Columbus Gold Corporation announces that it has entered into an agreement with Columbus Exploration Corporation pursuant to which Columbus Exploration will transfer to Columbus Gold its Mogollon Project in consideration for the cancellation of debts owed by Columbus Exploration to Columbus Gold of $437,642. The transaction is subject to the approval of the TSX Venture Exchange, which will require Columbus Exploration to obtain disinterested shareholder approval of the transaction.
The Mogollon silver-gold project is located in Catron County, New Mexico. Mogollon covers most of an extensive, silver-gold bearing epithermal vein field totaling more than 45 miles (72 km) of strike length of which only 3 miles (4.8 km) have been developed.
Historical drilling at Mogollon between 1981 and 1989 was successful in outlining a partially delineated silver-gold deposit at the former Consolidated Mine in the Queen vein containing an historical (not NI 43-101 compliant) resource of approximately 845,000 tons (767,000 tonnes) averaging 9.35 opt (320 g/t) silver and 0.15 opt (5.1 g/t) gold. There are dozens of mineralized and potentially mineralized veins at Mogollon that have never been drill tested providing potential for considerable resource expansion.
There are two sets of veins at Mogollon which account for the majority of historical production, a north-south set represented by the Queen vein, hosting the former Consolidated Mine, and an east-west set represented by the Little Fanney and Last Chance veins, hosting former mines by the same name. Historical recorded production from these veins between 1905 and 1942 is reported to total 15,700,000 ounces silver and 327,000 ounces gold from approximately 1.7 million tons (1.5 million tonnes) of ore averaging 9 opt (308 g/t) silver and 0.18 opt (6.17 g/t) gold. The historical resources presented herein are not NI 43-101 compliant. They should not be relied upon and Columbus Gold 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 press release. Mr. Wallace is the principal of Cordilleran Exploration Company (Cordex), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.
ON BEHALF OF THE BOARD,
Robert F. Giustra
Chairman & CEO