Columbus Gold Corp.
OTCQX : CBGDF
TSX : CGT

Columbus Gold Corp.

October 20, 2016 09:00 ET

Columbus Gold Drills 45.7 Meters of 1.26 g/t Gold at Eastside, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 20, 2016) - Columbus Gold Corp. (TSX:CGT)(OTCQX:CBGDF) is pleased to report results of the final fourteen (14) holes completed from the 2016 drilling program at its 100% owned Eastside gold project in Nevada. All assay results have been delivered to a third party consultant, Mine Development Associates of Reno Nevada, who are compiling a database and building a three dimensional model to be used in their initial evaluation of the drill results, with a view of completing a maiden resource estimate.

Eastside is a district scale project consisting of 725 claims covering 57.7 sq. km (22.55 sq. miles), in an area of outstanding infrastructure. Significant gold values of up to 27.9 g/t have been obtained in surface sampling at Eastside and so far seven (7) large geochemical anomalies have been identified, however drilling to date has been confined almost exclusively to one target (referred to as the Original Target), in an area of only approximately 1,250 X 800 meters, or about 1 sq. km., of the large 57.7 sq. km land package. Thorough oxidation is remarkably deep at Eastside in certain areas, exceeding 300 meters in places. Preliminary metallurgy (see July 10, 2014 press release) indicates that gold at Eastside is amenable to cyanide leaching, whether oxide or sulfide.

Highlights of the last 14 holes include:

  • ES-123 with 9.1 m of 1.05 g/t gold, including 1.1 m of 3.41 g/t gold, and also 22.9 m of 0.39 g/t gold, including 1.2 m of 2.49 g/t gold. Hole lost before targeted depth.
  • ES-124 with 12.2 m of 1.60 g/t gold, including 3.1 m of 5.40 g/t gold, and also 30.5 m of 0.75 g/t gold, including 4.6 m of 3.87 g/t gold, and also 4.6 m of 39.23 g/t silver.
  • ES-125 with 9.1 m of 0.56 g/t gold and 9.1 m of 0.48 g/t gold and 21.3 m of 0.53 g/t gold and 22.9 m of 2.16 g/t gold, including 1.5 m of 18.10 g/t gold.
  • ES-126 with 45.7 m of 1.26 g/t gold, including 4.6 m of 3.41 g/t gold and 7.6 m of 4.25 g/t gold, and also 16.8 m of 79.29 g/t silver, including 1.5 m of 137.11 g/t silver and 3.1 m of 166.84 g/t silver.
  • ES-127 with 27.4 m of 0.57 g/t gold, including 6.1 m of 1.20 g/t gold, and an additional 13.7 m of 0.46 g/t gold.
  • ES-128 with 9.1 m of 0.61 g/t gold and 64 m of 0.81 g/t gold, including 13.7 m of 3.45 g/t gold, and additionally 33.5 m of 20.21 g/t silver, including 7.6 m of 64.04 g/t silver.
  • ES-129 with 36.6 m of 0.42 g/t gold, including 0.6 m of 3.68 g/t gold and 0.5 m of 8.78 g/t gold, and also 22.6 m of 0.57 g/t gold, including 1.5 m of 2.42 g/t gold.
  • ES-130 with 21.3 m of 1.41 g/t gold, including 7.6 m of 3.38 g/t gold, and also 21.3 m of 21.73 g/t silver, including 7.6 m of 76.67 g/t silver.
  • ES-131 with 19.8 m of 0.50 g/t gold and 18.3 m of 0.60 g/t gold, including 3.1 m of 3.38 g/t gold.
  • ES-132 with 77.7 m of 0.53 g/t gold, including 7.6 m of 2.26 g/t gold.
  • ES-133 with 13.7 m of 0.41 g/t gold and 24.4 m of 0.56 g/t gold, including 3.1 m of 2.61 g/t gold, and also 56.4 m of 0.71 g/t gold, including 1.5 m of 5.48 g/t gold and 3.1 m of 2.75 g/t gold, and additionally 18.3 m of 28.17 g/t silver, including 4.6 m of 74.58 g/t silver.

