Columbus Gold Corp.
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OTCQX : CBGDF

Columbus Gold Corp.

June 13, 2016 09:00 ET

Columbus Provides Update and Summary of Work to Date on Eastside Gold Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 13, 2016) - Columbus Gold Corp. (TSX:CGT)(OTCQX:CBGDF) ("Columbus") is pleased to provide a summary of the drilling completed to date at its 100% controlled Eastside gold discovery 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.

The drilling currently underway at Eastside consists of 4,850 meters (16,000 feet) of diamond core drilling and 9,700 meters (32,000 feet) of RC rotary drilling. Drilling in the program currently in progress, has been widely dispersed throughout the Original Target to gain a better understanding of where to locate the better grades, however recently in May 2016 the program shifted focus to concentrate on:

1 - step-outs from Hole ES-96 where in April 2016 Columbus announced 35.1 meters of 4.1 g/t gold (including 19.8 meters of 6.91 g/t gold and 97.3 g/t silver); and

2 - steps-outs from Hole ES-80 where in September 2015 Columbus announced 152.4 meters of 0.71g/t gold (including 28.9 meters of 2.16 g/t gold and 2 meters of 10.88 g/t gold).

From 2011 to present, Columbus has drilled 111 holes in five phases, consisting of 28,360 meters (93,588 feet) of RC rotary drilling and 3,076 meters (10,150 feet) of diamond core drilling. Of the 111 holes, 100 intersected significant gold values. The better grade gold intercepts* often include significant silver associated with the gold. Following are the 50 best holes highlighting the results:

