Colombian Mines Acquires High Grade Nevada Gold Project

VANCOUVER, BRITISH COLUMBIA, July 19, 2016 Colombian Mines Corporation (TSXV:CMJ) is pleased to announce the Company has entered into a Purchase Option Agreement (Agreement) with a private party (the “Seller” or “Owner”) for the high grade Pamlico gold project in Mineral County, Nevada for $4 million USD, under terms described near the end of this news release.
Visible gold dominates the high grade mineralization which occurs in thoroughly oxidized and brecciated quartz veins. Numerous historic drill holes, including those in the table below, contain high grade gold intercepts. A more complete listing of historic drill intercepts, project maps and photos is available on the Company’s website at www.colombianmines.com.
Select Historic High Grade Pamlico Drill Intercepts

Note: Intercepts are average of all samples in drilled intercept length with no grade capping applied. All intercepts are drilled length. True widths are unknown.
103 drill holes totaling 27,838 feet (8487 meters) have been completed on the property between 1993 and 2010, by three previous operators. Seventy-four of these holes were reverse circulation, while 29 holes were drilled as open hole rotary.
Recent work, completed between 2010 and 2013 by the Seller, includes completion of 29 rotary drill holes in the “Main Zone”, a 615 foot (188 meter) long, nominal 10 X 12 foot (3 X 4 meter) decline, haul road, initial permitting, and all necessary surface and underground infrastructure including shops and office buildings. The decline, completed in 2013, was advanced to within 25 feet of high grade drill indicated mineralization. Two previously unknown gold zones were discovered while driving the decline. Both contain coarse visible gold in brecciated vein material with abundant iron oxides and will be independently sampled as a top priority of the Company going forward. Photos of the mineralization in these zones, including the coarse gold samples, may be seen on the Company’s website.
Mineralized material recovered while driving the decline has undergone limited, initial gravity test work by the Seller.  These results suggest significant recoveries may be readily achieved with conventional gravity methods. Third party determination of actual recovery rates remains to be completed by the Company, but the initial results suggest significant recoveries may be achieved through a low cost gravity concentration. The drilling to date, simple metallurgy, and access via the new decline, sets the stage for the Company’s near term bulk sampling and processing of mineralized material from one or more high grade zones. Colombian Mines will then focus on evaluating the potential for achieving commercial production from known high grade mineralization and will conduct such economic and other studies as necessary in the opinion of management, while pursuing exploration of additional targets as better knowledge of the geology and mineralizing controls are developed.
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