Vancouver, British Columbia, Canada, September 8th, 2011. Columbus Gold Corporation (CGT: TSX-V
) ("Columbus Gold
") is pleased to announce that it has entered into a drilling contract with Forage Performax Inc. of Val d'Or, Quebec, for an initial drilling program at its 1.9 million ounce Paul Isnard gold project in French Guiana. A track-mounted diamond core drill rig has already been shipped from Canada with a planned arrival at the project site, and commencement of the program, about early-October; in anticipation of a 15,000 meter drilling campaign.
The initial program is focused on the Montagne d'Or gold deposit which hosts a 43-101 compliant inferred gold resource of 1.9 million ounces within 36.7 million tonnes grading 1.6 gpt gold. The Montagne d'Or deposit is a steeply-dipping tabular body averaging about 70 meters thickness and partially outlined by earlier drill holes for a strike length of 2,000 meters and depth of 100-150 meters. The deposit and inferred resource are open at depth, along strike and internally between widely spaced holes. The planned initial drill program, consisting of 15,000 meters in about 50 holes, is designed to increase the gold resource by drilling the deposit systematically to a depth of 200 meters and laterally along open strike extensions. The denser drill pattern, with holes at roughly 50 meter centres, is also expected to convert certain of the inferred resource to indicated and measured categories.
Based upon performance of earlier programs at Montagne d'Or, production of about 2,000 meters per month, utilizing a single drill rig on a 24 hour basis, is anticipated. To accelerate the program Columbus Gold intends to engage a second drill rig.
Future drill programs will target potential extensions of the Montagne d'Or deposit indicated by untested geochemical anomalies extending more than 2.5km along strike, incompletely tested parallel zones of gold mineralization, and other untested or incompletely tested gold prospects and geochemical anomalies throughout the large Paul Isnard property.
Columbus Gold's independent consultant and Qualified Person, John Prochnau (P. Geo), B.Sc. (Mining Engineering), M.Sc. (Geology), has reviewed and approved the technical content of this news release.
ON BEHALF OF THE BOARD,
Robert F. Giustra
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.
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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 the availability of drills and personnel to carry out exploration and development work at the project. 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 obtain drills and workers; the fundraising required to carry-out drilling; the ability to complete milestones pursuant to the Paul Isnard Agreement in order to earn into the project, including without limitation the ability to obtain qualified workers, financing, permits, approvals, equipment, and ultimately a Bankable Feasibility Study in connection therewith; ability to obtain alternate financing; general political risk in France and French Guiana; changes in public markets; decisions respecting whether or not to pursue the transactions contemplated under the Paul Isnard Agreement at the post-approval stage; non-performance by contractual counterparties; 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; that Columbus Gold will be able to successfully complete required fundraisings, that France and French Guiana will remain stable political environments; that Columbus Gold will be able to complete necessary milestones under the Paul Isnard Agreement in a timely and successful fashion; that French law will allow the transactions contemplated under the Paul Isnard Agreement to succeed; that Columbus Gold will desire to continue earning into the Paul Isnard project over time; the ability to locate sufficient financing for ongoing operations; and general market conditions. The foregoing list is not exhaustive and Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.