TORONTO, July 31 /CNW/ - Colombia Goldfields Ltd. (or the "Company")
(TSX: GOL/OTCBB: CGDF) announced today that it has received a request for
additional information from a Colombian government ministry related to its
proposed acquisition of the Lower Zone (Zona Baja) at the Marmato Mountain
gold development project in Colombia.
The Superintendent of Industry and Commerce (the "Superintendent") for
the Ministry of Commerce, Industry and Tourism is required to review the
transaction between Colombia Goldfields and the current owner of Zona Baja,
Mineros Nacionales S.A. ("Mineros"), because the contemplated combined entity
has revenue and/or assets with a value in excess of US $13 million.
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. The Zona Baja currently has a working underground operation with a
mill that, based on information provided to the Company, produces
approximately 25,000 ounces of gold per year. The Company previously provided
a deposit guarantee in the amount of US $2.5 million and an advance of
US $7.0 million against the purchase price of US $35 million.
As part of the approval process, Colombia Goldfields filed its request
for review of the transaction with the Superintendent on June 6, 2008. On
July 16, 2008 the Ministry asked for additional background information.
Colombia Goldfields and Mineros continue to work together to complete the
Colombia Goldfields does not have an estimate of the time required by the
Superintendent for review, but believes that the process is routine and
expects it will be completed in due course. The Company will continue its
60,000-meter exploration program on Zona Alta (Upper Zone) of Marmato Mountain
while it awaits the outcome. An initial 43-101 compliant inferred resource of
2.6 million ounces of gold, based on the first 12,186 meters of the program,
was announced on May 12, 2008. The Company expects to release an updated
resource figure in August 2008.
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
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 is available at
www.colombiagoldfields.com, EDGAR at www.sec.gov and SEDAR at www.sedar.com
under the Company's profile.
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, firstname.lastname@example.org,
www.colombiagoldfields.com; U.S. Investor Relations: Michelle Roth, Roth
Investor Relations, Inc., Tel. (732) 792 2200, Email: email@example.com;
Canadian Investor Relations: Martti Kangas, V.P. Corporate Development,
Colombia Goldfields, Ltd., Tel: (416) 361-9640, firstname.lastname@example.org