Columbus Gold Corporation (TSX VENTURE: CGT) ("Columbus Gold") is
pleased to provide Phase I drilling results by JV partner, Navaho
Gold PTY Ltd ("Navaho Gold"), at Columbus Gold's Stevens Basin
project located in Nevada, USA. Navaho Gold can earn an initial 51%
interest in Stevens Basin over a 3 year period by incurring
exploration expenditures of $3 million and making cash and share
payments to Columbus Gold.
- Gold intercepts in 6 of 14 holes drilled
- Strong pathfinder anomalism (elevated As-Sb-Ba-Tl-Zn) in many
holes
- Gold-bearing hydrothermal mineral system identified
- Gold-rich zones targeted for future drill phase
Assay results have been received from 2,390 meters (7,840 ft) of
drilling in 14 reverse circulation drill holes completed by Navaho
Gold during May and June 2011. The majority of the drilling was
designed to test soil and rock chip gold geochemical anomalism
(defined by work previously conducted by Columbus Gold as shown in
map at link below) and was integrated with geophysical data (ground
gravity and airborne magnetic data) acquired by Navaho Gold to
select drill sites. Three sites (holes SB11-09, 10 and 13) were
selected in areas of no outcrop on inferred structural features
alone.
http://www.columbusgoldcorp.com/i/nr/2011-08-03-map.jpg
Stevens Basin is an unusual gravel-filled semi-circular basin,
approximately 10-13 km(2) in area. Surrounding this basin are hills
of Paleozoic sedimentary rocks which, along its northern margin,
consist of mainly Devonian age limestone containing areas of
altered and mineralized intrusive rock and siltstone float. In the
area where the drilling was conducted the target horizon is a
calcareous siltstone unit inferred to dip off the outcropping
limestone out under the gravel cover. Based on the conventional
model for Carlin-style deposits, mineralization is expected to be
best developed where the prospective host unit intersects
controlling structures capable of introducing the mineralizing
fluids.
Six (6) of the 14 holes drilled contain encouraging intercepts
of low-grade gold mineralization which, when combined with strongly
anomalous arsenic (As), antimony (Sb), barium (Ba), thallium (Tl)
and zinc (Zn) also intersected in many of the holes may indicate
proximity to higher grade Carlin-style mineralization. Using a
cut-off grade of 0.1 g/t Au over minimum interval of 3m and no more
than 1.5m internal dilution, the following encouraging intercepts
were returned (see Table and map for more details):
http://www.columbusgoldcorp.com/i/nr/2011-08-03-table.pdf
- SB11-003 4.6m @ 0.30 g/t Au from 64m;
- SB11-009 15.2m @ 0.18 g/t Au from 35m;
- SB11-014 4.6m @ 0.25 g/t Au from 41m;
Mineralization in these 3 holes is hosted within oxidized,
sheared and variably fractured/brecciated limestone with extensive
calcite veining and jasperoid development (decalcification and
silicification - usually associated with a Carlin-style gold
mineralized system).
All 14 holes returned intercepts containing anomalous (greater
than 10ppb or 0.010g/t) values of gold. Of particular importance is
the thickness of the anomalous gold interval in SB11-09 (109.7m
from 1.5m depth) which indicates a significant gold-bearing
hydrothermal system has been identified.
In addition to the elevated gold intercepts several holes
encountered zones of anomalous arsenic (up to 0.15% As over 9.1m in
SB11-05; 0.13% As over 36.6m in SB11-012), anomalous zinc (2.03% Zn
over 7.6m in SB11-11), anomalous barium (0.47% Ba over 87m in
SB11-11; 0.84% Ba over 6.1m in SB11-05; 0.77% Ba over 7.6m in
SB11-10) and thallium (2.4ppm Tl over 12.2m in SB11-05; 1.5ppm Tl
over 74.7m in SB11-09; 3ppm Tl over 7.6m in SB11-10; 1.5ppm Tl over
83.8m in SB11-13). These elements are all strong indicators of a
Carlin-style system.
At Barrick Gold Corp's Archimedes/Ruby Hill gold mine, located
in a similar structural setting, 9km to the northeast of Stevens
Basin, the gold mineralization has an association with elevated
base-metals (zinc in particular) and barite-rich hydrothermal
breccias. The Archimedes deposit also occurs in close proximity to
a Cretaceous intrusive stock and, given the elevated zinc returned
from Navaho Gold's hole SB11-11 at Stevens Basin, widespread Ba
anomalism and the possible existence of an intrusive body in the
central portion of Stevens Basin as inferred from the airborne
magnetic data, Navaho Gold believes that the drill results to date
at Stevens Basin could indicate an analogous mineralized setting to
the Archimedes/Ruby Hill deposit.
Commenting on the results, Navaho Gold's CEO, Mr. Mark Dugmore
remarked that "the results from the first pass drilling at Stevens
Basin are considered to be very encouraging in the context of
exploring for Carlin-style mineralization. They are typical in
terms of gold grade and pathfinder element association of leakage
haloes peripheral to and above known deposits close by. The results
warrant further follow-up drilling in an attempt to focus our
effort toward higher grade mineralization."
Navaho Gold plans to complete a further phase of drilling at
Stevens Basin during Q3, 2011 with the objective of targeting
additional geochemical and structural features. These targets are
based upon the results of the soil sampling completed during Q2,
2011 and have been integrated with existing geophysical
interpretations and the results of this first phase of
drilling.
Quality Assurance/Quality Control
Drill samples are collected via cyclone assembly with rotary wet
splitter and analyzed in 5 ft (1.5m) intervals. Gold is analyzed by
30g fire assay ICP-AES analysis. All of the analytical work is
being performed by ALS Minerals, North American laboratories.
Sufficient commercially prepared standards, blanks, and duplicates
are inserted to assure quality analytical results.
"Anomalous" indicates a result which is greater than 10ppb Au
(0.010g/t). The foregoing intercepts are not necessarily true
widths as at this time there is insufficient data with respect to
the shape of the mineralization to calculate its true orientation
in space.
The information herein that relates to Exploration Results is
based on information compiled by Mark Dugmore B.App.Sc, MSc, who is
a Member of The Australian Institute of Mining and Metallurgy. Mr.
Dugmore is employed by Navaho Gold Ltd.
Mr. Dugmore has more than five years experience which is
relevant to the style of mineralization and type of deposit being
reported and to the activity which he is undertaking to qualify as
a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Minerals
Resources and Ore Reserves' (the JORC Code). This public report is
issued with the prior written consent of the Competent Person(s) as
to the form and context in which it appears.
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,
Robert Giustra, CEO and Chairman
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, and Columbus Gold's, and Navaho
Gold's general 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 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.
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; and ongoing relations with
employees, partners and joint venturers. The foregoing list is not
exhaustive and Columbus Gold 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 Toll Free: 1 888 818-1364 604-634-0971 (FAX)
info@columbusgoldcorp.com www.columbusgoldcorp.com