|By Marketwired .||
|February 28, 2014 09:01 AM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/28/14 -- Columbus Gold Corporation (TSX VENTURE: CGT) ("Columbus Gold") is pleased to announce two very positive recent developments in French Guiana where it is currently advancing its 5.37 million ounce Montagne d'Or gold deposit, which forms part of its Paul Isnard Project.
French gold producer Auplata SA announced on February 25, 2014, that it has received the required authorizations to construct and operate a centralized cyanide plant to treat gold gravity concentrates from its various mines and mining sites in French Guiana. Auplata reports that it ultimately intends to implement cyanide plants directly at its mine sites in due-course.
On February 24, 2014, the French government announced that it plans to invest up to EUR400 million (US$548 million) in a new state owned mining company to explore for gold in French Guiana and for rare earths and specialty metals in France and around the globe. The objective is for the new company to be built around the same model as Japan's JOGMEC, which was established to offer financial support for private sector Japanese resource ventures worldwide.
Robert Giustra, CEO of Columbus Gold, commented: "These recent developments are a clear message from the French Government that it is committed to developing the vast mineral wealth potential of French Guiana, particularly gold mining. It's an essential and very positive development for Columbus Gold in particular, as it greatly increases the level of confidence with respect to the development of our Montagne d'Or gold deposit."
The Montagne d'Or deposit contains a NI 43-101 compliant inferred gold resource using a cut-off grade of 0.3 grams per tonne gold of 5.37 million ounces within 117.1 million tonnes at an average grade of 1.43 grams per tonne gold. Using a cut-off of 1 gram per tonne gold a resource of 4.15 million ounces within 58.1 million tonnes at an average grade of 2.22 grams per tonne gold. The resources are defined within a gold mineralized area of 2,250 meters by 400 meters and to an average depth of 250 meters from surface. The mineralized zones remain open in part along strike and at depth. Please refer to Columbus Gold's news release of February 26, 2014 for further details.
Drilling is currently underway at Montagne d'Or and is being funded by Nord Gold N.V. as part of a 3 year minimum US$30 million exploration and development program pursuant to which Nord Gold can earn a 50.01% interest in Montagne d'Or and certain Paul Isnard mineral claims, by completing a bankable feasibility study.
Rock Lefrancois, P.Geo. (OGQ), Chief Operating Officer for Columbus Gold and Qualified Person under National Instrument 43-101 has reviewed the technical information in this news release and is responsible for the technical information reported herein.
ON BEHALF OF THE BOARD,
Robert F. Giustra, Chairman & CEO
Neither the 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.
This release contains forward-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: (i) Columbus Gold's proposed drilling programs; projected funding of drilling programs by Nord Gold N.V. pursuant to the terms of the option agreement and the related completion of a bankable feasibility study and general exploration plans; (ii) the intention of Auplata to implement cyanide plants; and (iii) the plans of the French government to invest in a state owned mining company and its intended modelling of such company. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including: the ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers and drill equipment; competition for mining properties; risks associated with exploration projects, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; risks associated with Nord Gold N.V. electing not to exercise its option and make the related option payments; changes in relevant government policy and budgets; changes in the intentions of parties other than Columbus Gold with respect to mining practices and programs; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: that the design of the drill plan is appropriate for the site; general business and economic conditions; current government policy and budget plans; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies including without limitation drill rigs; and ongoing relations with employees, partners, optionees and joint venturers. The foregoing list is not exhaustive and Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.