Columbus Gold

Columbus Gold Corporation announced today that drilling has started on the Company’s Summit Project where joint venture partner Agnico-Eagle Mines Limited ([stock AEM]) is earning an initial 51% interest by undertaking staged annual exploration expenditures and making annual cash payments to Columbus Gold.

The current program will consist of approximately 4,000 feet (1,220 meters) of reverse circulation drilling in 2 holes. The holes will test for the northeast strike extension of the Long Canyon deposit being developed by AuEx Ventures, Inc. and Fronteer Development Group Inc. See the project area map.

As reported by AuEx Ventures, the Long Canyon gold deposit consists of multiple, sub-parallel north to northeast-directed zones of oxidized Carlin-style gold mineralization, amenable to open pit mining, aggregating 1,300 ft (400 m) in width with a current strike length of approximately 1.60 miles (2.6 km) that is still open to extension. Mineralization outcrops in the central portion of the deposit and plunges shallowly to the northeast towards Columbus Gold’s Summit Property. Drilling at Long Canyon is now estimated by Columbus to extend to within 3,280 ft (1,000 m) outside of Columbus Gold’s Summit Property boundary.

In March 2009, AuEx Ventures reported an indicated resource of 363,000 ounces gold from 4,808,000 tonnes averaging 2.35 g/t and an inferred resource of 459,000 ounces gold from 8,780,000 tonnes averaging 1.63 g/t, and reported the completion of a positive initial Preliminary Economic Assessment. The reported resource and assessment didn’t include the results from more than 200 holes that were drilled in 2009. AuEx has reported that about $20 million in expenditures is planned at Long Canyon in 2010.

Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical content of this news release. Mr. Wallace is a VP of Columbus Gold’s U.S. subsidiary and the principal of Cordilleran Exploration Company (“Cordex”), which is conducting exploration and project generation activities for Columbus Gold.

According to statements released by Kinross, the Company intends to use the net proceeds of the offering to enhance its capital position following the funding of recent acquisitions and for general corporate purposes.

District Judge Larry Hicks’ ruling followed four days of testimony and oral argument after two activist groups and two Native American tribes, one in California and one in Nevada, sought to stop the project.

“This is very good news for rural Nevada and for everyone who has supported us in this dispute,” said Greg Lang, President of Barrick Gold of North America. “We respect anyone’s right to oppose our activities but, in this case, the judge’s ruling makes it clear that we can continue with the project’s construction.”

Cortez Hills is an expansion of Barrick’s Cortez Mine, which has produced gold continuously since the late 1960s. Altogether, the existing Pipeline surface mine and the Cortez Hills Project support about 800 families in Elko, Eureka and Lander counties, including many Western Shoshone. The company expects to add another 100 employees at the site in 2009.

Barrick’s plans for the development of Cortez Hills came after several years of work and careful study. The Bureau of Land Management issued a Record of Decision approving the project in early November. A Colorado-based attorney for the Western Shoshone Defense Project, Great Basin Resource Watch, the Timbisha Tribe in California and the Te-Moak Western Shoshone Tribe filed with the court to stop the implementation of the Bureau’s decision.

The Cortez Hills Project includes both surface and underground mining operations in an area where dozens of smaller mines have produced a variety of metals since the 1870s. This new expansion is expected to increase gold production at Cortez to an average of 1 million ounces annually in the first full five years.

Cortez is the largest mining operation in Lander County and has provided essential tax revenue and jobs to several rural communities since the late 1960s according to statements made by Barrick Gold.

“As we watch the continuing economic turmoil in urban Nevada and elsewhere, we are fortunate to be able to provide hundreds of good jobs and the many other benefits this project brings to rural Nevada,” Barrick’s President Lang said. “In particular, we look forward to continuing to work with the Western Shoshone communities to ensure that the project is beneficial to their interests.”

Newmont will own 100% of the Boddington project, which is the largest gold project in Australia, and Newmont’s proven and probable gold reserves at Boddington will increase by 6.6 million ounces to 20.1 million ounces.

Newmont will pay $750 million cash at closing, $240 million payable in cash and/or Newmont common stock, at Newmont’s option, in December 2009, and a royalty capped at $100 million, equal to 50% of the average realized operating margin (if any) exceeding $600 per ounce, payable on one-third of gold sales from Boddington.

The deal is expected to close in March 2009, subject to certain conditions, including approvals from the Australian Foreign Investment Review Board, Western Australia Ministry of Mines and South African Reserve Bank.

The valuation date for the transaction is January 1, 2009, and closing adjustments will be made to reflect Newmont’s economic ownership position from that date, which will require Newmont to reimburse AngloGold for all contributions made to the Boddington joint venture after that date. With the acquisition, Newmont expects to incur an additional approximately $250 million of capital expenditures in 2009.

