Columbus Gold Announces Resource Estimate at Montagne d'Or; Obtains
Permit For and Commences Drilling on Principal Gold Zone
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 30, 2014) -
Columbus Gold Corporation (TSX-VENTURE:CGT) ("Columbus Gold")
announces the results of a resource estimate, dated June 28, 2014,
prepared by independent consultant Coffey Mining Pty Ltd ("Coffey")
on Columbus Gold's Montagne d'Or gold deposit, Paul Isnard Project,
French Guiana.
Utilizing a cut-off grade of 0.4 g/t gold, the estimate yields
140.1 million tonnes at an average grade of 1 g/t gold for a total
of 4.31 million contained Inferred ounces of gold. See the table
below for 0.3 and 0.5 g/t cut-offs. Based on the current drilling
density, the estimate does not fully take into account the
potential of the high grade zones occurring within the low grade
envelopes. Coffey strongly recommends infill drilling to define
these high grade zones.
The best mineralised and most consistent zones on the Montagne
d'Or deposit, based on current interpretation, are located in the
principal Upper Felsic Zone ("UFZ"). The drilling permits required
to drill the UFZ were very recently obtained on June 16th, and the
present 26,600 metre Phase II drilling program, designed to
complete a tighter drill pattern at 50 metre spacing, commenced on
the UFZ on June 23rd, and on a 24 hour basis. There are
approximately 19,000 metres remaining in the planned Phase II
program, which on deployment of a second drill rig, expected to
arrive imminently in French Guiana, will take approximately 4
months to complete.
Robert Giustra, CEO of Columbus Gold, commented: "The new
estimate by Coffey has been helpful in gaining a better
understanding of the inferred nature of the deposit, but with more
than 70% of Phase II drilling still to occur and with nearly all
that drilling targeting the UFZ (which is the principal mineralised
zone) with denser spacing, it's reasonable to anticipate that the
next resource update planned for completion by the end of this
year, could better reflect the potential of the high grade zones
and convert a significant portion of the Inferred resources to
Indicated and Measured."
Montagne d'Or Updated Resource Estimate
The NI 43-101 compliant resource estimate was prepared by
Coffey's Perth, Australia office as a result of comments from SRK
Consulting (U.S.) Inc. on the appropriateness of certain
methodologies previously employed by Coffey International Ltd
(Toronto) in their 2012 resource estimate (see February 5th, 2013
and May 5th, 2014 press releases).
The updated Inferred Mineral Resources are tabulated following
at the reportable 0.3, 0.4 and 0.5 g/t Au cut-off grade. Columbus
Gold is aiming to file an updated NI 43-101-compliant technical
report on SEDAR in July.
PAUL ISNARD PROJECT Montagne d'Or Inferred Resource
Report |
Cut-off Grade |
Million Tonnes |
Average Grade (g/t Au) |
Contained Gold (M oz) |
0.3 |
169.2 |
0.9 |
4.6 |
0.4 |
140.1 |
1.0 |
4.3 |
0.5 |
116.0 |
1.1 |
4.0 |
Technical Information on Resource Estimate and Qualified
Person
The current modelling and updated mineral resource estimate were
prepared by independent consultants Coffey Mining Pty Ltd
("Coffey") in Perth, Western Australia, in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101"). The estimation is based on 56 historical drill holes
(10,916m) together with the results of 100 diamond drill holes
(22,905m) completed by Columbus Gold from November, 2011, to June,
2014. Drilling core diameter was HQ for the saprolite zone,
changing to NQ for fresh rock.
The Montagne d'Or deposit consists of closely-spaced
sub-parallel east-west-striking and steeply south-dipping
mineralised horizons. A total of eight (8) elongated gold
mineralised domains were defined along the strike length of the
deposit with the latest drill hole information. The domains were
wire-framed by snapping to drill holes at a mineralisation cut-off
of 0.25 g/t Au. Care was taken to minimize the amount of internal
dilution. The average dilution (values <0.25 g/t Au) was
estimated at 18.7%. An additional and separate domain was created
for the saprolite horizon defined by the boundary between fresh
rock and the topography surface.
The mineral resource estimation were prepared from a
geostatistical block modelling method based on the drill hole data.
