The Bolo Property is located 60 km (38 miles) northeast of Tonopah, Nevada.
Bolo is 100% controlled by Columbus Gold, subject to underlying royalties.
Carlin-style gold mineralization is the target at Bolo where values from 0.34 to 5.18 g/t (0.010 to 0.151 opt) gold can be obtained from jasperoids and iron-stained structures cutting Cambrian and Ordovician sedimentary rocks, along two parallel north-south trending faults know as the Mine Fault and the East Fault, traceable for 4,878 m (16,240 ft). Alteration along the Mine Fault has been traced for 2,750 m (9,022 ft) along strike, with surface gold in outcrop sampling from anomalous to 5.18 g/t (0.151 opt) gold. The East Fault has been mapped for 2,200 m (7,218 ft) of strike with values from anomalous to 4.7 g/t (0.137 opt) gold. Both fault zones present excellent drill targets.
Bolo has had very limited previous drilling. Drilling by Chevron, USMX and Canerta in the 1970's and 1980's was less than 45 m (150 ft) in depth. The drilling was concentrated primarily along the southerly 300 m (1,000 ft) of the Mine Fault where several of the holes had ore grade intercepts. The best hole from this historical drilling was hole HD-3 drilled by Chevron in 1975 which intercepted 18 m (60 ft) of 1.51 g/t (0.044 opt) gold from 82-279 m (25-85 ft).
In 2007, Columbus Gold completed an initial drilling program at Bolo, which consisted of 19 reverse circulation holes for a total of 3,014 m (9,890 ft). Fifteen of the 19 holes completed intercepted anomalous gold values; the best holes were in the Mine Fault were BL-4 encountered 18.2 m (60 ft) of gold mineralization averaging 1.086 g/t (0.032 opt) gold from 61 to 79 m (200 to 260 ft) of depth; hole BL-3 intercepted 25.9 m (85 ft) of 0.431 g/t (0.013 opt) gold from 7.6 to 33.5 m (25-110 ft) of depth; and, hole BL-11 encountered 16.8 m (55 ft) of 0.611 g/t (0.018 opt) gold from 119-135 m (390-445 ft) of depth. Drilling in the East Fault intercepted anomalous gold near surface in several holes, however, the gold grades encountered were significantly lower in the drill results then they were in surface sampling; indicating that the cross-structures controlling the better grades were missed.
In 2008, Columbus Gold completed a Phase II drilling program consisting of nine holes totaling 1,715 m (5,625 ft) of reverse circulation drilling. The drilling was concentrated on the south and central zones of the Mine Fault and a covered target near the East Fault. Discovery hole BL-23 was drilled through the southernmost part of the Mine Fault and is considered potentially very significant. BL-23 was a west-directed 45 degree angle hole drilled essentially perpendicular to the Mine Fault which intercepted a zone of silicified limestone and siltstone. The hole encountered 30.5 m of 2.37 g/t gold (100 ft of 0.069 opt) from 96.0-126.5 m (315-415 ft) of depth. The intercept was within a broader zone of mineralization averaging 1.15 g/t gold over 76.2 m (250 ft of 0.034 opt) from 77.7 m (255 ft) to the hole bottom at 154 m (505 ft) where the mineralization remains open. The zone is 56.4 m (185 ft) below the surface and is open, both down-dip and to the south. It is also open up-dip to the surface, where surface sampling has yielded values up to 5.18 g/t (0.151 opt) gold. The other 8 holes drilled in Phase II all intersected thick zones of alteration and highly anomalous gold, requiring follow-up drilling. The gold mineralization is classified as "Carlin-type", similar to many other significant gold deposits in Nevada.
A Phase III drilling program was completed by Columbus in 2009 and consisted of 1,215 m (3,990 ft) in six angle, rotary drill holes. Five of the holes tested for extensions of significant gold mineralization cut by discovery hole BL-23, completed by Columbus in Phase II drilling in 2008.
In Phase III, drill hole BL-29 was drilled to cut the Mine Fault 30 m (100 ft) south of BL-23 and intersected 62 m (205 ft) of 0.65 g/t (0.019 opt) gold, including 4.5 m (15 ft) of 1.88 g/t (0.055 opt) and 3 m (10 ft) of 3.39 g/t (0.099 opt) gold. Drill hole BL-32 tested the Mine Fault 30 m (100 ft) north of BL-23 and cut 51 m (170 ft) of 0.82 g/t (0.024 opt) gold, including 3 m (10 ft) of 2.98 g/t (0.087 opt) and an additional 9 m (30 ft) of 1.92 g/t (0.056 opt) gold. Hole BL-30 intersected the Mine Fault 109 m (360 ft) north of BL-23 and cut 16 m (55 ft) of 0.21 g/t (0.006 opt) gold. Hole BL-31 cut the Mine Fault 76 m (250 ft) south of BL-23 and cut 4.5 m (15 ft) of 1.03 g/t (0.030 opt) gold. Hole BL-33 was drilled to cut the Mine Fault 76 m (250 ft) below BL-23 and cut only anomalous values. The Mine Fault structure is thought to be offset along a flat fault between 152 m and 213 m (500 ft and 700 ft) of depth. Drill hole BL-34 was drilled in a gravel-covered area about 1.6 kilometers (1 mile) northeast of BL-23, and intersected no significant gold values.
The three phases of drilling, combined with historical channel sampling of five bull dozer trenches totaling 548 m (1,800 ft) in length, cut and sampled in 1980's by Canerta (now mostly reclaimed, but results verified by extensive Columbus surface sampling), suggest that the BL-23 mineralized zone is about 150 m (500 ft) long, about 60 m (200 ft) wide, and extends to a depth of about 150 m (500 ft) where it is either offset or terminates.
Thirty-four more drill holes, on 30 m (100 ft) spacing will be required to delineate the tonnage in the zone of BL-23 and to test for the potential offset portion of the zone at depth. In addition, there are seven undrilled areas, most with surface sampling at grades exceeding 1 g/t (0.029 opt) which remain to be tested at Bolo, along with other blind geological targets, supported by geophysical surveys.
Plans of operations and attendant environmental studies for drilling at Bolo have been approved by the US Forest Service and, as soon as bonds are agreed and placed, the drill permits for 79 drill sites (allowing for +200 holes) will be issued. The Bolo final permits are expected in mid to late 2012. The drilling program planned for 2012 is designed to test additional targets and for expansion drilling in the area around drill hole BL-23.
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.
