Compass Gold Corporation
TSX VENTURE : CVB

Compass Gold Corporation

March 14, 2012 09:00 ET

Compass Gold Corporation: Encouraging Gold Assay Results from Drilling at Yanfolila and Dandoko Permits

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 14, 2012) - Compass Gold Corporation (TSX VENTURE:CVB) ("Compass" or the "Corporation") is pleased to announce gold assay results from drilling at the Solona target, Yanfolila permit and the Bembala target, Dandoko permit. These results demonstrate the presence of near surface gold in the weathered-oxidised zone (saprolite) and give encouragement for the presence of primary mineralisation at depth within anticipated stockwork vein systems.

The following represents a summary of key results from this program:

  • Yanfolila Permit - Solona Target: Fire assay results for an additional six shallow inclined diamond drill holes drilled over a strike length of 450m (from a strike length for the Solona target of 1km) show gold mineralization in four of the six holes from near surface to a depth of 50m including assays of:
    • SD33: 2m @ 1.03 g/t at a depth between 47m and 49m
    • SD34: 5m @ 0.55 g/t at a depth between 17m and 22m
    • SD35: 2m @ 2.17 g/t at a depth between 5m and 7m
    • SD37: 10m @ 0.50 g/t at a depth between 12m and 22m

These are encouraging results as they further demonstrate the presence of mineralization in the weathered material from surface to at least 50m.

  • Dandoko Permit - Bembala Target: Fire assay results for the first five inclined RC drill holes drilled over a strike length of 400m (from a strike length for the Bembala target of 630m) show gold mineralization in three of the five holes from near surface to a depth of 88m including assays of:
    • RCDK012_1: 2m @ 2.3 g/t at depth between 10 and 12m
    • RCDK012_3: 6m @ 1.14 g/t at depth between 40 and 46m
    • RCDK012_5: 12m @ 1.02 g/t at depth between 76 and 88m,
      (including 2m @ 3.66 g/t between 86 and 88m)

These are encouraging results indicating the presence of gold mineralization within a large system, anticipated to be more than 1 km.

Yanfolila Permit - Solona Target

The Company has completed drilling 10 inclined shallow holes (60 degree incline) targeting the mineralization from surface to a depth of 50m's and over a 1 km strike length. Drill results for the first two holes are contained in a news release dated February 16, 2012. Fire assay results have been received for the next six holes. Four of the six holes encountered gold mineralization from near surface to a depth of 50m with one hole (SD33) ending in mineralization at 50m below ground level. Results for the four holes that recorded gold values are set out below, including a restatement of the results from SD32 disclosed in the Company's news release of February 16, 2012, which have been revised following a review of calculations. The results of the remaining two holes that did not record any gold values are not included.

Drill hole No From To Interval Au g/t Recovery % Comment
SD32 26 52 26 7.17 g/t 97 Uncut
Including SD32 26 52 26 1.62 g/t 97 With the 174 g/t value cut to 30 g/t
SD33 42 50 8 0.52 g/t 73
Including SD33 47 49 2 1.03 g/t 73
SD34 17 22 5 0.55 g/t 90
SD35 5 27 22 0.62 g/t 91
Including SD35 5 6 1 3.76 g/t 97
Including SD35 5 12 7 1.04 g/t 92
Including SD35 5 7 2 2.17 g/t 97
Including SD35 21 23 2 1.30 g/t 92
SD37 12 22 10 0.50 g/t 72

The true width of mineralization is not known at this time. The locations and orientations of these drill holes are shown in the map linked below.

http://media3.marketwire.com/docs/cvb314a.jpg

The Company is encouraged by these results as they demonstrate the presence of mineralization in the weathered material from surface to at least 50m depth.

The Company is now undertaking a 3,000m diamond-drilling program (20 inclined holes to 150m depth along 50 to 100m spaced fences) that has commenced on the Solona target with the second hole in progress. The objective of this program is to test for gold mineralization from surface to a greater vertical depth so that diamond core samples can be collected from the bedrock that is anticipated to be at more than 100m depth.

It is the Company's expectation that the results of this program will further define the width, depth and strike length of the mineralization at the Solona target and that this will represent the first stage in defining a NI-43-101 compliant resource at the Yanfolila permit.

Dandoko Permit - Bembala Target

A 20 vertical hole 1st Stage reconnaissance RC drill program (3,000m) is ongoing on the Bembala target to test the gold mineralization within the oxidized zone (where gold enrichment and depletion might occur) and in fresh rock. 14 holes have been completed to date.

