SOURCE: Columbia Metals Corporation Ltd.

April 20, 2007 16:27 ET

Columbia Files Lluvia de Oro Pre-Feasibility Study

Anticipated Year 1 Production 35,100 Ounces Au

TORONTO -- (MARKET WIRE) -- April 20, 2007 -- Columbia Metals Corporation Limited (TSX-V: COL) is pleased to announce that the DENM Engineering Limited Pre-Feasibility Report recommending the sequential start-up of the crushing and re-leaching of the existing Lluvia de Oro leach pad, the re-opening of the Lluvia de Oro Mine and the mining and leaching of the Northeast Zone of the Jojoba Project was SEDAR filed April 18, 2007.

* Crushing and leaching of pad material to commence May 15/07

* Cyanide Addition Third Quarter

* First gold pour Fourth Quarter (October)

* Year one production anticipated 35,100 oz (40% more than design capacity of Lluvia Mine)

* Years 2, 3, 4, 5: 40,500, 43,600, 43,600, 43,600 oz

The summary from the Pre-Feasibility study is reproduced below:

Summary of Pre-Feasibility Study

A pre-feasibility study regarding a three-phase production scenario for the combined Mineral Resources for Lluvia de Oro and the Northeast Zone at La Jojoba indicates that commercial production of gold-silver-copper Mineral Resources determined for both projects will be economically viable and technically feasible at a gold price in excess of US$550 per ounce. The elements of the pre-feasibility study results are summarized in Table 1.9 and 1.10.

Table 1.9 Resources(1) and Production Summary
--------------------------------------------------------------
Resources
--------------------------------------------------------------
Lluvia de Oro -- Pad           0.64 Million Tonnes @ 0.531 g/t
--------------------------------------------------------------
Lluvia de Oro -- Zone          2.39 Million Tonnes @ 0.639 g/t
--------------------------------------------------------------
La Jojoba -- Northeast Zone    9.05 Million Tonnes @ 0.752 g/t
--------------------------------------------------------------
Contained Gold                 8.662 Million grams
--------------------------------------------------------------
Production
--------------------------------------------------------------
Ore Crushed and Loaded         2.387 M tonnes/year (years 1-2)
                               2.475 M tonnes/year (years 3-5)
                               6,550--6,800 MT/day
--------------------------------------------------------------
Operating Days / Year          365 days per year
--------------------------------------------------------------
Average Recovery
Lluvia de Oro                  75 %
La Jojoba                      74 %
--------------------------------------------------------------
Annual Gold Production         1.092--1.357 M grams (years 1-5)
--------------------------------------------------------------
Total Gold Produced            6.425 M grams
--------------------------------------------------------------


Table 1.10 Summary Base Case Cash Flow Results
------------------------------------------------------
Capital Costs *                    $ 11.8 million U.S.
------------------------------------------------------
Average Cash Cost                  $ 436 U.S. / ounce
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Net Cash Flow **                   $ 0.16 million U.S.
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Base Gold Price - $U.S. per ounce  $ 550
------------------------------------------------------
IRR ***                            1 %
------------------------------------------------------
Mine(s) Life                       5 years
------------------------------------------------------
Payback ****                       60 months
------------------------------------------------------

* Includes ongoing capital requirements for both properties including property payments but excludes sunk costs to date.

** Includes royalty (2 % La Jojoba), 20 % NCF (net cash flow interest - Lluvia) payments and applicable Mexican taxes.

*** After Mexican Tax

**** Excludes sunk costs, includes property payments to Tara Gold

(1) Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The above statistics are based only on the measured and indicated resources (M+I)1 and a gold price of US $550/ounce. The table below outlines the economic parameters expected at various gold prices.

Summary of Economic Analysis** 0% discount rate
------------------------------------------------------------------------
               $U.S. 500/oz   $U.S. 550/oz   $U.S. 650/oz   $U.S. 695/oz
------------------------------------------------------------------------
IRR *               (0)            1 %            42 %           62 %
------------------------------------------------------------------------
Net Cash Flow - 8.7 million   0.16 million   12.3 million   18.7 million
------------------------------------------------------------------------
Payback             (0)         60 months      29 months     24 months
------------------------------------------------------------------------
Additional resource definition drilling to bring the Upper Zone inferred resources at the Lluvia Mine into measured and indicated categories will extend mine life and would yield economic parameters as outlined below:
Summary of Economic Analysis for Extended Mine Life ($U.S.)**(2) 0%
discount rate
------------------------------------------------------------------------
               $U.S. 500/oz   $U.S. 550/oz   $U.S. 650/oz   $U.S. 695/oz
------------------------------------------------------------------------
IRR *               (0)            11 %           51 %           69 %
------------------------------------------------------------------------
Net Cash Flow - 6.7 million   6.3 million    32.2 million   44.0 million
------------------------------------------------------------------------
(2) The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

* After Tax

The DENM Pre-Feasibility study was authored by D.E.N.M. (Engineering) Ltd., G.H. Giroux, P.Eng., MA Sc, R.A. Blakestad, J.D., C.P.G.

This news release was prepared by J. E. Steers, P. Eng., QP for the Company.

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

Forward-Looking Statements:

The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government, and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues, and mineral recovery processes. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance, or achievements.

This News Release is not intended for distribution in the United States.

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Contact Information

  • For Further information, please contact:

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

    Columbia Metals Corporation Limited
    402 - 121 Richmond Street West
    Toronto, ON
    M5H 2K1 Canada
    Phone: (416) 364-6799
    Fax: (416) 364-2595
    www.columbiametals.ca