Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

October 07, 2011 09:00 ET

Drill Rig Arrives in Anticipation of Columbus Drilling at Paul Isnard 1.9 M Ounce Gold Project, French Guiana

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2011) - Columbus Gold Corporation (TSX VENTURE:CGT) ("Columbus Gold") is pleased to announce that the track-mounted diamond core drill rig contracted for commencement of drilling at its 1.9 million ounce Paul Isnard gold project, has arrived in French Guiana. The rig is expected to clear customs in the next few days and will then be transported to the project site, in anticipation of a 15,000 meter drilling campaign that will begin shortly thereafter.

The initial program is focused on the Montagne d'Or gold deposit which hosts a 43-101 compliant inferred gold resource of 1.9 million ounces within 36.7 million tonnes grading 1.6 gpt gold. The Montagne d'Or deposit is a steeply-dipping tabular body averaging about 70 meters thickness and partially outlined by earlier drill holes for a strike length of 2,000 meters and depth of 100-150 meters. The deposit and inferred resource are open at depth, along strike and internally between widely spaced holes. The planned initial drill program, consisting of 15,000 meters in about 50 holes, is designed to increase the gold resource by drilling the deposit systematically to a depth of 200 meters and laterally along open strike extensions. The denser drill pattern, with holes at roughly 50 meter centres, is also expected to convert certain of the inferred resource to indicated and measured categories.

Based upon performance of earlier programs at Montagne d'Or, production of about 2,000 meters per month, utilizing a single drill rig on a 24 hour basis, is anticipated. To accelerate the program Columbus Gold intends to engage a second drill rig.

Future drill programs will target potential extensions of the Montagne d'Or deposit indicated by untested geochemical anomalies extending more than 2.5 km along strike, incompletely tested parallel zones of gold mineralization, and other untested or incompletely tested gold prospects and geochemical anomalies throughout the large Paul Isnard property.

Columbus Gold's independent consultant and Qualified Person, John Prochnau (P. Geo), B.Sc. (Mining Engineering), M.Sc. (Geology), has reviewed and approved the technical content of this news release.

ON BEHALF OF THE BOARD,

Robert Giustra, Chairman & CEO

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting drilling, customs treatment of the drill rig, the hiring of a second drill rig, and Columbus Gold's general exploration plans. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the drill rig's compliance with French Guiana's customs requirements; the ability of the drill rig to clear French Guiana customs in a timely fashion; the desirability of Columbus Gold to obtain a second drill rig; the availability of a second drill rig (including without limitation its ability to arrive on site for example by clearing French Guiana customs); the ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers and drill equipment; competition for mining properties; risks associated with exploration projects, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: that the drill rig will clear French Guiana customs, and do so in a timely fashion; that if desired, a second drill rig will be available and will be able to arrive on site; that the design of the drill plan is appropriate for the site; general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies including without limitation drill rigs; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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