Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

March 05, 2012 09:00 ET

Drilling Completed at Columbus Gold's Overland Pass and Weepah Gold Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 5, 2012) - Columbus Gold Corporation (TSX VENTURE:CGT) ("Columbus Gold") is pleased to announce completion of drilling campaigns at its Overland Pass and Weepah gold project were joint-venture partner Sniper Resources Ltd. ("Sniper"), can earn an initial 51% interest in each project, by undertaking staged annual exploration expenditures.

Overland Pass

The Overland Pass gold project is located approximately 55 miles (90 km) south of Elko, Nevada and approximately 4 miles (6.5 km) north of Barrick Gold's Bald Mountain gold mine, on the southern extension of the Carlin Trend. The overall geological setting at Overland Pass is very similar to that of the Alligator Ridge and Rain gold deposits, both of which produced in excess of one million ounces of gold. Alligator Ridge is approximately 11 miles (18 km) south of Overland Pass.

The drill program was comprised of 18 RC drill holes from 14 drill sites, for a total of 7,300 ft (2,225 m) and was designed to offset known oxide mineralization encountered in earlier drilling (Sniper drilled 13 holes at Overland Pass during the winter of 2006-2007), to test known surface geochemical anomalies, and, to evaluate favorable host stratigraphic horizons at shallow depth from surface in several different areas.

The best intercepts in the present program were as follows:


Hole

From (ft)

To (ft)
Drilled
Thickness
Average
gpt Au
Average
opt Au
OP-14 90 100 10 0.157 0.005
120 140 20 0.243 0.007
OP-15 85 245 160 0.302 0.009
including 100 195 95 0.362 0.011
and 150 175 25 0.417 0.012
and 210 245 35 0.343 0.010
OP-16 90 145 55 0.513 0.015
OP-26 160 190 30 0.203 0.006

Sniper reports that the shallow, oxidized, 160 ft (48 m) intercept in OP-15 is the thickest run of mineralization encountered to date on the property. According to Sniper, results from OP-14, OP-15, and OP-16 suggest continuity of stratigraphically controlled mineralization between the area of Sniper holes OP-06 and OP-10 and earlier drilling several hundred feet to the west, and widen the mineralized zone's footprint to approximately 400 ft (121 m). Results are pending for holes OP-30 and OP-31. Sniper reports that thus far only holes OP-17, OP-18, and OP-22 have not contained significant (<10 ppb) gold in the recent drilling.

Weepah

The Weepah gold project is located approximately 20 miles (12.4 km) west-southwest of Tonopah, Nevada, in Esmeralda County. Weepah is immediately adjacent to an historical open pit gold mine with past production from an open pit along a steep, northerly structure cutting Precambrian sedimentary rocks. Mining was first conducted there in the 1930s. During the 1980s, Sunshine Mining Company enlarged the pit and hauled the ore to a mill at the nearby 16-to-1 mine which they were then operating.

Sniper reports that it has completed an initial drilling program at Weepah, with assay results expected in two to three weeks. Drilling consisted of 1,630 ft (497 m) in 8 shallow RC holes.

An initial drill program carried-out at Weepah by Columbus Gold in early 2011 returned significant intercepts in several holes. Sniper's follow-up drill program was designed to extend and fill-in between the shallow, oxidized gold mineralization discovered in certain of the Columbus Gold drill holes.

The principal drill targets at Weepah are only a few hundred feet east of the historic open pit but are different in geological character. The gold mineralization occurs as replacements in sanded, or lightly silicified, Precambrian limestone that is exposed in small outcrops through thin gravel cover on the north edge of an alluvial basin. Favorable (for gold mineralization) Precambrian silt and limestone beds lie immediately beneath shallow gravel cover over a wide area and are altered where exposed, with very anomalous gold values found locally. As earlier reported by Columbus Gold, outcrop sampling of the altered limestone yielded values from anomalous up to 0.30 opt (10.29 g/t) gold over 12 ft (3.6 m), and (0.50 opt) 17.14 g/t gold over 6 ft (1.8 m).

The initial drilling program carried-out by Columbus Gold in early 2011 returned the following significant intercepts:

  • Drill hole WP-2 intersected 7.6 m (25 ft) of 2.29 g/t (0.067 opt) gold from 118.9-126.5 m (390-415 ft) depth, including two separate 1.5 m (5 ft) intervals of 4.31 g/t (0.126 opt) and 4.38 g/t (0.128 opt) gold;

  • Drill hole WP-5 intersected 16.8 m (55 ft) of 1.30 g/t (0.038 opt) gold from 7.6-24.4 m (25-80 ft) depth, including 3.0 m (10 ft) of 4.54 g/t (0.132 opt) gold;

  • Drill hole WP-7 intersected 27.4 m (90 ft) of 0.73 g/t (0.021 opt) gold from 16.8-44.2 m (55-145 ft) depth;

  • Drill hole WP-12 intersected 4.6 m (15ft) of 3.47 g/t (0.101 opt) gold from 79.2-83.8 m (260-275 ft) depth, including 1.5 m (5ft) of 9.37 g/t (0.273 opt) gold from 80.8-82.3 m (265-270 ft) depth.

Mapping, along with ground magnetics and CSAMT geophysical surveys that were carried-out by Columbus Gold indicate that the favourable geology extends beyond the area of historical drilling to the south and east for 4,000-5,000 ft (1,200-1,500 m) under what appears to be very shallow gravel cover.

Quality Assurance/Quality Control

At Overland Pass, duplicate samples of approximately 5 and 10 pound nominal weights were collected from each 5 ft (1.5 m) interval and one set was delivered each day after the close of drilling to ALS Minerals preparation lab in Elko, Nevada. ALS is an ISO certified assaying/geochemistry facility with the duplicates stored on site. Pulps for analysis were shipped to ALS' lab in Reno, Nevada and assayed using their "Au AA23" procedure (fire assay with atomic adsorption finish) with a 5 ppb Au detection limit.

All scientific and technical information contained in this news release has been reviewed and approved by Douglas H. McGibbon, Director, and Vice-President, Exploration, of Sniper Resources Ltd., who is a qualified person within the meaning of National Instrument 43-101.

About Columbus Gold

Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific project generator focused on advancing projects either through earn-in agreements to industry partners or on its own where exploration risk is minimized and potential is particularly promising. Columbus Gold's President, Andy Wallace has a long and successful history of gold discovery and mine development. Columbus currently has 11 of its 25 strategically located gold projects in Nevada farmed-out to various mining companies.

About Sniper Resources

Sniper Resources Ltd. is engaged in the identification, acquisition and exploration of gold properties in the State of Nevada, USA. Sniper owns a 100% interest in the ReHot project and is currently earning a controlling interest in four strategically located Nevada gold projects, namely, Guild, Overland Pass, Weepah, and Laura. The founder and President of Sniper Resources Ltd. is Scott Baxter, who was also the founder and President of Tone Resources Ltd., a company acquired by Robert McEwen's US Gold Corp in 2007.

ON BEHALF OF THE BOARD,

Robert F. 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, and Columbus Gold's or Sniper Resources' 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 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: 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 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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