A table with averages of gold and silver intercepts from holes ES-123 through ES-136, is available at the following link:

www.columbusgoldcorp.com/i/nr/2016-10-20-table.pdf

The 2016 drilling employed one reverse circulation rotary rig and one core drill. Columbus completed 17,500 meters of drilling in 2016 including 12,663 meters of rotary drilling and 4,837 meters of core. Drilling was completed in September 2016. A map indicating the position of all drill holes, with their downhole traces as surveyed by IDS, is available at the following link:

www.columbusgoldcorp.com/i/nr/2016-10-20-map.pdf

Gold and silver mineralization at Eastside occurs in two broad, northerly-trending zones, called the East and West Zones, which coincide with two separate, northerly-trending, rhyolite dome complexes. Both East and West Dome complexes are made up of multiple rhyolite domes. Drilling has established that the strike of significant mineralization extends at least 450 meters on the East Zone and 850 meters on the West Zone. Both zones remain open to depth, to the south, and possibly to the north. Both zones contain numerous parallel northerly structures with minor offsets. These minor structures likely formed upon reactivation of the major northerly fault zones that originally controlled the emplacement of the rhyolite domes. Gold and silver in both zones are associated with silicification and adularia replacement cut by multiphase quartz and adularia veining and stockworks. The rhyolite domes host the bulk of the mineralization but andesite near the dome margins acts as an important host rock as well.

A goal of the last 14 holes was to determine the limits of the East and West Zones, and to determine if the West Zone continues further to the west and to depth below previous holes. Geologic logging, along with the gold values encountered in core holes ES-123 and ES-129, indicate both the East and West Zone remain open to the south, into an undrilled area. Geologic and alteration mapping by Columbus, along with favorable gold and trace element geochemistry in Columbus surface sampling, indicate that favorable geology for gold mineralization extends an additional 1.5 kilometers to the south of the area drilled to date. In addition the West Zone remains open to the southwest and west.

A set of 1:1200 east-west geologic cross sections at forty meter spacing, with drilling shown, is available at the following link:

www.columbusgoldcorp.com/i/nr/2016-10-20-xsections.pdf

On a regional basis, Eastside gold mineralization occurs in a discrete package of overlapping, rhyolite flow dome complexes which were emplaced and/or erupted 7.2 million years ago. These flow dome complexes are confined to an outcrop belt about 3.2 km (2 miles) wide and 11.2 km (7 miles) long which is completely enclosed in Columbus Gold's claim block. Detailed mapping and sampling of the entire claim block by Columbus geologists has yielded numerous additional targets outside of the area of the current drilling.

The Eastside project has outstanding infrastructure for mining and processing, is 32 km (20 miles) west of Tonopah, Nevada, and lies 9.7 km (6 miles) north of paved highway US 95, the main road route from Las Vegas to Reno. A good County-maintained, gravel road from the highway, along with a major power transmission line both pass through the claim block. The current drilling area is on the east flank of the Monte Cristo Range and a portion of the claim block extends well into the adjacent flats, which would provide excellent operating sites. The valley is known to have shallow water available in the same aquifer, which provided water for milling the Tonopah ores in the early 1900's. The area is high desert with sparse vegetation, and year-round drilling is possible.

QA/QC and Qualified Person

Gold and silver assays for 2016 drilling 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. For 2016 drilling, gold analyses are by fire assay with atomic absorption finish. Silver assays are by fire assay with gravimetric finish. In addition, Columbus Gold also inserts blank samples and also standard samples of known gold and silver assay values in the drill assay string for quality control. Additional check sampling is ongoing and, if material differences occur, will be reported. The position of all 2015 and 2016 drill holes were surveyed with a submeter GPS system and also surveyed downhole by IDS.

* There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

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 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

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' intended plans for its drilling program, including the extent, expected results, time frame to complete the program, and potential operating sites. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to materially differ 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 ability to complete the intended drilling program); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: market prices, exploitation and exploration success; that the design of the drill plan is appropriate for the site; general business and economic conditions; the timing and receipt of required approvals; continued availability of capital and 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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