Hughes Canyon Property

The Hughes Canyon Property is located 48 km (30 miles) east-southeast of Lovelock, Nevada.

Hughes Canyon is 100% controlled by Columbus Gold, subject to underlying royalties.

Detailed geologic mapping and grid geochemical sampling have been completed at Hughes Canyon. A CSAMT geophysical survey is being planned. Following completion of the field program, drill permits have been received for a first drill program and will include angle holes designed to cross known mineralized high-angle structures and to evaluate additional new gold anomalies identified in the grid sampling that have not yet been drilled.

Hughes Canyon displays a broad area of anomalous gold mineralization hosted in complexly faulted and folded Mesozoic limestones and siltstones. The geologic setting is analogous to sediment-hosted gold deposits at the nearby Florida Canyon, Standard, Willard, and Relief Canyon mines. The nearby Florida Canyon and Standard Mines have over 1M ounces of gold reserves, and Relief Canyon, which was mined in the late 1980's as a gold-silver producer has a remaining resource of 262,000 ounces of gold. The Coeur-Rochester Mine also in the area has produced 1.2 million ounces of gold and 125 million ounces of silver from Mesozoic volcanic rocks. Also nearby is the Willard deposit being explored by Rye Patch Gold which contains 1.12 M ounces in reserves.

At Hughes Canyon, historic surface sampling by Noranda, Independence Mining (Freeport), and a local prospector has yielded gold assays from anomalous to 4.9 g/t in both altered shales and jasperoids thought to be replacing limestones. The gold mineralization can occur over widths exceeding 60 m (200 ft) as shown by fifty continuous channel samples taken by Noranda, in a drill road cutting lightly altered shale, which averaged 0.25 g/t Au and ranged from 0.04 g/t to 1.1 g/t Au. The property was drilled in the early 1990's., with vertical holes, by Independence Mining (Freeport) and Noranda. Most of the drill holes had numerous intercepts of anomalous gold, with thicknesses up to 30 m (100 ft). The best result was in drill hole RP-7 which cut 6 m of 1.37 g/t (20 ft of 0.04 opt Au), including 2.8 m. of 4.32 g/t (5 ft of 0.126 opt Au). It is Columbus Gold's opinion that the better grade gold mineralization at Hughes Canyon is related to several high-angle structures and that the property requires drilling angled across these structures for a proper assessment of its economic potential.

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.
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