VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 5, 2014) - Columbus Gold Corporation (TSX VENTURE:CGT) ("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|
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 the possibility that the current inferred gold resource estimate significantly overstates global ounces and averages a lower grade, and that a new 43-101-compliant technical report will be completed by or around May 30, 2014. 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 without limitation: whether the current inferred gold resource estimate significantly overstates global ounces and averages a lower grade, and whether a new resource estimate will be able to be prepared by May 30, 2014; cost increases; availability of qualified workers and drill equipment; 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; 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: that the comments provided by SRK and MDA are accurate and that a new resource estimate will be able to be provided within the target timeframe. Although Columbus Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Columbus Gold undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.