Colombia Crest Gold Corp.

TSX VENTURE : CLB
PINKSHEETS : ECRTF
FRANKFURT : EAT


Colombia Crest Gold Corp.

October 17, 2012 09:48 ET

Colombia Crest Gold Announces Initial Assays From the Drill Program at the Arabia Porphyry Gold Complex, Colombia

Including 34 Metres of 0.55 Grams Per Tonne Gold and 32 Metres of 0.57 Grams Per Tonne Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2012) - Colombia Crest Gold Corp. ("Colombia Crest"; the "Company") (TSX VENTURE:CLB)(PINKSHEETS:ECRTF)(FRANKFURT:EAT) is pleased to announce the latest results from its ongoing exploration program in the Middle Cauca Belt, Colombia. Initial Phase 1 drill results from the Arabia Porphyry Complex have returned typical porphyry system grade including 182 metres of 0.38 grams per tonne gold (g/t) in drill hole AR12-4, including several higher-grade intervals. A total of eight drill holes have been fully analyzed and are reported today - the remaining nine holes will be reported once final assays have been analyzed and received.

"Based on the consistent gold grade, alteration, and the presence of mineralized host rocks with mineralized intrusive, our geological team believes that all holes drilled to date have cut the uppermost portions of a large porphyry gold-copper complex," commented Hans Rasmussen, President and CEO. "Looking at these initial results, we are seeing significant size potential as we test over 1.5 kilometres of strike length at four different porphyry gold targets and mineralization remains open in all directions. Having drilled angle holes up to 440 metres to depth, our analysis of all assays will guide a follow-up drill program to focus on reaching 1+ g/t gold, with deeper, vertical holes."

Drill Hole From
(m)
To
(m)
Length
(m)
Au g/t Cu %
AR12-1 112.1 124.1 12 0.14 0.018
156 228 72 0.23 0.032
230 236 6 0.10 0.015
244 258 14 0.254 0.037
AR12-2 242 282 40 0.18 0.022
AR12-3 12 36 24 0.44 0.023
* Including 16 26 10 0.51 0.026
332 348 16 0.25 0.026
356 364 8 0.17 0.033
AR12-4 46 228 182 0.38 0.042
* Including 48 82 34 0.55 0.047
* Including 104 136 32 0.57 0.057
* Including 146 154 8 0.66 0.066
* Including 160 168 8 0.45 0.046
* Including 178 186 8 0.35 0.030
* Including 194 200 6 0.70 0.040
248 284 36 0.25 0.052
310 316 6 0.16 0.019
392 400 8 0.24 0.011
AR12-5 40 50 10 0.20 0.028
86 110 24 0.22 0.020
AR12-6 164 198 34 0.22 0.021
212 218 6 0.18 0.018
AR12-7 no intervals exceed minimum criteria
AR12-8 94 156 62 0.21 0.075
* Including 134 142 8 0.47 0.169
158 172 14 0.10 0.051
200 216 16 0.13 0.076
224 236 12 0.13 0.076
Minimum criteria are a 0.10 g/t Au cut-off grade, 6 metre length, and no sub-intervals below cut-off that exceed 4 metres.
Intervals noted "* Including" use a 0.3 g/t Au cut-off grade.

For a map of drill hole locations click here: http://www.colombiacrestgold.com/properties/colombia/geology2/

The first two holes were drilled into gold-mineralized hydrothermal breccia while hole 3 was our first indication of mineralized porphyry. All subsequent holes cut mineralized porphyry, and magmatic and tectonic breccias of varying degrees of alteration, all related to a strong mineralizing system extending over 1.5 kilometres of strike length. The mineralized zone remains open-ended in all directions. The best gold grades noted so far are associated with potassic alteration, which may include quartz-magnetite plus pyrite and chalcopyrite along with potassium feldspar and secondary biotite.

Based on geologic logging, petrographic interpretation of selected intervals of core and review of the trace element geochemistry, as well as the consistent gold grades in the results to date, Colombia Crest's geological team believes that the porphyry gold-copper system extends to depth, with deep vertical holes being the focus of a follow-up drill campaign at Arabia. Alteration and the presence of multiple mineralized intrusives also suggest that we are drilling the upper levels of a porphyry system.

The Arabia area is located just 10 kilometres west of Bellhaven Copper and Gold's (TSX VENTURE:BHV) La Mina project and 15 kilometres south of Sunward Resources' (TSX VENTURE:SWD) Titiribi project. The Arabia Porphyry targets lie partially on a concession that is held under the Venecia Agreement with Colombian Mines Corporation (TSX VENTURE:CMJ) and partially on one of the 16 concessions held under the Fredonia Agreement with Grupo de Bullet. In early 2011, a grass roots exploration program began at Arabia, after the target was selected from 20 porphyry targets identified in the Fredonia-Venecia concessions; all were based on interpretation of airborne geophysical data and geological information. Three other targets will be explored in late 2012 into 2013; including two targets called Garrucha and a third called Margarita (see the Company's website for more details on these targets).

All drill core samples were cut and sampled over nominal two-metre intervals at the Company's on-site field camp, then sent to the ACME Prep Laboratory in Medellin, Colombia. The chosen preparation method was Preparation Code R200-250, which consists of a 1 kilogram sample crushed so that 80% passes an 800 micron mesh (0.8 millimetres), which is then split and 250 grams are pulverized to at least 85% passing 75 microns mesh. Once prepared, 250-gram pulps were forwarded to the ACME Lab in Vancouver, Canada for analysis. Gold was assayed by fire assay and atomic absorption using a 30 gram assay charge with a detection limit of 0.005 parts per million. A multi element package of 41 elements including silver, base metals and pathfinder elements was also analyzed using ICP mass spectrometry. The ICP multi-element analysis uses a four-acid digestion prior to analysis.

The technical information in this news release has been reviewed and approved by John Bolaños, a Qualified Person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Porphyry System Characteristics

Porphyry gold systems host very large, bulk tonnage deposits that range from 2 to over 20 million ounces of gold and typically grade from 0.5 to 2 grams per tonne. Thus, major mining companies seek out porphyry deposits for their large scale and long mine life. Investments by major mining companies have been announced in the Middle Cauca Belt, demonstrating a growing focus on Colombia as a source for new long-life gold mines.

About Colombia Crest Gold Corp.

Colombia Crest Gold Corp. is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia as well as realizing the potential of its 100 percent-owned San Simón project in Bolivia. The Company employs a team of seasoned geologists, each with 20+ years of experience exploring and discovering porphyry deposits around the world, including Argentina, Peru, Ecuador, Mexico, Alaska, Indonesia, and Eastern Europe.

The Company is currently carrying on exploration programs at the Fredonia and Venecia projects where it has optioned over 30,973 hectares located approximately 40 km south of the city of Medellín, in Antioquia Province. The properties are positioned within the Middle Cauca Belt, which is the most prolific gold belt in Colombia with more than 500 years of gold-mining history and several new gold discoveries.

Forward-Looking Statements

This press release contains or refers to forward-looking information, including statements regarding exploration results, potential mineralization, exploration plans and timing of the commencement of drilling, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof, and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

If you would prefer to receive news releases via email please contact Colombia Crest (info@ColombiaCrestGold.com) and specify "Colombia Crest news" in the subject line.

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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