Colombian Mines Corporation

Colombian Mines Corporation

September 24, 2013 08:45 ET

Colombian Mines Drills More High Grade Mineralization With Multiple Intercepts To 14.23 g/T Gold Equivalent Over 3.3 Meters, Extends Mineralization 100 Meters Down Dip With No Limits On Extension

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 24, 2013) - Colombian Mines Corporation (TSX VENTURE:CMJ)(FRANKFURT:X6C) ("Colombian Mines" or the "Company") is pleased to report drilling has intersected mineralization grading to 14.23 g/T Au Eq. over 3.25 meters within broader zones of mineralization grading to 2.09 g/T Au Eq. over 45.8 meters in hole D13-07 at the Company's El Dovio project. Holes D13-06 and D13-08 also intersected similar mineralization as reported below. Importantly, this drilling confirms the down dip continuity and extension of high grade gold, silver, copper mineralization in the Sabana Blanca zone down dip at least 100 meters below outcrop and shows the mineralization remains open to extension both along strike and at depth.

Table 1. Summary Holes D13-06, D13-07 and D13-08 El Dovio

Drill Hole Number From To Length (m) Length (feet) Au g/T Ag g/T Cu % Zn % Au
D13-06 41.5 59.5 18.0 59.0 1.20 3.24 0.57 0.46 2.41 0.08
D13-06 49.6 51.6 2.0 6.6 3.60 3.00 0.07 0.69 4.08 0.13
D13-06 54.5 56.9 2.4 7.9 3.90 15.60 4.00 2.26 11.87 0.38
D13-07 37.7 83.5 45.8 150.2 0.97 3.93 0.55 0.31 2.09 0.07
D13-07 47.5 56.3 8.8 28.7 2.60 12.94 2.68 0.87 7.77 0.25
D13-07 53 56.3 3.3 10.7 2.04 26.66 6.83 0.83 14.23 0.46
D13-08 54.5 91.3 36.8 120.7 0.80 1.99 0.26 0.23 1.37 0.04
D13-08 55.5 58.5 3.0 9.84 3.68 11.57 1.91 1.08 7.54 0.24
D13-08 69.5 72.5 3.0 9.84 3.9 5.53 0.63 1.15 5.55 0.18
Metallurgical Extraction (McClelland Laboratories) 96.40 % 91.10 % 97.80 % 96.80 %
Metal Price used to calculate gold equivalent $ 1,000 $ 16.00 $ 2.50 $ 0.70

Metal prices used to calculate gold equivalents are in troy ounces for silver and pounds for copper and zinc.

1 troy ounce = 31.1 grams, 1% / metric tonne = 22 pounds.

Holes D13-06, 07 and 08 were drilled across the Sabana Blanca zone in a vertical drill fan that confirms the projected steep southerly dip of the Sabana Blanca zone and traces mineralization down dip from the surface for roughly 100 meters. All three holes were angle holes drilled from the same pad in a northwesterly direction on an azimuth of 333 degrees as detailed in Table 2 below.

Table 2. Drill Holes

Drill Hole Inclination Azimuth Depth
D13-06 -45° 333° 100 meters
D13-07 -60° 333° 90 meters
D13-08 -70° 333° 97 meters

Hole D13-06 was targeted to intersect the Sabana Blanca zone approximately 20 meters below the level of the elevation of the drill intercepts previously announced in hole D13-02, with holes 07 and 08 each establishing additional nominal 20 meter offsets down dip from the prior hole. As may be seen on the vertical section labeled "Section 6-7-8" on the Company's website, the true width is estimated to represent roughly 90 to 100% of the reported drill intercept length in holes D13-06, 07 and 08.

In holes D13-01A, 2 and 4, expanded sampling has identified broad "halos" of stock work style mineralization surrounding the previously announced high grade intervals. Combining this stock work mineralization with the previously announced results indicates broad zones of potentially bulk mineable mineralization may exist as shown below in Table 3.

Table 3. Expanded sampling of "Stock Work" mineralization

Drill Hole From (meters) To (meters) Intercept (meters) Au g/T Ag g/T Cu % Zn % Au g/T Eq.
D13-01A 21.3 120.9 99.6 0.64 1.41 0.08 0.18 0.88
D13-02 48.5 98.7 51.2 1.15 5.99 1.11 0.16 3.23
D13-04 40.0 101.5 61.5 0.60 3.56 0.72 0.13 1.95
D13-05 68.9 95.5 26.6 1.66 9.55 1.53 0.36 4.60

For the purposes of calculating the grade of mineralization within these broader zones, all individual samples containing in excess of 10 grams of gold per metric tonne (g/T Au) were "capped" or "top cut" at 10 g/T Au. For high grade intervals announced in this press release the Company has not applied any "capping" or "top cutting". The presence of numerous high grade samples in the surface channel sampling results and the apparent continuity of high grade zones in both surface and drilling does not justify capping or top cutting at this time.

The identification of broad zones of mineralization does not change the high grade focus of the El Dovio project, but potentially adds greater flexibility to potential mining scenarios and may allow future development of combined open pit and high grade underground operations at El Dovio.

