The Clara Moro gold project is located approximately 130 km (80 miles) northwest of Phoenix, Arizona. Columbus Gold owns a 1% net smelter returns royalty on the project.
Clara Moro covers exposures and the down-dip extension [covered by thin gravels of 3-15 m (10-50 ft)] of a flat-dipping, detachment fault separating a lower plate of Precambrian metamorphic rocks from overlying Tertiary sandstones. Gold occurs both in the sandstones at the detachment fault and along high angle structures cutting the sandstones above the detachment fault. Gold grades in surface sampling are high with numerous chip samples running from 3.4 g/t to 18.75 g/t (0.10 to 0.60 opt) gold. The mineralization is erratically distributed along the greater than two miles of exposed strike length of the detachment fault.
Clara Moro has been drilled by Nevada Pacific, Phelps Dodge, and Echo Bay. Drilling indicated the gold mineralization on the property to be erratic in grade and thickness. The best hole was Nevada Pacific hole #1, which had 14 m (45 ft) of 3.78 g/t (0.11 opt) gold from surface.
The down-dip extension of the detachment fault has never been tested by drilling and therefore presents an excellent target for gold mineralization.
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 on an exclusive basis.