Columbia Metals Corporation Limited

Columbia Metals Corporation Limited

June 15, 2005 10:09 ET

Columbia Completes its Due Diligence on the La Jojoba Property in Sonora, Mexico

TORONTO, ONTARIO--(CCNMatthews - June 15, 2005) - Columbia Metals Corporation Limited (TSX VENTURE:COL) ("Columbia") is pleased to announce that it has completed its due diligence on the La Jojoba Property located in Hermosillo, Sonora, Mexico. Under the terms of its purchase agreement, Columbia had until June 30, 2005 to complete its due diligence on the La Jojoba Property and the closing of the purchase of the La Jojoba Property was subject to completion of such due diligence to the satisfaction of Columbia.

In addition to its initial payment of US$10,000 to the vendors of the La Jojoba Property ("Vendors") Columbia has now made a US$400,000 payment to the Vendors.

Property Description:

The La Jojoba Property comprises of 4 claims (528.9 hectares) and is located some four kilometres west of Columbia's recently acquired Lluvia de Oro gold processing plant. The La Jojoba Property claims contain several gold occurrences which have been intermittently explored in an attempt to discover sufficient resources to support a stand-alone-operation. The Northeast Deposit (Zone) is said to contain a Measured and Indicated, in situ, gold resource of 6,400,000 tonnes averaging 1.03 grammes per tonne gold (1.03g/T Au) (212,000 ounces). The foregoing historical estimate published by Aquiline, in September, 1997, and the following Hecla Mining Company estimates are pre NI-43-101 implementation, and therefore are not to be relied upon. The foregoing Aquiline estimate was contained in an independent study commissioned by Aquiline and is not substantially different from the resource estimates produced in August 1997 by Hecla Mining Company who used ordinary kriging for one estimate (1) and nearest-neighbour estimates for the other (2) All estimates use a grade cut-off of 0.3 g/T.

Category Tonnes Grade (g/T) Ounces
(1) M&I(1) 7,390,000 0.82 196,000
Inf.(2) 1,509,000 0.52 25,000

(2) M&I 5,439,000 1,276 223,000

M&I(1) - measured and indicated resources
Inf.(2) - inferred resources

Columbia has not done the work necessary to verify the classification of the resource or reserve, Columbia is not treating them as a NI 43-101 defined resource or reserve verified by a QP and the historical estimates should not be relied upon.

Columbia's engineers will be conducting due diligence review of all the data and will examine the possibility of processing the Jojoba mineralization at Columbia's nearby Lluvia facility.

Additionally Columbia has acquired 3385.1 hectares adjacent to and between the La Jojoba and Lluvia de Oro deposits. Columbia now controls the contiguous mineral rights to some 60 square kilometres in the immediate vicinity of the two deposits.

This press release was prepared by J. E. Steers, P. Eng. VP Exploration, Columbia Metals Corporation Limited.

Shares Outstanding: 39,777,077

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Columbia Metals Corporation Limited
    Carl Di Placido
    President and CEO
    (416) 364-6799
    (416) 364-2595 (FAX)