ES-4 21.3m of 1.64 g/t gold, including 6.1 m of 5.17 g/t gold.
ES-13 39.6m of 0.46 g/t gold.
ES-14 53.3m of 1.11 g/t gold, including 10.7m of 2.20 g/t gold and 7.6m of 2.98 g/t gold.
ES-19 16.8m of 1.34 g/t gold, including 4.6m of 4.21 gold with 4.6m of 42.2 g/t silver.
ES-20 42.7m of 0.87 g/t gold, including 9.1m of 2.83 g/t gold with 12.2m of 47.9 g/t silver.
ES-21 41.2m of 0.92 g/t gold, including 12.2m of 2.21 g/t gold, and an additional 12.2m of 47.9 g/t silver.
ES-26 4.6m of 5.08 g/t gold, and 26m of 0.41 g/t gold, including 3.1m of 1.31 g/t gold, and an additional 4.6m of 0.93 g/t gold.
ES-27 64m of 1.43 g/t gold, including 3.1m of 2.42 g/t gold.
ES-28 15.2m of 0.66 g/t gold.
ES-31 12.2m of 2.05 g/t gold, including 3.1m of 9.23 g/t gold.
ES-32 15.2m of 0.87 g/t gold, including 3.1m of 2.3 g/t gold.
ES-33 61m of 0.74 g/t gold, including 24.4m of 1.30 g/t gold.
ES-34 21.3m of 0.51 g/t gold, including 6.1m of 1.13 g/t gold.
ES-36 48.8m of 0.92 g/t gold, including 6.1m of 2.62 g/t gold, and 1.5m of 2.73 g/t gold, and 26m of 22.5 g/t silver.
ES-39 27.4m of 2.54 g/t gold, including 3m of 19.61 g/t gold and 24.4m of 37.6 g/t silver.
ES-40 32m of 1.25 g/t gold, and 10.7m of 88.5 g/t silver, including 3m of 203.0 g/t silver.
ES-42 29m of 0.54 g/t gold, including 3m of 1.91 g/t gold.
ES-45 59.4m of 0.92 g/t gold, including 25.9m of 1.62 g/t gold.
ES-46 59.4m of 0.58 g/t gold, including 16.8m of 1.03 g/t gold.
ES-53 30.5m of 0.43 g/t gold, including 3m of 1.87 g/t gold, and an additional 24.4m of 0.69 g/t gold, including 3m of 2.30 g/t gold.
ES-56 25.9m of 0.52 g/t gold, including 3m of 2.26 g/t gold.
ES-58 76.2m of 0.35 g/t gold, including 19.8m of 1 g/t gold, 4.6m of 1.01 g/t gold, and 7.6m of 35.0 g/t silver, and an additional 6.1m of 31.5 g/t silver.
ES-59 6.1m of 0.89 g/t gold, and 27.4m of 0.61 g/t gold.
ES-61 53.3m of 0.53 g/t gold, including 4.6m of 1.30 g/t gold, and 3m of 2.07 g/t gold.
ES-62 15.2m of 1.05 g/t gold, including 6.1m of 2.15 g/t gold, and an additional 6.1m of 2.18 g/t gold, including 3m of 4.13 g/t gold, and an additional 6.1m of 27.7 g/t silver, including 3m of 45.0 g/t silver.
ES-65 143.3m of 0.33 g/t gold.
ES-67 29m of 0.43 g/t gold, and 22.9m of 1.37 g/t gold, including 7.6m of 2.95 g/t gold.
ES-71 4.6m of 1.11 g/t gold, 35.1m of 0.90 g/t gold, including 12.2m of 2.61 g/t gold and 7.6m of 3.53 g/t gold, and an additional 19.8m of 0.96 g/t gold, including 3m of 4.57 g/t gold. Also an additional 86.9m of 0.39 g/t gold, including 3m of 1.19 g/t gold and 1.5m of 3.07 g/t gold.
ES-72 9.1m of 0.99 g/t gold, including 4.6m of 1.80 g/t gold.
ES-74 16.8m of 0.46 g/t gold.
ES-78 32m of 0.36 g/t gold, including 3m of 1.34 g/t gold, and an additional 7.6m of 3.19 g/t gold, including 4.6m of 5.11 g/t gold.
ES-80 152.4m of 0.71 g/t gold, including 28.8m of 2.16 g/t gold and 4.6m of 10.88 g/t gold, and an additional 30.5m of 0.51 g/t gold, including 3m of 2.52 g/t gold.
ES-81 56.4m of 0.62 g/t gold, including 13.7m of 1.13 g/t gold, and an additional 59.4m of 11.0 g/t silver, including 3m of 37.0 g/t silver.
ES-83 109m of 0.69 g/t gold, including 10.8m of 2.30 g/t gold and 18.2m of 1.32 g/t gold, and an additional 10.6m of 1.49 g/t gold.
ES-84 64m of 1.2 g/t gold, including 4.6m of 2.06 g/t gold and 7.6m of 4.25 g/t gold.
ES-86 24.4m of 2.70 g/t gold, including 3m of 17.3 g/t gold.
ES-87 6.1m of 1.10 g/t gold.
ES-89 39.2m of 0.69 g/t gold, including 1.7m of 2.75 g/t gold and 7m of 1.55 g/t gold, and an additional 14.3m of 0.75 g/t gold, including 2.8m of 2.5 g/t gold.
ES-90 13.4m of 4.06 g/t gold, including 1.38m of 34.9 g/t gold, and an additional 10.7m of 0.75 g/t gold, including 2.9m of 1.97 g/t gold. Also includes 13.7m of 57.04 g/t silver, including 1.4m of 213.0 g/t silver, and 1.5m of 20.69 g/t silver.
ES-91 19.7m of 1.74 g/t gold, including 1.5m of 17.9 g/t gold and 42.4m of 42.4 g/t silver, which also includes 3.1m of 107.0 g/t silver.
ES-94 59.5m of 0.47 g/t gold, and 13.4m of 0.66 g/t gold.
ES-96 35.1m of 4.1 g/t gold, including 19.8m of 6.90 g/t gold and 27.4m of 97.3 g/t silver, which also includes 7.6m of 155.8 g/t silver and 7.6m of 154.8 g/t silver.
ES-100 25m of 0.71 g/t gold, including 2.6m of 2.20 g/t gold and 2.4m of 1.47 g/t gold, and an additional 21m of 0.38 g/t gold. As well as 100.4m of 0.63 g/t gold, including 13.7m of 1.76 g/t gold, and an additional 50.2m of 0.66 g/t gold, including 14.6m of 1.27 g/t gold.
ES-102 16.8m of 0.82 g/t gold, including 4.6m of 2.29 g/t gold.
ES-104 70.1m of 0.46 g/t gold, including 9.1m of 2.20 g/t gold.
ES-106 33.6m of 0.78 g/t gold, including 7.6m of 2.64 g/t gold and 22.9m of 65.7 g/t silver, which also includes 7.6m off 147.2 g/t silver.
ES-107 83.8m of 0.98 g/t gold, including 3.1m of 2.53 g/t gold, 19.8m of 1.93 g/t gold, 4.6m of 23.37 g/t silver, and 32m of 19.42 g/t silver, which also includes 7.6m of 37.84 g/t silver.
ES-108 79.3m of 0.33 g/t gold, 22.9m of 0.43 g/t gold, 4.6m of 0.94 g/t gold, 6.1m of 0.73 g/t gold and also 9.1m of 29.2 g/t silver and 12.2m of 47 g/t silver including 4.6m of 99.64 g/t silver.
ES-110 42.7m of 0.38 g/t gold and 71.7m of 0.51 g/t gold, and also 20.7m of 17.54 g/t silver.
ES-111 45.7m of 1.41 g/t gold including 3.1m of 11.96 g/t gold and also 15.2m of 43.4 g/t silver including 3.1m of 159 g/t silver.

