Columbus Gold Corporation (TSX VENTURE: CGT) ("Columbus Gold") is
pleased to announce that it has entered into joint venture
agreements with Sniper Resources Ltd. (TSX VENTURE: SIP)
("Sniper"), whereby Sniper can earn into two of Columbus Gold's
Nevada gold projects: Weepah and Laura. Columbus Gold now has 13 of
its 26 gold projects in Nevada JV'd or leased to third parties.
The Weepah gold project is located approximately 32 km (20
miles) west-southwest of Tonopah, Nevada, in Esmeralda County and
the Laura Property is located approximately 5 km (3 miles)
southwest of Barrick Gold's Cortez open pit gold mine and
approximately 3 km (1.2 miles) west of Barrick Gold's multi-million
ounce Cortez Hills discovery. Subject to third party net smelter
returns royalties, Weepah and Laura are currently 100% controlled
by Columbus.
Pursuant to the terms of the Weepah Option Agreement, Sniper can
earn an initial 51% interest by: (i) incurring $3,000,000 in
exploration expenditures over three years; (ii) paying approx.
$30,000 on execution of the agreement; and (iii) issuing an
aggregate of $60,000 worth of Sniper common shares over three
years. In the event that Sniper earns its initial 51% interest in
Weepah, it will have the option to earn an additional 19% interest
therein, for a total 70% interest, by completing a bankable
feasibility study.
Pursuant to the terms of the Laura Option Agreement, Sniper is
in the process of earning an initial 70% interest in the underlying
lease to the Laura property by: (i) having paid US$10,000 cash and
issued 100,000 common shares of Sniper to Columbus; and (ii) by
fulfilling the third party underlying lease and maintenance payment
obligations of Columbus through August 7, 2012. Sniper will then
have a 30 day period in which to earn a further 30% interest, for
100% in total, by paying Columbus US$200,000 in cash or shares and
granting it a 1.5% net smelter returns royalty on the project.
Weepah
Weepah has historical gold production from an open pit along a
steep, northerly structure cutting Precambrian sedimentary rocks.
The principal drill targets occur east of the historic open pit
where gold occurs as replacements in sanded, or lightly silicified,
Precambrian limestone, exposed in small outcrops through thin
gravel cover on the north edge of an alluvial basin. Outcrop
sampling by Columbus Gold of the altered limestone yielded values
from anomalous up to 10.29 g/t (0.30 opt) gold over 3.6 m (12 ft),
and 17.14 g/t (0.50 opt) gold over 1.8 m (6 ft). Historical
drilling, reported by the previous owner, indicates a small
resource of approximately 225,000-450,000 tonnes (250,000-500,000
tons) averaging 1.7-2.4 g/t (0.05-0.07 opt) gold(i). Mapping, along
with ground magnetics and CSAMT geophysical surveys carried-out by
Columbus Gold, indicate that the favourable geology extends beyond
the area of historical drilling to the south and east for
1,200-1,500 m (4,000-5,000 ft) under what appears to be very
shallow gravel cover.
An initial drilling program was carried-out by Columbus Gold in
early 2011 and returned the following significant intercepts:
-- Drill hole WP-2 intersected 7.6 m (25 ft) of 2.29 g/t (0.067 opt) gold
from 118.9-126.5 m (390-415 ft) depth, including two separate 1.5 m (5
ft) intervals of 4.31 g/t (0.126 opt) and 4.38 g/t (0.128 opt) gold;
-- Drill hole WP-5 intersected 16.8 m (55 ft) of 1.30 g/t (0.038 opt) gold
from 7.6-24.4 m (25-80 ft) depth, including 3.0 m (10 ft) of 4.54 g/t
(0.132 opt) gold;
-- Drill hole WP-7 intersected 27.4 m (90 ft) of 0.73 g/t (0.021 opt) gold
from 16.8-44.2 m (55-145 ft) depth;
-- Drill hole WP-12 intersected 4.6 m (15ft) of 3.47 g/t (0.101 opt) gold
from 79.2-83.8 m (260-275 ft) depth, including 1.5 m (5ft) of 9.37 g/t
(0.273 opt) gold from 80.8-82.3 m (265-270 ft) depth.
