Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

January 31, 2011 09:02 ET

Columbus Gold Encounters Gold in 4 of 5 Initial Drill Holes at Weepah Gold Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2011) - Columbus Gold Corporation (TSX VENTURE:CGT) (the "Company" or "Columbus Gold") is pleased to announce assay results from the first five drill holes completed at its Weepah gold project, Nevada.

Gold was encountered in four of the first five holes; significant intercepts include:

  • Drill hole WP-5 intersected 17.4 m (55 ft) of 1.12 g/t (0.033 opt) gold from 7.6-25 m (25-80 ft) depth, including 3.3 m (10 ft) of 4.03 g/t (0.12 opt) gold; and
  • Drill hole WP-2 intersected 7.8 m (25 ft) of 2.34 g/t (0.068 opt) gold from 118-125.8 m (390-415 ft) depth, including two separate 1.6 m (5 ft) intervals of 4.30 g/t (0.126 opt) and 4.95 g/t (0.145 opt) gold. 

A table summarizing the assay results can be viewed at the following link:

http://www.columbusgoldcorp.com/i/nr/2011-01-31-assays.pdf

The current drilling program at Weepah is planned to consist of up to 3,048 m (10,000 ft) in approximately 20 RC holes. Various project maps can be viewed at the following link:

http://www.columbusgoldcorp.com/i/nr/2011-01-31-weepah.pdf

The host rocks at Weepah are complexly faulted and folded Precambrian limestones, silty limestones, and shale, all of which have been regionally metamorphosed, then overprinted with thermal metamorphism, and finally hydrothermally altered. There are only a few outcrops in the northernmost part of the drilling area, where surface sampling has yielded assays from anomalous to as high as 10.29 g/t (0.30 opt) gold over a 3.6 m (12 ft) width and 17.14 g/t (0.50 opt) gold over 1.8 m (6 ft) width. Most of the area drilled to date is covered with ten meters (30 ft) of alluvium. Drilling results suggest the presence of minor structures not apparent from our initial geological mapping and geophysical program. Several drill holes are planned to test structural models to allow us to better focus additional drilling and increase our understanding of the controls of the gold mineralization.

Weepah is located approximately 32 km (20 miles) west-southwest of Tonopah, Nevada, with historic gold production from an open pit along a steep, northerly structure cutting Precambrian sedimentary rocks. Columbus targets are east of the historic open pit where gold occurs as replacements in sanded, or lightly silicified, Precambrian limestone, exposed in small outcrops through thin gravel cover on the north edge of an alluvial basin. Historic drilling, reported by the previous owner, indicates a small resource of approximately 225,000-450,000 tonnes (250,000-500,000 tons) averaging 1.7-2.4 g/t (0.05-0.07 opt) gold*. Columbus mapping, along with geophysical surveys, indicate that the favorable geology extends beyond the area of drilling to the south and east for 1,200-1,500 m (4,000-5,000 ft) under what appears to be very shallow gravel cover.

*Caution: A qualified person has not done sufficient work to classify the historical estimates contained herein as current mineral resources. Columbus Gold is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.

Quality Assurance/Quality Control

Assays reported herein were performed by American Assay Laboratories, Inc. in Sparks, Nevada. Standards and blanks were inserted along with the drill cuttings and reported in the assay results. In addition, Columbus takes two separate splits of each five feet of drill cuttings. One is assayed initially and the other is used for check sampling. This check sampling is in progress with 10% of the samples with significant gold having been checked to date. No significant variations in results have been detected so far but check assaying continues. If significant variations in assays already reported are detected in the future, the results will be released at that time. 

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 contents of this news release. Mr. Wallace is a VP of Columbus Gold's wholly-owned US operating subsidiary, Columbus Gold (U.S.) Corporation and is the principal of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.

About Columbus Gold

Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is prolific project generator focused on advancing projects either through joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Exploration activities are managed by Cordex owned and operated by Andy Wallace who has a long and successful history of gold discovery and mine development. Columbus Gold currently has 12 of its 22 strategically located gold projects in Nevada joint ventured to major and junior mining companies, including Agnico-Eagle Mines Limited. To learn more about Columbus Gold's drilling plans in Nevada in 2011 visit the follow the link:
http://www.columbusgoldcorp.com/i/nr/2011-nv-drilling.pdf

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 drilling, and the Company'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 and we undertake no obligation to update any of the foregoing except as required by law.

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.

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