Vancouver, British Columbia, Canada, October 13th, 2011. Columbus Gold Corporation (CGT: TSX-V
) ("Columbus Gold
") is pleased to announce that Phase II drilling has commenced at its Stevens Basin project, located in the Eureka Mining District on the Battle Mountain Gold Trend, Nevada, about 9 km (5.6 miles) southwest of Barrick Gold's Archimedes/Ruby Hill open pit gold mine, where joint venture partner Navaho Gold, can earn an initial 51% interest by completing minimum exploration expenditures.
Navaho reports that eight to ten RC holes, totaling approximately 1,200 m (3,937 ft), are planned in the current phase of drilling which is designed to follow-up the highly anomalous gold mineralization intersected in hole SB11-009 (15.2 m @ 0.18 g/t from 35 m depth) drilled by Navaho in Phase I drilling in mid-2011. The drilling will also test a further suite of structural features, a magnetic target with features analogous to the Archimedes/Ruby Hill deposit identified from interpretation of gravity data, and, further multi-element soil anomalies defined by sampling completed by Navaho in recent months.
Stevens Basin is an unusual gravel-filled semi-circular basin, approximately 10-13 km2 (6.2-8 miles) in area. Surrounding the basin are hills of Paleozoic sedimentary rocks which, along its northern margin, consist of mainly Devonian age limestone containing areas of altered and mineralized intrusive rock and siltstone float. In the area of drilling the target horizon is a calcareous siltstone unit inferred to dip off the outcropping limestone out under the gravel cover. Based on the conventional model for Carlin-style deposits, mineralization is expected to be best developed where the prospective host unit intersects controlling structures capable of introducing the mineralizing fluids.
At Barrick Gold Corp's Archimedes/Ruby Hill gold mine, located in a similar structural setting, 9 km (5.6 miles) to the southwest of Stevens Basin, the gold mineralization has an association with elevated base-metals (zinc in particular) and barite-rich hydrothermal breccias. The Archimedes deposit also occurs in close proximity to a Cretaceous intrusive stock and, given the elevated zinc returned from Navaho Gold's hole SB11-11 at Stevens Basin, widespread Ba anomalism and the possible existence of an intrusive body in the central portion of Stevens Basin as inferred from the airborne magnetic data, Navaho Gold believes that the drill results to date at Stevens Basin could indicate an analogous mineralized setting to the Archimedes/Ruby Hill deposit.
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.
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 has 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 26 strategically located gold projects in Nevada joint-ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.
About Navaho Gold
Navaho Gold is an Australian-based exploration company focused on the discovery of world-class gold deposits in Nevada, USA and Queensland, Australia. Navaho Gold is clearly focused on 'Carlin style' gold mineralization, and has identified three (3) main project areas in Queensland and has assembled seven (7) projects in Nevada within the areas associated with the Carlin and Battle Mountain - Eureka Trends
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 drilling, and Columbus Gold's or Navaho Gold'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 Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.