SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

December 17, 2009 08:00 ET

Colorado Goldfields: "Milling Dynamics in the News" -- Part 3 -- Relevant Information for Company Shareholders

LAKEWOOD, CO--(Marketwire - December 17, 2009) - Colorado Goldfields Inc. (OTCBB: CGFIA) provides this tutorial as Part 3 of its "Milling Dynamics in the News" series.

John Ferguson, Director of Operations for Colorado Goldfields, provides the following brief tutorial describing the gravity concentration process. Because gold is much denser than the sand and gravel, exploiting gravity concentrates gold away from the unwanted rock.

The process may be broken down into three basic procedures: (1) Sorting the ore by size, (2) Crushing the rock, and (3) Extracting the gold.

In the sorting process, the rock fragments are sorted according to size in a "grizzly," a device consisting of a series of spaced bars, rails, or pipes, above a forward moving conveyer belt to a crusher machine. After secondary washing, a shaker screen filters out fragments of less than 1/2 inch diameter into a fine ore bin, or box. Larger ore fragments are pulverized or crushed in the crusher to a diameter of approximately 1/2 inch.

To crush the rock, the fine ore is fed by conveyer belt to a ball mill, a rotating steel cylinder filled with tumbling steel balls which further crushes the fragments to a consistency of fine sand or talcum powder, which because of water added to the crushed material, emerges as slurry.

The gold extraction process begins when the slurry passes over a jig, where moisture is removed diluting the slurry. This is where the first concentration occurs. A classifier splits the slurry into very fine sand, which moves on to flotation processing, where one to three different concentrates are made. These concentrates might include lead, zinc and copper. Oversize sand from the classifier is re-ground in a ball mill and passes over another jig.

The jig concentrates contain approximately 60% of all the gold in the ore. This concentrate is then reground and processed though a leach circuit, with the resulting fluid pumped through carbon columns. Here, the dissolved gold is adsorbed into activated carbon.

The gold is then stripped from the carbon using hot caustic pressure and by passing the solution through electrowinning cells where the dissolved gold and silver are plated out onto steel wool.

This steel wool is then melted with appropriate fluxes to remove the base metal and iron. Smelting is used to remove base metals and other impurities from high grade concentrates to produce gold-silver bullion containing typically more than 95% precious metals.

The smelting process is achieved by heating the material in the presence of slag-forming fluxes at temperatures in excess of the melting point of all the components of the charge, typically between 1200-1400°C. This maximum temperature is maintained for approximately 1.5 hours to ensure complete separation of impurities into the slag. The molten gold and silver form an alloy that is heavier than the slag and sinks to the bottom of the smelting vessel.

The smelted product, called doré bullion, is suitable for direct sale and or further refining.

Live footage from our Pride of the West Mill in the Silverton Mining District of San Juan County, Colorado, may be viewed at http://www.cologold.com/uploads/2009-05-14_Mill.wmv

Colorado Goldfields also reminds its shareholders that the Annual Meeting of Stockholders will be held on January 6, 2010, at American Legion / Miner's Tavern / Silverton Mountain Offices, located at 1069 Greene Street, Silverton, Colorado. Furthermore, the notice and proxy statement (including the Company's annual report), is available on the Company website at: www.cologold.com/uploads/2009_Annual_Meeting_Material.pdf.

A special note to Class B shareholders: Class B shareholders will receive their proxy and ballot information this week. Shareholders of Class B shares may vote those shares either by returning the yellow ballot (proxy card) via US Mail, or through the Company's Transfer Agent's website as described on the ballot itself.

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.

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