Eastside drilling has also returned a large number of lower-grade intercepts, referred to as "cloud" mineralization in previous press releases. Cloud mineralization is irregular in distribution and generally runs 0.12-0.50 g/t gold. A table with averages of all gold and silver intercepts through ES-111 is available at the following link:

www.columbusgold.com/i/nr/2016-06-13-table.pdf

On a regional basis, Eastside gold mineralization is associated with 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 geologic and alteration mapping at 1:6,000 and 1:1200 and collection of over 3,000 surface samples by Columbus geologists has yielded numerous additional targets outside of the area of the current drilling.

Gold and silver mineralization encountered in drilling at the Original Target occurs in two broad, northerly-trending zones, called the East Zone and West Zones, which coincide with two separate, northerly-trending, rhyolite flow 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 at the Original Target. Both zones remain open to depth, to the south, and the West Zone remains open 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 map indicating the surveyed position of all drill holes, with their downhole traces as surveyed by IDS, is available at the following link:

www.columbusgold.com/i/nr/2016-06-13-map.pdf

Recent drilling on the southern end of the East Zone, particularly core hole ES-100 (total of 174 meters in three zones ranging from 0.61-0.71 g/t gold), indicates the gold and silver mineralization extends to at least 455 meters below the surface. The attached east-west cross-section shows gold and silver on this section is largely confined to the rhyolite. Both the rhyolite and the interpreted mineralized zone dip 70 degree westward, indicating a possible true thickness of about 152 meters on this section. The West Zone is undrilled on this section but its relative position is shown for reference:

www.columbusgold.com/i/nr/2016-06-13-xsection.pdf

Recent West Zone drilling includes two vertical rotary holes to offset ES-96 (announced April 24, 2016 with 35.1 meters of 4.1 g/t gold, including 19.8 meters of 6.91 g/t gold and 97.3 g/t silver). ES-106 is 200 meters south of ES-96, and returned 33.6 meters of 0.78 g/t gold, including 7.6 meters of 2.64 g/t gold and 147.2 g/t silver. ES-107 is 100 meters north/northwest of ES-96, and returned 83.8 meters of 0.98 g/t gold, including 19.8 meters of 1.93 g/t gold. Road and drill pad construction near ES-96 has now been completed, and 20-30 more offset holes are planned.

Drilling at the West Zone has been either from the east to the west in angle holes, or in vertical holes. Neither the true thickness, nor the overall depth of mineralization of the West Zone is known. A program of four angled core holes, drilled from the west to the east, is now in progress, and is intended to provide information on both the true width and the depth of mineralization in the West Zone. The current drilling phase will continue until at least August 2016, and additional results will be reported periodically after they are received and analyzed.

In addition, three rotary holes (ES-98, 99 and 101) were drilled about 300 meters north of the main drill area along the trend of the West Zone. Surface sampling in this area yielded no significant gold, but strong anomalies in arsenic (up to 18,000 ppm As) and antimony (up to 500 ppm Sb). These three holes all encountered a distinct anomalous gold zone of about 23-44 meters in thickness and starting at about 15 meters in depth from surface. Hole ES-101, encountered 22.9 meters of 0.06 g/t gold from 12.2 meters to 35.1 meters of depth from surface. The high assay over 1.5 meters in this drilling was 0.25 g/t gold. This north drilling encountered only anomalous gold but the thickness and shallow nature of the mineralization indicates more drilling should be done.

The 2016 drilling has multiple purposes, including: 1) deeper drilling in areas where many previous holes bottomed in significant gold and silver values; 2) extension of the deposit laterally into undrilled areas; and 3) obtaining mineralized core from different host rock and alteration types, and at different grades, for metallurgical studies and specific gravity determinations.

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, on BLM administered land. 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 an excellent operating site. 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 all 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 the current 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, those will be reported. The position of 2015 and 2016 drill holes were surveyed with a sub-meter 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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