Compass Gold Corporation
TSX VENTURE : CVB

Compass Gold Corporation

April 21, 2011 09:30 ET

Compass Gold Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2011) -Compass Gold Corporation (TSX VENTURE:CVB) ("Compass" or the "Company") provides the following update regarding its exploration activities on 4 exploration gold research permits located in Mali owned by Africa Mining SARL ("Africa Mining") in which Compass is earning a 51% interest.

HIGHLIGHTS:

  • High-resolution aeromagnetic survey completed over two of the 4 permits.
  • Yanfolila and Dandoko ready for drilling and awaiting mobilizing of drill rig.
  • Exploration activities at Dandoko identifies 3 additional gold targets, with 2 targets ready for drilling.

Details as follows:

1. AIRBORNE MAGNETIC AND RADIOMETRIC SURVEY

A high-resolution airborne magnetic and radiometric survey (the "Survey") commenced in March 2011. As previously announced, Aeroquest (Aust) Pty. Ltd. is contracted to undertake the Survey.

The Survey of the Dandoko and Yanfolila permits has been completed, and it is expected that the remaining Kolondieba and Solabougouda permits will be completed by the end of April.

The results from the Survey (expected by mid-May) will assist in guiding the planned scout-drilling program and in identifying additional gold targets.

2. DRILLING TO COMMENCE IN MAY 2011

As previously announced, mobilization of a drill rig to the Yanfolila permit commenced in March 2011. Due to various delays, the drill rig is now expected to be on site for the commencement of drilling in by mid-May 2011.

The drilling is part of the planned 5,400m RC (reverse circulation) drill program that will be expanded subject to results. The initial drill program will focus on previously announced targets on the Yanfolila and Dandoko permits. Additional exploration activities have identified further targets that may allow for drilling to be extended beyond the current program.

3. FIELDWORK ON DANDOKO PERMIT

As part of the Phase II exploration program, a semi-regional geological and geomorphological mapping program was completed on the Dandoko permit. Mapping was conducted at the scale of 1:10,000. As a result of the current exploration program, and also from initial results of the Survey, a total of four gold targets at Dandoko have been identified for follow-up work.

In addition to the previously announced Disse target (refer News Release dated January 18, 2011), the remaining three gold targets have been identified:

Bemballa target

The Bemballa target is a gold in soil anomaly that covers an area of 1,200m by 200m in the southern part of the permit and extends beyond an artisanal mining site of 140m by 70m. Three trenches (a total 118m), previously dug by Randgold Corp., have been cleared, mapped and sampled. A 70m wide, visible mineralized zone, has been observed in all 3 trenches. The mineralized zone is made of centimetric to metric quartz veins and veinlets, with a maximum thickness of quartz vein up to 4m.

The Phase III exploration program will include 1,400m of RC drilling to test this visible mineralization, which has been mined by the artisanal miners for the last 3 years. A 200m by 40m soil geochemical program is also planned to test the continuation of Bemballa to the west (Selingouma target) and to the east (Sakin target).

Diabarou target

The Diabarou target is located in an artisanal mining area of 600m by 200m. The visible mineralized zone is made of quatrz veinlets and veinlets up to 5m thickness striking N300 with a visible width of 100m.

Additional exploration work will include a 200m by 40m soild geochemical survey and trenching, prior to defining drilling targets.

Gombally target:

The Gombally target is located in an artisanal mining site covering an area of 200m by 150m, with a 5m thick, striking a quartz vein currently being exploited for gold through shallow pits. A mapping and geochemical survey program will be carried out to define its extensions.

All samples will follow the QA/QC procedures previously employed and discussed by the Company, with samples being hand delivered by Africa Mining staff to the ALS Chemex laboratory in Bamako and assayed by 50g fire assay with an AAS finish (Method Au-AA24). This laboratory is ISO 17025 certified.

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 results, including defining gold targets by airborne magnetic and radiometric survey, the timing and results of drilling to define strike lengths and and the identification of the Bemballa, Diabarou and Gombally gold target on the Dandoko permit are subject to all of the risks and uncertainties normally incident with undertaking mineral exploration in Africa, including but are not limited to technical, operational and environmental risks associated with gold exploration including but not limited to final sampling results and accuracy of technical evaluation and 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.

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