The resource was classified as an Inferred resource due to
available drill hole density and distance between drill holes. The
resource remains open in several directions. Additional infill
drilling to a nominal spacing of 50m between drill holes along
strike as well as down-dip drilling may convert some or all of the
existing Inferred Mineral Resource to an Indicated Mineral
Resource.
Parameters used for the
evaluation mineral resources are:
Drill hole samples were composited into 3m composite lengths
within the mineralised domains and coded with the domain number.
All samples were combined for the definition of a variogram model
to define the spatial distribution of the gold mineralisation; a
reasonably well-defined correlogram model was fitted. The spatial
model follows the trend of the mineralisation along strike with a
rotation of 85 degrees east of north and a dip of 70 degrees
towards the south. The major directions of continuity occur along
strike and down-dip. The gold data shows a high nugget and the
model was fitted with a nugget effect of 50%. Cross validation of
the variogram indicates that the model is relevant. Separate
omni-directional models were defined for waste and the saprolite
horizon and used for modelling waste for areas in between the main
mineralised domains.
A density model was generated by a kriging interpolation of the
raw data that was coded with average density values based on the
results of the available density measurements.
A top-cut of 16 g/t Au has been applied to the 3m composite data
before use in block interpolation, which is based on standard
linear Ordinary Kriging. Only data within the mineralised domain
was used to inform blocks within the domain. All available grade
values are used within the domains but unwanted smearing of high
grades was controlled in the Ordinary Kriging process.
A number of different block model sensitivities with different
parent cell sizes, composite lengths and differing kriging
neighbourhoods were run, validated, and compared to ensure that
sensitivity to high grade populations, search strategy and parent
cell size is monitored. The maximum search radius was set at 150m
along strike and 150m down dip and interpolation of high grades
above a value of 10 g/t Au was limited to a distance of maximum 35m
along strike and down dip, and 10m across strike to avoid unwanted
smearing of high grades during block estimation. The final block
model is generated at a parent cell size of 25m along strike, 10m
across strike and 10m down depth.
The block model is not rotated but search and interpolation
directions follow the geological dip at 70 degrees towards the
south. The model is extended to a depth of approximately 350m below
topography and the estimation interpolation is allowed to run to
its maximum depth within the mineralised zones. The model is then
truncated by defining a wire-frame shell that encloses a relative
distance of approximately 150m from available drill hole data. Only
portions of the mineralised domains that lie within this shell have
been classified as an Inferred Mineral Resource.
Louis Voortman, Principal Consultant - Resources, at Coffey
Mining Pty Ltd, Qualified Person for the resource estimation, has
reviewed and approved the contents of this news release as far as
it relates to their work.
Rock Lefrançois, P.Geo. (OGQ), Columbus Gold's COO and Qualified
Person has reviewed and approved the technical content of this news
release.
ON BEHALF OF THE BOARD,
Robert F. Giustra, Chairman & CEO
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.
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 a new 43-101-compliant report being
completed by Coffey; that the new 43-101-compliant report will be
completed and filed on SEDAR in July 2014, that a second drill rig
will arrive imminently, that an additional 19,000 meters of Phase
II drilling will be completed and take approximately 4 months to
complete and that such additional drilling will improve average
grade or convert a significant portion of the inferred resources to
indicated and measured, and that another resource update will be
completed by the end of the year. 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: whether a new 43-101-compliant report will be completed
by Coffey; whether the new 43-101-compliant report will be
completed and filed on SEDAR in July 2014; whether a second drill
rig will arrive imminently; whether an additional 19,000 meters of
Phase II drilling will be completed and take approximately 4 months
to complete; whether such additional drilling will improve average
grade or convert a significant portion of the inferred resources to
indicated and measured; whether another resource update will be
completed by the end of the year ; cost increases; availability of
qualified workers and drill equipment; 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: that the conclusions provided by
Coffey and reported herein are accurate and that new
43-101-compliant reports will be able to be provided within the
target timeframe or at all; 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 political risk will remain on current levels; and ongoing
relations with employees, partners and joint venturers.
Although Columbus Gold has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be anticipated, estimated or intended. There can
be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Columbus Gold
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable law. The reader is cautioned not
to place undue reliance on forward-looking statements.
Investor Relations604-634-0970
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