Columbus Gold Intercepts 3.1 Metres Of 28.94 G/T Gold At Golden Mile Project
Vancouver, British Columbia, Canada. August 14, 2006. Columbus Gold Corporation (CGT: TSX-V) ("Columbus Gold" or the "Company") is pleased to announce that significant gold mineralization has been encountered in a recently completed drilling program at its Golden Mile gold project (the "Property") in western Nevada. The drilling program consisted of 2,345 metres (m) in fifteen holes; important intercepts include 7.6 m of 4.2 g/t gold in drill hole MI-6 and 9.1 m averaging 13.8 g/t gold in drill hole MI-12, including 3.1 m of 28.94 g/t gold.
Gold mineralization at the project area occurs within irregularly distributed skarn zones for 350 m in a northeasterly direction, and to a depth of 100 m along a variably altered and mineralized contact between Cretaceous quartz monzonite and calcareous sediments of the Triassic Luning and Jurassic Dunlop formations. The zone remains open to the northeast and at depth.
Eleven holes in the current program targeted a mineralized zone which was mined on a small scale in the 1930's and was partially delineated through limited drilling by earlier operators. Results from seven holes which penetrated the mineralized zone are summarized as follows.
Drill Hole * From To Width** Au
(m) (m) (m) (g/t)
MI-1 0 3.1 3.1 0.98
29.5 37.1 7.6 1.03
MI-2 0 15.2 15.2 2.36
91.5 96.1 4.6 1.63
MI-3 0 6.2 6.2 1.85
MI-4 No Values > 1 g/t
MI-6 62.0 69.6 7.6 4.19
MI-8 0 3.1 3.1 2.25
MI-12 52.9 62.0 9.1 13.81
including 56.0 59.1 3.1 28.94
* Four of the eleven holes targeting the mineralized zone failed to reach target depth due to difficult drilling conditions in hard, broken rock.
** The reported drill intercepts are believed to represent near true widths but interpretation is difficult due to the irregular nature of the mineralized skarn zones.
An additional four holes tested geological and geophysical targets outside the known mineralized zone and intercepted weakly anomalous gold mineralization.
The Company is now planning a follow-up drilling program, designed to test for additional gold mineralization below 100 m depth and along strike to the northeast of the mineralized zone. This program is expected to commence in early fall of this year.
QUALITY ASSURANCE/QUALITY CONTROL
Gold assays were determined by fire assay with an AA finish at American Assay Laboratories in Sparks, Nevada. American Assay performed internal check assaying on about 7% of the samples. In addition, check analyses were performed on a second split of about 7% of the samples. The second split was collected at the drill rig at the same time as the first, and retained for check assaying. All samples grading more than 1 g/t gold were checked in this manner, and some replicate assaying of the second split also was performed. The replicate analyses indicated variations in grade, most likely due to coarse gold particles, particularly in some of the samples grading 4 g/t gold or more. Assays reported on the above table are arithmetic averages of all available assays for a given interval.
DIRECT INTEREST ACQUIRED IN GOLDEN MILE
The Company is also pleased to announce that it has acquired outright the 19 unpatented mining claims that form the Golden Mile Property and thereby has reduced the combined underlying net smelter returns royalties ("NSR") on the unpatented mining claims from 3.5% to 2%. In addition, the NSR royalties on the five patented mining claims that form the Property have been reduced by 0.5%. Under the terms of the agreement (the "Agreement") with John Prochnau, Company Director and Barbara Prochnau (the "Vendors'), the Company will pay US$26,250 and reserve a 1.5% NSR in the name of the Vendors, which is part of the combined 2.0% NSR referenced above. In the event that Columbus Gold holds any part of the unpatented mining claims as at December 26, 2009, the Company will pay the Vendors a one time bonus of US$100,000 in the form of cash or common shares of Columbus Gold, at the election of the Company. The Agreement is subject to TSX approval.
ABOUT GOLDEN MILE
The Golden Mile Property consists of 24 mineral claims, covering approximately 380 acres, located along the Walker Lane Gold Trend in Southwest Nevada. Subject to net smelter returns royalties, Columbus Gold owns a 100 percent interest in the Property. Golden Mile produced approximately ten thousand tonnes grading 12 g/t gold in the 1930's. Geophysical surveys and limited drilling carried out in the 1970's and 1980's defined skarn, breccia and disseminated gold mineralization and included a drill intercept of 16 g/t gold along 29.5m, which included 47 g/t gold over 9.1m. The geologic setting at Golden Mile is similar to the productive Fortitude (Newmont) and McCoy (Kinross) mines on the Battle Mountain Trend. Golden Mile has the potential to host a high temperature gold skarn deposit hosted by Mesozoic limestones intruded by Cretaceous to Tertiary granite. John Prochnau B.Sc. (Mining Engineering), M.Sc. (Geology), and Director of Columbus Gold is the Qualified Person who reviewed and approved the contents of this news release.
ABOUT COLUMBUS GOLD
Columbus Gold Corporation is a gold exploration and development Company operating principally in Nevada. The Company has an experienced management group with a strong background in all aspects of the acquisition, exploration, development and financing of precious metal mining projects. Columbus owns 100% interests, subject to royalties, in 11 gold projects strategically located along or near Nevada's most productive gold trends and 4 non-core silver and copper projects in Arizona. The Company's project activities are managed by Cordilleran Exploration Company ("Cordex"), owned and operated by John Livermore and Andy Wallace who have a long and distinguished history of gold discovery and mine development in Nevada.
The Company maintains active generative (prospecting) and evaluation programs and, as a key element of strategy, broadens exposure, minimizes risk and maintains focus on high priority prospects while seeking industry finance through joint ventures on selected projects. The Company currently has a number of its projects joint ventured to major and junior mining companies.
ON BEHALF OF THE BOARD,
President, CEO & Director
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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