Phase III Drilling Results From Bolo Gold Project - Nevada
Vancouver, British Columbia, Canada. December 18, 2009. Columbus Gold Corporation (CGT: TSX-V) ("Columbus Gold" or the "Company") announces results of a Phase III drilling program at its Bolo gold project, located northeast of Tonopah, Nevada. Subject to underlying royalties, Bolo is 100% controlled by Columbus Gold.
The Phase III drilling program consisted of 3,990 feet (1,215 meters) in six angle, rotary drill holes. Five of the holes tested for extensions of significant gold mineralization cut by rotary drill hole BL-23, completed by Columbus in late 2008. Drill hole BL-23 cut 100 ft of 0.069 opt (30.5 m of 2.37 gpt) gold in silicified and oxidized Paleozoic limestone and siltstone and highly-altered Tertiary dike. This better grade zone was contained in a broader interval of 250 ft of 0.034 opt (76 m of 1.15 gpt) gold. The hole bottomed in gold mineralization at 600 ft (182 m) of down-hole depth.
Gold mineralization at Bolo occurs along and adjacent to two principal north-trending faults, known as the Mine and East faults, traceable for 16,000 ft (4,878 m) within the project area. BL-23 was drilled at 45 degrees, essentially perpendicular to the Mine Fault Zone, as determined by mapping, and encountered gold mineralization about 200 ft (60 m) vertically below the surface. Outcrop sampling at, and near, the Mine Fault Zone, up-dip above BL-23, produced 28 samples grading from 0.029 to 0.151 opt (1 to 5.18 gpt) gold. The gold mineralization is classified as "Carlin-type", similar to many other significant gold deposits in Nevada.
In the current program, drill hole BL-29 was drilled to cut the Mine Fault 100 ft (30 m) south of BL-23 and cut 205 ft (62 m) of 0.019 opt gold, including 15 ft (4.5 m) of 0.055 opt and 10 ft (3 m) of 0.099 opt gold. Drill hole BL-32 tested the Mine Fault 100 ft (30 m) north of BL-23 and cut 170 ft (51 m) of 0.024 opt gold, including 10 ft (3 m) of 0.087 opt and an additional 30 ft (9 m) of 0.056 opt gold. Hole BL-30 intersected the Mine Fault 360 ft (109 m) north of BL-23 and cut 55 ft (16 m) of 0.006 opt gold. Hole BL-31 cut the Mine Fault 250 ft (76 m) south of BL-23 and cut 15 ft (4.5 m) of 0.030 opt gold. Hole BL-33 was drilled to cut the Mine Fault 250 ft (76 m) below BL-23 and cut only anomalous values. The Mine Fault structure is thought to be offset along a flat fault between 500 ft and 700 ft (152 m and 213 m) of depth. Drill hole BL-34 was drilled in a gravel-covered area about 1 mile (1.6 kilometers) northeast of BL-23, and intersected no significant gold values. A table with complete drill results can be viewed at the following link:
The drilling, combined with historical channel sampling of five bull dozer trenches totaling 1,800 ft (548 m) in length, cut and sampled in 1980's by Canerta (now mostly reclaimed, but results verified by extensive Columbus surface sampling), suggest that the BL-23 mineralized zone is about 500 ft (150 m) long, about 200 ft (60 m) wide, and extends to a depth of about 500 ft (150 m) where it is either offset or terminates. Thirtyfour more drill holes, on 100 ft (30 m) spacing will be required to delineate this tonnage and to test for the potential offset portion of the zone at depth. In addition, there are seven undrilled areas, most with surface sampling at grades exceeding 0.029 opt (1 gpt) which remain to be tested at Bolo, along with other blind geological targets, supported by geophysical surveys. Columbus has initiated the permitting process to allow drill testing of these additional target areas and for expansion drilling in the area around drill hole BL-23.
QUALITY ASSURANCE/QUALITY CONTROL
Gold assays were determined by fire assay with an AA finish at American Assay Laboratories in Sparks, Nevada. American performed internal check assaying on about 7% of the samples, and also included analyses of internal standards inserted into the sample string. In addition, check analyses are in progress on a duplicate second split on a further 10% of the samples. The second split was collected at the drill rig during drilling, at the same time as the first, and retained for check assaying. Any significant variations from the check sampling program will be reported at a later date.
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 VP of Columbus Gold's wholly-owned US operating subsidiary, Columbus Gold (U.S.) Corporation and a partner of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus 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 Gold controls a 100% interest, subject to royalties, in 22 gold projects strategically located along or near Nevada's most productive gold trends. The Company also holds a significant equity interest in Columbus Silver Corporation, an exploration company with a growing portfolio of silver projects in the Western United States.
Columbus Gold's and Columbus Silver's project activities are managed on an exclusive basis 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 the United States. Columbus Gold 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, including Barrick Gold and Agnico-Eagle Mines.
ON BEHALF OF THE BOARD,
Robert F. Giustra
President & CEO, Director
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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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 the Company's 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; 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; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.