VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2012) - Colombia Crest Gold Corp. ("Colombia Crest"; the "Company") (TSX VENTURE:CLB)(PINKSHEETS:ECRTF)(FRANKFURT:EAT) is pleased to provide an update for the ongoing exploration program in Colombia, including the 2012 drill program and advancements made in 2011.
2012 Drill Program
With two large areas identified at the Arabia porphyry gold targets 1 and 2, based on outcrop alteration mapping, soil and rock chip assay information (announced December 6, 2011 - click here for a map of Arabia targets: http://colombiacrestgold.com/properties/colombia/geology2/#colombiacrestgold.com/properties/geolog), drill permitting is being approved to test both zones, with drilling expected to begin by the end of Q1 2012.
The Company has agreed to use Energold Drilling to perform initial 5,000 metres of diamond drilling on the two anomalous gold zones at the Arabia porphyry targets. Initially, holes will extend 200-500 metres. Energold Drilling will utilize man portable drill rigs which eliminates the need for roads to be constructed.
"The noteworthy events that occurred over the past year have changed the Company in a very positive way - namely the technical success at Arabia which began as a pure grass roots exploration play," commented Hans Rasmussen, President and CEO. "With a strong focus on discovering a porphyry gold system in the Middle Cauca Belt in Colombia, things are moving forward at a very encouraging rate. While we are drilling at Arabia, our team will continue to explore the 34,000 hectare land package within the Fredonia and Venecia agreements, and review new acquisitions in the belt."
2011 in Review
The Company's ongoing porphyry gold program, focused on the prolific Middle Cauca Belt, has uncovered over 20 prospective target areas at the Fredonia and Venecia projects. These target areas were initially defined in April 2011 through the detailed integration 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. New targets continue to emerge as the Company gains a better understanding of the geology of the immense land package.
By late 2011, Colombia Crest field crews had detected, mapped and sampled two large porphyry gold anomalies in the Venecia and Fredonia projects; the area was named Arabia. Rock chip results had returned up to 3.8 grams per tonne gold, with anomalous copper and molybdenum values. Assay results were received from 1,132 soil samples and showed two distinctly anomalous gold zones (defined as areas greater than 40 parts per billion "ppb"). The first anomalous area, now named Arabia 1, covers almost 400 by 800 metres, while the second area, named Arabia 2 and located about one kilometre to the southwest, covers about 300 by 400 metres. (Please click the link to view President and CEO, Hans Rasmussen, explain the significance of the anomalous soil sample results and the size potential of the Arabia porphyry targets: http://www.youtube.com/user/ColombiaCrest).
Also in late 2011, two more porphyry gold targets were identified in the Titiribi area, about 5 kilometres southeast of the Cerro Vetas porphyry gold resource recently announced by Sunward Resources Ltd. Both new targets will be explored in 2012 with soil crews beginning to sample and map the 44 hectare (108+ acres) concession. The concession is one of 16 that are part of the earn-in agreement between Colombia Crest and Grupo de Bullet, named Fredonia. Magnetic anomalies and overlapping gold-copper-molybdenum in soils announced on the adjacent Sunward concessions indicates potential for two porphyry gold targets on Colombia Crest's concession.
Earlier in October, the Company toured mid-tier producer IAMGOLD Corporation ("IAMGOLD") at its Colombian properties. Subsequent to the visit, IAMGOLD made a private placement also guaranteeing them the right to maintain a 19.9% ownership of Colombia Crest outstanding shares. The initial unit placement was 14.5% of the Company - warrants outstanding, priced at CAD$0.35/share, when exercised will achieve the 19.9% ownership. Soil results from Arabia followed the placement. As part of the agreement, Colombia Crest has formed a technical advisory team that includes representatives from both IAMGOLD and Colombia Crest. Building on Colombia Crest's community relations and social responsibility programs, IAMGOLD has added support to this important program.
In early 2011, Colombia Crest Gold Corp. changed its name emphasizing the new corporate focus on exploration in Colombia's prolific Middle Cauca Belt. With two earn-in agreements signed in 2010, the Company closed a second tranche of equity financing in February 2011 - both tranches totaled $6.4M. This capital enabled the Company to begin its grass roots exploration program on the Fredonia and Venecia projects, near Medellin, Colombia.
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, 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
(Click here for Hans Rasmussen's most recent update: http://www.colombiacrestgold.com/_resources/videos/CLB_1080p.html#clombiacrestgold.com/_resources/videos/).
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