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Colombia Crest Gold Announces Assays From Phase 1 Drill Program, Plans For Phase 2 Drilling

December 19, 2012 VANCOUVER, BC - Colombia Crest Gold Corp. (“Colombia Crest”; the “Company”) (TSX-V: CLB; Pink Sheets: ECRTF; Frankfurt: EAT) announces final assay results including 15.7 grams per tonne gold (g/T Au) over 1.3 metres in hole AR12-15 from the 18 hole, 6,574 metre Phase I drill program on the Arabia Porphyry Complex, and plans for the upcoming exploration program on its Fredonia-Venecia property located in the Middle Cauca Belt, Colombia. As reported on October 17, 2012, the Phase 1 drill program has returned typical porphyry system grades in several sectors, including 182 metres of 0.38 g/t Au in drill hole AR12-4. 

Phase 1 drill holes were widely spaced (100 – 400 metres apart), testing a series of geophysical or geochemical anomalies across the Arabia porphyry complex, with the goal of identifying the best potential areas for further exploration.  The Arabia porphyry complex is situated partially on the Venecia concession under option from Colombian Mines Corp., and partially on the Fredonia concession under option from Grupo de Bullet.  Based on the results from Phase 1, the Phase 2 drill program in 2013 will target expansion of zones with the highest grade gold intercepts (holes 4, 8 and west of hole 15), while drill testing the newly discovered Garrucha target.

“The amount of dispersed gold encountered in the widely spaced Phase I drill program demonstrates there is a strong porphyry gold system at Arabia,” commented Hans Rasmussen, President and CEO.  “When compared to the prior soil and rock chip results, along with prior airborne magnetic data, our technical team now has a clearer picture of how to proceed with the next phase of drilling at Arabia.  In early 2013 the team will compare drill results with the recently completed ZTEM geophysical survey, and prepare to drill test the best areas of Arabia and the newly discovered Garrucha target.”

Plans for 2013 - Phase 2 Drill Program / Property Acquisitions

The upcoming year will build on the foundation that was set during 2011-12.  Specific items include:

  • Analyze current drill results alongside new ZTEM Survey results to attain better understanding of the location of structures in the property. 
  • Further surface sampling at the new Garrucha target where strong surface sampling results from stream sediment sampling have already been identified. 
  • Further surface sampling at the El Retiro target - this is the eastern-most concession of the Fredonia land package where up to 8.25 g/t gold has been discovered in vein-type mineralization in channel chip samples taken from outcrop. 
  • Drilling at Arabia, Garrucha and possibly El Retiro to follow up on significant gold grades from drilling, outcrop, and stream sediment sampling.
  • Secure additional highly prospective, undervalued property in Colombia to increase Company value.

Phase 1 Drill Program – Results Above Minimum Criteria

Drill Hole From (m) To (m) Length (m) Au g/t Cu %
AR12-13 84 92 8 0.12 0.039
  98 160 62 0.22 0.041
  194 208 14 0.22 0.044
AR12-14 112.1 119.2 7.1 0.25 0.008
AR12-15 177 187 10 0.11 0.015
  199 217 18 0.13 0.012
  262.1 268 5.9 0.13 0.006
  412.4 413.7 1.3** 15.7 0.018
AR12-16 232 246 14 0.17 0.050
  252 274 22 0.24 0.062
  284 292 8 0.20 0.026
AR12-18 188 220 32 0.22 0.022

*including

212 218 6 0.34 0.038
  226 234 8 0.144 0.023

Minimum criteria are a 0.10 g/t Au cut-off grade, 6 metre length, and no sub-intervals below cut-off that exceed 4 metres. 
**The exception is the sample of 15.7 g/t Au in drill hole AR12-15
*Intervals noted “ Including” use a 0.3 g/t Au cut-off grade.

For a map of all drill hole locations click here.

