SOURCE: Columbus Gold Corporation

Columbus Gold Corporation - www.columbusgoldcorp.com

October 28, 2014 09:00 ET

Columbus Gold Drills 10.6 Meters of 5.23 g/t Gold at Montagne d'Or; French Guiana

VANCOUVER, BC--(Marketwired - October 28, 2014) - Columbus Gold Corporation (TSX VENTURE: CGT) (OTCQX: CBGDF) ("Columbus Gold") is pleased to announce drill results from an additional 9 holes from its Phase II resource development diamond drilling campaign currently underway at its 100%-owned Montagne d'Or gold deposit, Paul Isnard Project, in French Guiana. To date 106 holes (106 to 203 and 206 to 213) have been completed, for a total of 20,750 meters.

"This latest round of results has demonstrated good continuity of the principal UFZ zone within the west-central and east-central sections of the deposit. All holes returned thick gold mineralized intervals within 200 metres from surface" commented Robert F. Giustra, Chairman and CEO of Columbus Gold. "With three drill rigs operating we are well on our way to finalizing the current drill program in early November and targeting completion of a new resource estimate in January."

Highlights of the 9 holes reported are tabulated below:

Drill Hole Intercept (m) Grade Length True Width Zone
From To g/t Gold M m
MO-14-170 14.0 49.8 2.02 35.8 27.6 UFZ
including 27.5 38.1 5.23 10.6 8.2  
  183.3 228.4 0.56 45.1 38.5 LFZ
MO-14-171 142.1 234.0 1.06 91.9 75.4 UFZ
including 182.0 198.8 2.84 16.8 13.8  
MO-14-172 71.4 174.1 0.69 102.7 82.3 UFZ
including 151.7 174.1 1.39 22.4 18.2  
MO-14-173 44.7 81.7 1.69 37.0 29.1 UFZ
including 65.7 76.1 5.20 10.4 8.2  
  159.3 249.4 0.56 90.1 74.3 UFZ/LFZ
including 197.0 213.0 2.48 16.0 13.2 LFZ
MO-14-174 86.2 216.6 0.70 130.4 113.0 UFZ
including 159.0 185.9 1.53 26.9 23.7  
  226.7 279.0 0.93 52.3 47.4 LFZ
including 236.7 259.8 1.78 23.2 21.0  
MO-14-175 108.8 195.8 0.59 87.0 70.0 UFZ
MO-14-180 198.8 317.5 0.64 118.7 103.1 UFZ
including 246.5 273.7 1.84 27.2 23.7  
MO-14-181 169.0 250.8 0.51 81.8 67.9 UFZ
MO-14-182 210.6 330.3 0.76 119.8 95.7 UFZ
including 214.5 222.0 4.13 7.5 5.8  
  • Holes 170, 171, 172, 173 and 180 were planned to better define the west-central section of the principal Upper Felsic Zone ("UFZ") of the deposit. 
  • Holes 174, 175, 181 and 182 were planned to better define the east-central section of the UFZ.
  • All holes cut thick sulphide-gold mineralized intervals.
  • Holes 170, 173 and 174 were extended to test the secondary Lower Favorable Zone ("LFZ") at depth and returned notable gold mineralized intersection from this zone.
  • A drill plan and significant assay results are available at the following links:

www.columbusgoldcorp.com/i/nr/2014-10-28-drillplan.pdf

www.columbusgoldcorp.com/i/nr/2014-10-28-assays.pdf

The Montagne d'Or gold deposit is presently defined over 2,500-meter by 400-meters and to an average depth of 250 meters from surface. The mineralised zones remain open in part along strike, between widely spaced holes, and at depth. Utilizing a cut-off grade of 0.4 g/t gold, the Montagne d'Or deposit hosts an Inferred resource of 140.1 million tonnes grading 1.0 g/t gold for a total of 4.31 million contained ounces of gold. Please refer to Columbus Gold's news release of June 30, 2014 for more information. The drilling is being funded by Nord Gold N.V. (LSE: NORD LI) 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 and the Paul Isnard mineral claims, by completing a bankable feasibility study no later than March 2017.

The drill program is currently advancing with three track-mounted diamond drill rigs, each operating on two 12-hour shifts per day, with the aim of completing the Phase II program in the first week of November.

Gold assay results were previously released for 58 short holes (106 to 163), which were completed at the northern foothill of Montagne d'Or massif and designed to test the near surface projection of the secondary LFZ and FWZ, and 6 holes (164 to 169) completed along the west portion of the main UFZ.

The objectives of the Phase II resource development diamond drill program are to:

  • Complete a 50-meter spacing array to a vertical depth of 200 meters from surface, focused on mineralization potentially amenable to open pit mining;
  • Internally increase current mineralized tonnage;
  • Increase confidence in the gold grade-width distribution;
  • Convert portions of the Inferred resources to the Indicated and Measured categories in accordance with NI 43-101 standards; and
  • 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 heavy PVC plastic core boxes with covers and delivered by the drilling contractor, Pro Forage Guyane (formerly Performax Drilling Inc.), 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 meters. Individual half core samples were placed and sealed in heavy duty cellophane plastic bags and placed by batch of 9 samples in sealed 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 and ICP-MS multi-element analysis, including copper.

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. The QA/QC program includes the insertion of gold and copper 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 and current drilling programs, including, without limitation, the objectives of the Phase II resource development diamond drill program; completion of new mineral resource estimate; 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 ("BFS"); 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 the ability to complete a new resource estimate by the stated target date 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 BFS 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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