Vancouver, British Columbia, Canada. May 21st,
2009. Columbus Silver Corporation (CSC: TSX-V) ("Columbus
Silver" or the "Company") is very pleased to announce the
successful completion of recent initiatives to consolidate and increase its
property position in the Mogollon silver-gold district, Catron County, New
Mexico.
The Mogollon project was acquired in January 2009
under an agreement with highly regarded geologist John S. Livermore
granting Columbus Silver the option to acquire 100% of his rights and
interests in the Mogollon project, which he held pursuant to a number of
underlying lease and option agreements dating from 1978. Columbus Silver
has entered into three new mining leases directly with the underlying
owners, replacing the previous agreements. The new leases simplify the
commercial relationships with the underlying property owners at Mogollon
and eliminate title uncertainties connected with a succession of
assignments of the older agreements.
New leases were entered into with John Mack,
Frederick Hott, and Wesley Parker; and Mogollon Enterprises, Inc. for the
patented claim blocks respectively covering the historically productive
Little Fanny and Consolidated mines and the Last Chance-Confidence mines. A
third lease was entered into with Sage Associates, Inc., for the unpatented
Escondido claims covering potential untested extensions of the productive
vein systems in the eastern part of the district. The new leases have
10-year terms renewable at Columbus Silver's election and call for annual
advance royalty payments of US$40,000 in the aggregate, deductible from
underlying net smelter returns production royalties.
The Company has also increased its land position
at Mogollon through the staking of 18 unpatented claims totaling 360 acres
and the purchase of the Independence-Ida May group of 10 patented mining
claims, totaling approximately 187 acres, outright from Metallic Ventures
Inc. for US$100,000. The patented claim group covers the important
Independence-Ida May veins which are located just north and west of the
Little Fanny and Consolidated mines and represent principal targets of the
initial Columbus Silver exploration program. The unpatented claims are
located adjacent to the Gold Dust vein which is also a key target for the
Company's initial program.
The Mogollon district, located 75 miles (120 km)
northwest of Silver City in southwest New Mexico, covers an extensive,
silver-gold bearing epithermal vein field with historic production, largely
from the Little Fanny and Last Chance mines during the period 1905 to 1925,
and the Consolidated Mine from 1937 to 1942, of 15,700,000 ounces silver
and 327,000 ounces gold from about 1.7 million tons of ore. Mining ceased
in 1942 due to the wartime cessation of all gold and silver mining in the
United States.
Modern exploration activity at Mogollon has been
limited to small programs by St. Joe Minerals and Sage Associates in the
early 1980's and more comprehensive evaluations by Cordex in 1984 and John
Livermore in 1988. These
programs, comprising about 50 rotary and diamond core holes for an
aggregate 40,000 ft (12,192 m), were successful in outlining a silver-gold
deposit in the Queen vein, containing approximately 845,000 tons with an
average grade of 9.35 ounces per ton silver and 0.15 ounces per ton gold.
The
Mogollon silver-gold deposits are classic epithermal veins which
demonstrate good continuity of grade and thickness for strike lengths of up
to 4,000 ft (1,219 m) in the Little Fanny and Last Chance mines and through
a remarkably consistent, elevation-controlled vertical range of about 1,000
ft (305 m). There are two sets of veins at Mogollon, an east-west set
represented by the productive Little Fanny and Last Chance veins, and a
north-south set represented by the Queen vein developed in the Consolidated
Mine. The initial Columbus Silver program will focus on testing the east-west
trending Gold Dust, Independence-Ida May and Anna E veins and confirmation,
delineation and expansion of the silver-gold deposit in the Queen vein. The
highly prospective east-west veins have near-surface characteristics
similar to the historically productive Little Fanny and Last Chance veins
but have only been explored by shallow workings above the highly
predictable Mogollon productive zone.
The
historic figures presented herein are not NI 43-101 compliant. They should
not be relied upon and Columbus Silver does not treat them as current.
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 a VP of Columbus Silver's U.S. subsidiary and a
partner of Cordilleran Exploration Company ("Cordex"), which is
conducting exploration and project generation activities for Columbus
Silver.
About
Columbus Silver
Columbus
Silver Corporation is a silver exploration and development company
operating in the Western United States. The Company has an experienced
management group with a strong background in all aspects of the
acquisition, exploration, development and financing of mining projects.
Columbus
Silver's project activities are managed on an exclusive basis by Cordex,
owned and operated by John Livermore and Andy Wallace who have a long and
successful history of discovery and mine development in the United States.
Columbus Silver maintains active generative (prospecting) and evaluation
programs and currently controls a 100% interest in 6 silver properties in
Utah, Arizona, New Mexico and Nevada.
ON BEHALF
OF THE BOARD,
Robert
F. Giustra
President & CEO, Director
Neither
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:
Ray
Lagace
Investor Relations
604-638-3474 or
1-866-689-2599
info@columbussilvercorp.com
This news release contains certain forward-looking
information and forward-looking statements, as defined in applicable
securities laws (collectively referred to as "forward-looking statements").
These Forward-looking statements include details respecting the Company's
plans for exploration work on the Mogollon property. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause our actual results, performance or achievements to be
materially different from any of our future results, performance or
achievements expressed or implied by the forward-looking statements;
consequently, undue reliance should not be placed on forward-looking
statements. These risks, uncertainties and other factors include, but are
not limited to: changes in our ability to acquire necessary permits and
other authorizations in connection with our project; risks associated with
environmental compliance, including without limitation changes in
legislation and regulation, and estimates of reclamation and other costs;
our cost reduction and other financial and operating objectives; our
environmental, health and safety initiatives; the availability of qualified
employees and labour for our operations; risks that may affect our
operating or capital plans; risks created through competition for mining
properties; risks associated with exploration projects, and mineral reserve
and resource estimates, including the risk of errors in assumptions and
methodologies; risks associated with our dependence on third parties for
the provision of critical services; risks associated with non-performance
by contractual counterparties; risks associated with title; and general
business and economic conditions. Forward-looking statements are based on a
number of assumptions that may prove to be incorrect, including, but not
limited to, assumptions about: general business and economic conditions;
the timing of the receipt of required approvals for our operations; the
availability of equity and other financing on reasonable terms; power
prices; our ability to procure equipment and operating supplies in
sufficient quantities and on a timely basis; our ability to attract and
retain skilled labour and staff; and our ongoing relations with our
employees and with our business partners and joint venturers. We caution
you that the foregoing list of important factors and assumptions is not
exhaustive. Events or circumstances could cause our actual results to differ
materially from those projected and expressed in, or implied by, these
forward-looking statements. We undertake no obligation to update publicly
or otherwise revise any forward-looking statements or the foregoing list of
factors, whether as a result of new information or future events or
otherwise, except as may be required under applicable laws.