Name and Location
Montagne d’Or gold project, French Guiana.

Client
Columbus Gold Corporation.

Project Description
Columbus is developing the Montagne d’Or gold deposit at its 100%-owned Paul Isnard project. The deposit hosts an indicated mineral resource of 83-million tonnes at an average grade of 1.455 g/t of gold and an additional inferred mineral resource of 22-million tonnes at an average grade of 1.55 g/t of gold.

A preliminary economic assessment (PEA) on the Montagne d’Or deposit has shown the potential to develop a low capital expenditure gold deposit, with scale and good grade, at below industry average cash costs. The PEA shows that the Montagne d’Or deposit could potentially support an openpit mine with conventional carbon-in-leach (CIL) processing technology, and with a moderate strip ratio of 5:1 waste:ore. While the PEA allows for the inclusion of inferred mineral resources, more than 94% of in-pit resources are in the indicated mineral resource category. The 4.5-million-tonne-a-year processing plant, will include three-stage crushing, ball milling, a gravity gold recovery circuit, nine CIL tanks, and a cyanide detoxification circuit. Gold recovery in the plant is expected to exceed 94%, and processing of lower-grade stockpiles is scheduled for years 12 to 13.

The PEA proposes the use of power from on-site generation at a cost of $0.20/kWh as the base case; however, a connection to the power grid located 125 km away at the Port of Saint-Laurent-du-Maroni would reduce the cost to $0.11/kWh. This option is currently at an advanced stage of study.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $324-million and an internal rate of return of 23%, at a gold price of $1 200/oz.

Value
The project has an initial capital cost of $366-million, including a $44-million dollar contingency.

Duration
Not stated.

Latest Developments
Columbus Gold intends to start the feasibility study in the third quarter of 2015 and targets completion in the fourth quarter of 2016.

The preliminary environmental- and social-impact assessment (ESIA) and terms of references have been completed, and delivery of the final ESIA is expected by the fourth quarter of 2016.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated

Contact Details for Project Information
Columbus Gold Corporation, tel +1 604 634 0970, fax +1 604 634 0971 or email info@columbusgoldcorp.com.