Columbus Gold Corporation

TSX VENTURE : CGT


Columbus Gold Corporation

October 17, 2013 11:16 ET

Columbus Gold Drills 1.82 g/t Over 27 Meters at Eastside Gold Discovery in Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 17, 2013) - Columbus Gold Corp. (TSX VENTURE:CGT) ("Columbus Gold") is pleased to announce that drilling at its 100% controlled Eastside gold project in Nevada has encountered significant gold mineralization, including 27 meters (88.5 feet) of 1.82 g/t gold within a wider 53.4 meter intercept grading 1.108 g/t gold, in hole ES-14. ES-14 also cut 12.2 meters (40 feet) of 54.1 g/t silver (1.59 opt Ag) associated with the gold.

Drilling consisted of 12 angle RC holes totaling 2,391 meters (7,890 feet) and was designed to follow up on the discovery by Columbus Gold in 2011, which cut 13.6 meters (44.6 feet) of 2.42 g/t gold (including 6 meters of 5.17 g/t gold), in hole ES-4.

In the current program, drill holes ES-13, 14, 19 and 21 cut the same zone of gold/silver mineralization but closer to surface than discovery hole ES-4 where the zone exceeded 30 meters in thickness and averaged from 0.8 g/t to 1.8 g/t gold at about 76 to 168 meters (250 to 550 feet) of vertical depth. The drilling to date indicates this zone is continuous over at least 330 meters (1,080 feet) of strike, and remains open to depth and to the surface, and in all directions except to the north. Notably, silver mineralization is associated with the gold in ES-14, 19, 20, and 21.

Robert Giustra, CEO of Columbus Gold, commented: "The discovery of significant near surface gold mineralization amenable to open pit mining is a major milestone for the Eastside Project. Further, if there is such a thing as an ideal location to find a gold mine, this may be it - infrastructure for mining and processing is outstanding and in the very friendly mining jurisdiction of Nevada. The project is only 20 miles west of the mining town of Tonopah; 6 miles north of paved highway US 95 on a good gravel road maintained by the County; a major power transmission line passes through the project claim block; water is plentiful; and, the area is sparsely vegetated with excellent access year-round."

Gold at Eastside occurs near, and is associated with, the contact of an altered Tertiary rhyolite dome and the surrounding tuffs and volcaniclastic rocks intruded by the dome. The rhyolite dome is highly altered and yielded gold values from anomalous to 7.9 g/t in Columbus Gold surface sampling.

The shapes of all gold zones drilled at Eastside are not fully known from the widely-spaced drilling to date, but the deeper gold/silver zone is overlain with a low grade "cloud" of gold mineralization, within the rhyolite dome, exceeding 0.1 g/t gold from the surface. Better grade zones, over significant widths, occur within the "cloud". "Cloud" intercepts occur in all drill holes that cut the altered rhyolite dome. These "cloud" intercepts are generally lower grade than the deeper mineralization. "Cloud" mineralization that is significant was cut in several holes - examples include ES-19 (30.5 meters of 0.78 g/t gold and an additional 4.6 meters of 4.21 g/t gold), and ES-13 (42.6 meters of 0.41 g/t gold).

It appears from the drilling so far that the gold zones become more consistent and better grade with depth. More, and deeper drilling will be required to confirm this possibility, however Columbus Gold currently believes the deeper gold mineralization cut in 2013 drilling, along with the overlying "cloud" mineralization, may be minable by open pit at a reasonable stripping ratio, but more drilling is necessary.

Drill hole ES-20 cut what is thought to be a different zone of gold mineralization than encountered in the other holes, and intercepted 44.2 meters (145 feet) of 0.844 g/t gold, including 29 meters (95 feet) of 1.20 g/t gold at about 104.5 meters (345 feet) of vertical depth from surface. This zone is in silicified, volcaniclastic tuff and is blind to the surface. It is not known whether this zone in ES-20 could represent a second, parallel mineralized structure or if it is bedding-replacement mineralization in the layered tuffs. This zone remains open in all directions.

A drill hole location map, and an assay summary from the 2013 drill campaign can be viewed at the following links:

www.columbusgoldcorp.com/i/nr/2013-10-17-map.pdf

www.columbusgoldcorp.com/i/nr/2013-10-17-assays.pdf

Columbus Gold is very encouraged by the potential at Eastside, and is currently mapping and sampling 5 other rhyolite flow-dome complexes identified at the project which are undrilled. A third phase of drilling is planned for late 2013 or early 2014 to test for extensions of areas of known mineralization.

Quality Assurance / Quality Control

Gold and silver assays were performed by American Assay Labs in Sparks, Nevada. American inserts blinds and standards in the drill hole assay string-generally 7% of all assays performed are of standards or blinds. In addition Columbus Gold takes a second sample at the rig during drilling of each interval for check sampling. Columbus Gold has checked 40 Eastside drill intervals to date that were in good agreement with the assays reported in this release. Additional check sampling is ongoing and, if material differences occur, those will be reported. Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical content of this press release. Mr. Wallace is the President of Columbus Gold and the principal of Cordilleran Exploration Company (Cordex), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.

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 drilling, and Columbus Gold'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 Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.

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