Columbus Options Four Nevada Gold Projects to Navaho Gold; Drilling Planned at Stevens Basin
Vancouver, British Columbia, Canada. September 23rd, 2010. Columbus Gold Corporation (CGT: TSX-V) ("Columbus Gold" or the "Company") is pleased to announce that it has entered into joint venture agreements with Navaho Gold PTY Ltd., of Australia ("Navaho") whereby Navaho can earn into four of Columbus Gold's Nevada gold projects: Whitehorse Flats, Stevens Basin, Utah Clipper and Crestview.
Stevens Basin is located on the Battle Mountain Gold Trend approximately 16 km (10 miles) west-southwest of Eureka and about 10 km (6 miles) west of Barrick Gold's Archimedes open pit gold mine. The Utah Clipper and Crestview properties are located directly adjacent to Barrick Gold's Pipeline-Gold Acres gold mine complex, in the Cortez-Pipeline sector of the Battle Mountain Gold Trend. White Horse Flats is located 43 km (27 miles) south of Wendover. The property is 13 km (8 miles) east of the Kinsley Mine, which produced approximately 400,000 ounces of gold from a Carlin-type deposit mined by Cominco in the mid-1980's. Subject to net smelter returns royalties, Columbus Gold controls a 100% interest in the projects.
Pursuant to the terms of the Stevens Basin Agreement, Navaho can earn an initial 51% interest in Stevens Basin by: i) incurring $3 million in exploration expenditures over 3 years, of which $250,000 must be incurred in 2010 (weather permitting); ii) paying $20,000 in cash to Columbus Gold by December 24, 2010; and, iii) paying $60,000 in common shares of Navaho to Columbus Gold over 3 years.
Pursuant to the terms of the Whitehorse Flats Agreement, Navaho can earn an initial 51% interest in Whitehorse Flats by: i) incurring $3 million in exploration expenditures over 5 years; ii) paying $20,000 in cash to Columbus Gold by December 24, 2010; and, iii) paying $160,000 in common shares of Navaho to Columbus Gold over 5 years.
Navaho can earn an initial 51% interest in both Utah Clipper and Crestview by: i) incurring $3 million in exploration expenditures over 5 years; ii) paying $20,000 in cash to Columbus Gold by December 24, 2010; and, iii) paying $160,000 in common shares of Navaho to Columbus Gold over 5 years.
Pursuant to the agreements, once Navaho has earned an initial 51% interest, it can elect to earn an additional 19% interest for a cumulative 70% interest, by completing a bankable feasibility study or by making an additional $10 million in expenditures, within a four year period.
The claim block covers a 9 m by 30 m (30 ft by 100 ft) jasperoid (silicified limestone), which occurs at the base of a small hill of Devonian limestone, at the break in slope where bedrock passes under the gravel cover of Stevens Basin. Twelve samples of the jasperoid run from 1 to 2 g/t (0.029 to 0.058 opt) gold. Stevens Basin is an unusual semi-circular gravel basin surrounded by hills of Paleozoic sedimentary rocks, and is approximately 10-13 sq. km (4-5 sq. miles) in diameter. Columbus Gold's property is along the north margin of the basin. Mapping to date indicates the outcrop areas are mostly Devonian limestone, with areas of altered and mineralized intrusive and siltstone float.
Columbus Gold has collected 100 grid geochemical samples in the covered areas adjoining the limestone hills or hill. Sampling was of the coarser chips screened from fine soil in areas of no outcrop. The sampling yielded a gold anomaly (all samples greater than 100 ppb, with a high of 2,505 ppb and numerous samples exceeding 500 ppb) that arcs around the base of the hill for about 760 m (2,500 ft) in total length and 30-90 m (100-300 ft) in width. The gold anomaly coincides with significant anomalies of arsenic (from 100 to 1450 ppm), antimony (from 50 to 725 ppm), and mercury (from 1 to 70 ppm). The anomalous zone is still open in several areas. More sampling is necessary to define the overall shape and size of the anomaly, but drilling is clearly warranted by the results to date. A ground gravity survey will commence in late September and along with information derived from recently acquired airmag data, it will be used to optimize drill sites. Weather permitting, drilling by Navaho is planned to commence in November.
Utah Clipper and Crestview
Both properties are located directly adjacent to Barrick Gold's multi-million ounce Pipeline-Gold Acres gold mine complex, in the Cortez-Pipeline sector of the prolific Battle Mountain Gold Trend, Nevada. The Cortez-Pipeline sector has past production plus reserves totaling approximately 26 million ounces of gold.
The principal geologic targets at Utah Clipper and Crestview, classical "Carlin" or "Pipeline" style bulk mineable, disseminated gold deposits or high grade, structurally controlled vein deposits in "lower plate" carbonates, have not been adequately tested by past work.
Historic production at Utah Clipper includes silver and base metals from the Boss Mine and silver production from the Utah Camp and Clipper mines. Past work includes limited exploration by Newmont, Goldfields, Noranda/Hemlo and Uranerz/Cameco in the late-1980's to mid-1990's and by Agnico-Eagle and Barrick Gold during the last decade. Past work at Crestview includes limited drilling by Newmont in 1987, ASARCO in 1994 and more recently by Agnico-Eagle and Barrick Gold. The drill holes collared in the upper plate of the Roberts Mountains thrust fault and penetrated metamorphosed lower plate limestones and limy siltstones at depths of 122 to 152 m (400 to 500 ft). The lower plate rocks were altered in several holes, and contained anomalous gold.
White Horse Flats
White Horse Flats covers three small hills and the surrounding pediment to the east. Exposures on the three hills are limestones and siltstones of Permian age, overlain by a cap of silicification. The silicification forms a discontinuous north to south belt approximately 2,130 meters long and up to 150 meters wide (7,000 ft long and up to 500 ft wide). Silicification varies from weak to strong with common liesegang banding and is almost everywhere anomalous in gold (from 30 to 1,817 ppb gold), associated with anomalous arsenic, antimony, and mercury. The altered section is thought to dip east under shallow gravel cover and the property is positioned to cover this target. The mineralization is Carlin-type.
Detailed surface sampling by Columbus Gold delineated a significant area approximately 165 m long and 60 m wide (550 ft long and 200 ft wide) yielding 16 samples ranging from 0.32 to 1.82 g/t (0.01 to 0.05 opt) gold. The zone which is covered with alluvium on its north and east sides presents an excellent target for drilling.
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 is the principal 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 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 Cordex, which has 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 12 of its projects joint ventured to major and junior mining companies, including Agnico-Eagle Mines.
Navaho Gold Pty Ltd is a subsidiary of ASX listed D'Aguilar Gold Limited (ASX: DGR). The company is clearly focused on the exploration and development of "Carlin" style gold mineralisation. Navaho has identified three areas in Queensland, Australia as highly prospective and holds six (6) granted and twenty (20) applications for exploration permits covering more than 7,000 km2 (2,700 mile2) in the Georgetown, northern Bowen Basin and Texas areas. Navaho is also currently assembling a highly prospective gold portfolio within the 200m oz Carlin/Battle Mountain-Eureka trends in Nevada, USA. The company has recently completed a seed capital raising and commenced preparation of a prospectus ahead of a proposed IPO and ASX listing in early 2011.
The Board and Management of Navaho are all highly experienced resource industry professionals with a demonstrated track record in the discovery, project development and financing of precious and base metal projects.
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 bond placement, and drilling, and the Company'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 ability to acquire necessary permits and other authorizations; ability to obtain funding sufficient for bond placement; 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: 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 we undertake no obligation to update any of the foregoing except as required by law.