Vancouver, British Columbia, Canada, March 10th,
2011. Columbus Gold Corporation (CGT: TSX-V) (the "Company" or
"Columbus Gold") is pleased to announce that the government of
France has not objected to the proposed acquisition by Columbus Gold of the
1.9M oz. Paul Isnard gold project in French
Guiana, first announced on December 3rd, 2010.
Columbus Gold is also pleased to report the
completion of an additional important condition precedent with respect to
the proposed acquisition, being the completion of a US$2 million
fundraising by Columbus Gold which has been satisfied entirely pursuant to
the exercise of outstanding share purchase warrants. The material remaining
conditions precedent to the acquisition, are obtaining a positive title
opinion on the property, and shareholder and TSX Venture Exchange (the
"Exchange") approval.
The Exchange has granted conditional approval to
the proposed acquisition subject to certain conditions, including
shareholder approval, and a successful Exchange review of the 43-101 Report
(already filed) and of the Title Opinion (already obtained) on Paul Isnard.
An updated NI 43-101 Report on Paul Isnard was filed on SEDAR on February 28th and can be
viewed at the following link:
http://www.columbusgoldcorp.com/s/TechnicalReports.asp
The Paul Isnard gold
project includes the Montagne d'Or gold deposit
which consists of 1.9 million ounces gold from 36.7 million tonnes grading 1.6 gpt. The Montagne d'Or gold deposit is open along strike and at
depth. Columbus Gold has an option to earn a 100% interest in Paul Isnard, subject to an underlying royalty.
The Paul Isnard project
is located approximately 180 km west of the capital city of Cayenne, French
Guiana and consists of eight mining permits totaling 135 km2 and a pending
application for two additional mining permits totaling a further 14.4 km2.
The Paul Isnard project area 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. The greenstone
terrain hosts important gold deposits in French Guiana and neighboring
countries, including Rosebel in Suriname, and is
generally considered to represent an extension of the productive and much
more extensively explored and developed Birimian
System greenstone belts of West Africa.
Modern exploration focused on primary gold
mineralization at Paul Isnard has been limited
but includes geological, geochemical and geophysical surveys, and 75
diamond core holes totaling 12,983 metres,
carried out by Golden Star Resources largely from 1995 to 2007. Most of
this work, including 60 holes for 11,454 metres,
has been 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 3,000 metres and dip
length up to 200 metres. The deposit consists of
two closely spaced, mineralized layers, respectively averaging about 65 and
35 metres in thickness, and multiple smaller,
sub-parallel gold-bearing bands and stringer zones.
The Columbus program will be focused on the Montagne d'Or deposit where infill drilling is planned
to convert Inferred resources to Measured and Indicated categories, and
holes drilled at greater depths and along strike are planned in order to
increase the mineral resources. Numerous less developed gold prospects and
untested geochemical anomalies which occur throughout the project area will
also be evaluated.
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.
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.
For more information contact:
Peter Kendrick
President
604 638-3474 or
1 888 818-1364
info@columbusgoldcorp.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 Agreement, the conditions precedent in connection therewith
and with Exchange approval, and the Company's proposed drilling project.
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 obtain regulatory, shareholder, and Exchange approval
of the transactions contemplated under the Agreement; the acceptability to
the Exchange and shareholders to the transactions contemplated under the
Agreement, including the component parts thereof; the ability to satisfy
the other conditions precedent in the Agreement, including without
limitation obtaining a positive title opinion; the ability to complete
milestones under the Agreement (if ultimately approved) in order to earn
into the property, including without limitation the ability to obtain qualified
workers, financing, permits, approvals, equipment, and ultimately a
Bankable Feasibility Study in connection therewith; ability to obtain
alternate financing; general political risk in France and French Guiana;
changes in the market; decisions respecting whether or not to pursue the
transactions contemplated under the Agreement (either at the pre-approval
stage, or post-approval stage, if ultimately approved); 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. 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;
that the Company and Auplata will be able to
successfully complete the conditions precedent including without limitation
obtaining a positive title opinion, and regulatory, TSX Venture Exchange,
and shareholder approval of the transactions contemplated under the
Agreement; that title to the property is as has been represented to the
company and will be so reflected in a title opinion; that France and French
Guiana will remain stable political environments; that the Company will be
able to complete necessary milestones under the Agreement in a timely and
successful fashion; that French law will allow the transactions
contemplated under the Agreement to succeed; that the Company will desire
to continue earning into the Property over time; the ability to locate
sufficient financing for ongoing operations; 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;
and general market conditions. The foregoing list is not exhaustive and we
undertake no obligation to update any of the foregoing except as required
by law.