Columbus Silver Corp. - Mogollon

The Mogollon Property is located approximately 75 miles (120 kilometers) northwest of Silver City, Catron County, in southwest New Mexico. Subject to net smelter returns royalties, Columbus Silver controls a 100% interest in the property.
Geology
Mogollon covers an extensive, silver-gold bearing epithermal vein field on a caldera margin of the Tertiary Bursum volcanic center. The Mogollon silver-gold deposits are classic epithermal veins which demonstrate good continuity of grade and thickness for strike lengths of up to 4,000 ft (1,219 m) in the Little Fanny and Last Chance mines and through a remarkably consistent, elevation-controlled vertical range of about 1,000 ft (305 m). There are two sets of veins at Mogollon, an east-west set represented by the productive Little Fanny and Last Chance veins, and a north-south set represented by the Queen vein developed in the Consolidated Mine.

. Columbus Silver - Mogollon Property

Property Geology Map

Past Work
Recorded historic production, largely from the Little Fanny and Last Chance mines during the period 1905 to 1925, and the Consolidated Mine from 1937 to 1942, consists of 15,700,000 ounces silver and 327,000 ounces gold from about 1.7 million tons (1.5 million tonnes) of ore. Mining ceased in 1942 due to the wartime cessation of all gold and silver mining in the United States. Modern exploration activity at Mogollon has been limited to small programs by St. Joe Minerals, Cordex and John Livermore in three programs between 1982 and 1988 and consisted of 40,000 ft (12,192 m) of drilling in 53 rotary and core holes which were successful in outlining a partially delineated silver-gold deposit in the Queen vein containing approximately 845,000 tons (767,000 tonnes) with an average grade of 9.35 ounces per ton ("opt") (320 grams per tonne ("gpt")) silver and 0.15 opt (5.1 gpt) gold. Significant intercepts of gold and silver were also encountered in a number of other veins including Anna E, Last Chance, South Fork, Mascot and Graveyard. Significant intercepts of the drilling include:

On the Consolidated area of the Queen vein:
Hole MGR-38		33 feet, true width, of 0.13 opt gold and 6.4 opt silver 10 meters, true width, of 4.4 gpt gold and 219 gpt silver
Hole MGR-35		7 feet, true width, of 0.207 opt gold and 15.26 opt silver 2.1 meters, true width, of 7.1 gpt gold and 523 gpt silver
Hole MGR-08		11 feet, true width, of 0.139 opt gold and 10.85 opt silver 3.4 meters, true width, of 4.7 gpt gold and 372 gpt silver
Hole MGR-13		10 feet, true width, of 0.179 opt gold and 11.42 opt silver 3.0 meters, true width, of 6.1 gpt gold and 391 gpt silver
On the south portion of the Queen vein:
Hole MGR-02		25 feet of 0.23 opt gold and 1.18 opt silver 7.6 meters of 7.9 gpt gold and 40 gpt silver
Hole MGR-32		10 feet of 0.17 opt gold and 10.91 opt silver 3 meters of 5.8 gpt gold and 374 gpt silver
On the Clifton area of the Queen vein:
Hole MGR-18		6 feet, true width, of 0.45 opt gold and 19.57 opt silver 1.8 meters, true width, of 15.4 gpt gold and 671 gpt silver
On the Anna E. vein:
Hole MGR-30		5 feet of 0.415 opt gold and 15.49 opt silver 1.5 meters of 4.7 gpt gold and 372 gpt silver
On the South Fork vein of the East Block
Hole M-2		6 feet of 0.085 opt gold and 4.83 opt silver 1.8 meters of 2.9 gpt gold and 165 gpt silver

A complete list of significant results is available at:
www.columbussilvercorp.com/i/pdf/nr/mogollon-2009-05-26-dr.pdf

The historical figures presented herein are not NI 43-101 compliant. They should not be relied upon and Columbus Silver does not treat them as current.

Current Program
Dozens of mineralized and potentially mineralized veins at Mogollon that have never been drill tested provide potential for considerable resource expansion in an epithermal vein system totaling more than 45 miles (72 km) of strike length and only 3 miles (4.8 km) have been developed.

The current drilling campaign which commenced in January 2010 consists of approximately 7,500-8,000 ft (2,286-2,438 m) in up to 14 diamond core holes and is design to primarily test the east-west trending Anna E and Independence-Ida May veins. The highly prospective east-west veins have near-surface characteristics similar to the historically productive Little Fanney and Last Chance veins at Mogollon but have only been explored by shallow workings.

Approval has been received and a bond placed with the State of New Mexico Energy, Minerals, and Natural Resources Department, Mining and Mineral Resources Division, and that final well permits have been received from the State of New Mexico Office of the State Engineer, for a planned Phase I drilling program scheduled to commence at Mogollon during the second week of January 2010. Colorado based Godbe Drilling has been retained to carry-out a 7,500-8,000 ft (2,286-2,438 m) drilling program in up to 14 diamond core holes.

The drilling program will test the east-west trending Independence-Ida May and Anna E veins. The highly prospective east-west veins have near-surface characteristics similar to the historically productive Little Fanney and Last Chance veins at Mogollon but have only been explored by shallow workings.