The Browns Canyon Property is located approximately 20 km (12 miles) southwest of Barrick Gold's Archimedes open pit gold mine, in the highly prospective Battle Mountain Gold Trend of Nevada, which is known to contain over 100 million ounces of gold with some two dozen gold mines throughout the trend.
Browns Canyon is 100% controlled by Columbus Gold, subject to underlying royalties.
Preliminary sampling at Browns Canyon yielded gold values up to 3 g/t along a zone of silicification, sparsely exposed through cover, with a strike length of 2,000 meters (6,600 ft). The mineralization is Carlin-style, hosted in Devonian and Mississippian limestones, shales and siltstones. Follow-up geologic mapping and geochemical grid sampling was performed in 2011 with four hundred samples along the silicified zone defining a coherent gold anomaly (from 10 ppb to 3 g/t gold) about 2,000 meters long and reaching up to 390 meters at its widest point (6,600 by 1,300 ft). This anomaly becomes covered on the north end for about 600 meters (2,000 ft) and then reappears, albeit more weakly and less coherent, on the strike for another 900 meters (2,970 ft). The overall anomaly could be as much as 3,500 meters (11,550 ft) long on strike if it continues in bedrock below the covered area.
Limited historical drilling in the project area was by completed by Cordex in 1985 and consisted of seven vertical holes ranging from 38 to 168 m (125 to 555 ft) of depth, however, the holes were drilled without the benefit of the results of grid sampling. The wider part of the geochemical anomaly which was defined in the recent 2011 sampling program lies north of the main area of historical drilling. The best intercept in the historical holes was 9 m of 0.82 gpt gold.
Geologic mapping indicates the better gold grades may be related to steeper beds and structures more properly tested with angled drill holes. In January 2012, Columbus Gold commenced a drilling program consisting of 3,461.89 meters (11,358 feet) in 17 RC drill holes. This drilling program established that gold mineralization at Browns Canyon appears stratiform and occurs along two gently dipping, stratigraphic horizons, one at the contact of clastic Mississippian siltstones and sandstones and the underlying Devonian limestone, and another along the top of a limestone interbed in the Mississippian clastic rocks, 30 meters (98 feet) above the Devonian contact. The mineralization as drilled extends for about 900 meters (2,953 feet) of strike, and down dip for 100-150 meters (328 - 492 feet) from the surface, and remains open to the northwest on strike.
A second phase of drilling, planned for 2012, will attempt to extend the gold mineralization along strike and test other geochemical and geological targets at Browns Canyon.
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 content of this project description. Mr. Wallace is the President of Columbus Gold and the principal of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.