Columbus Gold Corporation

Columbus Gold Corporation

August 18, 2011 09:00 ET

Columbus Gold Announces Drill Results from Golden Mile Project in Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2011) - Columbus Gold Corporation (TSX VENTURE:CGT)("Columbus Gold") is pleased to provide drilling results by JV partner, Roscan Minerals Corporation (TSX VENTURE:ROS) ("Roscan"), at Columbus Gold's Golden Mile project located in Nevada, USA. Roscan can earn an initial 60% interest in Golden Mile by incurring exploration expenditures of US$2.5 million and fulfilling certain other obligations.

The drilling program consisted of a total of 3,146 feet (958.9 meters) drilled by Roscan in five diamond core holes. Four of the holes were drilled as twin holes to reverse circulation rotary (RC) holes drilled by previous explorers to compare assay results and to determine controls on gold mineralization. One hole was drilled to test a mapped north-northwest trending shear zone.

Drilling intersected up to 20.0 feet averaging 1.353 oz/ton (6.1 meters averaging 46.403 g/tonne) in hole GMC002, which twinned a previous reverse circular hole that intersected 30.0 feet averaging 1.37 oz/ton (9.1 meters averaging 46.97 g/tonne). High-grade gold mineralization is concentrated in iron oxide veinlet zones that represent weathered pyrite veinlet zones that trend north-northwest within calcareous sandstone and quartz diorite.

Significant drill intercepts are listed in the following table:.

Table 1. Significant 2011 Drill Intercepts
HOLE (ft ) (ft ) (ft ) (m ) (m ) (m ) (oz/ton ) (g/tonne )
GMC001 215.0 220.0 5.0 65.53 67.06 1.52 0.042 1.429
GMC001 325.0 330.0 5.0 99.06 100.59 1.52 0.072 2.479
GMC001 350.0 355.0 5.0 106.68 108.21 1.52 0.057 1.959
GMC001 380.0 395.0 15.0 115.83 120.40 4.57 0.018 0.628
GMC001 635.0 650.0 15.0 193.55 198.12 4.57 0.041 1.402
GMC001 675.0 680.0 5.0 205.74 207.27 1.52 0.054 1.864
GMC002 60.0 80.0 20.0 18.29 24.38 6.10 1.353 46.403
GMC002 130.0 135.0 5.0 39.62 41.15 1.52 0.035 1.189
GMC002 150.0 155.0 5.0 45.72 47.24 1.52 0.066 2.264
GMC002 245.0 255.0 10.0 74.68 77.72 3.05 0.062 2.115
GMC002 285.0 360.0 75.0 86.87 109.73 22.86 0.022 0.740
GMC003 140.0 150.0 10.0 42.67 45.72 3.05 0.036 1.234
GMC003 180.0 195.0 15.0 54.86 59.44 4.57 0.410 14.060
GMC003 250.0 260.0 10.0 76.20 79.25 3.05 0.105 3.609
GMC003 445.0 455.0 10.0 135.64 138.69 3.05 0.053 1.805
GMC004 275.0 285.0 10.0 83.82 86.87 3.05 0.024 0.821
GMC004 415.0 425.0 10.0 126.49 129.54 3.05 0.078 2.689
GMC005 80.0 90.0 10.0 24.38 27.43 3.05 0.212 7.265

The drill program was designed to determine which structures host the gold in the Golden Mile Property, along with the distribution and trend of the mineralization in properties for delineating a reserve. Based upon logging of the core, anomalous to ore-grade mineralization is associated with calcite-pyrite ± quartz veinlets and semi-massive pyritic zones in calcareous sandstone and quartz diorite. The calcite-pyrite ± quartz veinlets are generally less than 2 cm thick and the pyritic zones are generally 2 to 10 cm thick. The most common orientation of both the veinlets and pyritic zones are 25° to Core Axis, suggesting a northwest orientation to gold mineralization.

Drilling was completed by Timberline Drilling with an AH-5 skid-mounted core rig. Core recovery was greater than 90%. Rock quality designation measurements and core photography was completed by John Lukens and Allen Crist. Core was logged and sample intervals were marked on-site by John Lukens. When logging was completed, the core was taped closed and palletized for pick up by American Assay Laboratories (AAL) of Sparks, NV, a reputable laboratory under the Mineral Exploration Best Practices Guidelines. After the core was transported, it was cut with a diamond bladed saw by AAL personnel. The core then was dried, crushed to -10 mesh, split to 250 g and the split was pulverized to -150 mesh. A 30 g charge was analyzed by Fire Assay with an ICP (1ppb detection limit). Samples containing over 3 ppm (3 g/tonne) were re-analyzed by Fire Assay with a gravimetric finish. Multi-element ICP analysis for major and trace elements was completed on all samples submitted.

The Golden Mile Property consists of 24 mineral claims which are, in part, subject to underlying annual lease payments and net smelter return royalties. The claims cover approximately 154 hectares (380 acres), along the Walker Lane Gold Trend in Southwest Nevada. During the 1930's the property produced approximately ten thousand tonnes of ore grading 12 g/t (0.42 oz/t) gold. Geophysical surveys and drilling carried out in the 1970's, 1980's and by Columbus Gold in 2006, defined skarn, breccia and disseminated gold mineralization. The drilling includes several high grade gold intercepts, including one intercept of 16 g/t (0.56 oz/t) gold along 29.5 m (96.8 ft), which occur within a broad area of lower grade gold mineralization. The historic data was compiled pre-National Instrument 43- 101 reporting.

John Lukens, CPG #11413, a qualified person under National Instrument 43-101, has prepared or supervised the scientific or technical information for the Golden Mile Property and verified the data disclosed in this press release.


Robert Giustra, CEO and Chairman

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 drilling, and Columbus Gold's, and Roscan's 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 without limitation 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, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; 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: 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 and joint venturers. The foregoing list is not exhaustive and Columbus Gold undertake no obligation to update any of the foregoing except as required by law.

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.

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