Colombia Goldfields Provides Q2 2008 Exploration and Corporate Updates



    (All amounts are reported in U.S. dollars unless otherwise indicated)

    TORONTO, Aug. 11 /CNW/ - Colombia Goldfields Ltd. (the "Company") (TSX:
GOL/OTCBB: CGDF) today updated the status of its drilling program on Zona Alta
(Upper Zone) at Marmato Mountain in Colombia, progress in its corporate growth
strategy, and announced unaudited financial results for the second quarter
ending June 30, 2008.
    "We have advanced our drilling program on Zona Alta, having completed
32,000 meters or more than half of our planned drilling, by the end of the
second quarter," said J. Randy Martin, Vice Chairman and CEO, Colombia
Goldfields, Ltd. "We are on track to complete the program by the fourth
quarter of 2008, and we intend to release updates on the 43-101 compliant
resource figure for Zona Alta as we receive assay results. We expect to
publish a resource update later this month."
    Colombia Goldfields used results from the first 68 drill holes (12,186
meters) and 1,171 meters of underground channel sampling to provide a 43-101
compliant inferred resource of 2.6 million ounces (cut-off grade of 0.3 g/t
Au) for Zona Alta in May 2008. This inferred resource is supported by an
Independent technical report prepared by Micon International Limited titled
"Updated NI 43-101 Technical Report and Preliminary Resource Estimate for the
Marmato Project, Department of Caldas, Republic of Colombia" dated May 30,
2008, which has been filed and is available on SEDAR.
    During the quarter the Company announced results of independent testing
of the metallurgical properties, including recovery rates of up to 92%
depending upon the chosen flowsheet. The findings are consistent with the mill
at Zona Baja, where recoveries of more than 88% are being achieved using
conventional technology of gravity separation followed by flotation, then
leaching of the flotation concentrates.

    Zona Baja Proposed Acquisition

    On January 29, 2008, Colombia Goldfields Ltd. entered into a purchase and
sale agreement to acquire 100% of the issued and outstanding shares of Mineros
Nacionales S.A. ("Mineros") for $35 million. Mineros owns the Zona Baja (Lower
Zone) on Marmato Mountain. The Zona Baja currently has a working underground
operation with a mill that, based on information provided to the Company,
currently produces approximately 25,000 ounces of gold per year. The Company
previously provided a deposit and deposit guarantee totaling US $9.5 million
against the purchase price.

    Unaudited results for the Second Quarter ended June 30, 2008

    The Company incurred a loss for the quarter ending June 30, 2008 of
$3.8 million or $(0.04) per share, compared to a loss of $3.2 million or
$(0.05) per share for the same period in 2007. The loss was driven by mineral
property exploration costs of $4.3 million and general and administrative
expenses of $1.6 million. These expenses were offset with a foreign exchange
gain of approximately $0.9 million due to fluctuations in the exchange rate
between the U.S. dollar and the Colombian peso.
    Total assets at June 30, 2008 were $78.1 million, including mineral and
exploration properties and rights of $65.9 million and cash and cash
equivalents of $0.3 million, compared with total assets of $74.5 million at
December 31, 2007. As of June 30, 2008, Stockholders' Equity was
$56.5 million, compared to $51.1 million at December 31, 2007.

    Private Placements

    On June 18 2008, the Company announced that it had closed a private
placement of 11,167,000 special warrants at a price of US$0.85 per Special
Warrant, providing the Company with gross proceeds of approximately US
$9.5 million. Each Special Warrant will be automatically exercised for no
additional consideration to acquire one unit (the "Units"), subject to
adjustment in certain events, at 5:00 pm (Toronto time) on the earlier of 
(a) the third business day after the date that a receipt is issued by the
Ontario Securities Commission for the final prospectus qualifying the
distribution of the Units to be issued upon the exercise of the Special
Warrants, and (b) October 19, 2008. Each Unit will consist of one common share
of the Company (the "Common Shares") and one Common Share purchase warrant of
the Company (the "Warrants"). Each Warrant will entitle the holder thereof to
acquire one Common Share at a price of US$1.50 at any time until 4:00 p.m.
(Toronto time) on June 18, 2013.
    The Company is currently marketing a private offering of up to 30,000
debt units for expected gross proceeds of up to $30 million to fund the
balance of the purchase price for the Company's planned acquisition of
Mineros.

