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Columbus
Gold Corporation (TSX-V:CGT - News) (the "Company" or "Columbus
Gold") is pleased to announce that it has satisfied another condition
precedent in its proposed acquisition of the Paul Isnard
gold project in French Guiana, first announced on December 3rd, 2010, through
completion of its due-diligence on the proposed acquisition.
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.
The
agreement governing the terms of the proposed acquisition (the
"Agreement") contains additional conditions precedent including,
among other things: obtaining a positive title opinion in connection with the
Paul Isnard property; the completion of a US$2
million fundraising by Columbus Gold; non-objection by the French Government;
and stock exchange, shareholder, and regulatory approvals.
In
connection with its due-diligence, Columbus Gold has met with key government
officials in both France and French Guiana (a Department of France) and
reviewed the French Mining Code and proposed new mining legislation which is
in the final stages of consultation, and is expected to be submitted for vote
by the Supreme Court of France in 2011 or 2012, known as the Scheme of Mining
Orientation and Management of French Guiana, or SDOM.
The
dual objectives of the SDOM are to encourage economic development in French
Guiana while protecting its environment. In part to accomplish these goals,
the SDOM provides increased security of land tenure and clarifies mineral
development guidelines, and assigns lands in French Guiana to 1 of 5
classification requiring varying levels of environmental and other
obligations for mining companies. Pursuant to the SDOM, the Montagne d'Or gold deposit lies within an area
classification proposed to allow open-pit mining under certain conditions
that include: the requirement to demonstrate the identification of a viable
mineral deposit; the completion of an Environmental Impact Study and
Reclamation Plan; and possible additional reclamation, or environmental
investigations as may be required for the public interest, on or off site. A
map depicting the SDOM classifications in the Paul Isnard
Project area can be viewed at the following link:
http://www.columbusgoldcorp.com/i/nr/2011-02-14-map.pdf
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 km(2) and a pending application for two
additional mining permits totaling a further 14.4 km(2). 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
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 the SDOM, including when
and whether it will be approved and the content thereof. 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 TSX Venture Exchange approval of the
transactions contemplated under the Agreement; the ability to pass the
transactions contemplated under the Agreement through applicable French law;
the ability to obtain a positive title opinion on the property; the ability
to satisfy the other conditions precedent in the Agreement; the ability to
obtain applicable exemptions from prospectus and registration requirements in
connection with the issuance of securities of the Company in connection with
the Agreement and the fundraising required thereunder;
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 that may be made to the SDOM in connection with its
review process in France and French Guiana; that the SDOM may not be put
forward for a vote in its current form or otherwise; that the SDOM may be put
forward to a vote and not approved, or approved with changes that may or may
not be beneficial to the Company; 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);
non-performance
by contractual counterparties; 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; that the Company and Auplata will be able to successfully complete the
conditions precedent to the Agreement, including without limitation the
ability to obtain a positive title opinion, complete required fundraisings,
and the ability to obtain regulatory, TSX Venture Exchange, and shareholder
approval of the transactions contemplated under the Agreement; that the SDOM will
be put forward for approval in its current form or in a form that is
substantially similar thereto; that the SDOM will be approved through the
required voting mechanism; 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;
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.
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.
Contact:
Contacts:
Columbus Gold Corporation
Peter Kendrick
President
604-638-3474 or 1-888-818-1364
604-634-0971 (FAX)
info@columbusgoldcorp.com
www.columbusgoldcorp.com
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