Vancouver, British Columbia, Canada. May 9th, 2011, Columbus Gold Corporation
) (the "Company
" or "Columbus Gold
") is pleased to announce that partner Navaho Gold Ltd., has commenced drilling at Columbus Gold's Stevens Basin gold project located in Eureka Mining District of the prolific Battle Mountain Gold Trend of Nevada. Navaho Gold can earn an initial 51% interest in Stevens Basin over a 3 year period by incurring exploration expenditures of $3 million and making cash and share payments to Columbus Gold.
The drill program is principally designed to commence testing surface gold mineralization defined by widespread gold in rock-chips (ranging up to 2.5 g/t) and a 760 metre long (2,500 feet), open-ended soil anomaly. The strong tenor of the geochemical anomaly and its trend, coincident with potential major structural features, make it a compelling prospect.
A ground gravity survey and acquisition of airborne magnetic data has enabled a structural interpretation and the optimization and selection of drill sites.
Stevens Basin is an unusual gravel-filled semi-circular basin, approximately 10-13 km2
) in area. Surrounding this basin are hills of Palaeozoic sedimentary rocks which, along its northern margin, consist of mainly Devonian limestone containing areas of altered and mineralized intrusive rock and siltstone float.
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 is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which fhas a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific project generator focused on advancing projects either through joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Exploration activities are managed by Cordex which is owned and operated by Andy Wallace who has a long and successful history of gold discovery and mine development. Columbus Gold currently has 13 of its 22 strategically located gold projects in Nevada joint ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.
ON BEHALF OF THE BOARD,
Chairman & CEO
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.
For more information contact:
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 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; 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.