Fire assay results have been received for the first five holes. Three of the five holes intercepted mineralization at various depths ranging from near surface to 88m. Grades vary from trace to 3.6 g/t. The widest interception is 16m @ 0.51 g/t and highest grade is 2m @ 3.66 g/t at a vertical depth of 88m. Results of the three holes that recorded gold values are set out below. The results of the remaining two holes that did not record any gold values are not included.

Drill hole No From To Interval Au g/t
RCDK012_1 10 12 2 2.3 g/t
RCDK012_3 38 50 12 0.82 g/t
Including RCDK012_3 40 46 6 1.14 g/t
RCDK012_05 2 18 16 0.51 g/t
Including RCDK012_05 14 16 2 1.35 g/t
RCDK012_05 76 88 12 1.02 g/t
Including RCDK012_05 86 88 2 3.66 g/t

The true width of mineralization is not known at this time. The locations and orientations of these drill holes are shown in the map linked below.

http://media3.marketwire.com/docs/cvb314b.jpg

The Company is encouraged by these results as they demonstrate the presence of gold mineralization within a large system over a strike length of more than 1 km long to a vertical depth of up to 90m.

Following completion of the RC drill program and analysis of assay results, the Company plans to complete a 2,500m RC drilling program over additional targets on the Dandoko permit.

Yanfolila Sampling Protocols

All drilling at the Yanfolila permit has been carried out by the Company's geologic consultants M-Consulting, using an APAFOR 450 wire-line diamond core drill rig and HQ size rods. All holes are started and finished in saprolitic materials in HQ. Each core is split using a stainless steel knife (as the core is mainly clay material). One half of the core is kept in the core box and stored in a covered and secure core shed. Core samples are collected in plastic bags, numbered outside and a tag is placed inside the bag. All samples are taken from site by Africa Mining SARL personnel and delivered by hand to the ALS laboratory, Bamako, Mali, under secure "chain of custody" procedures. Samples are fine crushed to 70% < 2mm, pulverized and split to 85% < 75 um. Gold is assayed by fire assay (50g charge) with FA AA Finish. Sample pulp is returned from the ALS laboratory under secure "chain of custody" procedure by the Company's staff and also stored in a secure location.

Dandoko Sampling Protocols

At Dandoko, drilling is carried out by the Company's geologic consultants M-Consulting using a Spanish GELMA RC rig with 4.5" rods and 5.5" tungsten retropercutor, under the direct supervision of the Company. To ensure drill site quality control, two geologists and a drill supervisor were assigned permanently on site during drilling. The geologists, assisted by the drilling supervisor, act as overall supervisors of operations, including the RC sampling protocol from splitting to bagging. A riffle splitter is used to splits samples. All samples are taken from site by the Company's personnel and delivered to the ALS laboratory, Bamako, Mali, under secure "chain of custody" procedures. Samples are fine crushed to 70% < 2mm, pulverized and split to 85% < 75 um. Gold is assayed by fire assay (50g charge) with FA AA Finish. Sample pulp is returned from the ALS laboratory under secure "chain of custody" procedure by the Company's personnel and stored in a secure location. The large volume of RC samples remaining after splitting are collected and trucked to the Dandoko camp where they are stored for future reference.

Dr Albert Wilkinson MIMMM, FGS. C.Eng. is a "qualified person" within the meaning of National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this release, including verification of sampling procedures, the assaying procedures of ALS Laboratory and "chain of custody" procedures.

Stock Option Grants

The Company announces the grant of stock options to certain of its directors, officers and consultants to purchase up to 4,000,000 common shares. Each option is exercisable to acquire one common share of the Company at a price of $0.12 per common share until March 14, 2017, in accordance with the terms of the Company's stock option plan.

Compass Gold Corporation is a Tier 2 mining issuer listed on the TSX Venture Exchange and focused on gold exploration in Mali, Africa's 3rd largest producer of gold. Compass, through its wholly-owned subsidiary Africa Mining SARL, owns four gold exploration permits (Yanfolila, Dandoko, Kolondieba and Solabougouda) and holds applications over a further four areas, Mousala, Sirakourou, Yanfolila East and Kolondieba Nord) covering a total of 1,138 sq km's in key gold producing regions in south west Mali, West Africa. Further information is available at www.compassgoldcorp.com.

COMPASS GOLD CORPORATION

James Henderson, President

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Compass Gold Corporation. Statements regarding expectations of exploration results, including identified gold targets and expectations for mineralization at the Yanfolila and Dandoko permits, are subject to all of the risks and uncertainties normally incident with undertaking mineral exploration in Africa, including but not limited to: technical, operational and environmental risks associated with gold exploration including but not limited to successfully drilling to targeted depths and the accuracy of assay results and the technical evaluation and interpretation of these results which cannot be relied upon until final verified independent results are reviewed by Compass. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Compass Gold Corporation does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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