Columbus Gold Corporation
TSX VENTURE : CGT
OTCQX : CBGDF

Columbus Gold Corporation

March 12, 2015 09:00 ET

Columbus Gold Provides Project Update and Remaining Phase II Drill Results from Montagne d'Or Gold Deposit, Paul Isnard Project, French Guiana

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 12, 2015) - Columbus Gold Corporation (TSX VENTURE:CGT)(OTCQX:CBGDF) ("Columbus Gold") is pleased to provide an update on the progress of the development program underway at its 100% owned Montagne d'Or Gold Deposit, Paul Isnard Project, French Guiana.

  • A Phase II resource development diamond drilling program designed to establish a 50-meter drill spacing array over the known strike extent of the deposit to a vertical depth of 200 meters was completed in early November 2014(126 holes, 25,560 meters). The drill program focused on gold mineralization amenable to open pit mining. All gold assays and multi-element analyses from the drill program have now been received and the remaining 14 holes of the program are reported below;

  • 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. Preliminary resource modeling has commenced. The updated resource estimate will be completed and announced in Q2-2015;

  • Comprehensive metallurgical test work evaluated three gold recovery process options, including whole-ore cyanidation, a combination of gravity concentration followed by cyanidation of gravity tailings, and gravity concentration followed by gold flotation from the gravity tailings. The tests indicate that the mineralization is highly amenable to the three metallurgical processes tested, with recoveries of gold ranging from 95% to 97%;

  • Bond ball mill work index testing confirmed the moderate hardness of the Montagne d'Or rock. The lower than expected hardness has a significant impact on reducing the potential energy needs for the project. Cyanide dosage leach tests remain to be completed. These results are expected by the end of March;

  • Initial stakeholder engagement and field work for the baseline environmental studies concluded in November 2014. The completion of the Preliminary Environmental Assessment is expected internally in April;

  • A Preliminary Economic Assessment ("PEA") on the Montagne d'Or deposit is targeted for completion inQ2-2015;

  • The 2015 US$10 million work campaign at Montagne d'Or is scheduled to commence in April and will include the following planned drilling programs:

    • 5,000 meters of RC condemnation drilling for infrastructure, waste and tailings sites (April-May);

    • 6,500 meters of RC in-fill drilling to define near-surface oxide mineralization (May-July);

    • 8,000 meters of Diamond in-fill drilling to define Measured Resources for a starter pit (August-November);

    • 1,900 meters of Diamond geotechnical drilling (November).

  • Studies for a full Environmental and Social Impact Assessment ("ESIA") and a Bankable Feasibility Study are progressing on schedule and are on target for Q1-2017 completion.

DRILL RESULTS

The Phase II drilling program confirmed good continuity, in both strike and down dip, of the principal Upper Felsic Zone ("UFZ") and secondary Lower Felsic Zone ("LFZ"), and defined new mineralization of potential economic interest in the Foot Wall Zone ("FWZ"), which could lower the strip ratio of a potential open pit operation. A wide higher grade core was outlined in the west-central section of the deposit, which remains open for expansion at depth. Furthermore, step-out drilling to the west has opened up the potential to expand the resources in that direction.

The recognition of intrusive phases within the host felsic volcanic sequence has permitted the establishment of geological controls on the gold mineralization. The new geological model is essential for the new resource model and future exploration drilling along the strike and depth extensions of the Montagne d'Or mineralized trend.

Highlights of the final 14holes in the principal Upper Felsic Zone ("UFZ") confirm the presence of significant gold mineralization along the eastern stretch of the Montagne d'Or deposit:

Drill Hole Intercept (m) Grade Length True Width Zone
From To (g/t Gold) (m) (m)
MO-14-215 119.2 198.5 0.67 79.3 62.3 UFZ
MO-14-216 42.0 46.0 7.02 4.0 3.0 UFZ
61.7 75.6 2.01 13.9 10.6 UFZ
MO-14-217 156.3 158.3 23.18 2.0 1.5 UFZ
172.2 191.6 2.20 19.4 14.6 UFZ
MO-14-219 140.0 165.5 2.52 25.5 18.8 UFZ
including 160.6 161.6 36.87 1.0 0.7
MO-14-220 187.9 256.0 0.79 68.2 53.9 UFZ
MO-14-221 158.0 214.0 1.29 56.0 43.4 UFZ
160.0 162.0 13.92 2.0 1.5
MO-14-224 92.4 112.4 1.74 20.0 15.6 UFZ
MO-14-225 139.3 178.1 1.47 38.8 29.7 UFZ
including 157.8 167.0 4.03 9.2 7.1
  • A core of thick gold mineralization was defined within the UFZ over a strike extent of 100 meters(section 4225E to 4325E)by holes 215, 220, 221 and 225.
  • Best grades were obtained from hole 225, averaging 1.47 g/t gold over 38.8 meters, including a higher grade sub-zone grading 4.03 g/t gold over 9.2 meters.
  • Higher grade gold mineralization was intersected within the UFZ at the east end of the drilled out area in holes 216, 217 219, and 224, on sections 4475E and 4575E.
  • Best intersection at the east end was obtained in hole 219, averaging 2.52 g/t gold over 25.5 meters.
  • Holes 222 and 223 only tested the secondary Lower Favorable Zone ("LFZ").

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/2015-03-12-drillplan.pdf

www.columbusgoldcorp.com/i/nr/2015-03-12-assays.pdf

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.

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: indications that the mineralization is highly amenable to the three metallurgical processes tested; metallurgical tests; completion of new mineral resource estimate; completion of a preliminary environmental assessment; completion of the PEA; completion of the ESIA; schedule and plans for the 2015 US$10 million work campaign; 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"). 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; 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); whether the mineralization is highly amenable to the three metallurgical processes tested; the ability to complete the preliminary environmental assessment by the proposed target date or at all; the ability to complete the PEA by the proposed target date or at all; the ability to meet the 2015 US$10 million work campaign schedule, objectives and stated funding commitment; the ability to complete the ESIA by the proposed target date 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: whether the planned metallurgical tests are 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.

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