VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 2, 2013) - Colombia Crest Gold Corp. ("Colombia Crest"; the "Company") (TSX VENTURE:CLB)(ECRTF)(FRANKFURT:EAT) is pleased to announce that cash payments for the Venecia Earn-in Option Agreement (the "Agreement") dated March 30, 2011 have been renegotiated with Colombian Mines Corp. (TSX VENTURE:CMJ). The original terms included a cash payment of US$75,000 on March 30, 2013. The Agreement has been amended to include a cash payment of US$10,000 on April 2, 2013, US$25,000 on July 1, 2013, and US$40,000 on September 30, 2013, plus 180,000 common shares of the Company. All other terms in the original Agreement remain the same - Colombia Crest has the right to earn 75% interest in the 1,985 hectare Venecia Concession. These amended terms still require TSX Exchange approval.
"These newly negotiated terms on the Venecia Agreement are a testament to our commitment to the Arabia porphyry gold discovery as well as the flexibility of our partner, Colombian Mines Corporation in helping to facilitate a discovery," commented Hans Rasmussen, President and CEO. "Our drilling in 2012 on the Arabia Target was mostly on the Venecia Concession, thus it is an important exploration concession in our portfolio. The assay results announced late last year indicate we have discovered gold-mineralized porphyry material in an area that has never been explored, making it an entirely new grass-roots discovery. With the newly negotiated cash-payment terms we have more flexibility to advance the Arabia discovery and build this asset into an economic porphyry discovery."
Following drilling at Arabia, the Colombian-based exploration team has spent the past four months focused on evaluating the drilling results, including the down hole geochemistry, petrography and all the surface geologic, geochemical and geophysical data. The Company believes that based on the drilling results to date only part of the top of a gold mineralized porphyry has been tested and that the porphyry system becomes stronger to the southeast of our holes, with both gold grades and thicknesses increasing in that direction - the mineralization remains open in that direction and should be drilled to determine if economic gold grade-thicknesses exist.
Additionally, the geologic team has been evaluating other targets in the Fredonia land package, including the El Retiro high grade and the Garrucha porphyry targets as described in news releases late 2012 and early 2013. In the eastern sector of the Fredonia project, named El Retiro, a chip channel sample taken in 2010 from a 0.8 metre quartz vein returned values up to 8.25 grams per tonne gold and up to 47.5 grams per tonne silver. Gold mineralization occurs in quartz veins, hosted in Paleozoic meta-sedimentary rocks of the Cajamarca Complex. Subsequent regional stream sediment sampling has returned values up to 0.8 grams per tonne gold, which are high values for stream sediments, thus the sources of these anomalies are currently being explored.
At the Garrucha porphyry target, a second pass of stream-sediment sampling program was completed and results yield anomalous gold up to 98 parts per billion showing a clear anomalous area on the north-east part of the concession 7350-B. Multivariate statistics have been applied to data indicating a probable Cu-Mo-Au porphyry mineralization style. These are coincident with magnetic and resistivity anomalies observed in the newly-acquired ZTEM data flown by Geotech in late 2012. These anomalies are located less than five kilometres south of the La Mina project, currently being explored by Bellhaven Copper and Gold (TSX VENTURE:BHV).
As part of the Fredonia land package, the Company wishes to also announce that concession 7556 has expired - it consists of about 3,257.5 hectares. Therefore, under the Fredonia Agreement with Grupo de Bullet SA, Colombia Crest now retains the rights to explore 15 concessions, which includes 10 Technical Studies and five Contracts, covering approximately 25,731 hectares.
Colombia Crest Gold Corp. has scaled back certain exploration activities and corporate overhead costs to reduce overall burn rates for the Company while still doing basic exploration to advance the Fredonia-Venecia projects. As a result, John Bolaños has resigned as the Company's Vice President of Exploration and will remain a consultant and Qualified Person for Colombia Crest.
About Colombia Crest Gold Corp.
Colombia Crest Gold Corp. is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia. The Company employs a team of seasoned geologists, many with 20+ years of experience exploring and discovering porphyry deposits around the world, including Argentina, Peru, Ecuador, Mexico, Alaska, Indonesia, and Eastern Europe.
The Company is currently carrying on exploration programs at the Fredonia and Venecia projects where it has optioned over 27,700 hectares located approximately 40 km south of the city of Medellín, in Antioquia Province. The properties are positioned within the Middle Cauca Belt, the most prolific gold belt in Colombia with more than 500 years of gold mining history and several new gold discoveries.
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Please visit the Company's website at www.ColombiaCrestGold.com.