Newmont has received a commitment for a $1.0 billion, 364-day bridge facility to support the transaction and for additional capital expenditures that result from its increased ownership in the Boddington project. The bridge facility is subject to customary closing conditions.

Boddington is a large, open pit mine in Western Australia, located 130 kilometers southeast of Perth. At the end of 2008, the Boddington project was 89% complete, with start-up expected in mid-2009. Newmont continues to expect total capital costs to be between $2.6 and $2.9 billion.

Boddington will be Australia’s largest gold producer upon completion, with expected average annual gold production of approximately one million ounces at costs applicable to sales of approximately $300 per ounce for the first five years of operation, and an expected mine life in excess of 20 years. Newmont believes Boddington has significant exploration potential, as demonstrated in 2008, with the reserves increasing from 16.6 in 2007 to 20.1 million ounces in 2008.

Richard O’Brien, President and Chief Executive Officer of Newmont said, “We are very pleased to consolidate our interest in Boddington, a world-class asset that we obviously know well. We expect Boddington will have low operating costs, a mine life in excess of 20 years and significant exploration potential in a favorable geo-political jurisdiction.”

The 2009 expectations assume ownership of 100% of the Boddington project, reflecting the expected completion of the acquisition of the remaining interest from AngloGold Ashanti Ltd., announced earlier today

Consolidated capital expenditures for 2008 were approximately $1.9 billion, consistent with original expectations for the year. With completion of the power plant in Nevada and the gold mill in Peru in 2008, and completion of the Boddington project expected in mid-2009, consolidated capital expenditures are expected to decline to between $1.4 and $1.6 billion ($1.3 to $1.5 billion on an equity basis).

Richard O’Brien, President and Chief Executive Officer, said, “We are pleased with the results of our initiatives to improve operating results, resulting in gold sales and costs applicable to sales performance consistent with our original expectations for the year. We achieved our goal of delivering on our plans for this year.”

“For 2009, we expect equity gold sales to increase to between 5.2 and 5.5 million ounces at costs applicable to sales of between $400 and $440 per ounce, assuming the completion of the Boddington acquisition,” noted O’Brien.

The recent financial market volatility pulled the value of certain investments down during the fourth quarter of 2008, resulting in a pre-tax charge of approximately $159 million for non-cash write-downs of marketable securities and property, plant and mine development. As of December, the Company’s Canadian Oil Sands Trust investment was valued at $534 million.

The Company reported year-end 2008 proven and probable gold reserves of 85.0 million equity ounces, compared with 86.5 million equity ounces at the end of 2007. Year-end 2008 reserves would have been 91.6 million equity ounces, an increase of approximately 6% over year-end 2007, if the expected acquisition of the Boddington project had occurred at the end of 2008.

Newmont added 6.3 million equity ounces of gold reserves due to margin changes and additional drilling, offset by revisions of 1.1 million equity ounces. The assumed gold price for the C$575 per ounce in 2007.

John March, chief technical analyst for the Superior Gold Group, says gold will double in 2009 as Fed Chairman Ben Bernanke keeps printing money.

Among the largest drops came from South Africa, previously the world’s largest producer, which fell by 14% as well as Australia whose output fell by 14%.

China, Russia, and Peru, each in the world’s largest producers, increased gold output last year.

“Oupa Komane, the deputy general secretary of South Africa’s biggest union, the National Union of Mineworkers (NUM), said the union had resisted the move,” reported the Mining Journal.

According to statements made by the company “Paul is a chartered accountant with eighteen years of industry experience. He spent six years with Deloitte auditing mainly clients in the gold mining industry. He joined Gengold, part of the Gencor group, in 1996 as an assistant financial manager at the St Helena Gold Mine where he worked for three years, gaining valuable operational experience.

Schmidt was promoted to the Gold Fields corporate office as financial manager in 1999, and to the position of group financial controller in April 2003.

Nick Holland, Gold Fields’ chief executive officer, explains, “Over the past eight months Paul has acted with distinction in the role of chief financial officer. His twelve years of experience in senior operational and executive positions, and his deep knowledge of the Group, equips him well for his new role. As group financial controller he gained extensive international experience and was involved in all corporate financial activities of the Group. His appointment follows an extensive local and international search.”

At 1,190 tons, ETF gold holdings are now higher than central bank holdings in Switzerland, the fifth last official gold holder in the world. Investors bought ETFs representing 96 tons of gold in the fourth quarter, following the purchase of an unprecedented 145 tons in the previous quarter, the WGC said.