Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Columbus Gold Corporation announced on Friday the acquisition of three new projects in the Greater Mahogany Hills, bringing its total gold property portfolio in Nevada to 26, covering approximately 37,000 acres. Columbus Gold plans to complete mapping and further sampling with plans to drill target areas in late 2011 and 2012.
When Columbus Gold acquired Stevens Basin (where drilling by joint-venture partner Navaho Gold is ongoing), it was recognized that the greater Mahogany Hills area, west and southwest of Eureka, Nevada, presented a favorable geologic setting for Carlin-type gold deposits. Columbus Gold embarked on a one year sampling program, which led to the recent acquisition of Browns Canyon (see press release dated November 23, 2010) and subsequently these three new acquisitions; Combs Peak, Antelope, and North Brown. Initial sampling at all three projects yielded significant gold assays, with Carlin-type trace element signatures, and all are located ingeologic settings amenable to Carlin-type deposits.
Combs Peak
The Combs Peak Project, ten miles south-southwest of Eureka, Nevada, covers an area of altered Devonian and Mississippian sedimentary rocks, where gold values ranging from nil to 0.4 g/t have been found in the initial sampling of float chips near outcrops of silicified limestone breccia with abundant barite veining. The areas of anomalous float, with no outcrop, are interpreted to lie over Mississippian siltstones, known to be a favorable host rock from Central Nevada gold mines such as Alligator Ridge and Rain. Detailed geologic mapping and grid sampling are planned in the coming months. If the results continue to be positive, drilling would likely take place in 2012.
North Brown
The North Brown Project, twelve miles southwest of Eureka, Nevada, has yielded a number of good grade gold assays (ranging from 2 to 6 g/t Au) in the initial sampling of altered sedimentary rock float. The nearest outcrops are Devonian limestone and Mississippian siltstones with local zones of silicification. Geologic mapping and grid sampling are planned. Drilling is planned following completion of the field program, likely coinciding with drilling at the Browns Canyon Prospect, in the fall of 2011.
Antelope
The Antelope Project, fifteen miles southwest of Eureka, Nevada, yielded values in initial reconnaissance sampling ranging from anomalous to 1.0 g/t Au from outcrops of altered Paleozoic sedimentary rocks. Detailed geologic mapping is in progress and grid sampling is planned for the summer months. The results will be evaluated and, if warranted, a drill program will be planned for 2012.
All the mining claims staked on these projects are 100% owned by Columbus Gold, subject to royalties.
About Columbus Gold
Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific project generator focused on advancing projects either through joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. President Andy Wallace has a long and successful history of gold discovery and mine development in Nevada. Columbus Gold currently has 12 of its 26 Nevada gold projects joint ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.
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.
For the full press release click here.
