Columbus Gold Joint Ventures Three Of Its Nevada Gold Properties
Vancouver, British Columbia, Canada. December 4, 2006. Columbus Gold Corporation (CGT: TSX-V) ("Columbus Gold" or the "Company") is pleased to announce that it has entered into joint venture agreements with privately held Sniper Resources Limited ("SRL") on three of its Nevada gold properties: the Linka Property, the Guild Property and the Pete's Summit Property (the "Properties").
Under the terms of the Guild Property Agreement, SRL can earn an initial 51% interest in the Guild Property by making i) a cash payment to Columbus Gold of US$17,500; ii) an additional payment of US$32,500 in either cash or shares of SRL, at SRL's election, on the earlier of April 30, 2007 or the completion of SRL's initial public offering on the TSX Venture Exchange; and iii) by incurring US$2 million in exploration expenditures within a five year period.
Under the terms of the Linka and Pete's Summit Property Agreement, SRL can earn an initial 51% interest in both Linka and Pete's Summit by making i) a cash payment to Columbus Gold of US$17,500; ii) an additional payment of US$32,500 in either cash or shares of SRL, at SRL's election, on the earlier of April 30, 2007 or the completion of SRL's initial public offering on the TSX Venture Exchange; and iii) by incurring US$2 million in exploration expenditures collectively on the two properties within a five year period.
After earning a 51% interest in any of the Properties, SRL will have the option of either i) entering into a joint venture agreement on that property with Columbus Gold whereby SRL will own 51% and Columbus Gold will own 49% of the joint venture, or ii) electing to earn an additional 19% of that property by completing a positive feasibility study. On completion of a positive feasibility study, Columbus Gold will then have the option of either i) entering into a joint venture agreement with SRL on that property whereby SRL will own 70% and Columbus Gold will own 30% of the joint venture, or ii) electing to receive a 2% net smelter return royalty.
The Guild Property consists of 118 mineral claims, covering 987 hectares (2,439 acres), located 80 kilometres (km) (50 miles) northeast of Tonopah, Nevada. Subject to net smelter return royalties, Columbus Gold controls a 100% interest in the property.
Carlin-style gold mineralization at Guild occurs within a 700 metre (m) long zone of jasperoid and silicified Ordovician limestone averaging 6-7 m thick. Outcrop samples collected within a 55 m length of the mineralized zone average 1.84 grams per tonne (g/t) gold. Past work by American Selco and Western States Minerals has been limited to short drill holes not exceeding 150 m.
The recognition of Carlin-style gold mineralization at Guild led Columbus to additional prospecting and consolidation of the current land position. Subsequent mapping and sampling programs outlined new targets including extension of the structure controlling the original Guild gold showings under shallow cover and areas of silicified Mississippian Webb formation, host to the Rain, Dee and other important gold deposits in eastern Nevada, containing anomalous gold with barite and other gold tracer elements.
The Linka and Pete's Summit Properties consist of a combined 188 mineral claims, covering approximately 1,572 hectares (3,885 acres), located at north end of the Shoshone Range about 24 km (15 miles) southwest of Austin, Nevada. Subject to net smelter royalties, Columbus owns a 100% interest in the properties. The two project areas cover a series of windows through the Roberts Mountain thrust fault, within a 10km long belt, exposing altered and mineralized Silurian Roberts Mountain formation. This is the classic geologic setting for Carlin-style gold deposits in central and eastern Nevada.
Prospecting activities by Columbus during the past year have identified several centres of mineralization within the claims containing gold values to 0.37 ppm with anomalous arsenic, antimony and mercury. Apart from limited historic work on skarn tungsten showings at Linka there has been no modern gold exploration carried out within the claim areas
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 a 100% interest, subject to royalties, in 17 gold projects strategically located along or near Nevada's most productive gold trends and 4 non-core silver and copper projects located 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 successful 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 11 of its projects joint ventured to major and junior mining companies.
ABOUT SNIPER RESOURCES
Sniper Resources is a private Vancouver-based resource exploration company with gold projects located in Nevada.
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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