Columbus Gold Corp.
TSX : CGT
OTCQX : CBGDF

Columbus Gold Corp.

July 18, 2016 09:00 ET

Columbus Gold Drills 97.5 Meters of 0.68 g/t Gold at Eastside, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 18, 2016) - Columbus Gold Corp. (TSX:CGT)(OTCQX:CBGDF) ("Columbus") is pleased to report results of an additional eleven (11) drill holes completed at its 100% owned Eastside gold project in Nevada. 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 geochem 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 drilling include:

  • ES-113 with 13 m of 1.12 g/t gold, including 2.4 m of 4.38 g/t gold and also 25 m of 1.26 g/t gold, including 7 m of 3.47 g/t gold. Hole lost prior to targeted depth.
  • ES-114 with 13.7 m of 0.69 g/t gold, including 2.3 m of 3.29 g/t gold, and also 141.7 m of 0.53 g/t gold, including 4.7 m of 6.45 g/t gold, and also 7.6 m of 35.1 g/t silver.
  • ES-115 with 16.5 m of 0.91 g/t gold and 6.1 m of 14.52 g/t gold, including 1.5 m of 56.89 g/t gold. Hole lost prior to targeted depth.
  • ES-116 with 7.6 m of 0.71 g/t gold and also 71.6 m of 0.50 g/t gold.
  • ES-117 with 97.5 m of 0.68 g/t gold, including 4.6 m of 3.17 g/t gold and also 21.3 m of 26.6 g/t silver, including 7.6 m of 62.5 g/t silver.
  • ES-118 with 10.7 m of 0.55 g/t gold and also 59.4 m of 0.74 g/t gold, including 7.6 m of 3.07 g/t gold and also 22.9 m of 38.8 g/t silver.
  • ES-119 with 4.6 m of 0.58 g/t gold and also 77.7 m of 0.83 g/t gold, including 1.5 m of 5.64 g/t gold and 3.1 m of 3.45 g/t gold and 4.6 m of 3.90 g/t gold and also 16.8 m of 14.8 g/t silver and 7.6 m of 21.1 g/t silver.
  • ES-121 with 79.3 m of 0.67 g/t gold, including 6.1 m of 4.32 g/t gold and also 18.3 m of 28.8 g/t silver.
  • ES-122 with 59.4 m of 0.85 g/t gold.

A table with averages of gold and silver intercepts* from holes ES-112 through ES-122, is available at the following link:

www.columbusgold.com/i/nr/2016-07-18-table.pdf

The 2016 drilling employs one reverse circulation rotary rig and one core drill. Columbus has completed 14,370 meters of drilling in 2016 including 10,149 meters of rotary drilling and 4,221 meters of core drilling, with assays pending on a number of samples. The current drilling phase will be completed in August 2016, and additional results will be reported periodically after they are received and analyzed. A map indicating the position of all drill holes, with their downhole traces as surveyed by IDS, is available at the following link:

www.columbusgold.com/i/nr/2016-07-18-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 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.

Current drilling is focused on the north and south extensions of both the East and West Zones, as well as closely spaced drilling near ES-96 (35.1 m of 4.1 g/t gold including 19.8 m of 6.91 g/t gold and 97.3 g/t silver) along the west side of the West Zone. The closely-spaced drilling will help determine the true width, depth, shape, and the influence of northeast cross structures in localizing better grade areas in the West Zone.

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.

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.

* Potential grades are conceptual in nature. 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.

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 and time frame to complete the program. 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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