Columbia Metals Corporation Limited
TSX VENTURE : COL

Columbia Metals Corporation Limited

August 18, 2005 14:04 ET

Columbia Enters Into Lease Agreement for Surface Rights on the Lluvia De Oro Gold Mine and a Right of Access from Columbia's La Jojoba Gold Mine to its Lluvia Plant

TORONTO, ONTARIO--(CCNMatthews - Aug. 18, 2005) - Columbia Metals Corporation Limited (TSX VENTURE:COL)

JOJOBA M + I IN-SITU RESOURCES 219,000 OUNCES (NI 43-101 COMPLIANT)

Columbia is pleased to announce that its wholly owned subsidiary Minera Columbia S.A. de C.V. ("Minera Columbia") has entered into a lease agreement with Los Copropietarios Del Rancho "Agua Dulce", represented by Sr. Luis Ernesto Lopez Acedo ("Lopez Family") of Magdalena De Kino, Sonora, Mexico, for the surface rights on 52 hectares encompassing the Lluvia De Oro metallurgical gold extraction plant and surrounding area. In addition, Minera Columbia has secured the right of access over 6 hectares of land for road access across the Lopez family Ranch lands, allowing Columbia a direct access route from Columbia's La Jojoba Gold Project ("La Jojoba Gold Project") to the Lluvia De Oro metallurgical gold extraction plant ("Lluvia Plant") owned by Columbia.

The surface rights on the Lluvia Mine site will allow Columbia to set-up heap leach pads to process the gold mineralization from the La Jojoba Gold Deposit. Rights of access through 6 hectares of land to the Lluvia Plant from the La Jojoba Gold Deposit will allow Columbia to have direct, inexpensive and faster access to the product from the La Jojoba project. Columbia has already secured the exploration rights to 3385.1 hectares adjacent to and between the La Jojoba property and Lluvia De Oro deposits including the Jojoba gold deposit. Columbia now controls the contiguous mineral rights to some 60 square kilometres in the area. The leasing of the surface rights to the Lluvia Mine now provides Columbia with the infrastructure to process gold bearing material from its various gold mining projects at Columbia's own processing facility.

The lease agreement is for a three (3) year period, renewable for an additional three (3) years at the sole option of Minera Columbia, upon the same terms of the lease agreement. The lease agreement calls for Minera Columbia to pay US$40,150 on signing and the same amount for each of the remaining years of the lease.

Columbia will now continue with site visits that were put on hold until the surface rights issues were finalized. Kappes Cassiday can now start its review and evaluation of the Lluvia Plant Facility. Prior to these visits diesel mechanics will be reconditioning the diesel generators so electrical power will be made available for the visits by the engineers.

The management of Columbia is very excited about this new development Carl Di Placido, President of Columbia states that, "We are pleased that we were able to come to a mutually beneficial agreement with the Lopez family. Columbia looks forward to a long working relationship with Sr. Lopez and his family members."

JOJOBA PROJECT

The Company is pleased to report that the NI 43-101 Report prepared by Rodney Blakestad, J. D., C. P. G. and G. H. Giroux, P. Eng., MASc. on the recently acquired Jojoba Gold Property, Sonora, Mexico has been received and filed with The Toronto Venture Exchange and Sedar filed. The Jojoba property is located some 4 kilometres west of Columbia's Lluvia de Oro metallurgical gold extraction plant.

The summary of the Blakestad and Giroux document will be posted on the Company's website and a link will be provided to the Sedar filed complete report.

Blakestad et al have re-calculated the mineral inventory for the northeast zone, the most prominent and best explored (and probably most readily exploitable) of the 7 known gold bearing zones on the property.

"The Mineral Resources reported in this document are provided in a range of gold cut-off values, categorized by grams per tonne gold (g/T Au) in-situ. A range of Indicated and Measured Mineral Resources (M+I) that correspond to the range of values potentially appropriate for development consideration of the Northeast Zone of the La Jojoba property are summarized below.



-----------------------------------------
Tonnes Grade
greater greater
Au than Cutoff than Cutoff
Cutoff ----------------------------------------------------------
(g/T) (tonnes) Au(g/T) Contained Ozs Au Cu (%)
--------------------------------------------------------------------
0.25 10,590,000 0.682 232,208 0.06
--------------------------------------------------------------------
0.3 9,050,000 0.752 218,808 0.06
--------------------------------------------------------------------
0.35 7,910,000 0.813 206,759 0.06
--------------------------------------------------------------------
0.4 7,070,000 0.865 196,623 0.07
--------------------------------------------------------------------
0.45 6,270,000 0.922 185,864 0.07
--------------------------------------------------------------------
0.5 5,510,000 0.984 174,319 0.07
--------------------------------------------------------------------


The estimated M + I resources for the Northeast Zone are believed to be sufficiently defined to provide the basis for preparation of preliminary economic feasibility studies. It is recommended that a scoping study be performed to establish the basic design criteria and cost estimates for gold recovery. The scoping study should include a preliminary mine-pit design to accommodate the distribution of mineralization defined to date."

A small drill program (less than 2,000 metres) will be required to provide material for additional metallurgical tests, rock density studies on the various lithologies, rock quality designation studies for rock competency, slope stability determinations and pit design purposes. Additional geotechnical studies will be required to identify waste storage sites and mine site facility sites. Baseline environmental studies and archaeological studies will have to be initiated immediately to facilitate permitting for future production scenarios.

http://www.columbiametals.ca/i/pdf/JojobaFinal-NI-43-101.pdf

This press release was prepared by J. E. Steers, P. Eng., Q. P. for the Company and V.P. Exploration.

Shares Outstanding: 42,400,220

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
    (416) 364-6799