SOURCE: Colorado Goldfields Inc.

November 11, 2008 07:00 ET

ALERT: Gold Discovery Breakthrough With State-of-the-Art NITON XRF Testing at Gold King Mine Affirms Colorado Goldfields' Drilling Program

LAKEWOOD, CO--(Marketwire - November 11, 2008) - Colorado Goldfields Inc. (OTCBB: CGFIA) announces the results of NITON XRF analyses of select interval core samples from the Company's Gold King Mine property. The results of the NITON XRF analysis confirm that mineralization from Gold King B Vein contains gold grades ranging from .28 - 3.39 oz/ton, and silver grades of 1.46 - 30.97 oz/ton.

As part of the 2008 drill program, the Company completed 3,459' (1,054m) of core drilling in three drill holes. These particular diamond drill holes were positioned to test for NE-SW trending veins continuing from the property's Gold King-Davis vein system. As anticipated, these drill holes successfully intercepted multiple parallel veins throughout the length of the drilling. While several veins are interpreted as being continuous mineralized structures with potential, the 'B' Vein Zone demonstrated significant mineralization with an estimated true width of 12-13 feet and continuity.

"The 'B' Vein Zone was encountered in hole CG08-01 at a depth of 635 feet, expressing two strong quartz sulfide veins that are approximately 30 feet apart. Step-out holes to the northeast and to the southwest intercepted the 'B' Vein at 615 ft. and 680 ft., respectively. All three intercepts indicated that this is a strong, well-mineralized, and continuous structure, and as we anticipated and now demonstrated via the NITON XRF Analyzer, we have indeed established the presence of gold and silver in the Gold King Mine Extension -- that's very exciting," said Project Geologist Jonathan Moore.

While awaiting the completion of the entirety of assay results, being provided by Skyline Laboratories in Tucson, Arizona, Company management requested XRF analysis in order to obtain early indicative analyses of precious metal content. Management chose the Thermo Scientific NITON® XL3t handheld Analyzer because of its superior capabilities. While attending the testing at the Company's location in Silverton, Colorado, Stephen Guyer, the Company's Chief Financial Officer, declared, "We are most gratified to confirm there is gold in the Gold King property."

"The use of handheld XRF units, such as the NITON XL3t Analyzer within the mining industry has been demonstrated worldwide as a statistically reliable technology for field geologists and other technical personnel to acquire accurate results, instantly and efficiently. Personally observing the NITON XL3t Analyzer doing its job was inspiring and will greatly accelerate our ability to create measureable and confirmable results," said Guyer.

Results from the NITON XL3t Analyzer testing performed on the Gold King Mine Extension mineralized segments of the 'B' Vein over a 2.4 ft. drill width are set forth below:

      Hole ID  Depth (ft)  Au (ppm)  Ag (ppm)   Cu (%)    Pb (%)    Zn (%)
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      639.2    114.34       155      1.04       0.4       6.3
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      639.6    116.13     1,062      1.45       2.0      23.1
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      639.8     43.14     50.18      0.35       1.3      36.6
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      640.4     64.92     72.49      0.70      1.19       5.8
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      640.5     69.76       472      0.84      0.81      90.2
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      640.9     69.00     58.33      0.42      0.94        47
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      641.2     61.61     54.37      0.43      1.76      21.7
     ---------- --------- --------- --------- --------- --------- ---------
      CG08-01      641.6     78.46      63.8      0.36      3.07      12.8
     ---------- --------- --------- --------- --------- --------- ---------

Source: Colorado Goldfields Inc. field testing, November 7, 2008, Silverton, Colorado using Thermo Scientific NITON® XLt x-ray fluorescence (XRF).

--  Results are reported in parts per million. To convert parts per
    million to troy ounces per short ton, divide by 34.2857
--  Sample analyses were performed on whole rock drill core with no prep
--  Analysis duration was 120 seconds
    

Qualified person:

One of the qualified persons responsible for overseeing and reviewing the technical data is Lee R. Rice, President and CEO of Colorado Goldfields Inc., and Registered Professional Engineer in Colorado. The technical information prepared for disclosure in this news release has been read and approved by Mr. Rice.

About the NITON XL3t Series analyzers:

Featuring a high-performance thermoelectrically cooled detector, 80 MHz real-time digital signal processing, and dual state-of-the-art embedded processors for computation, data storage, communication and other functions, the XL3t incorporates many new features directly benefiting the customer. XL3t instruments can be used for many nondestructive testing applications, including analysis of metal alloys, screening of electronics and consumer goods for prohibited substances, mining exploration and grade control, and more. The Thermo Scientific NITON XL3t 800 Series is the definitive tool for Positive Material Identification (PMI).

Colorado Goldfields' Dividend:

On Friday, October 17, 2008, the Company's Board of Directors authorized a 30% (thirty percent) stock dividend (payable in additional shares of common stock), of the Company's Common Stock. The Stock Dividend Pay Date to stockholders will be on Wednesday, November 26, 2008. The Company reminds shareholders that they need to be a shareholder on or before the close of trading November 26, 2008 to receive the dividend.

About Colorado Goldfields Inc.

Colorado Goldfields Inc. (OTCBB: CGFI) 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 CGFI Fact Sheet in PDF format at http://www.cologold.com/s/pdfs/CGFIFactSheet.pdf. An audio presentation of the CGFI 2009 business plan is available on the web at http://www.cologold.com/s/multimedia/audiopresentation.wmv. The most recent live investor conference (of September 4, 2008), is available at http://www.cologold.com/s/audio/CGFI_Live_Investor_CC.wma.

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
    10920 W. Alameda Avenue, Suite 207
    Lakewood, CO 80226
    http://www.cologold.com