VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 16, 2016) - Columbus Gold Corp. (TSX:CGT)(OTCQX:CBGDF) ("Columbus") is pleased to announce that it has received a permit for drilling and associated road building and drill pad construction at Target 5 of its 100% owned Eastside gold project in Nevada. Target 5 is a geological and geochemical target located about 7 km south-southwest of the "Original Target", which is the site of essentially all previous drilling at Eastside so far.
A maiden resource estimate is expected at the Original Target in the coming weeks. Columbus is planning to carry-out additional drilling at Eastside in 2017 at both the Original Target and at the recently permitted Target 5. The location of Target 5 relative to the Original Target at Eastside can be viewed at the following link:
Columbus geologic and alteration mapping, along with surface geochemical sampling, indicates that Target 5 is geologically identical to the Original Target. At Target 5 a rhyolite dome complex intrudes tuffs and volcanic breccias which were extruded as the rhyolite was emplaced. The rhyolite dome and eruptive complex was emplaced on a basement of Tertiary andesite lavas and lahars and Paleozoic sedimentary rocks.
Hydrothermal alteration is widespread at Target 5, consisting of widespread iron staining, replacement silicification, and zones of quartz veining, with large areas of acid leaching or steam-heated ground. The steam-heated ground, interpreted to have formed at surface above boiling hydrothermal solutions at depth, consists of opaline silica, kaolinite, and fine-grained alunite. North, northwest, and northeast-trending structures are present at Target 5 and control hydrothermal alteration in places. A geological map can be viewed at the following link:
Geochemical sampling at Target 5 consists of about 150 surface samples of outcrop and float. Sampling results are similar to those at the Original Target where gold, silver, arsenic, antimony, and molybdenum are anomalous. Target 5 surface samples contain gold (ranging from 0-1.08 g/t gold), silver (ranging from 0-99 g/t silver), arsenic (ranging from 0-464 ppm), antimony (ranging from 0-240 ppm), and molybdenum (ranging from 0-69 ppm).
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 targets at Eastside.
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.
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 indicates that gold at Eastside is amenable to cyanide leaching, whether oxide or sulfide.
QA/QC and Qualified Person
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.
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' expected time frame to complete a National Instrument 43-101 compliant resource estimate (the "Technical Report"), and its intended plans to complete a drilling program in 2017. 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 complete the Technical Report within the expected time frame or at all; 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.