Columbus/Allegiant Commences Drilling at Eastside Gold Project, Nevada
December 05 2017 - 11:41AM
Columbus Gold Corp. (TSX:CGT) (OTCQX:CBGDF) is
pleased to announce that drilling has commenced at Columbus Gold’s
100% owned Eastside gold project in Nevada. The program is
focused on expansion of the Original Zone, inside the pit to the
west and to the south. Those areas of the pit are presently
classified as waste since little to no drilling has been undertaken
in those parts of the pit.
The Original Zone at Eastside hosts an initial
NI 43-101 pit-constrained Inferred resource estimate consisting of
35,780,000 tonnes grading 0.63g gold equivalent per tonne, for a
total of 721,000 ounces1 of gold equivalent (using a cut-off grade
of 0.15g gold per tonne and a gold/silver ratio of 60:1).
Eastside also hosts an historical resource of 11,177,761 tons
grading 0.024 ounces gold per ton (0.82g gold per tonne) for a
total of 272,153 ounces2 gold.
Eastside drilling was pending completion of
shareholder and Supreme Court approval of the Arrangement between
Columbus and Allegiant Gold Ltd, both of which have now been
obtained. All costs of the drill program will be borne by
ALLEGIANT.
ALLEGIANT has filed an application to list on the TSX Venture
Exchange.
Qualified Person
Andy Wallace is a Certified Professional
Geologist (CPG) with the American Institute of Professional
Geologists and is the Qualified Person under NI 43-101, Standards
of Disclosure for Mineral Projects, who has reviewed and approved
the technical content of this press release.
About Columbus Gold
Columbus is a leading gold exploration and
development company operating in French Guiana, France, and in
Nevada. Columbus holds a major interest in the world-class
Montagne d’Or gold project in French Guiana for which a Feasibility
Study was completed in May 2017, and which is currently in the
pre-permitting stage. In Nevada, Columbus is advancing its
Eastside gold project. Eastside has outstanding
infrastructure for mining and processing, and preliminary
metallurgical testing indicates that gold and silver at Eastside
are amenable to cyanide leaching. Columbus has received
shareholder and Supreme Court approvals to spin-out its US property
portfolio, which includes Eastside and 13 other properties, into a
new company called Allegiant Gold Ltd.
ON BEHALF OF THE BOARD,
Robert F. Giustra Chairman & CEO
For more information contact:Investor
Relations(604) 634-0970
or1-888-818-1364info@columbusgold.com
1 For more information, see news releases
entitled "Columbus Announces Maiden Resource Estimate at Eastside
Gold-Silver Project, Nevada" dated December 5, 2016 and filed on
SEDAR and the NI 43-101 technical report entitled "Resource
Estimate and Technical Report, Eastside Gold-Silver Project,
Esmeralda County, Nevada" prepared by Mine Development Associates
for Columbus Gold Corporation with an Effective Date of November
17, 2016, dated December 2, 2016, and filed on SEDAR on December 7,
2016.
2 The historical resource estimate for the
Castle gold project was completed by James D. Greybeck, Senior
Geologist for Cordex Exploration Co. in April 1999, under the
direction of Andy B. Wallace, then Manager of Cordex Exploration
Co. and Vice President of Rayrock Mines, Inc. This report and data
used in its preparation has been recently reviewed by Andy B.
Wallace for the purpose of this press release under his obligations
as a Qualified Person for Columbus Gold (US) Corp. Drill data used
for Greybeck's report was from Cordex Exploration Co., Kennecott
Exploration, Houston Oil and Minerals, Falcon Exploration, and
Mintek Resources which data is on file in the offices of Cordex
Exploration Co. The data is judged relevant and reliable by Andy B.
Wallace. The resource was termed a "Geologic Resource" at the time
of Greybeck's report, which was in line with current practice for
the time. Greybeck prepared geological cross sections and
calculated the resource by hand, using a polygonal method with a
lower cut-off of .005 opt Au (0.17 g/t Au). Where drilling was
closely spaced gold values were interpolated between cross sections
using weighted averages projected 50 feet on either side of the
cross section. Columbus plans additional drilling to confirm
Greybeck's interpretations and to fill in gaps in the drilling. A
qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral
reserves. The Company is not treating the historical estimate
as current mineral resources or mineral reserves. For more
information, see news releases entitled "Columbus Acquires Claims
Hosting a Historical Estimate of 272,000 Ounces of Gold Resources
Contiguous with its Eastside Gold Project in Nevada" dated and
filed on SEDAR on January 20, 2017.
FORWARD LOOKING STATEMENTS
This release contains forwarding 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 Columbus' and
Allegiant’s plans to drill the Eastside gold project and Columbus’
plans to spin-out its subsidiary Allegiant Gold Ltd. which is
intended to be listed on the TSX Venture Exchange. Forward-looking
statements involve risks, uncertainties and other factors that may
cause actual results to materially differ from those expressed or
implied by the forward-looking statements including that the
spin-out may not be completed as planned or at all due to failure
to obtain necessary approvals for the spin-out or for the listing,
or the inability to raise sufficient capital to list or to
adequately fund Allegiant. Forward-looking statements are based on
the opinions and estimates of management at the date the statements
are made and a number of assumptions that may prove to be
incorrect, including, without limitation, assumptions about general
business and economic conditions, the timing and receipt of
required approval and continued availability of capital and
financing. Readers are cautioned not to place undue reliance on the
forward-looking statements contained herein. The foregoing list is
not exhaustive and Columbus undertakes no obligation to update any
of the foregoing except as required by law.