Compass Gold Corporation
TSX VENTURE : CVB

Compass Gold Corporation

March 17, 2011 09:30 ET

Compass Gold Exploration Update Strengthens Phase II Work Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2011) - Compass Gold Corporation (TSX VENTURE:CVB) ("Compass" or the "Company") provides the following update regarding its exploration activities in Mali, West Africa relating to four exploration gold research licenses held by Africa Mining SARL ("Africa Mining") in which Compass is currently earning a 51% interest.

Compass recently completed a C$2,000,000 non-brokered private placement. These funds will be used to complete the Phase II Exploration Program including initiating a major high-resolution airborne magnetic and radiometric survey over its licenses and drill targets.

HIGHLIGHTS:

  • Major high-resolution aeromagnetic survey over all four licenses to commence in March 2011.
  • Mobilization of drilling equipment commences.

Details as follows:

  1. MAJOR HIGH RESOLUTION AIRBORNE MAGNETIC AND RADIOMETRIC SURVEY TO COMMENCE

The Phase II exploration program will be strengthened by the commencement, on March 21, 2011, of a major high-resolution airborne magnetic and radiometric survey ("Survey") over all four licenses.

The Survey has been brought forward from Phase III, to provide additional information for the interpretation of results of a scout drilling program, and to assist in planning Phase III Exploration Program.

Aeroquest (Aust) Pty. Ltd. has been contracted to undertake the Survey. The Survey covers all four licenses (Yanfolila, Kolondieba, Dandoko and Solabougouda) comprises 4,834 line km and is being flown on a East-West orientation at 200m line spacing with a nominal ground clearance of 70m. Areas with identified gold targets on the Yanfolila and Dandoko licenses will be flown at tighter 50m line spacing. It is expected that the entire Survey will be completed within 4 weeks. 

The results from the Survey will assist in guiding the planned scout-drilling program and in identifying additional targets. Part of the drill program will be undertaken concurrent with the Survey to maximize results from all activities on the known gold targets.

  1. MOBILZATION OF DRILLING EQUIPMENT COMMENCES

Africa Mining confirms that it has commenced the mobilization of drill equipment for the Phase II 5,400m RC (reverse circulation) drill program, which will be expanded subject to results.

As previously announced, the aim of the initial drill program is to intersect gold mineralization at depth, in hard rock. The program will focus on drilling the following initial targets:

  • Solona and Yanfolila gold anomalies on the Yanfolila license with drilling to start before the end of March 2011; and
  • Disse target on the Dandoko license with drilling to start in April 2011.
  1. SOLABOUGOUDA LICENSE

On February 16, 2011, the Solabougaouda license was formally issued to Africa Mining, following the signature of the "Convention d' Etablissement" signed on January 20, 2011.

The Solabougouda license is located at about 245 km SSE of Bamako, and some 60 km East of the Yanfolila license. The license has an area of 188 sq. km and the three year work commitment totals US$1m including a first year requirement of $160,000.

The license area has been selected based on our interpretation of regional airborne magnetic data and field visits. The license area is in a region where there is a shear zone that hosts other gold deposits. The planned Survey will improve our ability to define targets and will be analyzed in connection with soil geochemistry and other exploration work later in the year.

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 exploration activities that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Compass Gold Corporation. Statements regarding the timing, method and completion of exploration activities are subject to all of the risks and uncertainties normally incident with undertaking mineral exploration in Africa, including but are not limited to failure of equipment necessary to complete the exploration program. 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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