Columbus Silver Corporation
TSX VENTURE : CSC

Columbus Silver Corporation

May 21, 2009 09:00 ET

Columbus Silver Consolidates and Increases Its Mogollon Project Holdings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 21, 2009) - Columbus Silver Corporation (TSX VENTURE:CSC) ("Columbus Silver" or the "Company") is very pleased to announce the successful completion of recent initiatives to consolidate and increase its property position in the Mogollon silver-gold district, Catron County, New Mexico.

The Mogollon project was acquired in January 2009 under an agreement with highly regarded geologist John S. Livermore granting Columbus Silver the option to acquire 100% of his rights and interests in the Mogollon project, which he held pursuant to a number of underlying lease and option agreements dating from 1978. Columbus Silver has entered into three new mining leases directly with the underlying owners, replacing the previous agreements. The new leases simplify the commercial relationships with the underlying property owners at Mogollon and eliminate title uncertainties connected with a succession of assignments of the older agreements.

New leases were entered into with John Mack, Frederick Hott, and Wesley Parker; and Mogollon Enterprises, Inc. for the patented claim blocks respectively covering the historically productive Little Fanny and Consolidated mines and the Last Chance-Confidence mines. A third lease was entered into with Sage Associates, Inc., for the unpatented Escondido claims covering potential untested extensions of the productive vein systems in the eastern part of the district. The new leases have 10-year terms renewable at Columbus Silver's election and call for annual advance royalty payments of US$40,000 in the aggregate, deductible from underlying net smelter returns production royalties.

The Company has also increased its land position at Mogollon through the staking of 18 unpatented claims totaling 360 acres and the purchase of the Independence-Ida May group of 10 patented mining claims, totaling approximately 187 acres, outright from Metallic Ventures Inc. for US$100,000. The patented claim group covers the important Independence-Ida May veins which are located just north and west of the Little Fanny and Consolidated mines and represent principal targets of the initial Columbus Silver exploration program. The unpatented claims are located adjacent to the Gold Dust vein which is also a key target for the Company's initial program.

The Mogollon district, located 75 miles (120 km) northwest of Silver City in southwest New Mexico, covers an extensive, silver-gold bearing epithermal vein field with historic production, largely from the Little Fanny and Last Chance mines during the period 1905 to 1925, and the Consolidated Mine from 1937 to 1942, of 15,700,000 ounces silver and 327,000 ounces gold from about 1.7 million tons of ore. Mining ceased in 1942 due to the wartime cessation of all gold and silver mining in the United States.

Modern exploration activity at Mogollon has been limited to small programs by St. Joe Minerals and Sage Associates in the early 1980's and more comprehensive evaluations by Cordex in 1984 and John Livermore in 1988. These programs, comprising about 50 rotary and diamond core holes for an aggregate 40,000 ft (12,192 m), were successful in outlining a silver-gold deposit in the Queen vein, containing approximately 845,000 tons with an average grade of 9.35 ounces per ton silver and 0.15 ounces per ton gold.

The Mogollon silver-gold deposits are classic epithermal veins which demonstrate good continuity of grade and thickness for strike lengths of up to 4,000 ft (1,219 m) in the Little Fanny and Last Chance mines and through a remarkably consistent, elevation-controlled vertical range of about 1,000 ft (305 m). There are two sets of veins at Mogollon, an east-west set represented by the productive Little Fanny and Last Chance veins, and a north-south set represented by the Queen vein developed in the Consolidated Mine. The initial Columbus Silver program will focus on testing the east-west trending Gold Dust, Independence-Ida May and Anna E veins and confirmation, delineation and expansion of the silver-gold deposit in the Queen vein. The highly prospective east-west veins have near-surface characteristics similar to the historically productive Little Fanny and Last Chance veins but have only been explored by shallow workings above the highly predictable Mogollon productive zone.

The historic figures presented herein are not NI 43-101 compliant. They should not be relied upon and Columbus Silver does not treat them as current.

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 news release. Mr. Wallace is a VP of Columbus Silver's U.S. subsidiary and a partner of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus Silver.

ABOUT COLUMBUS SILVER

Columbus Silver Corporation is a silver exploration and development company operating in the Western United States. The Company has an experienced management group with a strong background in all aspects of the acquisition, exploration, development and financing of mining projects.

Columbus Silver's project activities are managed on an exclusive basis by Cordex, owned and operated by John Livermore and Andy Wallace who have a long and successful history of discovery and mine development in the United States. Columbus Silver maintains active generative (prospecting) and evaluation programs and currently controls a 100% interest in 6 silver properties in Utah, Arizona, New Mexico and Nevada.

ON BEHALF OF THE BOARD,

Robert F. Giustra, President & CEO, Director

This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to as "forward-looking statements"). These Forward-looking statements include details respecting the Company's plans for exploration work on the Mogollon property. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any of our future results, performance or achievements expressed or implied by the forward-looking statements; consequently, undue reliance should not be placed on forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: changes in our ability to acquire necessary permits and other authorizations in connection with our project; risks associated with environmental compliance, including without limitation changes in legislation and regulation, and estimates of reclamation and other costs; our cost reduction and other financial and operating objectives; our environmental, health and safety initiatives; the availability of qualified employees and labour for our operations; risks that may affect our operating or capital plans; risks created through competition for mining properties; risks associated with exploration projects, and mineral reserve and resource estimates, including the risk of errors in assumptions and methodologies; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; risks associated with title; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, assumptions about: general business and economic conditions; the timing of the receipt of required approvals for our operations; the availability of equity and other financing on reasonable terms; power prices; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; our ability to attract and retain skilled labour and staff; and our ongoing relations with our employees and with our business partners and joint venturers. We caution you that the foregoing list of important factors and assumptions is not exhaustive. Events or circumstances could cause our actual results to differ materially from those projected and expressed in, or implied by, these forward-looking statements. We undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise, except as may be required under applicable laws.

Neither 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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