Colombia Crest Gold Discovers Additional Anomalous Gold Zones At The Arabia Area, Colombia
May 14, 2011 VANCOUVER, BC - Colombia Crest Gold Corp. (“Colombia Crest”; the “Company”) (TSX-V: CLB; Pink Sheets: ECRTF; Frankfurt: EAT) is pleased to announce two additional areas of anomalous gold were defined by the latest soil sample results, bringing the total to four large porphyry targets at the Arabia Porphyry Gold-Copper Complex, Antioquia Province, Colombia. Assay results from all 588 soil samples have been received, covering an additional 5.3 square kilometres around the soil grid announced December 6, 2011. By comparison, in-house airborne magnetic data over the same area also verifies coincidence of the four anomalous soil zones to magnetic highs, thus validating that porphyry targets exist.
“The new soil results indicate that we have discovered a total of four large porphyry gold-copper targets at Arabia based on surface soil, rock chips and airborne geophysical data," commented Hans Rasmussen, President and CEO. "I am not just excited about the number of mineralized zones, but more about the size of the anomalies and their exact coincidence to magnetic features - all suggesting that Arabia is a porphyry gold-copper complex. These four soil anomalies are weathered mineralization close to surface. As is typical in a porphyry complex, most likely, there are other mineralized targets just beneath the surface, as our neighboring explorers are finding in their exploratory drilling. With our own drilling program underway at Arabia 1, we are systematically testing each of these large porphyry targets for gold grade and advancing our geologic knowledge."
A total of 588 soil samples were collected on a 100 by 100 metre grid covering 5.28 square kilometres around the prior Arabia soil grid to the north, west and south. Soil samples from the recently expanded grid returned up to 148 ppb gold; because of the hilly terrain and overgrowth soil sampling is the best first-pass exploration tool. Consistent with other porphyry gold discoveries in the Andes Mountains of South America, the new soil results show that gold is strongly correlated to copper, molybdenum and tellurium. All the samples were collected from residual soil that is thought to represent decayed and eroded bedrock.
Soil sample results from the first area announced on December 7, 2011 had gold assays that varied from below detection up to 405 ppb, or 0.4 grams per tonne gold. In one area, referred to as Arabia 1 - the area currently being drilled, the anomalous soil assays coincided with rock chip samples of potassic-altered porphyry outcrop that varied from below detection up to 3.8 parts per million gold. Anomalous gold values are those greater than 40 parts per billion ("ppb").
The Arabia area is located just 10 kilometres west of Bellhaven Copper and Gold’s (TSX-V: BHV) La Mina project and 15 kilometres south of Sunward Resources' (TSX-V: SWD) Titiribi project. The Arabia Porphyry targets lie partially on a concession that is held under the Venecia Agreement with Colombian Mines Corporation (TSX-V: CMJ, see news release dated April 5, 2011) and partially on one of the 16 concessions held under the Fredonia Agreement with Grupo de Bullet (see news release dated August 25, 2011).
The soil samples were sent to the ACME Prep Laboratory in Colombia who forwarded sample pulps to the ACME Lab in Vancouver, Canada for analysis. The chosen preparation method was Preparation Code SS80 Dry at -60oC, which consists of up to 500 gram sample sieved through 80 mesh screen so that up to 100 gram sample remains. The 100 gram sample then uses the SP100 Preparation; the soils are pulverized to -100 mesh in a mild-steel pulverizer. A multi element package of 41 elements (IF02 Analysis) including silver, base metals and pathfinder elements were analyzed using ICP mass spectrometry. The ICP multi-element analysis uses an aqua regia digestion prior to analysis.
As described in a news release dated June 1, 2011, the Arabia area was discovered as part of the Company's ongoing porphyry gold exploration program, which is focused on the prolific Middle Cauca Belt, Colombia. A total of 20 prospective target areas were identified by Colombia Crest in the Fredonia and Venecia projects. These target areas were defined through the detailed integrating of the airborne magnetic and radiometric data, along with stream sediment sampling data and the interpretation of geologic maps and fault intersections analysis from satellite maps. Each of the targets was prioritized for field follow up. Highest priority was given to targets with the best results from each of the data groups mentioned above, including mineral title and surface ownership as a prioritizing criteria. Arabia was one of the first targets visited. Field work continues on the 34,000 hectares (81,600+ acres) of mineral title.
The technical information in this news release has been reviewed and approved by Peter Ellsworth, a technical consultant who is a Qualified Person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Subject to acceptance by the TSX Venture Exchange, the Company has granted to a member of the technical management team and certain other consultants, incentive options for the purchase of up to 450,000 common shares of the Company. These options have an exercise price of $0.35 per share and expire May 14, 2015. Shares issued to these optionees on the exercise of such options will not be subject to any hold period.
Any shares issued to directors and officers pursuant to the exercise of options granted to them will be subject to a four month hold period commencing on the date of the grant. Shares issued to other optionees on the exercise of such options will not be subject to any hold period.
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.
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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.