VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2012) - Douglas Scheving, CFO and Corporate Secretary, is pleased to report that Columbus Energy Limited ("CEL" or the "Company") (TSX VENTURE:CEL) has entered into an agreement with its President, Paul A. Ray, whereby the Company has acquired the right to purchase a 99.9% interest in Minerales Nova S.L. ("Minerales"), which owns the right to 100% in the Calatrava cobalt-manganese mineral deposits ("Calatrava") located approximately 15 kilometers south of Ciudad Real in south-central Spain. Calatrava is comprised of three permit areas, the Katrina, Camila and the Hortensia (the "Permits").
The consideration to be paid for 99.9% of the shares of "Minerales" (Spanish law requires a Spanish National to have 0.1% of the shares) is $230,000 payable in common shares of the Company at a deemed price of
.05 per share and a 2.5% Net Smelter Return. This is the historical cost of acquisition, holding costs, and exploration and development of the project. This is a non-arms length transaction.
The Calatrava deposits are hosted within a flat lying volcano-sedimentary sequence with an average thickness of 2.2 meters, at an average overburden depth of 6.1 meters. Spain's State Mining Research Company (ADARO) conducted extensive work on the Calatrava deposits from 1984 to 1991 and completed over 400 large diameter auger holes, trenching down to depths of 14 meters, as well as detailed metallurgical testing and a resource estimate. The six deposits that comprise Calatrava were reported to contain an estimated 4.4 million tonnes grading 4.4% manganese and 0.13% cobalt.
The resource and method of resource calculation are documented and reviewed in a NI 43-101 report authored by R.S. Verzosa, P. Eng., entitled Independent Technical Report on the Calatrava Cobalt-Manganese Project, Cuidad Real, Spain, for Essex Resource Corporation, dated 24 November 1998. Mr. Verzosa, P. Eng., described the ADARO resource estimate as follows:
"Adaro calculated a resource for each area using the following criteria:
- The area of each mineralized deposit was measured using a planimeter on a 1:2,000 scale map.
- The manganese and cobalt grade for each mineralized deposit was calculated by:
- multiplying the grade by the width for each mineralized interval >1% Mn.
- summing the grade multiplied by width numbers in step 1.
- summing the mineralized intervals (>1% Mn).
- dividing step (2) by step (3) (the weighted average grade and width for intervals >1% Mn).
- multiplying the weighted average grade by the total mineralized (>1% Mn) interval of each hole.
- summing the mineralized intervals of each hole.
- dividing step (5) by step (6) to calculate the average weighted grade for the deposit.
- the average thickness of each deposit was calculated by summing the mineralized intervals from all holes and dividing by the number of mineralized holes.
- the average depth to each mineralized deposit was calculated by summing the depth to mineralization in each hole and dividing by the number of holes.
- the specific gravity of the mineralized zones used was 2.1."
Mr. Verzosa, P. Eng., considered the ADARO resource estimate "readily fit an indicated resource classification under National Instrument No. 43-101."
This historical resource estimate was made in accordance with the standards in effect at the time, but such estimate is not compliant with National Instrument 43-101. It is reported here for reference only, and should not be relied upon.
Additional drilling and metallurgical testing was carried out by Essex Resource Corp. during 1998 but the results of this work are not available. The resource estimate has not been updated since 1991. A NI 43-101 Technical Report is being prepared for the Company by Mr. Andrew Gourlay, P. Geo.
Additional drilling will be required to confirm the mineralization and grades encountered in the historic exploration, and to test for extensions of the mineralized zones. Results from the proposed drilling will be incorporated into an updated and compliant resource estimate when all the results have been received and compiled.
A qualified person has not done sufficient work to classify the historical resource estimate as current mineral resources or mineral reserves. The Company is not treating the historical resource as current mineral resources or mineral reserves.
Previous exploration and technical studies were focused on the known deposits at Calatrava with very limited regional exploration and there is the potential for the resource to be substantially increased within the area covered by the Permits. Minerales will remain the operator of the property and will manage and control exploration work in line with that recommended in the NI 43-101 report.
Previous engineering studies by ADARO report that using a simple washing and de-sliming procedure the 'resource' can be concentrated by a factor of five, producing concentrate with an average grade of 22% manganese and 0.65% cobalt. ADARO's metallurgical test results reported that the concentrate is amenable to SX-EW technology with estimated recovery rates of 85% cobalt and 94% manganese.
The Company continues to hold a right of first refusal on the purchase from S.W.J. of the Jan Kanty Coal Mine in Upper Silesia. (See the Company news release of Sept. 6, 2011 for further details) Negotiations are continuing with a nearby nearly depleted coal mine with regards to accessing the Jan Kanty 510 seam from their existing 510 seam roadways. If successful this would reduce capital costs, be more in accordance with the local communities concerns over environmental issues and allow for more coal to be made available for extraction from Jan Kanty.
A wholly owned subsidiary, Columbus Energy Poland Spz.o.o., has been incorporated to apply for other projects of merit which have been identified in Poland.
Columbus Energy Ltd. currently has 65,206,291 shares issued and outstanding. The Company will be seeking a financing concurrent with the issue.
The closing of the transaction detailed herein remains subject to the acceptance of the TSX Venture Exchange.
Mr. Andrew Gourlay, P. Geo., is the Qualified Person who reviewed and approved the scientific and technical information contained in this news release.
This news release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include market prices, exploitation and exploration results, availability of capital and financing, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, unanticipated environmental impacts on operations and other exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Douglas SchevingColumbus Energy LimitedDirector, CFO, Corporate Secretary604 684 7619604 684 7346 (FAX)