Compass Gold Corporation
TSX VENTURE : CVB

Compass Gold Corporation

July 19, 2011 14:08 ET

Compass Gold Corporation: Initial Drill Results at Yanfolila-Solona Target

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2011) - Compass Gold Corporation (TSX VENTURE:CVB) -

HIGHLIGHTS

  • 20 holes of a 30 hole (1,500m) Solona target scout drill program completed with 16 holes sampled and 932 samples submitted
  • Assay results indicate gold mineralization in 7 of 10 holes drilled with intersections including:
    • SD2: 13m @ 1.59 g/t at a depth between 34m and 47m
    • SD5: 11m @ 2.05 g/t at a depth between 22m and 33m
    • SD6: 2m @ 2.44 g/t at a depth between 10m and 12m
    • SD8: 7m @ 1.05 g/t at a depth between 16m and 23m
  • Results highlight the prospectivity of the Yanfolila Permit
  • Drill program to continue in October 2011, subject to seasonal conditions

Compass Gold Corporation ("Compass" or the "Corporation") provides the following update regarding its scout drilling program at the Yanfolila permit. Compass owns 51% of Africa Mining SARL ("Africa Mining") which owns four exploration gold research permits and one authorization to explore in Mali, West Africa

Yanfolila Scout Drill Program - Solona Target

Drilling at the Solona target commenced in May 2011. This comprised a 30 diamond drill hole program (for a total of approximately 1,500m) designed to test for free digging gold mineralization in weathered, saprolithic material. The Solona target is highlighted on the aeromagnetic image set out below.

Note: To view "FIGURE: 1 Yanfolila total magnetic intensity Image highlighting key targets", please click the following link: http://media3.marketwire.com/docs/cvb0719a.pdf.

As at July 18, 2011, 20 vertical holes have been completed, 16 holes sampled and 932 samples have been collected and submitted to ALS Laboratory ("ALS") in Bamako, Mali.

Results have been received for the first 10 holes submitted to ALS. 7 holes show gold mineralization with the best intersections being:

  • SD2: 13m @ 1.59 g/t at a depth between 34m and 47m
  • SD5: 11m @ 2.05 g/t at a depth between 22m and 33m
  • SD6: 2m @ 2.44 g/t at a depth between 10 and 12m
  • SD8: 7m @ 1.05 g/t at a depth between 16m and 23m

A table showing mineralized intersections is set out below.

Drill
hole ID
From To Interval Au (g/t) Core
recovery %
SD2 34 47 13 1.59 59
SD4 3 5 2 1.16 71
SD5 0 44 44 0.68 58
including SD5 22 33 11 2.05 65
including SD5 35 38 3 1.05 62
SD6 10 44 34 0.44 77
including SD6 10 12 2 2.44 88
including SD6 25 28 3 1.23 91
SD7 5 7 2 0.89 94
SD8 13 23 10 0.94 69
including SD8 16 23 7 1.05 71
SD10 15 17 2 0.53 67
SD10 39 41 2 0.51 76

A preliminary interpretation shows that the best 3 holes are aligned and are located in the middle of the targeted area as shown on the map below.

Note: To view "FIGURE 2: Map of Solona target and drill hole locations", please click the following link: http://media3.marketwire.com/docs/cvb0719b.pdf.

These results are in-line with the Company's expectations on the prospectivity of the Solona Target and the Yanfolila region in general. Subject to the results of the remainder of the drill program, the Company will seek to expand the program to continue testing for both near surface and deep mineralization.

The balance of the drill program (10 holes) will be completed after the wet season, with drilling expected to re-commence in October 2011.

Mr. James Henderson the President of Compass commented: "I am delighted with these initial drill results. It is pleasing to hit mineralization so early in the drill program. We are looking forward to completing the drill program and confirming the geology and mineralization of the Solona Target."

Sampling Protocols

Drilling is carried out by M-Consulting SARL using an APAFOR 450 wire-line diamond core drill rig and HQ size rods. All holes start and finish in saprolitic materials in HQ. Each drill core is split using a stainless steel knife (as the core is mainly clay material). One half of the core is kept in a core box and stored in a covered, secured core shed. The remaining half of each core sample is collected in plastic bags, numbered outside and a tag is placed inside the bag. All samples are taken from site by Africa Mining personnel and delivered to the ALS laboratory 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 FAAA Finish. Sample pulp is returned from the ALS laboratory under secure ''chain of custody'' procedure by Africa Mining staff and also stored in a secured location. ALS is ISO 17025 accredited.

Dr. Albert Wilkinson MIMMM, FGS, C.Geol, a consulting geologist to Compass and a "qualified person" within the meaning of National Instrument 43-101, has verified, 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.

About Compass Gold Corporation

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 has acquired a 51% interest in Africa Mining, which owns four gold exploration permits (Yanfolila, Dandoko, Kolondieba and Solabougouda) as well as an authorization to explore, Mousala, covering a total of 880 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 and interpretation of drilling results at Yanfolia's Solona target being associated with gold mineralization are subject to all of the risks and uncertainties normally incident with undertaking mineral exploration in Africa, including technical, operational and environmental risks associated with gold exploration including but not limited to completion of final sampling results and the accuracy of the technical evaluation of such 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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