The Crestview Property is located within the Cortez-Pipeline sector of the Battle Mountain Gold Trend, Nevada, about 1.5 km (1 mile) south of the Gold Acres open pit gold mine and 1 km (0.6 miles) southwest of the multi-million ounce Pipeline gold mine. The Cortez-Pipeline sector has past production plus reserves totaling more than 26 million ounces of gold.
The Gold Acres and the Pipeline mines are operated by Barrick Gold. Barrick also owns the nearby Cortez Hills gold deposit discovered in 2003, which hosts reserves of more than 10 million ounces of gold. In September 2011, Barrick also announced significant new discoveries respectively about 6 km (3.7 miles) and 8 km (5 miles) southeast of Cortez Hills, known as Red Hill and Goldrush. An inferred gold resource of 3.5 million ounces has been outlined at Red Hill with mineralization open in all directions and at Goldrush further south, a drill hole intersected 20.5 m grading 27.8 g/t gold (67 ft of 0.81 opt).
Subject to third party net smelter returns royalties, the Crestview Property is 100% controlled by Columbus. Navaho Gold can earn an initial 51% interest in Crestview (and simultaneously in Columbus Gold's Utah Clipper Project) by incurring US$3 million in exploration expenditures.
The Crestview Property covers a portion of the Roberts Mountain thrust with metamorphosed lower plate limestone and limey siltstone in the footwall of the thrust. The principal geologic targets at Crestview are classical "Carlin" or "Pipeline" style bulk mineable, disseminated gold deposits and high grade structurally controlled vein deposits in "lower plate" carbonates.
The surface rock exposures at Crestview are Ordovician and Silurian siliecous shales, cherts, and sandstones in the upper-plate of the Roberts Mountain Thrust Fault. Favorable lower-plate carbonate rocks, are encountered in drilling, and are interpreted as the Devonian Wenban and Silurian Roberts Mountains Formations. Both these carbonate formations are known to host major Carlin-type, gold mineralization in northeast Nevada, and are the host rocks to much of the gold mineralization at the Pipeline, Cortez, and Cortez Hills deposits located near the Crestview Project. Felsic to intermediate intrusive rocks, of Jurassic to Tertiary-age, cut all the older sedimentary rocks. Intrusive bodies are exposed in the nearby Gold Acres Mine pit, at the nearby Robertson Project and across the valley at Mill Canyon, adjacent to the Cortez Mine. Local contact metamorphism of all the sedimentary rocks is associated with the intrusive bodies.
Historical exploration at Crestview includes surface sampling and four drill holes by Newmont in 1987, five drill holes by ASARCO in 1994 and two holes drilled by Agnico-Eagle in 2007. 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 as shallow as 122 to 152 m (400 to 500 ft). The lower plate rocks were altered in several holes, and contained anomalous gold. The Agnico-Eagle drill holes consisted of two vertical rotary holes drilled to 518.2 m (1,700 ft) and 762 m (2,500 ft) which intersected favorable lower plate carbonate rocks at 198.1 m (650 ft) and 320 m (1,050 ft) respectively. Both holes had highly elevated zinc and arsenic, and gold was anomalous in several intervals but less than 100 ppb.
The principal targets at Crestview have not been adequately tested by past work; additional drilling is warranted.
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.