SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

October 22, 2009 08:00 ET

Colorado Goldfields Acquires Mining Assets in Rich Gold Ore Play of Los Chorros, Colombia; Company CEO and CFO Fourth Appearance on "The Big Biz Show" With Russ and Sully

LAKEWOOD, CO--(Marketwire - October 22, 2009) - Colorado Goldfields Inc. (OTCBB: CGFIA) announced today that the Company signed a Letter of Intent to purchase all the mining assets of Gemini Explorations Inc. in exchange for 100 million restricted Class A common shares of Colorado Goldfields Inc.

Among the properties this transaction brings to Colorado Goldfields is Los Chorros. This property is located in the municipality of Zaragoza in the department of Antiochia, Colombia. It lies in the El Bagre - Zaragoza mining district in the midst of Colombia's most prolific gold producing region. This area has been the site of extensive placer mining for several decades along the Nechi River at the western foot of the Serrania de San Lucas. Exploration of the lode gold source areas of these placers in the vein deposits of these upland areas has resulted in a number of recent discoveries presently being developed into producing mines.

Artisanal miners have been working on the Los Chorros concession and have exposed some of the gold-bearing veins. Bonanza grades of 250 grams/tonne (7.2 oz./ton), a value of $7,300 per ton have been reported. Prospective grades of 15 to 20 grams/tonne (0.4 to 0.6 oz./ton), a value of $430 per ton, are the primary target on the property in work conducted by Gemini Explorations.

"This acquisition could well be the seminal event for the Company. It places the Company in one of the hottest gold development districts in the world. Two major international conglomerate mining companies are developing, as we speak, gold resources in excess of 20 million ounces gold in total within the same mining district as the Los Chorros concession, which represents $20 billion in total value," stated Lee R. Rice, President and CEO of Colorado Goldfields.

The acquisition is subject to mutual due diligence. The due diligence period extends to November 30, 2009.

Also, Company Executives Lee R. Rice and C. Stephen Guyer were invited back for a fourth interview on the "Big Biz Show," which airs today October 22, 2009, at 4:10pm EDT. The interview will also be available on the Company's website at:

http://www.cologold.com/uploads/2009-10-22_BigBizShow.wmv.

About Big Biz Radio, Inc.

Big Biz Radio Show could be best described (actually it WAS described by The Wall Street Journal) as "Business with a Bar Room slant. It is a talk show that covers business and the business of life, sports and any other thing its two hosts feel are relevant." The show has been on the air for over 12 years. Its contents are replayed on the Wealth Television (Herring Broadcast Group) network of radio stations.

About Colorado Goldfields Inc.

Colorado Goldfields Inc. (OTCBB: CGFIA) (http://www.cologold.com) is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discoveries. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern, up to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.

The Company has made available a current CGFIA Fact Sheet in PDF format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.

Notice regarding forward-looking statements

This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Contact Information

  • Contact:
    Brad Long
    Director of Investor Relations
    Colorado Goldfields Inc.
    866-579-2434 or 303-984-0524
    http://www.cologold.com