Columbus Gold Options Nevada Property To Portage Minerals
Vancouver, British Columbia, Canada. October 31, 2007. Columbus Gold Corporation (CGT: TSXV) ("Columbus Gold" or the "Company") is pleased to announce that it has entered into an agreement (the "Agreement") with privately held Portage Minerals Inc. ("Portage") on Columbus Gold's 100% controlled Golden Mile Property (the "Property").
Under the terms of the Agreement, Portage has an option to earn an initial 60% interest in the Property by incurring US$2.5 million in exploration expenditures and by making payments to Columbus Gold totaling 500,000 common shares of Portage over the same period.
Upon completing US$2.5 million in aggregate exploration expenditures, Portage will have earned a 60% interest in the Property at which time it may elect to earn an additional 10% interest (for a total interest of 70%) by completing a positive feasibility study recommending production from the Property.
The Golden Mile Property consists of 24 mineral claims, covering approximately 154 hectares (380 acres), located along the Walker Lane Gold Trend in Southwest Nevada. Subject to net smelter return royalties, Columbus Gold controls a 100% interest in the Property. The geologic setting at Golden Mile is similar to the productive Fortitude (Newmont) and McCoy (Kinross) mines on the Battle Mountain Trend. Golden Mile produced approximately ten thousand tonnes grading 12 g/t (0.42 oz/t) gold in the 1930's. Geophysical surveys and drilling carried out in the 1970's, 1980's and by Columbus Gold in 2006, defined skarn, breccia and disseminated gold mineralization and included a drill intercept of 16 g/t (0.56 oz/t) gold along 29.5 m (96.8 ft), which included 47 g/t (1.66 oz/t) gold over 9.1 m (29.8 ft).
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical contents of this news release. Mr. Wallace is a partner of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.
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 controls a 100% interest, subject to royalties, in 23 gold projects strategically located along or near Nevada's most productive gold trends and 5 silver and copper projects located in Arizona and Utah. 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 12 of its projects joint ventured to major and junior mining companies.
ABOUT PORTAGE MINERALS
Portage Minerals Inc., (http://www.portageminerals.com/s/Home.asp) is a well funded, Toronto based, exploration company with an experienced management team focused on acquiring and advancing high quality exploration and pre-development mineral properties in Canada, the US and Mexico. Portage expects to list on the TSX Venture Exchange in the first half of 2008.
ON BEHALF OF THE BOARD,
Robert F. Giustra
President & CEO, Director
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For more information contact:
Ray Lagace
Investor Relations
604-638-3474 or 1-866-689-2599
