Columbus Gold Corporation
TSX VENTURE : CGT
OTCQX : CBGDF

Columbus Gold Corporation

March 10, 2015 09:00 ET

Columbus Gold Drills 34.2 Meters of 2.16 g/t Gold at Western Extremity of Montagne d'Or Gold Deposit, Paul Isnard Project, French Guiana

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 10, 2015) - Columbus Gold Corporation (TSX VENTURE:CGT)(OTCQX:CBGDF) ("Columbus Gold") is pleased to announce drill results from an additional 7 holes from its Phase II resource development diamond drilling campaign at its 100%owned Montagne d'Or Gold Deposit, Paul Isnard Project, in French Guiana. Assay results have now been released for 112 holes and results for the last 14 holes of the program are being compiled and will be released in the upcoming days.

The recent drilling results on the western extremity of the deposit indicate that the gold grade is improving to the west. The deposit remains wide open to the west, where previous geophysical surveys, surface sampling and reconnaissance mapping have traced the favorable units hosting the deposit over a potential 5,000 meter west extension from the current known 2,500 meter strike length drilled to date.

Highlights of the 7 holes, which tested the principal Upper Felsic Zone ("UFZ") and secondary Lower Favorable Zone ("LFZ") and Foot Wall Zone ("FWZ"), are reported below:

Drill Hole Intercept (m) Grade Length True Width Zone
From To (g/t Gold) (m) (m)
MO-14-230 60.7 94.8 2.16 34.2 27.0 UFZ
including 65.5 70.5 5.69 5.0 3.9
MO-14-231 163.5 217.4 1.20 53.9 43.6 UFZ
including 179.5 190.2 3.30 10.7 8.6
MO-14-214* 7.0 29.0 1.54 22.0 15.4 UFZ
46.7 62.0 2.43 15.4 10.6 LFZ
MO-14-206* 9.5 38.8 0.92 29.3 21.3 UFZ
175.8 185.5 6.33 9.7 7.3 LFZ
MO-14-211* 260.0 285.0 1.50 25.0 19.6 FWZ
including 268.0 276.6 3.28 8.6 6.7
MO-14-212 141.0 165.5 1.03 24.5 19.1 FWZ
* Hole collared within the UFZ to test the LWZ and FWZ, therefore did not test the full width of the UFZ.
  • Holes 230 and 231, drilled on infill section 2450E, supplement the previously released excellent results obtained from the UFZ at the western boundary of the deposit, including 3.15 g/t gold over 33.5 meters in hole 164 (2400E) and 1.32 g/t gold over 72.4 meters in hole 169 (2500E). The deposit remains open for expansion to the west of section 2400E.
  • Holes 211 to 214 tested the secondary LFZ and HWZ in the east-central section of the deposit. Holes 211 and 212 returned intersections of 1.50 g/t gold over 25.0 meters and 1.03 g/t gold over 24.5 meters, respectively, from the FWZ. Hole 214 returned an intersection of 2.43 g/t gold over 15.4 meters from the LFZ.
  • Holes 206drilled on section 2550E, confirms the previously released higher grades obtained from the LFZ at the western boundary of the deposit, including 6.49 g/t gold over 12.8 meters in hole 154 (2650E).
  • The FWZ, located at the northern limit of the presently drilled out area, remains partially defined throughout the entire east-west strike extent of the deposit and has potential to lower the strip ratio of a potential open pit operation.

A drill plan and complete results are available at the following links. The drill plan highlights drill hole intersections with a metal factor (g/t gold x true width) ≥50:

www.columbusgoldcorp.com/i/nr/2015-03-10-drillplan.pdf

www.columbusgoldcorp.com/i/nr/2015-03-10-assays.pdf

The 25,560-meter Phase II drilling program was completed in early November and totaled 126 holes. All assay results from the program have been received. Results for the last 14 holes are being compiled and will be released in the upcoming days. A three-dimensional geological model of the deposit is being generated by a two-dimensional sectional interpretation, and will be used as the foundation for the updated resource model.

The objectives of the Phase II resource development drill program at the Montagne d'Or Gold Deposit were to:

  • Complete a 50-meter spacing array over a strike extent of 2,300 meters to a vertical depth of 200 meters from surface, focused on mineralization potentially amenable to open pit mining;
  • Increase current mineralized tonnage within the deposit;
  • 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.

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 mineralized zones remain open on strike to the west and at depth. Utilizing a cut-off grade of 0.4 g/t gold, the Montagne d'Or Gold 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.

An updated resource estimate, combined with concurrent comprehensive metallurgical tests and a preliminary environmental assessment are on target to support the completion of a Preliminary Economic Assessment ("PEA") on the Montagne d'Or deposit in the spring of 2015.

The work 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.

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, to the camp Citron 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 mineralized 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 FilabAmsud 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 camp Citron 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 FilabAmsud 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 and copper check assaying.

The drilling program was 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: metallurgical tests and a preliminary environmental assessment; completion of new mineral resource estimate; completion of the PEA; 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"); the potential to extend the deposit to the west; 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 with respect to the potential to extend the deposit to the west and other 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 and the preliminary environmental assessment; the ability to complete the PEA 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 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.

Contact Information

  • Brokerage/Retail:
    Columbus Gold Corporation
    Todd Hanas
    Investor Relations
    (866) 869-8072
    todd@columbusgroup.com

    Institutional/Analysts:
    Columbus Gold Corporation
    Peter A. Ball
    Senior Vice President
    (604) 634-0973
    peter@columbusgroup.com

    Media/Communications:
    Columbus Gold Corporation
    Jorge Martinez
    VP Communications & Technology
    (604) 634-0972
    jorge@columbusgroup.com