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NEWS RELEASE
COLUMBUS
GOLD COMMENCES DRILLING AT AWAKENING
Vancouver, British
Columbia, Canada. June 25th, 2008. Columbus
Gold Corporation (CGT: TSX-V) ("Columbus
Gold" or the "Company") is pleased to announce that it has
commenced a Phase I drilling program at its Awakening gold project (the
"Property"), located 45 miles (72 km) north-northwest of
Winnemucca, Nevada.
Twenty-four drill
sites are permitted and bonded. The program will consist of up to
approximately 7,200 ft
(2,200 m)
of reverse circulation (RC) drilling in 10 to 12 holes.
The Awakening
District produced 26,262
ounces of gold from 1914-1963, largely from the
Jumbo Mine. Gold mineralization on the east side of the district occurs
with narrow quartz veins cutting Mesozoic shale and sandstone. The mines on
the east side of the district are best known for small but often very
high-grade "pockets" of gold ore; recent drilling however has
identified a new type of discovery in the district with broad zones of low
grade mineralization in quartz stockworks,
potentially minable by open pit.
The Property was
recently explored with a series of excavator trenches followed by the
drilling of six rotary holes in January 2008 as reported below. Columbus confirmed
the drill results by re-logging the drill holes and verifying the assay
results, by both the duplicate assaying of pulps and also by assaying
separate splits of cuttings taken at the rig. In addition, preliminary
metallic screen assaying of cuttings, available from only one hole (ABZN), indicates the potential to significantly
upgrade gold values in both high and low grade samples. Metallic screen
assaying of the other holes is in progress.
The Awakening
Property is centered in an area of considerable
exploration. XCal is drilling at the Sleeper Mine
to the northwest; Evolving Gold is planning a drill program to the west;
and Newmont is earning into Fronteer's
Sandman Project to the east-southeast.
Results from the
six holes drilled in January are as follows:
|
Drill hole
|
Depth
|
Depth
|
Orientation
|
From
|
To
|
Interval
|
From
|
To
|
Interval
|
Au
|
|
|
(ft)
|
(m)
|
|
(ft)
|
(ft)
|
(ft)
|
(m)
|
(m)
|
(m)
|
(g/t)
|
|
ABZD
|
540*
|
164.6
|
Vertical Hole
|
90
|
120
|
30
|
27.4
|
36.6
|
9.1
|
1.04
|
|
|
|
|
|
170
|
230
|
60
|
51.8
|
70.1
|
18.3
|
0.37
|
|
|
|
|
|
240
|
250
|
10
|
73.2
|
76.2
|
3.0
|
1.06
|
|
|
|
|
|
250
|
275
|
25
|
76.2
|
83.8
|
7.6
|
0.54
|
|
|
|
|
|
365
|
420
|
55
|
111.3
|
128.0
|
16.8
|
1.68
|
|
|
|
|
|
420
|
435
|
15
|
128.0
|
132.6
|
4.6
|
0.42
|
|
|
|
|
|
500
|
515
|
15
|
152.4
|
157.0
|
4.6
|
0.39
|
|
|
|
|
|
530
|
540
|
10
|
161.6
|
164.6
|
3.0
|
0.39
|
|
*Hole bottoms in subgrade but highly anomalous values
|
|
ABV
|
330*
|
100.6
|
Angle hole
|
145
|
180
|
35
|
44.2
|
54.9
|
10.7
|
1.45
|
|
|
|
|
|
195
|
240
|
45
|
59.5
|
73.2
|
13.7
|
0.70
|
|
|
|
|
|
305
|
315
|
10
|
93.0
|
96.0
|
3.0
|
0.35
|
|
*Hole bottoms in
subgrade but highly anomalous values
|
|
ABZN
|
220
|
67.1
|
Vertical Hole
|
95
|
100
|
5
|
29.0
|
30.5
|
1.5
|
24.1
|
|
|
|
|
|
175
|
180
|
5
|
53.4
|
54.9
|
1.5
|
0.50
|
|
|
|
|
|
190
|
195
|
5
|
57.9
|
59.5
|
1.5
|
3.31
|
|
APB
|
80
|
24.4
|
Angle hole
|
65
|
75
|
10
|
19.8
|
22.9
|
3.0
|
0.75
|
|
ABZ
|
170
|
51.8
|
Angle hole
|
155
|
160
|
5
|
47.3
|
48.8
|
1.5
|
2.44
|
|
AMB
|
