Columbus acquires high-grade silver exploration property with surface samples of up to 2.7 kg / tonne
Columbus Gold Corporation (TSX VENTURE:CGT) announced Monday that it has acquired by leasehold the Silver Dome Property, where its recent evaluation has demonstrated widespread silver mineralization including sampling which has yielded grades up to 2.7 kilograms per tonne (79.8 ounces per ton) (opt) silver (Ag).Silver Dome consists of 60 unpatented mineral claims and a lease on one square mile of land from the State of Utah, and covers approximately 760 hectares (1,880 acres), located 72 kilometres (45 miles) northwest of Delta, Utah, along the western margin of the Fish Springs Mountains. Subject to net smelter royalties, Columbus controls a 100% interest in the property.Under the terms of the lease agreements (the "Leases"), Columbus Gold is obligated to make annual escalating lease payments of US$5,640 in year one rising to US$25,640 in year five of the leases and thereafter for the 10 year terms of the Leases. Columbus Gold has the option to purchase the 60 unpatented claims outright at any time during the term of the lease for US$2,000,000. The Leases are renewable for a subsequent 10 year term under certain conditions. The lessors are also entitled to production royalties from the property.Silver mineralization at Silver Dome occurs with very fine-grained galena disseminated within flat-lying, Ordovician calcareous sandstones and cross-cutting, high angle structures. Due to the flat topography in the project area, and subdued outcrop exposure, size and geometry of the silver-bearing zones have not been determined. However initial mapping and sampling have identified disseminated mineralization, typically containing values ranging from 15 to 100 grams per tonne silver, within an area of intermittent bedrock measuring 1000 metres (m) x 100 m and in float boulders on shallow pediment up to 150 m from the bedrock exposures. The prospect area has never been drilled.Columbus Gold's target at Silver Dome is bulk-mineable silver mineralization within the flat-lying calcareous sandstone host rocks amenable to open-pit development. Preliminary metallurgical test work on 16 samples of variable grade and location yielded recoveries ranging from 47% – 91% (averaging 71%), suggesting the mineralization may be suitable for heap leaching or conventional milling with cyanide recovery.The Company is currently carrying out more detailed geologic mapping, sampling and trial geophysical surveys. An initial drilling program will be considered later this year.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.
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 17 gold projects strategically located along or near Nevada's most productive gold trends and 5 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 11 of its projects joint ventured to major and junior mining companies.