Columbus Gold Closes Transaction to Acquire 1.9 Million Inferred Oz. Paul Isnard Gold Project; Plans Drilling
June 30 2011 - 9:00AM
Marketwired
Columbus Gold Corporation (TSX VENTURE: CGT) ("Columbus Gold") has
closed its previously-announced transaction with Auplata SA
("Auplata"), thereby securing the exclusive right to obtain up to a
100% interest in the Paul Isnard gold project in French Guiana,
which includes the 43-101 compliant 1.9 million Inferred gold
resource in the Montagne d'Or gold deposit. Columbus Gold is
aggressively moving forward to earn an initial 51% interest in the
project.
Columbus Gold has fully satisfied the share issuances required
to earn into the project, issuing 30,276,266 common shares to
Auplata, and completing a 13,357,176 share private placement to
Pelican Venture SAS for gross proceeds to Columbus Gold of
$2,871,792.80. Columbus Gold has also issued 190,473 common shares
as a finder's fee for this transaction. All of the foregoing shares
are subject to a four month hold period expiring on October 30,
2011, and 20,184,177 of the shares issued to Auplata are also
subject to an agreement that requires all of such shares to be held
in escrow for two years until June 29, 2013.
Columbus Gold is now able to earn an initial 51% interest in the
Paul Isnard project by incurring $7 million in exploration
expenditures, which it expects to complete by early 2012. Upon
Columbus Gold earning a 51% interest in the project, it will have
an option to increase its interest to 100% (subject to an
underlying royalty) by completing a bankable feasibility study.
Drilling is planned to commence in August 2011, focusing on the
Montagne d'Or gold deposit where holes will be drilled up to 200
metres depth with the goal of increasing the mineral resources, and
where infill drilling is expected to convert Inferred resources to
Measured and Indicated categories. Future drill programs will
target the eastern and western extensions of the Montagne d'Or
deposit where more than 2.5 km of strike provides expansion
potential, and will test numerous underdeveloped gold prospects and
undrilled geochemical anomalies which occur throughout the project
area.
The Paul Isnard gold project includes the 43-101 compliant 1.9
million ounce Inferred gold resource in the Montagne d'Or gold
deposit which consists of 36.7 million tonnes grading 1.6 gpt. The
Montagne d'Or gold deposit is open along strike and at depth. The
project is located approximately 180 km west of the capital city of
Cayenne, French Guiana and has been an important centre of alluvial
and colluvial gold mining operations since the late 19th century
with reported estimated production of about two million ounces.
The project occurs within the northernmost of two east-west
trending Proterozoic greenstone belts making up the French Guiana
sector of the Guiana Shield. Modern exploration at Paul Isnard
includes geological, geochemical and geophysical surveys, and
diamond core drilling carried out primarily from 1996 to 1999. Most
of this work included 54 holes for 10,600 metres directed at the
Montagne d'Or gold deposit which consists of a linear mineralized
body within laminated felsic volcanic rocks outlined and partially
delineated for a strike length of 2,000 metres and an average depth
of 100-150 metres. The deposit consists of two closely spaced,
mineralized layers, respectively averaging about 50 and 17.5 metres
in thickness, and multiple smaller, sub parallel gold-bearing bands
and stringer zones.
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.
For additional information, please see Columbus Gold's prior
news releases of December 3 and 22, 2010, January 17, May 26, and
June 8 , 2011, and Columbus Gold's Management Information Circular
dated April 15, 2011.
About Columbus Gold
Columbus Gold is a gold exploration and development company
operating in French Guiana and Nevada. In French Guiana, Columbus
Gold can earn up to 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. Exploration activities are managed by
Cordex which is owned and operated by Andy Wallace who has a long
and successful history of gold discovery and mine development.
Columbus Gold currently has 12 of its 26 strategically located gold
projects in Nevada joint ventured to major and junior mining
companies, including Agnico-Eagle Mines Limited.
ON BEHALF OF THE BOARD,
Robert 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 drilling, earning in to the Paul Isnard
property, and Columbus Gold's general exploration plans.
Forward-looking statements may be identified by terms such as
"expects", "looks forward to", "will test", "anticipates",
"intends", "plans", "believes", "seeks", "estimates", "will",
"project" or words of similar meaning. 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 and drill equipment; 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. Additional
considerations include the timeliness of the foregoing (in order to
meet exploration deadlines in connection with earning into the
property), and the desirability of continuing to earn into the
property as more information becomes available to Columbus Gold due
to the analysis of results of ongoing drilling and exploration work
conducted. 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 including without limitation drill rigs;
that Columbus Gold will continue to desire to earn into the
property; that Columbus Gold's work on the property will be
completed in a timely fashion; 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 Investor Relations
604-634-0970 or 1-888-818-1364 (604) 634-0971 (FAX)
info@columbusgoldcorp.com www.columbusgoldcorp.com