Columbus Gold Corp. Acquires Hughes Canyon Gold Project in the Stillwater Range, Nevada
May 31 2011 - 9:00AM
Marketwired
Columbus Gold Corporation (TSX VENTURE: CGT) (the "Company" or
"Columbus Gold") is pleased to announce the acquisition of the
Hughes Canyon property, located 30 miles east-southeast of
Lovelock, Nevada, on the west flank of the Stillwater Range in
Nevada, bringing its total gold property portfolio to 25 projects.
See location map below.
http://www.columbusgoldcorp.com/i/nr/2011-05-31-map.jpg
Detailed geologic mapping and grid sampling by Columbus Gold is
in progress at Hughes Canyon. Drilling will be permitted following
completion of the field program and will include angle holes
designed to cross known mineralized high-angle structures and to
evaluate additional gold anomalies that have not yet been drilled.
This drilling is planned for late 2011 or early 2012.
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(1),
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(2). 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(3). The Willard deposit being explored by
Rye Patch Gold contain 1.12 M ounces in reserves(4).
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 sixty meters (200
feet) 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 to30
meters (100 feet). The best result was in drill hole RP-7 which cut
6 meters of 1.37 g/t (20 feet of 0.04 opt Au), including 2.8 m of
4.32 g/t (5 feet 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
needs drilling angled across these structures for a proper
assessment of its economic potential.
All claims in the project are subject to annual advance royalty
payments to a local prospector, and a 1% gross royalty on eventual
production.
About Columbus Gold Corporation
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. President Andy Wallace has a
long and successful history of gold discovery and mine development
in Nevada. The Company currently has 12 of its 23 Nevada projects
joint ventured to major and junior mining companies, including
Agnico-Eagle Mines Limited.
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 contents of this news release.
ON BEHALF OF THE BOARD,
Peter Kendrick, Senior Vice President
(1) Source: Jipangu Holdings website:
http://www.jipangu-hd.co.jp/en/business/production.html
(2) Source:
http://www.reliefcanyon.com/uploads/Executive_Summary.pdf
(3) Source: COEUR company website:
http://www.coeur.com/operations-rochester-nevada.html
(4) Source: http://www.ryepatchgold.com
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 Company's exploration 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 ability to acquire necessary
permits and other authorizations; environmental compliance; cost
increases; availability of qualified workers; competition for
mining properties; risks associated with exploration projects,
mineral reserve and resource estimates (including the risk of
assumption and methodology errors); dependence on third parties for
services; non-performance by contractual counterparties; title
risks; 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; the
timing and receipt of required approvals; availability of
financing; power prices; ability to procure equipment and supplies;
and ongoing relations with employees, partners and joint venturers.
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 Senior Vice
President 604-638-3474 or Toll Free: 1-888-818-1364 604-634-0971
(FAX) info@columbusgoldcorp.com www.columbusgoldcorp.com