Columbus Gold Corporation
TSX VENTURE : CGT

Columbus Gold Corporation

March 02, 2012 09:00 ET

Drilling Intersects 102 Meters of 1.97 gpt Gold at Columbus Gold's Paul Isnard Gold Project; Drilling Confirms Depth Extension of Gold Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2012) - Columbus Gold Corporation (TSX VENTURE:CGT) ("Columbus Gold") is pleased to announce results of the initial five (5) core drill holes at its Paul Isnard gold project in French Guiana. The holes confirm depth extension of gold mineralization below shallow holes drilled on the 43-101 compliant 1.9 million ounce Montagne d'Or inferred gold deposit at Paul Isnard in the 1990s and support the current program of resource expansion through offsetting open-ended gold mineralization indicated by the earlier holes.

Robert Giustra, CEO of Columbus Gold, commented: "These drill results validate Columbus Gold's approach to adding ounces with a lower-risk drilling program designed to infill and to extend the mineralized zones to 200 m vertical depth from surface; a depth amenable to open pit mining." Robert Giustra further stated: "Interestingly, some of the widths of the mineralized zones reported in these initial holes exceed our expectations and reinforce our high level of confidence with respect to the ultimate size potential of the Montagne d'Or gold deposit at Paul Isnard."

The initial five drill holes MO 11-61 to MO 11-65, totaling 1,903 meters, were laid-out to test interpreted projections of two tabular zones of sub-parallel mineralization making up the Montagne d'Or deposit, designated the Upper Felsic (UFZ) and Lower Favorable (LFZ) zones, to approximately 100 meters below past drilling.

All five holes intercepted the projected UFZ including drill hole MO 11-64 which intersected 1.97 gpt gold (1.46 cut to 31.1 gpt) along 102 meters (approx. 75 meters true thickness) in the western sector of the deposit. Four of the five holes intercepted the projected LFZ including 2.07 gpt gold (1.98 cut to 31.1 gpt) along 32 meters (approx. 24 meters true thickness) in MO 11-63 in the eastern sector of the deposit. MO 11-65 was stopped above the projected extension of the LFZ.

Following is a table summary of the principal mineralized intervals in all reported holes. It is important to note that the intervals indicated are based on angled drilling through the mineralized zones at 60 and 70 degree inclinations and that the actual vertical depth from surface of the drill holes as they exited the mineralized zones varies from approximately 170 m to 200 m depth in the UFZ and 195 m to 200 m depth in the LFZ; with the exception of MO 11-62 which exited the UFZ and LFZ at approximately 255 m and 265 m vertical depth respectively. For clarity both zones are open at depth. Note also that the true thicknesses are approximately 75-80% of the core lengths indicated in the table.

Hole
***
From
(m)
To
(m)
Core Length
(m)*
gpt Au
**

Zone

Section
MO 11-61 192 235 43.0 0.60 UFZ 3850E
308 320 12.0 2.36 LFZ
incl. 318 320 2.0 8.12
MO 11-62 239 330 91.0 0.86 UFZ 3950E
361 390 29.0 1.50 LFZ
184 264 80.0 1.21(0.89) UFZ 4050E
MO 11-63
incl. 243 245 2.0 28.74(16.0)
319 351 32.0 2.07(1.98) LFZ
incl. 330 345 15.0 3.85(3.66)
Mo 11-64 132 234 102.0 1.97(1.46) UFZ 2950E
incl. 201 224 23.0 7.39(5.12)
359 393 34.0 0.94 LFZ
MO 11-65 205 290 85.0 1.60 UFZ 2875E
incl. 280 290 10.0 6.02
Notes: * True thicknesses approximately 75-80% of core lengths.
** Gold grades in brackets averaged by reducing high grades to 31.1 gpt gold.
*** DH MO 11-65 was terminated above the Lower Favorable Zone.

A drill plan and long sections of the UFZ and LFZ can be viewed at the following link:

http://www.columbusgoldcorp.com/i/nr/2012-03-02-drillplan.pdf

The Montagne d'Or gold deposit at Paul Isnard is an east-west striking, steeply south dipping, tabular body made up of two sub-parallel zones of gold mineralization hosted by laminated felsic volcanics within a Precambrian greenstone sequence. Prior to Columbus Gold's involvement the deposit was partially outlined by 54 holes, totaling 10,600 meters, in the late 1990s. Based upon that past drilling the deposit contains a 43-101 inferred gold resource of 1.9 million ounces within 36 million tonnes grading 1.6 gpt gold (0.4 gpt cut-off) within a mineralized zone 2,000 meters long, averaging about 70 meters thick and tested to variable depths of between 100-150 meters. The deposit is open at depth, internally between widely spaced holes and, in part, along strike.

The current Columbus Phase I drilling program, comprising 15,000 meters in about 50 holes, is designed for resource expansion principally below the previously defined deposit by drilling systematically to a vertical depth of about 200 meters, and internally between widely spaced holes (within parts of the "mineralized envelope" not reached by the existing resource model). 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.

Fourteen (14) holes have been completed (assays pending) by Columbus Gold in the current program and drilling is progressing at the rate of about 3,000 meters per month with one drill-rig on a 24 hour basis. Columbus Gold plans to accelerate the current program by engaging a second drill-rig as soon as one can be obtained. Future drill programs will target potential extensions of the Montagne d'Or deposit indicated by untested geochemical anomalies extending more than 3 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.

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.

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, 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 second drill rig's compliance with French Guiana's customs requirements; the ability of the second 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 second 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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