Columbus Gold Achieves Important Milestone in Acquisition of 2 Million Oz. Paul Isnard Gold Project
December 22 2010 - 9:00AM
Marketwired
Columbus Gold Corporation (TSX VENTURE: CGT) (the "Company" or
"Columbus Gold") is pleased to announce that an important milestone
has been achieved with respect to its proposed acquisition of the 2
million ounce Paul Isnard gold project in French Guiana, first
announced on December 3rd, 2010.
Pursuant to the agreement between the parties, Columbus Gold has
received formal notice from the optionor Auplata SA ("Auplata")
that it has completed its due-diligence respecting Columbus Gold
and the proposed transactions contemplated between the parties and
that it wishes to move forward to closing as soon as possible.
Auplata's completion of due diligence marks the satisfaction of the
first of the conditions precedent to the option agreement.
The Paul Isnard Project includes the Montagne d'Or gold deposit.
In 2008, SRK completed a Preliminary Assessment at Montagne d'Or
and estimated a 43-101 compliant inferred resource of 2 million
ounces gold from 33.2 mt grading 1.69 gpt, using a cutoff grade of
0.5 grams per tonne gold. The Montagne d'Or deposit is open in
every direction laterally and at depth. Columbus Gold has
commissioned an updated 43-101 resource estimate at Montagne d'Or
which will be filed on SEDAR by mid-January.
The work program planned by Columbus Gold will be focused on
Montagne d'Or where infill drilling is planned to convert Inferred
resources to Measured and Indicated categories, and holes drilled
at greater depths and along strike are planned in order to increase
the mineral resources. Numerous less developed gold prospects and
untested geochemical anomalies which occur throughout the project
area will also be evaluated.
Columbus Gold has the option to earn a 100% interest in the Paul
Isnard gold project (subject to underlying royalties).
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.
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 the Agreement, the conditions precedent in
connection therewith, and the Company's fund-raising 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 success or failure of the
Company's due diligence inquiries; ability to obtain regulatory,
shareholder, and TSX Venture Exchange approval of the transactions
contemplated under the Agreement; the ability to pass the
transactions contemplated under the Agreement through applicable
French law; the ability to obtain applicable exemptions from
prospectus and registration requirements in connection with the
issuance of securities of the Company; the ability to satisfy the
conditions precedent contained in the Agreement, including without
limitation the ability to obtain a positive title opinion, and
complete fundraising; the ability to complete milestones under the
Agreement (if ultimately approved) in order to earn into the
property, including without limitation the ability to obtain
qualified workers, financing, permits, approvals, equipment, and
ultimately a Bankable Feasibility Study in connection therewith;
ability to obtain alternate financing; changes in the market;
decisions respecting whether or not to pursue the transactions
contemplated under the Agreement (either at the due diligence
stage, pre-approval stage, or post-approval stage, if ultimately
approved); 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
the Company and Auplata will be able to successfully complete the
conditions precedent to the Agreement, including without limitation
the ability to obtain a positive title opinion, complete required
fundraisings including with Pelican, and the ability to obtain
regulatory, TSX Venture Exchange, and shareholder approval of the
transactions contemplated under the Agreement; that due diligence
will be successful for the Company; that the Company will be able
to complete necessary milestones under the Agreement in a timely
and successful fashion; that French law will allow the transactions
contemplated under the Agreement to succeed; that the Company will
desire to continue earning into the Property over time; the ability
to locate sufficient financing for ongoing operations; 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.
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.
Contacts: Columbus Gold Corporation Peter Kendrick President
604-638-3474 or 1-888-818-1364 info@columbusgoldcorp.com
www.columbusgoldcorp.com