Columbus Gold Corporation
TSX VENTURE : CGT
OTCQX : CBGDF

Columbus Gold Corporation

December 03, 2015 09:00 ET

Columbus Gold Adds Fourth Drill Rig at Montagne d'Or Gold Deposit, Paul Isnard

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 3, 2015) - Columbus Gold Corporation (TSX VENTURE:CGT)(OTCQX:CBGDF) is pleased to announce that four drill rigs are now operating at its 100% owned Montagne d'Or Gold Deposit, Paul Isnard Project, in French Guiana, with the aim of completing the Feasibility Study by the end of 2016, up to four months earlier than originally planned.

Columbus is completing a Feasibility Study at the Montagne d'Or Gold Deposit and concurrently carrying-out an infill-drilling program. Two additional drill rigs, for a total of four, were put into operation in late November to complete all drilling requirements for the Feasibility Study by the end of Q1-2016. The 2015 drilling program, which commenced in the summer, includes up to 15,000 meters of infill drilling designed to convert a portion of the Indicated ounces to Measured, up to 5,000 meters of condemnation drilling of the proposed infrastructure sites, and up to 3,500 meters of geotechnical drilling and installation of piezometers for hydrogeological characterization.

The infill-drilling program will upgrade a portion of the Indicated resources to the Measured category with a 50-meter by 25-meter drill array over a strike extent of 635 meters (sections 2500E to 3135E), and to a vertical depth 150 meters, within the anticipated starter pit where previous drilling confirmed the best grades, widths and continuity to the gold mineralization. The infill drilling includes 10,250 meters "Priority 1" shallow drilling with an additional 4,600 meters of provisional "Priority 2" deeper drilling on the principal Upper Felsic Zone ("UFZ"). In addition, with limited drilling in the saprolite layer to date, Columbus believes a near surface gold resource can be defined at Montagne d'Or.

A total of 37 infill holes (3,267 meters), 7 condemnation holes (554 meters), and 9 geotechnical holes (1,187 meters) have been completed to date. Assay results for the infill drilling are expected in the upcoming weeks.

Montagne d'Or Gold Deposit

The Montagne d'Or deposit consists of closely-spaced sub-parallel east-west-striking and steeply south-dipping gold-sulfide mineralized horizons. The deposit is presently drill-defined over a strike extent of 2,300 meters and to an average depth of 250 meters from surface. The mineralized zones remain open on strike to the west and at depth. Utilizing a cut-off grade of 0.4 g/t gold, the deposit hosts Indicated resources of 83.2 million tonnes grading 1.45 g/t gold (3.9 million ounces) and Inferred resource of 22.4 million tonnes grading 1.55 g/t gold (1.1 million ounces) (refer to new release dated April 21, 2015). Mineral resources that are not mineral reserves do not have demonstrated economic viability.

A Preliminary Economic Assessment ("PEA") for the Montagne d'Or deposit was completed by SRK Consulting (U.S.) Inc. in July 2015 (refer to news release dated August 4, 2015). The PEA indicated positive results including an after-tax Net Present Value (5%) of US$451 million, an after-tax Internal Rate of Return of 23%, and approximately 273,000 ounces of gold produced per year in the first 10 years of production at an All-In Sustaining Capital Cost per ounce of US$711 and mined head grade of 2.0 g/t Au. The PEA is preliminary in nature. The PEA 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. There is no certainty that the PEA will be realized. A copy of the PEA is filed under Columbus' profile on SEDAR at www.sedar.com.

The Feasibility Study is being funded by Nord Gold N.V. (LSE:NORD) as part of a minimum US$30 million exploration and development program pursuant to which they can earn a 50.01% interest in Montagne d'Or by funding completion of the BFS no later than March, 2017. Nord Gold project expenditures were US$16 million in 2014, and approximately US$22 million in total to date.

The drilling program is conducted under the supervision of Keith Benn, PhD, P.Geo., a Qualified Person under National Instrument 43-101. Rock Lefrançois, Chief Operating Officer for Columbus Gold and Qualified Person under National Instrument 43-101, has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed.

ON BEHALF OF THE BOARD,

Robert F. Giustra, Chairman & CEO

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.

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting Columbus Gold's: the expected completion date of a feasibility study and related drilling requirements; the expected timing for assay results;; the potential results of the drilling program; and general exploration plans. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including: the ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers and drill equipment; competition for mining properties; risks associated with exploration projects including, without limitation, the accuracy of interpretations; mineral reserve and resource estimates (including the risk of assumption and methodology errors and ability to complete a new resource estimate by the proposed target date or at all); the ability to meet proposed schedules for the completion of metallurgical tests; the ability to complete the feasibility study by the stated deadline or at all; dependence on third parties for services; non-performance by contractual counterparties; title risks; risks associated with Nord Gold N.V. electing not to exercise its option and make the related option payments and the ability to complete the feasibility study by the stated deadline or at all; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: that the design of the drill plan is appropriate for the site; general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies including, without limitation, drill rigs; and ongoing relations with employees, partners, optionees and joint venturers. The foregoing list is not exhaustive and Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.

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