The Lluvia-Jojoba Project includes the Lluvia de Oro Gold Mine, the La Jojoba gold resource (286,948 ounces and 227,629 ounces respectively, * NI 43-101 compliant) and substantial surrounding property. La Jojoba is located 3.5 km west of the Lluvia mine.
       Lluvia de Oro, a Carlin-style deposit, is located within 30 km of the U.S. border. The property is a 15 minute drive from the nearest town, which eliminates the need to build a site facility for the mining crew. The mine site has power generators, pumps, a water source and an existing plant.
       Production at the Lluvia de Oro Gold Mine yielded more than 42,000 ounces between 1996 and 1998. Copper in the ore, which at the time could not be efficiently removed, resulted in lower gold recovery rates and contributed to the decision to close the mine.
       Columbia Metals is in the process of commissioning a crusher to re-process more than 2.3 million tonnes of material still on the leach pad. The company is also fast-tracking metal testing prior to re-permitting the mine.
       BioteQ Environmental Technologies Inc. (TSX: BQE), an industry leader in the field of metallurgical applications, is playing a significant role in the mine’s redevelopment and will invest up to $6 million in Columbia’s Lluvia-Jojoba project, according to Berlet.
       The BioteQ process is expected to improve project economics by removing copper from the process circuit in the form of saleable copper sulphide, and by increasing Columbia’s gold recovery rate while reducing consumables requirements.
       The copper treatment plant removes copper from the process circuit in the form of a saleable copper sulphide. BioteQ is operating similar plants successfully at the Raglan (Xstrata), Bisbee (Phelps Dodge) and Caribou (Breakwater Resources) mines. In addition to economic benefits from copper recovery, the process will also reduce overall cyanide consumption and related operating costs.
       Processing operations will begin with crushing and releaching the material sitting on the leach pad.
       “First gold will come from material already on the pad today” says Berlet.
       The company’s 100%-owned and refurbished gold processing plant can handle ore mined at La Jojoba gold deposit, which is expected to come online by the second year of operation and will result in production nearing 45,000 ounces a year.

       “Once we are in production at Lluvia de Oro, we will use cash flow to conduct exploration on the Lluvia-Jojoba Project wider claim area,” says Berlet.
       The property has clear blue sky potential, as modern exploration techniques, including airborne surveys, have yet to be used. Exploration will initially focus on extensions of the known ore bodies, particularly on several near-surface targets just east of the Lluvia de Oro Mine where several drill holes have already hit significant gold values. Mineralization is open along strike in both directions.
       The La Jojoba property includes four mining concessions that cover several mineral occurrences. Historically, more than 290 exploration holes were drilled by BP Minerals, Grupo Mexico SA de CV, Glamis Gold and Hecla Mining Co. Hecla also performed metallurgical testing. Columbia holds a 100% interest in La Jojoba (subject to a 2% NSR). The company is currently reviewing cost proposals for processing La Jojoba ore at the nearby Lluvia de Oro gold plant.

       In additional to its Lluvia-Jojoba project, Columbia Metals’ property portfolio also includes the 2,715-hectare Sierra Pinta high grade underground gold mine, the 2,386-hectare PII Colorado gold-copper porphyry exploration property and five other properties (Carmen I, David, Luis, Sierrita and Providencia claims). The company plans to option out exploration to other companies.
       The Sierra Pinta gold mine was developed on two shafts (Dolores and La Pinta) sunk along narrow, high-grade gold-silver veins. Columbia has rights to the underground gold mines and a substantial surrounding area. The property is about 20 km along strike from the La Herradura gold mine.
       Columbia completed a significant exploration program in 2005 at the PII exploration project. Work included detailed geological mapping, soil and rock geochemistry, ground geophysics, and a 3,000 meter diamond drilling program. All ground surrounding the property is held by major mining and exploration companies.

       Columbia Metals is led by Chris Berlet, CEO, President and Director. He has experience in both the finance and mineral industries, including underground gold and copper mines and open pit coal and nickel mines in Canada and Australia. Berlet previously worked as Senior Analyst (Risk Monitoring) with HSBC Securities in Toronto, as well as for three years with the Capital Markets group of Banque Paribas in London.
       Director John Paterson, M.Sc., P.Eng. has broad experience with both major and junior mining companies. He presently serves as President of Aurogin Resources Ltd., which has developed a producing heap leach gold mine in Guatemala. He previously directed the development of two heap leach gold mines, including the San Francisco gold mine near Columbia’s Lluvia-Jojoba project in Sonora.
       Other Directors include John Steers P.Eng., former V.P. of exploration for Getty Mines Ltd.; Lucas Ewart, a consultant for various public investment banks; and Michael Dehn, former president of Nayarit Gold Inc. and former senior geologist with Goldcorp. Inc.
       Mine Manager Vernon E. Smith P.Eng. has broad experience supervising both open pit and underground mines in the U.S., Canada and internationally. Most significantly, he was general manager for the Santa Gertrudis Mine in Sonora, Mexico, an open pit heap leach mine similar to and located within 35 km of the Lluvia de Oro Mine..

       Columbia Metals should benefit significantly from higher gold prices and from BioteQ’s improved metallurgical processing applications that can tap robust copper values . Economic studies indicate the project is viable at a gold price of $550 an ounce. At $660 an ounce, the project would produce a gross cash flow of $16.25 million, rising to $17.5 million at a $695 an ounce gold price.
       In addition to resources of more than 514,577 ounces of gold, initial exploration activities hint at a potentially major gold/copper resource. Over the past year and a half Columbia Metals raised more than C$7 million and expects to raise another C$2 million needed to complete bringing the Lluvia de Oro Gold Mine to commercial production.
       The company plans no new acquisitions, concentrating instead on “unlocking” the value of its Lluvia-La Jojoba Project.
       “Columbia Metals is significantly discounted by the market. Based on our $14.5 million market cap, our resource ounces are only valued at $28 an ounce,” says Berlet. “This offers investors an excellent opportunity to leverage the price of gold, and to get involved in early gold production.”