Based on geologic logging, petrographic interpretation of selected intervals of core and review of the trace element geochemistry, as well as the consistent gold grades in the results to date, Colombia Crest’s geological team believes that the porphyry gold-copper system extends laterally and to depth.  Three zones stand out as future targets at Arabia:

  • Drill holes AR12-3 and AR12-4 (see October 17, 2012 press release) were first to cut elevated gold grades, greater than 0.5 g/t Au, related to porphyry-style mineralization.   Hole AR12-18, was drilled to test for a northern offset to the same mineralization, and based on the assay results, additional holes are warranted south-southeast of hole AR12-4 to test the continuity of >0.5 g/t Au material.
  • Drill hole AR12-8 (see October 17, 2012 press release) also intersected an interval >0.5 g/t Au which is located near a surface rock chip sample that returned 3.8 g/t Au – both are located near Arabia  Creek – the mineralized zone remains open to the south and east, thus additional drill testing is warranted in this area.
  • The high-grade gold intercept in AR12-15 is believed to be associated with a mineralized fault zone adjacent to mineralized porphyry on the westernmost portion of the drilled area at Arabia. Such high grade structurally controlled mineralization has been shown to have significant strike and depth potential in other nearby deposits such as Continental Gold’s Buritica deposit and in the Marmato district where similar veins are known to have greater than 3 kilometre strike lengths and more than 1,000 metres of vertical development.  The technical team is evaluating where to drill test for near-surface mineralization related to the same fault.  The source of this mineralization may be related to the geochemical-geophysical target, called “Arabia 3” (see May 14, 2012 press release), which is located west of AR12-15.

ZTEM Geophysical Survey

Geotech Ltd. recently completed its data collection over a portion of Colombia Crest’s Fredonia-Venecia project utilizing helicopter-borne ZTEM geophysical technology for the first time in the Middle Cauca Belt.  ZTEM is a proven technique for identifying potential porphyry systems in the Americas with examples from Alaska to Chile. This technology will be an important addition to the magnetics data the team uses to identify extensive depths of conductive and resistive elements associated with gold-copper porphyries. The electromagnetic survey is receptive to sulfide minerals, as well as silicification and clay alteration, all of which are associated with the porphyry and epithermal deposits in the Middle Cauca Belt.  The resulting, interpretive ZTEM resistivity models will enhance Colombia Crest’s understanding of porphyry-controlling structures and alteration at Arabia, Garrucha and other targets that were flown on a portion of the immense Fredonia-Venecia land package.

Sample Preparation and Assays

All drill core samples were sent to the Acme Labs Prep Laboratory in Medellin, Colombia.  The chosen preparation method was code R200-250, which consists of crushing the entire sample to 80% passing 10 mesh (2 millimetres), split 250 grams and pulverize to 85% passing 200 mesh (75 microns).  Once prepared, 200 gram pulps are shipped to the AcmeLabs in Vancouver, Canada for analysis.  Gold was assayed under package G601 which consists of 30 grams fire assay and atomic absorption with detection limits from 0.005 to 10 parts per million and with a gravimetric finish for over limits. A multi element package (1EX) of 41 elements including silver, base metals and pathfinder elements was also analyzed using ICP mass spectroscopy.  The ICP multi-element analysis uses a four-acid total digestion prior to analysis.

The technical information in this news release has been reviewed and approved by John Bolaños, a Qualified Person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Porphyry System Characteristics

Porphyry gold systems host large, bulk tonnage deposits that range from 2 to over 20 million ounces of gold and typically grade from 0.5 to 2 grams per tonne.  Thus, major mining companies seek out porphyry deposits for their large scale and long mine life.  Investments by major mining companies have been announced in the Middle Cauca Belt, demonstrating a growing focus on Colombia as a source for new long-life gold mines.

About Colombia Crest Gold Corp

Colombia Crest is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia. The Company employs a team of seasoned geologists, each 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 30,973 hectares located approximately 40 km south of the city of Medellín, in Antioquia Province.  The properties are positioned within the Middle Cauca Belt, which is the most prolific gold belt in Colombia with more than 500 years of gold-mining history and several new gold discoveries. 

Forward-Looking Statements

This press release contains or refers to forward-looking information, including statements regarding exploration results, potential mineralization, exploration plans and timing of the commencement of drilling, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof, and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

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.

If you would prefer to receive news releases via email please contact Colombia Crest (info@ColombiaCrestGold.com) and specify “Colombia Crest news” in the subject line.

For more information, please contact:

Hans Rasmussen                                                                                            
President and CEO                                                                                         
Office: 604-684-7160                                                                                      
E-mail: hans@colombiacrestgold.com                                                  

Dan Fish
Manager, Corporate Communications
Direct: 1-888-228-4305
E-mail:  dan@colombiacrestgold.com

Please visit the Company’s website at www.ColombiaCrestGold.com.