Vancouver, British Columbia, Canada. December 23rd, 2011, Columbus Gold Corp. (CGT: TSX-V
) ("Columbus Gold
") is pleased to announce that it has received TSX Venture Exchange (the "TSXV") approval for two recently announced strategic agreements concerning its Paul Isnard gold project in French Guiana, which includes the 43-101 compliant 1.9 million ounce Montagne d'Or inferred gold deposit.
The amending agreement (the "Amendment") with Auplata SA first announced on December 6th, 2011 has been approved by the TSXV and provides for Columbus Gold to accelerate its ability to earn into the Paul Isnard gold project in French Guiana. With the Amendment, Columbus Gold is able to acquire an immediate 100% interest in Paul Isnard by paying US$1.5 million to Auplata SA. For clarity, Columbus Gold will no longer be required to complete minimum exploration expenditures nor complete a bankable feasibility study at Paul Isnard. Columbus Gold is making the initial $1 million payment immediately and will pay the $500,000 balance upon confirmation of "non-objection" from the French government.
PAUL ISNARD ROYALTY:
The agreement (the "Agreement") with Euro Ressources S.A. ("EURO") first announced on December 5th, 2011, pursuant to which Columbus Gold has purchased an option (the "Option") to acquire the existing outstanding royalty on the Paul Isnard gold project, has been approved by the TSXV. EURO is a majority-owned subsidiary of IAMGOLD with a direct ownership of approximately 86%. As consideration for entering into the Agreement, Columbus Gold is making a $250,000 payment to EURO consisting of $83,333 cash and 237,017 shares.
Drilling is underway at Paul Isnard where 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.
Future drill programs will target potential extensions of the Montagne d'Or deposit indicated by untested geochemical anomalies extending more than 2.5 km 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.
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. Columbus Gold's president, Andy Wallace has a long and successful history of gold discovery and mine development. The company currently has 12 of its 25 strategically located gold projects in Nevada joint-ventured to major and junior mining companies.
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 Amendment and the royalty restructuring. 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 regulatory approval of the transactions contemplated under the Amendment; Columbus Gold's willingness to complete the transactions on the above terms; the ability to obtain applicable exemptions from prospectus and registration requirements in connection with the issuance of securities of Columbus Gold;, the ability to obtain "non-objection" to the transactions; the ability to obtain alternate financing; changes in the market; decisions respecting whether or not to pursue the transactions contemplated under the royalty option and the Amendment; 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 its obligations under the Amendment and royalty agreement; the ability to locate sufficient financing for ongoing operations; that Columbus Gold will obtain "non-objection" to the transactions; and general market conditions. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.