    Qualified Person

    Dr Stewart D. Redwood, Vice President of Exploration of the Company, is
the qualified person as defined by NI 43-101 and has prepared or supervised
the preparation of all scientific and technical information contained in this
press release. He is a Fellow of the Institute of Materials, Minerals and
Mining (FIMMM) of the UK, a foreign professional association and designation
recognized by the Canadian regulatory authorities. The laboratories used were
Inspectorate (ISO 9001:2000 and 9002:2004 certified) in Medellin, Colombia
(sample preparation), Reno, Nevada (preparation and analysis), and Lima, Peru
(analysis), and SGS in Medellin (preparation) and Lima (analysis). Gold was
assayed by fire assay with gravimetric finish or AAS finish. Silver was
assayed by fire assay with AAS finish or analyzed by ICP together with a suite
of multi-elements. Blank, standard and duplicate samples are routinely
inserted for quality assurance and quality control.

    About Colombia Goldfields
    -------------------------
    Colombia Goldfields Ltd., through our subsidiaries Compania Minera de
Caldas S.A. and Gavilan Minerals S.A., is developing what we believe is a
multi-million ounce gold resource in Colombia's historic Marmato Mountain gold
district.
    Colombia Goldfields is traded in the US under the symbol CGDF, on the
Toronto Stock Exchange under the symbol GOL, and in Germany under the symbol
C2B. Further information about the Company's is available at
www.colombiagoldfields.com, EDGAR at www.sec.gov and SEDAR at www.sedar.com
under the Company's profile.

    Disclaimer

    This release uses the terms "measured", "indicated" and/or "inferred"
mineral resources. United States investors are advised that while such terms
are recognized by Canadian regulations, the United States Securities and
Exchange Commission does not recognize them. United States investors are
cautioned not to assume that all or any part of mineral resources will ever be
converted into mineral reserves. Inferred mineral resources have a great
amount of uncertainty as to their existence, and as to their economic and
legal feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the basis of
feasibility or other economic studies. United States investors are cautioned
not to assume that all or any part of an inferred mineral resource exists, or
is economically or legally mineable.
    This release contains forward-looking statements that are based on the
beliefs of the Company's management and reflect the Company's current
expectations as contemplated under section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities and Exchange Act of 1934, as
amended. When used in this release, the words "estimate, "project," "believe,"
"anticipate," "intend," "expect," "plan," "predict," "may," "should," "will,"
"can," the negative of these words, or such other variations thereon, or
comparable terminology, are all intended to identify forward-looking
statements. Such statements reflect the current views of Colombia Goldfields
with respect to future events based on currently available information and are
subject to numerous assumptions, risks and uncertainties, including, but not
limited to, risks and uncertainties pertaining to development of mining
properties, changes in economic conditions and other risks, uncertainties and
factors, which may cause the actual results, performance, or achievement
expressed or implied by such forward-looking statements to differ materially
from the forward looking statements.





For further information:

For further information: Randy Martin, Vice Chairman and CEO, Colombia
Goldfields Ltd., 8 King Street East, Suite 208, Toronto, Ontario, M5C 1B5, T:
(416) 361-9640, F: (416) 361-0883, info@colombiagoldfields.com,
www.colombiagoldfields.com; U.S. Investor Relations: Michelle Roth, Roth
Investor Relations, Inc., Tel. (732) 792-2200, Email: michelleroth@rothir.com;
Canadian Investor Relations: Martti Kangas, V.P. Corporate Development,
Colombia Goldfields, Ltd., Tel: (416) 361-9640, martti@colombiagoldfields.com

Organization Profile

COLOMBIA GOLDFIELDS

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