Colombia Crest Gold Announces Exploration and Drilling Update
April 17, 2012 VANCOUVER, BC - Colombia Crest Gold Corp. (“Colombia Crest”; the “Company”) (TSX-V: CLB; Pink Sheets: ECRTF; Frankfurt: EAT) is pleased to provide an update on its Fredonia and Venecia properties in Colombia, South America. Exploration field work continues across the extensive 34,000 hectare land package in search of additional porphyry gold targets to evaluate for drilling. Drilling is underway on the two anomalous gold zones identified as the Arabia 1 and 2 porphyry gold targets.
"We are very excited to be drilling our highest priority targets on the property. Based on my technical background and prior discovery experiences with Kennecott/Rio Tinto in North and South America, both the Arabia porphyry gold targets have the characteristics that indicate potential for multiple large porphyry gold-copper systems," explained Hans Rasmussen, President and CEO of Colombia Crest. “The technical team and I have been involved with several porphyry related gold discoveries and know the geologic, geochemical and geophysical footprint of economic discoveries, characteristics of which the Arabia targets clearly display." (Click to watch Hans Rasmussen's most recent update)
Ongoing Exploration Program
Over the remainder of the "Arabia Porphyry Complex" the Company has recently completed the geochemistry sampling program, which covers a large area surrounding the targets Arabia 1 and Arabia 2 (further described below). The Program was initiated to explore additional concealed mineralized porphyry gold-copper systems existing in the area - potential for a "nest" of mineralized porphyry gold systems. Soil geochemical studies are the most effective first-pass ground tool for this type of system. About 650 soil samples were collected on a grid spaced 100 metres by 100 metres apart, covering approximately 6.5 square kilometres - assays are pending on these samples.
The airborne geophysical survey, announced on March 21, 2011, covering about 40 square kilometres around Arabia is delayed due to weather conditions. A survey outline is approved with a new launch date for mid-May when weather conditions are expected to improve.
Reconnaissance field work continues on the 34,000 hectares (81,600+ acres) of mineral title covering both the Fredonia and Venecia concessions, searching for additional porphyry targets. As described in a news release dated June 1, 2011, over 20 target areas were defined and prioritized through the detailed integration of airborne magnetic and radiometric data, combined with stream sediment sample geochemical data, the interpretation of geologic maps and fault lineament analysis from satellite imagery. While highest priority was given to the Arabia area, additional priority targets remain within the extensive land package.
High Priority Drill Targets
- Arabia 1 and 2 were identified based on geophysics, alteration mapping, soil and rock chip assay geochemistry (announced December 6, 2011);
- Both targets have anomalous responses relative to background in both airborne magnetic and radiometric data including potassium values;
Arabia 1 covers 400 by 800 metres on surface:
- The Company identified outcropping altered intrusive rock characteristic of a mineralized porphyry gold system,
- Potassic-altered rock chip samples returned up to 3.8 grams per tonne gold, with anomalous copper and molybdenum values,
- Soil assay results returned up to 0.4 grams per tonne gold also with anomalous copper and molybdenum.
Arabia 2 covers 300 by 400 metres on surface:
- Based on the smaller size and weaker alteration, suggests just the upper level of a porphyry gold system is exposed,
- Soil sample results returned up to 0.2 grams per tonne gold mineralization with coincident molybdenum and copper anomalies.
- The Arabia targets are located just 10 kilometres west of Bellhaven’s (TSX-V: BHV) La Mina porphyry gold-copper resource and 15 kilometres south of Sunward Resources' (TSX-V: SWD) Cerro Vetas porphyry gold-copper resource.
Initial Drill Program
- The company is using Canadian Drill Corporation to perform 5,000 metres of diamond drilling in Phase 1 on the two Arabia targets;
- Initially, hole depths will extend 200-500 metres using man portable drill rigs capable of drilling 500 metres and eliminate the need mechanized road construction;
- 11 drill pads are under construction on-site using local labour;
- The technical team has defined each drill hole location and angle;
- On-site geologists will examine core as it comes up from the drill and visually identify mineralization and modify the drill program to maximize meterage in mineralized zones leading to a successful drill campaign.
Porphyry System Characteristics
Porphyry-style gold systems host very 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 style deposits for their economic scale and mine life - as evidenced by the private placement by IAMGOLD Corp late last year taking a 14% ownership of Colombia Crest based on the outcropping potassic alteration and discovery potential of the Company’s immense land package in the prolific Middle Cauca Belt. Investments by other 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.
Application for Warrant Extension
On May 10, 2010, the Company distributed 4,538,956 units at the price of $0.50 per unit by way of non-brokered private placement. Each unit was comprised of one common share and one warrant exercisable to purchase one additional common share for $0.75 for a period of two years. The Company now intends to apply to the Exchange for permission to extend the exercise term of the warrants to May 10, 2013. The Company will not be seeking a reduction of the exercise price of any warrants. The proposed amendment to the warrant terms is subject to acceptance by the TSX Venture Exchange.
About Colombia Crest Gold Corp.
Colombia Crest Gold Corp. is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia as well as realizing the potential of its 100 percent-owned San Simón project in Bolivia. The Company employs a team of seasoned geologists, each with 20+ years of experience exploring and discovering this type of porphyry deposit around the world, including Argentina, Peru, Ecuador, Mexico, Alaska, Indonesia, and Eastern Europe.
Along with a strong working capital position, the Company will accelerate the exploration programs at the Fredonia and Venecia projects where it has optioned over 34,000 hectares (81,600+ acres) located in the Cauca River Valley. Situated 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.
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 prefer to receive news releases via email please contact info@ColombiaCrestGold.com.
For more information, please contact:
Hans Rasmussen, President and CEO
Colombia Crest Gold Corp.
Progressive Investor Relations
Please visit the Company’s website at www.ColombiaCrestGold.com.