB Gold" or the "Company") is pleased to provide a summary of its exploration results and analysis to date at its Vetas Gold Project, District of Santander, Colombia ("Vetas Gold Project"). Since September 2009 the Company has had a geological team based in the town of Vetas, conducting due diligence and exploration of the Vetas Gold Project. The Company currently has 66 people directly and indirectly working on the Vetas Gold Project of which 11 are geologists. The Company is pursuing a number of different target areas at the Vetas Gold Project, including zones of high grade veins, and a main stockwork zone which covers an area estimated to be at least 600m x 300m and up to 300m vertical extent.

Vetas Gold Project - Geochemistry:

The Vetas Gold Project is characterised by low to medium sulphidation, epithermal mineralisation exhibited as high grade quartz vein structures and lower grade, disseminated stockwork zones related to the emplacement of multiple porphyry systems. CB Gold has mapped a 4km2 zone of mineralisation in the eastern part of the Vetas Gold Project around the existing small scale mines. Porphyry related mineralisation covers an approximate area of 700m x 700m and is located near the center of mineralisation in the Vetas Mining District.

CB Gold has collected over 1700 samples to date, including surface samples and samples from the 6,000m of existing underground workings to which CB Gold has access. These samples include channel and chip channel in veins and panel in stockworks. Geochemical results have been up to 667g/t Au and 3,090g/t Ag.

The underground and surface sample program targeted Vetas' vein and stockwork systems with the following distribution of samples;

  • 1,500 samples were in veins; and
  • 235 samples in the stockwork zone.

Vein samples are generally taken as channel samples across the true width of the vein, and samples in stockwork are generally taken as panel samples. The rock surface is scaled prior to sampling and samples are collected in fresh rock. The number and type of the samples collected is summarized below:

  • 1,077 underground vein samples;
  • 423 surface vein samples;
  • 21 underground stockwork samples; and
  • 214 surface stockwork samples.

Underground vein channel samples are collected at 20m intervals, 10 to 15cm wide by 1 to 2cm deep. Surface samples are either channel or chip channel and collected on available outcrop using the same parameters as underground samples. These samples are approximately 3 to 6kg.

The average sample grade of the underground veins is 7.06g/t Au and 77g/t Ag and the average sample grade of the surface veins is 1.23g/t Au and 8.53g/t Ag. The average width for underground and surface veins is 1.03m and 1.1m respectively. The sample grade distribution for all samples is listed below:

  • 68% are less than 3g/t Au; and
  • 32% are greater than 3g/t Au, of which
    • 175 samples are between 3 and 6g/t Au,
    • 167 samples are between 6 and 20g/t Au, and
    • 83 samples are over 20g/t Au.

The stockwork samples are generally panel samples collected on 50m centers and are either 1m2, 2m2 or 4m2. Sample analyses in the stockwork range from 0.2g/t to 15.45g/t Au.

To assess the continuity of sample grades, the Company completed detailed sampling at several locations within the Project where veins can be traced over significant distances along strike. The Eldorado Vein can be traced for 273m along strike in the underground in the Eldorado 1 level. Here the weighted average sample grade of the vein is 8.09g/t Au and 56.34g/t Ag uncapped. The average thickness of the vein is 1.51m. This includes several sections of much higher grade as well as lower grade sections. The highest sample grade is a section of 18m at 20.53g/t Au and 195.66g/t Ag with an average vein thickness of 1.43m and the lowest sample grade is a section of 21m at 0.93g/t Au and 4.74g/t Ag with an average thickness for this zone of 0.76m.

All the samples taken by CB Gold during more than a year of work at its Vetas Gold Project were analyzed by ASL Chemex in Lima, Peru, and included laboratory quality assurance/quality control (QA/QC) samples. The Company's QA/QC program includes the use of blank, certified reference material and duplicate samples. The procedures were also reviewed by Cumbrex Exploraciones SAC, an independent consultant specialising in QA/QC work.

Vetas Gold Project - Geology:

The Vetas Gold Project geology is characterized by 2 different domains of rocks: a gneiss and a later porphyritic intrusive complex.

The high grade gold and silver occurs in quartz veins hosted in the gneiss. These veins also contain anomalous values of lead, zinc and copper. The work to date has identified 16 main veins. Evidence from surface mapping and sampling indicate that additional veins or extensions may exist under Quaternary cover. These hidden veins are one of the targets for geophysical surveys in 2011. The widths of the veins are variable but in general the average true thickness is 1.2 meters. The known veins have been mapped for 300 to 500 meters along strike, and the potential exists for further extensions. The vertical extent of mineralisation is usually in excess of 250 meters.

These veins are epithermal with mineralisation textures consistent with low to intermediate sulphidation. The veins show multiple episodes of deposition with massive milky quartz, followed by later pulses of gray quartz and chalcedonic, crustiform silica. Grey quartz is associated with finely disseminated pyrite and visible gold and silver. Veins strike primarily N60°W, with a secondary set at N40°E. These veins are interpreted as radial structures around the porphyry system that has been identified through drilling in the center of the Vetas Mining District.

At least three porphyry events have been identified at the Vetas Gold Project, showing A, B and D veins. As described by Gustafson and Hunt (1975), A veins are fine grained granular grey quartz with fine grained sulfides. B veins are coarser quartz with sparse sulfides and D veins are sulfide veins. The three porphyry events are discussed below.

  • A granodioritic (pre-mineral) event which is dominated by type D veinlets with weak phyllic alteration.

  • A dacitic porphyry event dominated by A, B and D veinlets with presence of molybdenite (Mo), mainly associated with type B veinlets.

  • A granodioritic porphyry event with a development of stockwork veinlets with all three veins types (A, B and D).

Preliminary core logging suggests that the dacitic porphyry is associated with Gold (Au) mineralisation. This porphyry shows characteristic near-surface phyllic alteration of quartz-sericite-pyrite grading into a potassic alteration with secondary biotite at depth.

The scientific and technical information on which this news release has been based was prepared 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 or contact info@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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