Columbus Gold Corp.
TSX : CGT
OTCQX : CBGDF

Columbus Gold Corp.

April 22, 2016 09:00 ET

Columbus Gold Drills 34.1 Meters of 4.44 g/t Gold and Completes Infill Drill Program at Montagne d'Or, French Guiana

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 22, 2016) - Columbus Gold Corp. (TSX:CGT)(OTCQX:CBGDF) ("Columbus") is pleased to announce the completion of the 2015-2016 resource development drilling program on its 100%-owned Montagne d'Or gold project, French Guiana. Notable new results include:

  • 3.04 g/t gold over 44.9 m (36.1 m TW)
    including 29.01 g/t gold over 3.4 m (2.7 m TW)
  • 3.38 g/t gold over 30.9 m (25.7 m TW)
    including 9.35 g/t gold over 7.8 m (6.5 m TW)
  • 4.44 g/t gold over 34.1 m (24.0 m TW)
    including 10.77 g/t gold over 11.7 m
  • 11.50 g/t gold over 9.3 meters (6.7 m true width)

The program amounted to 62 drill holes, for a total of 6,580 meters, designed to upgrade a portion of the Indicated resources to the Measured category as part of the on-going Bankable Feasibility Study. Twenty-seven (27) holes were completed in the principal UFZ zone and thirty-five (35) in the secondary LFZ zone.

Assay results were previously released for 35 drill holes (see News Release dated December 10, 2015). Following are the highlights from the remaining 27 holes of the program (g/t gold x true width ≥25):

Drill Hole Intercept (m) Grade
(g/t Gold)
Length
(m)
True Width (TW)
(m)
Zone
From To
MO-15-240 67.8 77.1 11.50 9.3 6.7 LFZ
MO-15-243 149.2 162.4 3.33 13.2 10.7 LFZ
including 154.8 161.4 5.99 6.6 5.4
MO-16-246 125.7 152.7 1.58 27.0 22.3 UFZ
MO-16-247 159.9 183.4 2.02 23.5 19.3 UFZ
MO-16-248 95.9 140.8 3.04 44.9 36.1 UFZ
including 102.3 105.7 29.01 3.4 2.7
MO0-16-249 106.0 125.5 2.18 19.5 16.6 UFZ
including 118.3 123.2 6.96 4.9 4.1
MO-16-250 105.7 131.2 2.23 25.5 20.3 UFZ
including 106.7 111.0 10.77 4.2 3.4
MO-16-251 49.8 72.8 1.46 23.1 17.4 UFZ
MO-16-255 9.1 21.0 3.89 11.9 9.1 UFZ
MO-16-256 45.8 67.8 2.31 22.0 17.8 UFZ
including 45.8 53.8 4.16 8.1 6.5
MO-16-257 54.3 98.5 1.57 44.2 34.6 UFZ
MO-16-285 120.3 135.0 2.67 14.7 11.3 LFZ
including 128.0 134.3 5.73 6.33 4.9
MO-16-287 14.4 52.4 1.08 38.0 28.6 UFZ
MO-16-288 74.7 107.7 1.53 33.0 27.8 UFZ
including 97.8 102.2 7.44 4.4 3.6
117.7 129.9 2.46 12.2 10.7
MO-16-289 47.9 55.9 4.07 8.0 6.0 UFZ
MO-16-290 4.1 48.6 1.83 44.5 36.1 UFZ
MO-16-291 90.0 141.6 0.92 51.6 39.3 UFZ
MO-16-292 30.3 61.1 3.38 30.9 25.7 UFZ
including 53.3 61.1 9.35 7.8 6.5
MO-16-294 23.8 57.9 4.44 34.1 24.0 UFZ
including 46.1 57.9 10.77 11.7 8.3

Complete results of the last 27 drill holes of the program, drill plan and a cross-section are available at the following links. The drill plan displays intersections of the 2015-2016 program with a metal factor (g/t gold x true width) ≥ 25.

www.columbusgold.com/i/nr/2016-04-22-results.pdf

www.columbusgold.com/i/nr/2016-04-22-drillplan.pdf

www.columbusgold.com/i/nr/2016-04-22-xsection.pdf

The 2015-2016 infill drilling program was designed to 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 550 meters and to a maximum vertical depth of 125 meters, within the anticipated starter pit (west section). The program was successful in confirming the excellent continuity to the gold mineralized zones and the higher grades within the west section of the deposit.

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 mineral resources of 83.2 million tonnes grading 1.45 g/t gold (3.9 million ounces) and Inferred mineral resource of 22.4 million tonnes grading 1.55 g/t gold (1.1 million ounces) (refer to News Release dated April 21, 2015).

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 gold.

A Bankable Feasibility Study ("BFS") was a lunched in October, 2015, contracted to a Lycopodium-SRK consortium. The BFS is anticipated to be completed by the end of 2016 and 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 (for a total of 55.01%) interest in Montagne d'Or.

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 transported by Columbus personnel to camp Citron logging facilities, located 5 km from Montagne d'Or. Columbus personnel are present on site at all times during the drilling program.

The core was photographed for reference and logged by Columbus geologists who also identified the sampling intervals. Samples were collected by sawing the core in half; sample lengths vary between 0.5 and 1.5 meters. Individual half-core samples were sealed in heavy duty cellophane plastic bags and placed by batch of 9 samples in sealed polypropylene bags for air transport to Cayenne and subsequent trucking to Filab Amsud laboratory in Paramaribo, Suriname, an ISO 9001 and ISO / IEC 17025 accredited laboratory. The remaining half-core is stored in sturdy core racks on site at camp Citron for reference. Samples were assayed for gold by the fire-assay method using an atomic absorption finish on a 50-gram pulp split and ICP-MS multi-element analysis, including copper.

RC holes were bored with a 5 1/8 inch diameter hammer. The bulk samples were split at the drill pad by Columbus personnel under the supervision of a Columbus geologist. RC sample lengths are 1 meter and sample weights are between 2.5 and 5 kg. Samples were placed in sturdy, pre-numbered cloth bags that were placed by batch of 6 samples in sealed polypropylene bags for air transport to Cayenne and subsequent trucking to the same laboratory used for analyzing core samples. Duplicate samples were systematically collected for each sampled meter; the duplicate samples are securely stored at camp Citron.

A quality assurance and quality control program (QA/QC) was implemented by Columbus and Filab Amsud to ensure 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 and copper check assays.

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

* Mineral resources that are not mineral reserves do not have demonstrated economic viability.

** The PEA is preliminary in nature, it 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. The PEA estimates economic results using a US$1,200/oz gold price, and an NPV 8%. Initial Capital Cost are estimated at US$366 million for a 13 year mine life. For the first 11 years, the annual recovered gold production is approximately 265,000 oz/year. The NPV 8% changes by approximately US$1.1 million per dollar change in gold price; and makes taxation assumptions on the French tax code.

ON BEHALF OF THE BOARD,

Robert F. Giustra, Chairman & CEO

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: the expected completion date of a feasibility study; the estimation of mineral resources; the realization of mineral resource estimates; the realization of the expected economics of the Montagne d'Or depositPaul Isnard project; 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 actual results of current and future exploration activities; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or rates of recovery; 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 the following: that the that the assumptions contained in Columbus' Preliminary Economic Assessment are accurate and complete; that the mineral resource update is positive; that the results of the Feasibility Study will be positive; general business and economic conditions; the timing and receipt of required approvals and permits; 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 undertakes no obligation to update any of the foregoing except as required by law.

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