Compass Gold Corporation
TSX VENTURE : CVB

Compass Gold Corporation

February 16, 2012 10:23 ET

Compass Gold Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2012) - Compass Gold Corporation (TSX VENTURE:CVB) ("Compass" or the "Corporation") is pleased to provide the following update regarding its exploration activities.

Highlights

  • Yanfolila Permit: Assay results for the first 2 shallow inclined diamond drill holes show gold mineralization from near surface to 50m depth and include assays of:
    • SD31: 9m @ 3.00 g/t at a depth between 18m and 26m
    • SD32: 26m @ 7.17 g/t (uncut) including 1 high value of 174 g/t which intersection would reduce to 26m @ 2.94g/t using a top cut of 30g/t.
  • Dandoko Permit: RC drilling is ongoing on the Bemballa target with 12 of 20 holes completed;
  • Yanfolila and Kolondieba permits renewed for a further 3 year period.

Yanfolila Permit - Drilling

9 shallow vertical holes have been drilled in order to complete the 30 hole diamond drilling program initiated in May 2011. Assay results for these holes did not return any significant gold mineralization. However, initial assay results from the first 23 holes indicated a broad zone of gold mineralization at the Solona target including 1.31 g/t Au over 18 meters and 1.59 g/t Au over 13 meters (refer to the Company's news releases dated July 19, 2011 and August 10, 2011).

Following the conclusion of the 30 hole diamond drilling program discussed above, the Company commenced a diamond drilling program consisting of 10 inclined shallow holes (60 degree incline) targeting the mineralization from surface to 50m below surface and over a 1 km strike length. The locations and orientations of these drill holes are shown in the map below.

To view the map accompanying this press release please visit the following link: http://media3.marketwire.com/docs/CVBMap26.pdf

9 of the 10 holes have been completed and assay results received for the first 2 holes. Both holes show gold mineralization at depth varying from 8m to 52m, with hole SD32 ending up in mineralization at a depth of 52m.

Results are as follows:

Drill hole No From To Interval Au g/t Core Recovery% Comment
SD31 18 27 9 3.00g/t 89
SD32 26 52 26 7.17g/t 97 Uncut
SD32 26 52 26 2.94g/t 97 With the 174 g/t value cut to 30 g/t (note: 8m barren zone between 35 and 42m)

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

A 3,000m diamond drilling program designed to assess the gold mineralization at Solona will start in the next week, as a larger diamond drill rig has arrived in country and is clearing customs. This larger rig will be used to test mineralization at greater depth (to bedrock at 100m to 150m's below surface) at both the Solona target at the Yanfolila permit and the Bemballa target at the Dandoko permit.

It is anticipated that the results of this program will further define the width, depth and strike length of the mineralization at Solona, as a first stage in defining a NI-43-101 prospective resource on the Company's properties initially focused on the Yanfolila permit.

Dandoko Permit - drilling

A 20 hole RC drill program is underway at the Bemballa target to test the gold mineralization in the oxidized rock between surface and depth of 50m. 12 holes have been completed and assay results are expected in early March 2012. Following completion of the RC drill program and analysis of assay results, the Company plans to complete part of the 3,000m diamond drilling program over selected targets on the Dandoko permit.

Yanfolila Sampling Protocols

All drilling at the Yanfolila permit has been carried out by 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 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 Africa Mining staff and also stored in a secure location.

To guard against possible 'nugget affect' all anomalous samples will be re-analysed using fire-screen assays on archived half-core and, latterly (from SD31), previous assay pulps. This includes the 26m interval between 26-52m in SD32.

Permits renewals

The Company is pleased to confirm the Yanfolila and Kolondieba permits have been renewed for a further 3 year period. As part of the renewal process, 50% of the area of each permit was relinquished. The Company has re-applied for permits covering the relinquished areas that do not form part of the Company's focus area for exploration at this time.

The Company also confirms it is currently finalizing the terms of a new research permit, Sirakourou. Sirakourou is located adjacent to the east of Solabougouda. The addition of this permit, including all permits under application, will increase the total permit area to 1,138 sq km's, representing a significant land holding in the prospective gold producing areas of Mali.

Dr Albert Wilkinson MIMMM, FGS. C.Eng. is a "qualified person" within the meaning of National Instrument 43-101, 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.

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, owns four gold exploration permits (Yanfolila, Dandoko, Kolondieba and Solabougouda) as well as holding 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 permit and statements relating to Compass's application to acquire new permits covering relinquished areas of Africa Mining's existing Yanfolila and Kolondieba permits and the new permit Sirakourou, are subject to all of the risks and uncertainties normally incident with undertaking mineral exploration in Africa, including but not limited to: the risk that necessary governmental approvals will not be obtained in respect of new permits for relinquished areas; and technical, operational and environmental risks associated with gold exploration including but not limited to final sampling results and accuracy of technical evaluation 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.

Contact Information