Columbus Gold Corporation ("Columbus Gold") reports that, further to its March 13, 2014 news release respecting the evaluation of bids pursuant to a formal tender, SRK Consulting (U.S.), Inc. ("SRK") was awarded the contract to complete a preliminary economic assessment ("PEA") of Columbus Gold's Montagne D'Or gold deposit.
As part of SRK's engagement and the ongoing development of the project, SRK reviewed the inferred gold resource estimate prepared by Coffey Mining Pty Ltd ("Coffey"), which was set out in their NI 43-101-compliant technical report dated effective November 23, 2012 and filed on SEDAR on March 14, 2013. In the process, SRK identified issues with respect to certain estimation methodologies employed by Coffey which SRK believes materially overstate grade and contained ounces.
Mine Development Associates ("MDA") was subsequently engaged by Columbus Gold in an effort to resolve the differences in the methodologies used by Coffey and those considered appropriate by SRK, both internationally respected and recognized independent mining consultancies. MDA's conclusion supports SRK's recommended methodology.
In the interest of providing timely public disclosure, Columbus Gold has not yet had the opportunity to obtain comment from Coffey on their choice of methodologies used in their resource estimate.
Columbus Gold will provide conclusive clarity on the matter by obtaining comments from Coffey and commissioning a new independent NI 43-101 compliant resource update on the Montagne d'Or deposit with a target completion date of May 30, 2014. The resource update will also include holes for which assays have been received to date in the current Phase II drilling campaign.
Rock Lefrançois, P.Geo. (OGQ), Columbus Gold's COO and Qualified Person has reviewed and approved the technical content of this news release.
ON BEHALF OF THE BOARD,
Robert F. Giustra
Chairman & CEO