Compass Gold Corporation
TSX VENTURE : CVB

Compass Gold Corporation

April 19, 2012 10:32 ET

Compass Gold Operational Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 19, 2012) - Compass Gold Corporation (TSX VENTURE:CVB) ("Compass" or the "Corporation") is pleased to provide the following update regarding its activities.

Highlights

  • Yanfolila Project: Diamond core drilling program is ongoing at the Solona target with 13 inclined holes completed to date. Initial results due by June 2012.

Yanfolila Project - Drilling

A 3,000m diamond drilling program designed to assess the gold mineralization at the Solona target is ongoing and remains unaffected by recent political activities in Mali (see below).

To date, 13 inclined holes (1,690m) have been completed of a 3,000m program. First assay results are expected in early June, as the laboratories have a backlog of samples. It is anticipated that the results of this program will further define the width, depth and strike length of the mineralization at the Solona target as a first stage in Compass' aim to define a NI-43-101 compliant mineral resource by 2013.

Mali Returns to Civilian Rule with Appointment of New Transitional Government

Last week, the Mali junta and the 15-state Economic Community of West African States (ECOWAS) agreed to a timetable for a return to constitutional rule and elections following the March 22, 2012 overthrow of President Amadou Toumani Toure in a military coup that sparked international condemnation. Under the agreement, parliamentary speaker Dioncounda Traore has been sworn in as the new interim President.

President Traore's first act was to appoint Mr Cheick Modibo Diarra as the country's new Prime Minister. Mr Diarra is an accomplished astrophysicist who has had a distinctive career at NASA (National Aeronautics and Space Administration - United States), and served as Chairman for the Microsoft Corporation in Africa. They are charged with leading the country's transitional government until democratic presidential elections are held.

We view the military Junta's recent agreement with ECOWAS, which has led to the restoration of constitutional order, as a positive step for the country in re-establishing political stability with a view to holding free and fair democratic presidential elections in the near future.

Dandoko - Drilling Arrangements

Compass Gold is pleased to announce that a new RC drilling contractor, Forage Technic Eau, a Canadian company with 28 rigs operating in West Africa, has been awarded a contract for drilling a minimum of 2,500m on the 4 targets of the Dandoko license. This drilling is expected to start in mid-June, after completion of temporary import documentation. The drilling contract previously awarded to GX-Mines, a company from neighboring Niger, has been terminated for poor performance.

About Compass

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, Moussala, 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 timing of the drilling of exploration holes at the Yanfolila and Dandoko permits and the expectations of exploration results, including identified gold targets, the expectations for mineralization on these permits and the expectation of defining a mineral resource on the Yanfolila permit by 2013, 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 for the import of the new RC drill rig and technical, operational and environmental risks associated with gold exploration including but not limited to the accuracy and success of drilling; sample collection and procedures, final sampling results and the accuracy of technical evaluation of these results which cannot be relied upon until final verified independent results are reviewed by Compass. Additionally, there remains significant political risks in Mali associated with the recent military coup and the transitional government that remain a concern until democratic elections have been held in Mali. There can be no guarantee that the agreement for transitional government will remain in effect and democratic elections will take place as and when expected. Although to date there has been no impact on Compass' operations, there are no guarantees that Compass's operations in Mali will not be impact as a result of these governmental issues. 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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