VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 18, 2016) – Columbus Gold Corp. (TSX:CGT)(OTCQX:CBGDF) (“Columbus”) is pleased to announce the completion of two key land transactions at its 100% owned Bolo gold project, Nye County, Nevada. Columbus controls 10 projects in Nevada of which Eastside is the clear and principal priority. As a result of the recent transactions announced herein, a drill program is being considered for 2017 at the Bolo gold project.
Bolo is a Carlin-type gold and silver project, where surface sampling has defined widespread gold mineralization, associated with jasperoids and iron-stained structures, along two parallel north-south trending faults known as the Mine Fault and the East Fault. Alteration along the Mine Fault has been traced for 2,750 meters along strike, with surface gold in outcrop sampling from anomalous to 5.18 g/t gold. The East Fault has been mapped for 2,200 meters of strike with values from anomalous to 4.7 g/t gold. Gold mineralization in the South Zone of the Mine Fault is logged as oxide and is Carlin-type, associated with weak silicification and decalcification of Paleozoic sedimentary rocks. Preliminary metallurgical testing indicates the gold is amenable to cyanide recovery.
Drilling by Columbus in 2013 in the South Zone of the Mine Fault, includes 133 meters of 1.28 g/t gold from surface (including 30.5 m of 3.24 g/t gold) in hole BL-38, 89.9 meters of 1.0 g/t gold (including 40.9 m of 2.05 g/t gold) from surface in hole BL-39, and 51.8 meters of 1.27 g/t gold from surface in hole BL-41. Significant silver is also present in a number of holes (best interval 35.0 m of 58.1 g/t silver, including 3 m of 360.5 g/t silver in BL-37)*. Cross sections for these holes are available at the following link:
www.columbusgold.com/i/nr/2016-11-18-xsections.pdf
A table of significant drill results (Columbus Gold drill holes) can be viewed at the following link:
www.columbusgold.com/i/nr/2016-11-18-table.pdf
TRANSACTION #1
UNCLE SAM CLAIM ACQUISITION
Columbus’ 100% ownership of the Bolo Project includes 175 mining claims and the recently acquired Uncle Sam patented claim. The acquisition of the Uncle Sam patent now fully consolidates Columbus’ ownership of Bolo and of the southern extension of the South Zone of the Mine Fault, immediately south of Columbus drilling. A map indicating the position of the Uncle Sam Patent in relation to the position of South Zone drill holes and the overall project claim block is available at the following link:
www.columbusgold.com/i/nr/2016-11-18-map-location.pdf
Surface sampling of the newly acquired Uncle Sam patented claim is in progress and has yielded some encouraging results to date. Columbus sampled a small open cut (40 m by 20 m), 300 meters south of the Columbus drilling along the Mine Fault where 30 continuous chip samples were taken along the walls of the cut, each sample across 1 to 3 meters (3-10 feet) of width. The 30 samples averaged 0.41 g/t gold and 249 g/t silver. A drill program is being considered at Bolo for 2017. This drilling would be concentrate principally on the South Zone of the Mine Fault, including the Uncle Sam patented claim, and also on several untested geochemical targets. A map indicating where individual chip samples were taken on the Uncle Sam patented claim is available at the following link:
www.columbusgold.com/i/nr/2016-11-18-map-samples.pdf
TRANSACTION #2
ROYALTY ELIMINATION
Columbus further consolidated its ownership of the Bolo Project by recently completing a transaction to eliminate an underlying NSR royalty that ranged from 1% to 3%. In consideration for elimination of the royalty, Columbus transferred ownership of its Weepah property to the royalty holders. Weepah was a non-core asset of Columbus’.
* SILVER CHECK ASSAYING
It was noted in the press release dated September 25th, 2013 that assaying for silver at Bolo using fire assay with a gravimetric finish might produce higher silver grades than were being reported from silver assaying using ICP analysis; Columbus Gold therefore re-assayed 257 samples (1.5 meter drill samples) from Bolo drilling. Samples selected were those that had originally been assayed by ICP techniques at 7 g/t silver or more. Of the 257 samples, 247 assayed higher for silver using fire assay with a gravimetric finish than previous assays reported from ICP analysis. The average upgrade for all the samples was 40%, with the maximum upgrade being 276%. The 257 samples were also assayed for gold by fire assay with a gravimetric finish. These checks of previous assaying by Columbus Gold, using fire assay with an AA finish, provide confirmation of gold assaying announced previously, with no significant variations. Gravimetric check assays were performed at American Assay Lab in Sparks, Nevada. Standards of known value were inserted in the assay string by Columbus, and American Assay routinely inserts blanks and standards (7% of analyses) as well.
Qualified Person
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 press release. Mr. Wallace is the principal of Cordilleran Exploration Company (Cordex), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.
ON BEHALF OF THE BOARD,
Robert F. Giustra, Chairman & CEO
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 Columbus’ intended plans for a proposed drilling program on the Bolo property, including the time frame to complete and extent of the program. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by the forward-looking statements, including: 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 including, without limitation, the accuracy of interpretations; mineral reserve and resource estimates (including the risk of assumption and methodology errors and ability to complete the intended drilling program); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: market prices, exploitation and exploration success; that the design of the drill plan is appropriate for the site; general business and economic conditions; the timing and receipt of required approvals; continued availability of capital and financing; power prices; ability to procure equipment and supplies including, without limitation, drill rigs; and ongoing relations with employees, partners, optionees and joint venturers. The foregoing list is not exhaustive and Columbus undertakes no obligation to update any of the foregoing except as required by law.
