Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

February 26, 2014 09:00 ET

Columbus Gold Announces Initial Results of Phase II Drilling at 5.4 Million Once Montagne d'Or Gold Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 26, 2014) - Columbus Gold Corporation (TSX VENTURE:CGT) ("Columbus Gold") is pleased to report on the progress of the Phase II diamond drilling campaign currently underway at its 5.37 million ounce Montagne d'Or Inferred gold deposit, Paul Isnard Project, French Guiana.

Drilling commenced in late November 2013 with one drill rig operating on one 12-hour work shift per day. Operations were suspended for the Christmas holidays and resumed in early January on a 24-hour continuous basis with two 12-hour shifts daily. Thirty-five (35) drill holes have been completed to date, for a total of 4,126 metres. A contract has been signed for a second drill rig which is expected to arrive on site in May, with the aim of completing the 26,600 meter, 135 hole program by late summer, with two drills operating on a 24-hour basis.

The holes drilled to date in the current program are short holes at the northern base of the Montagne d'Or deposit, designed to test the near surface projection of the secondary Lower Favorable Zone ("LFZ") and Footwall Zone ("FWZ"). Some of the holes were collared into the principal Upper Felsic Zone ("UFZ") to reach the LFZ. Gold assay results have been received for the first 12 holes. All holes intersected sulphide-gold mineralised intervals; notable intersections include:

Hole MO-13-107 30.0 to 36.0 m 6.06 g/t gold over 6.0 m (4.6 m True Width ("TW"))
70.0 to 87.7 m 2.27 g/t gold over 17.7 m (14.2 m TW)
Hole MO-13-108 1.0 to 28.0 m 1.26 g/t gold over 27.0 m (20.3 m TW)
Hole MO-14-110 5.0 to 9.0 m 6.57 g/t gold over 4.0 m (3.1 m TW)
Hole MO-14-115 107.2 to 116.0 m 3.50 g/t gold over 8.8 m (6.7 m TW)
Hole MO-14-116 67.1 to 70.0 m 11.67 g/t gold over 2.9 m (2.3 m TW)

A drill plan and full assay results are available at the following links:

www.columbusgoldcorp.com/i/nr/2014-02-26-drillplan.pdf

www.columbusgoldcorp.com/i/nr/2014-02-26-assays.pdf

The drilling is being funded by Nord Gold N.V. as part of a 3 year minimum US$30 million exploration and development program pursuant to which Nord Gold can earn a 50.01% interest in Montagne d'Or and certain Paul Isnard mineral claims, by completing a bankable feasibility study.

The Montagne d'Or deposit contains a NI 43-101 compliant inferred gold resource using a cut-off grade of 0.3 grams per tonne gold of 5.37 million ounces within 117.1 million tonnes at an average grade of 1.43 grams per tonne gold. Using a cut-off of 1 gram per tonne gold a resource of 4.15 million ounces within 58.1 million tonnes at an average grade of 2.22 grams per tonne gold. The resources are defined within a gold mineralized area of 2,250 meters by 400 meters and to an average depth of 250 meters from surface. The mineralized zones remain open in part along strike and at depth.

The objectives of the Phase II drilling program are to:

  • Complete a 50-meter spacing array to a vertical depth of 200 meters from surface, and select 25-meter in-fill, focused on mineralisation potentially amenable to open pit mining;
  • internally increase the current mineral resource;
  • increase confidence in the gold grade-width distribution;
  • convert inferred resources to the indicated category in accordance with NI 43-101 standards;
  • acquire a better distribution of copper assays for added value to the deposit.

Qualified Person, Technical Info and QA/QC

Diamond drill holes were bored with HQ-size core in the upper oxidized saprolitic zone and NQ-size core in fresh rock. The core was placed in plastic core boxes with covers and delivered by the drilling contractor, Performax Drilling Inc., a Canadian company with qualified personnel, to the Citron camp logging facilities, located 5 km from Montagne d'Or. Columbus Gold personnel are present at the camp at all times during the drilling program.

The core was photographed for reference, logged (geotechnical and geological) and identified sulphide mineralised sections were sawed in half. Sample lengths vary between 0.5 to 1.5 metres. Individual half core samples were placed in canvas bags and sealed by batch of 9 samples in polypropylene bags for air transport to the Cayenne and trucking to Filab Amsud laboratory in Paramaribo, Suriname, an ISO 9001 and ISO / IEC 17025 accredited laboratory. The remaining half core is stored in core racks on site at Citron camp for reference. Samples were assayed for gold by fire-assay method using an atomic absorption finish on a 50-gram pulp split.

A quality assurance and quality control program (QA/QC) was implemented by Columbus Gold and Filab Amsud to insure the accuracy and reproducibility of the analytical method and results are maintained. The QA/QC program includes the insertion of standards, blanks and field duplicates in each laboratory assay batch and systematic re-assaying of samples returning values above 5 g/t Au by the fire-assay method using a gravimetric finish on a 50-gram pulp split. As well, 10% of random sample pulps are sent to SGS del Peru S.A.C. laboratory for gold check assaying.

The drilling program is being conducted under the supervision of Rock Lefrançois, P.Geo. (OGQ), Chief Operating Officer for Columbus Gold and Qualified Person under National Instrument 43-101. Mr. Lefrançois, the Qualified Person, 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: proposed drilling programs; projected funding of drilling programs by Nord Gold N.V. pursuant to the terms of the option agreement and the related completion of a bankable feasibility study 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, 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; risks associated with Nord Gold N.V. electing not to exercise its option and make the related option payments; 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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