Gold Equivalent Calculations and Metallurgical Considerations

Gold equivalency calculations are included to more clearly present the approximate value of the polymetallic mineralization at El Dovio. The gold equivalency for silver, copper and zinc are adjusted for the recovery rate of the respective metal. The recovery rates used are actual recoveries achieved on mineralization from the Sabana Blanca adit using conventional froth flotation as reported to the Company by McCllelan Labratories, a prominent metallurgical laboratory based in Reno, Nevada. Recovery rates as reported in the Company's press release of April 24, 2012, are 91.1% for silver, 97.8% for copper and 96.8% for zinc.

Discussion of Phase I Drilling Program and Results

Phase I drill results thus far corroborate the high grade nature and extent of mineralization as indicated in the surface and underground channel sampling of the Sabana Blanca zone. Very importantly D13-06, 07 and 08 confirm the continuity of mineralization in the south dipping Sabana Blanca zone to roughly 100 meters below outcrop and indicate mineralization remains open both along strike and to depth. All holes of the Phase I program where they have encountered the Sabana Blanca zone have intersected multiple zones of high grade mineralization contained within much wider mineralized zones as shown in Table 1 above.

Drilling at El Dovio consistently intersects two parallel zones of high grade mineralization within a much broader mineralized halo of stock work mineralization in metamorphose volcanic rocks. The mineralization is forming along the margins of a large diabase dike and high grade mineralization appears to be controlled by, and forms at the contact zones of the diabase dike and enclosing volcanic rocks. The spatial association of mineralization with the diabase dike indicates potential for significant strike and depth extensions of the Sabana Blanca zone.

Other similar zones including the Granizales and Brazo 1 zones located well to the southwest and northeast of the Sabana Blanca zone may also be associated with similar dike structures and could significantly increase the mineral endowment of the El Dovio project.

Mineralization in the high grade zones typically consists of multi-phased, colloform banded quartz, with chalcopyrite, sphalerite and pyrite. Mineralization in the halo zones is typified by weak to moderate stock work quartz - sulfide veinlets and fracture fillings. Photos of mineralization are available on the Company's website as are sections through the drill holes.

The true width for drill intercepts reported here for holes D13-06, 07 and 08 are believed to represent 90 to 100% of the drill intercept length. For prior holes D13-01A, 02, 04, and 05 true width is estimated to represent approximately 75% of the drill intercept length.

About El Dovio

The Company's 100% owned El Dovio project, is comprised of four contiguous Concession Contracts registered in the name of Colombian Mines wholly owned subsidiary Corporacion Minera de Colombia. The Property is comprised of 10,106 hectares that cover a high grade, gold rich, poly-metallic vein system hosted in metamorphosed marine volcanic rocks.

Saw cut channel samples from surface trenches in the Sabana Blanca zone indicate a zone ranging from 30 to 68 meters wide with an average sampled grade of 4.5 grams gold per tonne (g/T Au) and 0.5 to 2% copper (Cu) with sub-intervals to 27 g/T Au over 7 meters and individual samples ranging from 20 to 104 g/T Au. Mineralization and alteration in the other zones on the property indicate they are similar in nature to the Sabana Blanca zone. Additional information on the geology and mineralization at El Dovio is available on the Company's website and in past news releases.

Sample Collection - Quality Control - Quality Assurance

The Company's exploration samples are collected in accordance with accepted industry best practices. Core is collected from the drill site and under the supervision of Company personnel is transported to SGS Laboratory's Medellin sample preparation facilities and analyzed at SGS's new laboratory in Medellin, Colombia (ISO9001:2000). For all samples, gold is analyzed by fire assay with an ICP/AES finish, and silver and base metal analyses are determined with ICP/AES techniques. The Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks and field duplicates at a rate of no less than 1 in 30.

Mr. Robert G. Carrington, P. Geo, a Qualified Person as defined by National Instrument 43-101, the President and CEO of the Company, has reviewed and verified the technical information contained in this news release.

Up Coming Events

Colombian Mines will be exhibiting at the Medellin Mining Fair (Feria Minera de Medellin) September 25 through 27 in Medellin, Colombia. All parties interested in speaking with management and learning more about the Company's projects including, El Dovio, Mercedes, Yarumalito, Rio Negro, or other joint venture opportunities such as Venecia are invited to visit us in booth number 106.

About Colombian Mines Corporation

Colombian Mines Corporation is an aggressive exploration and development stage company with a distinct "first mover" advantage in Colombia and one of the largest portfolios of 100% direct owned mineral assets among comparable companies in Colombia. Focused on developing shareholder value through exploration and development of key projects, the Company is also one of Colombia's leading "Prospect Generators" and applies an aggressive business model of organic growth through exploration while leveraging shareholder value through strategic alliances and joint ventures. Colombia is widely recognized as a highly prospective, under-explored country with exceptional mineral potential. Further information can be found on our website at

Robert G. Carrington, President & CEO

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement

Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Colombian Mines Corporation. Actual results may differ materially from those currently anticipated in such statements.

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