Drill holes WP-6, 7, and 8 were 91-152 m (300-500 ft) offsets of
the gold mineralization encountered in drill hole WP-5. All three
offset holes cut gold with the best intercept in WP-7 which was 120
m (400 ft) northeast of WP-5 and cut 0.73 g/t (0.021 opt) from
16.8-44.2 m (55-145 ft) depth. Gold mineralization remains
completely open to the north and east, and possibly south of holes
WP-5, 7, 8, and 9. Drill holes WP-9 through WP-15 were step-outs
mainly to the south under gravel cover, which ranges from 8-29 m
(25-95 ft) in thickness. The favourable Precambrian silt and
limestone is present immediately under the gravel cover and altered
with anomalous gold values. Hole WP-12 cut significant gold values,
averaging 3.47 g/t (0.101 opt) gold from 79.2-83.8 m (260-275 ft),
including 9.37 g/t (0.273 opt) gold from 80.8-82.3 m (265-270 ft)
depth.
The controls of gold mineralization at Weepah are not as yet
well understood, however the results to date clearly warrant
additional drilling.
Laura
The Laura property has potential for both epithermal
volcanic-hosted, and Carlin-type sediment-hosted gold. Laura is
underlain by Oligocene Caetano volcanic rocks and lies just to the
south of the volcanic/Paleozoic-Upper Plate fault contact. Gold
mineralization, both in surface sampling and at depth in drill
holes, is hosted in what has been described as a heterolithic
"jasperoid breccia", a horizon with clasts of chert-like rock, vein
quartz and various altered volcanic lithologies. This unit zone is
approximately 40 m (130 ft) thick, strikes north-northeast and dips
in +/- 20 degrees to the east. The breccia horizon is sandwiched
between ash-flow tuff and, locally, intrusive felsite. The best
drill intercept (9.1 m (30 ft) @ 0.69 g/t (0.020 opt) gold)(i) has
been interpreted to be near a felsite intrusive body.
(i) The historical figures presented herein are not NI 43-101
compliant. They should not be relied upon and Columbus Gold does
not treat them as current.
Quality Assurance/Quality Control
Assays reported for the Weepah Project herein were performed by
American Assay Laboratories, Inc. in Sparks, Nevada. Standards and
blanks were inserted along with the drill cuttings and reported in
the assay results. Two separate splits of each 1.5 m (5 ft) of
drill cuttings were obtained at the drill rig and the second split
submitted for check assaying for the mineralized intervals. In
addition, check assaying for select intervals, was completed for
splits from the bulk reject and from the assay pulp obtained from
the drill rig split. A total of 1,417 drill samples were originally
analyzed and 333 check assays performed, including on nearly all
mineralized intervals with original assays greater than 100 parts
per billion (ppb) gold. No significant variations in results have
been detected in the check assaying.
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 news release. Mr. Wallace is the
President of Columbus Gold and the principal of Cordilleran
Exploration Company ("Cordex"), which is conducting exploration and
project generation activities for Columbus Gold on an exclusive
basis.
ABOUT COLUMBUS GOLD
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. 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 13 of its 26 strategically
located gold projects in Nevada joint-ventured to major and junior
mining companies, including Agnico-Eagle Mines Limited.
ABOUT SNIPER RESOURCES
Sniper Resources Ltd. is engaged in the identification,
acquisition and exploration of gold properties in the State of
Nevada, USA. Sniper owns a 100% interest in the ReHot Project and
is currently earning a controlling interest in four strategically
located Nevada gold projects, namely, Guild, Overland Pass, Weepah
and Laura. The Founder and President of Sniper is Mr. Scott D.
Baxter, who was also the Founder, President and CEO of Tone
Resources Ltd., which was acquired by Robert McEwen's US Gold
Corp.
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 Sniper's obligations under its agreements
with Columbus Gold, including without limitation its requirements
to earn into the respective properties, and general exploration
plans respecting the Weepah and Laura properties. 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 Sniper's willingness or ability to complete the
earn-in terms under the applicable option agreements; that the TSX
Venture Exchange will approve the Weepah option agreement; the
ability to acquire necessary permits and other authorizations;
ability to obtain funding sufficient for bond placement, if
required; 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: that
Sniper will be willing and able to earn an interest under the
applicable option agreements; that the TSX Venture Exchange will
approve the Weepah option agreement; that the underlying agreements
to the applicable properties will remain in good standing; 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 undertakes 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