CANADA GOLD ENTERS COLOMBIA, REDUCES ACTIVITIES IN PERU, MR. ANDREW NEALE, PRESIDENT & CEO RESIGNS
Vancouver, British Columbia - April 13, 2010 - Canada Gold Corporation ("Canada Gold" or the "Company") (TSX.V: CI, FRKFRT: T9N, OTC-BB: CNGZF) announces that in its pursuit of establishing modern, efficient and environmentally compatible processing plants for small scale miners in developing countries, the Company has initiated a full pre-investment study in Colombia, South America, through the Company's new wholly owned subsidiary, Canada Gold Colombia S.A.S.
Colombia is home to approximately 200,000 small scale miners , numerous small scale miner associations, a decentralized form of government with favorable mining laws and the political will to have the small scale mining and processing industries operate in a more regulated, safe, environmentally friendly and economically sustainable method that will directly benefit the mining communities and indirectly benefit all the peoples of Colombia.
The pre-investment study has been contracted to ExploreCol S.A.S. and Fundacion Olof Palme under the direction and supervision of Mr. Ian Park and Sr. Jorge Espinoza. Mr. Park, based in Medellin, is a Canadian who has been actively involved in the metals and petroleum exploration industries in Colombia for the past 20+ years. Mr. Espinoza, based in Bogota, is a Colombian national who has been active as an advisor to the Colombian National Congress regarding the mining industry in Colombia and is a special advisor to the Governors of the Departments of Caldas and Risaralda. Mr. Richard Plotzki, COO of Canada Gold, will be directly involved in all aspects of the study on behalf of Canada Gold and will communicate the ongoing study findings with the Colombia Department of Mines, Ministry of Mines and Energy, who have reviewed and are supportive of the Company's pre-investment study.
This 90-100 day study in the Departments of Caldas and Risaralda and more specifically in the areas of Quinchai, Marmato, Rio Sucia, Supia, La Merced and Filadelfia will involve approximately 19 people with disciplines in geology, social sciences and economics. The study will focus on all privately owned mines, small processing plants, miner's associations, municipalities, community leaders, and stakeholder groups in each area. The specific objectives of the study will provide the necessary data such as ore grade, production rates, metallurgical testing, current processing methods and recoveries, and community and miner associations' acceptance of Canada Gold's business plan. Overall, the objective of the study is to identify a suitable location for a modern ore processing facility which can be supported by a surety of ore supply and the partnership of various stakeholders. Once the study is completed, Canada Gold will review and determine which sites are best suited for a facility and proceed to apply for permitting with the local, regional and federal authorities, if warranted.
Meanwhile, Canada Gold, through its subsidiary, Canadian Ore Processors, has reduced its activities in Peru. The Company's plans to establish one or more processing facilities in Peru are being reviewed due to the changing dynamics in the Northern Region. Various factors such as the recent proliferation of small, legal and illegal processing plants in the north has resulted in a change in the ore supply dynamics which has contributed to this reduction in the Company's activities. Land availability, community acceptance and permitting in the north also contributed to the Company's decision. Management will continue to monitor these developments, but in the interim will continue to investigate specific mineral processing opportunities in the country and will continue address the Company's involvement in Peru preceding and after the country wide elections scheduled in October 2010.
Canada Gold also announces the resignation of Mr. Andrew Neale as CEO and President of Canada Gold and our 50% owned subsidiary, Canadian Ore Processors. Mr. Dave McMillan will temporarily assume the position of President and CEO of Canada Gold and Mr. Rick Plotzki will temporarily assume the position of President and CEO of Canadian Ore Processors. Mr. Neale will remain as an independent Director of both companies.
Canada Gold also announces the launch of a new corporate trailer video which will be used to generate awareness of the Company and its plans to partner with small scale mining communities in developing countries.
For more information, please contact our office.
On behalf of the Board,
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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