180
|
54.9
|
Vertical Hole
|
5
|
10
|
5
|
1.5
|
3.0
|
1.5
|
0.44
|
|
|
|
|
|
30
|
35
|
5
|
9.1
|
10.7
|
1.5
|
0.90
|
|
|
|
|
|
65
|
70
|
5
|
19.8
|
21.3
|
1.5
|
0.43
|
|
|
|
|
|
105
|
115
|
10
|
32.0
|
35.1
|
3.0
|
0.50
|
|
|
|
|
|
130
|
135
|
5
|
39.6
|
41.2
|
1.5
|
1.22
|
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. Mr. Wallace is a partner of Cordilleran Exploration Company
("Cordex"), which is conducting exploration and project
generation activities for Columbus Gold on an exclusive basis.
Subject to
underlying NSR royalties, the Awakening Property is 100% controlled by
Columbus Gold pursuant to two lease agreements. Under the terms of the
lease agreement with Dean and Camron Stitzel dated effective April 25th,
2008 (the "Stitzel Lease"), Columbus Gold leased 21 mining claims
for a renewable 10 year term, in consideration for advance royalties of
US$50,000 and 76,037 shares of Columbus Gold on execution; advance
royalties of US$50,000 and US$50,000 in common shares of Columbus Gold on
the first anniversary of the effective date; and, advance royalties of
US$100,000 annually on the second though tenth anniversaries of the
effective date. The Stitzel Lease provides for an NSR royalty of between 3%
and 6% based on the price of gold.
Under the terms of
the lease agreement with Bald Mountain Mining Company dated effective June
2nd, 2008 (the "Bald Mtn Lease"), Columbus Gold leased
38 mining claims for a renewable 10 year term, in consideration for advance
royalties of US$10,000 and 25,000 common shares of Columbus Gold on
execution; advance royalties of US$20,000 and 25,000 common shares of Columbus
Gold on the first anniversary of the effective date; advance royalties of
US$30,000 on the second anniversary of the effective date; advance
royalties of US$40,000 on the third anniversary of the effective date; and,
US$50,000 in advance royalties annually on the fourth though tenth
anniversaries of the effective date. Bald Mountain retains a 3% NSR
royalty.
ABOUT
COLUMBUS GOLD
Columbus Gold Corporation is a gold exploration
and development Company operating principally in Nevada. The Company has an
experienced management group with a strong background in all aspects of the
acquisition, exploration, development and financing of precious metal
mining projects. Columbus controls a 100% interest, subject to royalties,
in 25 gold projects strategically located along or near Nevada's most
productive gold trends and 6 silver and copper projects located in Arizona
and Utah. The Company's project activities are managed by Cordilleran
Exploration Company ("Cordex"), owned and operated by John
Livermore and Andy Wallace who have a long and successful history of gold
discovery and mine development in Nevada.
The Company
maintains active generative (prospecting) and evaluation programs and, as a
key element of strategy, broadens exposure, minimizes risk and maintains
focus on high priority prospects while seeking industry finance through
joint ventures on selected projects. The Company currently has 14 of its
projects joint ventured to major and junior mining companies.
ON BEHALF OF THE BOARD,
Robert F. Giustra President & CEO, Director
For more information contact:
Ray Lagace
Investor Relations
604-638-3474
info@columbusgoldcorp.com
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