WEST KELOWNA, BRITISH COLUMBIA--(Marketwire - July 27, 2012) - COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is pleased to announce it has completed geophysical and geochemical surveys on its Red Sky Property and has commenced geochemical and geological surveys on its Oro Property, Yukon and Heart Peaks and Hit Property, British Columbia.
Red Sky Property, B.C
The Red Sky property is located south of the community of Redstone approximately 150 kilometres by road west of Williams Lake, BC. The Property has the potential to host copper-gold porphyry style mineralization similar to Taseko's Prosperity deposit as well as bulk tonnage gold mineralization similar to that found on Amarc's Newton property located approximately 30 kilometres southeast of Red Sky.
As announced on February 10th, 2012 under the JV formed with Kinross Gold Corp (TSX:K)(NYSE:KGC) ("Kinross"), Colorado as the Operator completed a 26 km Induced Polarization and Magnetometer Survey along with the collection of 288 soil samples. This work included the expansion of previous grids and new grids and has outlined a number of geophysical targets including a cohesive 1 km x 1.5 km northwest trending anomaly defined by a strong (>25 mv) chargeability zone flanked by zones of decreased resistivity.
Kinross and Colorado are currently evaluating the geophysical and geochemical data in more detail in order to determine if high priority drill targets can be defined for testing later in 2012.
Hit Property, B.C
The Hit property is located approximately 27 kilometres north of Princeton, B.C and is well accessed by numerous paved and secondary roads.
As announced on April 27, 2012 the Company has increased its holdings in this prospective area to over 16,594 hectares and has now completed the collection of 3282 soil and till samples. These samples were collected at 50 metre intervals throughout the entire claim group from logging road cut banks and have been analyzed by a portable Niton XRF Analyser. The Niton XRF results have indicated several new and previously known areas of anomalous copper which require follow up.
Heart Peaks Property, B.C
Crews have been mobilized to the Heart Peaks Property located approximately 45 kilometres by air northeast of the past producing Golden Bear Mine in northwest British Columbia. The Heart Peaks property covers a 3 kilometre square area of intense epithermal alteration that contains known occurrences of high grade gold mineralization. Sampling by the Company in 2011 within this area of alteration confirmed the historic occurrence of gold at the Top Zone, returning grab samples grading from below detection to up to 31.6 g/t. Sampling by Colorado also identified a new area of mineralization, named the Midas Zone, that returned grab sample values of 4.7 g/t, 8.5 g/t and 10.4 g/t gold respectively (see the Company's news release of November 1, 2011).
The large intensely altered and gold mineralized system at Heart Peaks has been tested by only 12 widely spaced drill holes, the last of which was completed in 1996. Hole 84-4 intersected a quartz flooded section of trachyte and trachyte breccias, and had an "average gold grade of 0.015 oz/t" (0.51 g/t), over 115 m (from 25 m to 140 m).
The objective of the 2012 exploration will be to follow up the known areas of high grade epithermal gold mineralization as well as to prospect the rest of the 14,400 hectare property for additional areas of gold mineralization. Work will consist of the collection of over 2000 soil samples and geological mapping in anticipation of future drilling.
The Company is also pleased to announce it has received conditional approval from the B.C Ministry of Energy and Mines for a permit to drill up to 10 holes.
Oro Property, Yukon
The Oro Property is located approximately 165 kilometres northeast of Ross River, Yukon. A program of infill soil sampling and geological mapping is currently underway to follow up the significant soil anomalies reported January 12, 2012.
Initial work includes the collection of up to 5,000 soil samples to infill anomalous areas that were outlined last year by the Company's reconnaissance scale soil sampling program. This program was completed over the entire 36,000 hectare property with line spacings of up to 900 m.
Preliminary geological investigations have indicated that the 4 km long NW trending Neve multi-element anomaly is truncated to the west by an alluvial fan which masks the geochemical expression thus indicating that the mineralized area could extend further under cover in this direction.
Other areas, such as the Golden Hinge and Golden Ridge anomalies which together cover an area of up to 1 km wide by 10 km long with gold in soil values (ranging from detection up to 814 ppb) and silver in soil values (ranging from detection up to 35.1 ppm), have been shown to be occur in settings which are favourable for the development of bulk tonnage gold deposits.
The Company is excited about the exploration potential of the 360 square kilometre property and has been reviewing joint venture opportunities with major companies as it contemplates multi-million drill programs.
Mr. Adam Travis, President and CEO of Colorado Resources, states: "I am extremely pleased with how our exploration projects are progressing this year as we conduct approximately $2.5 m worth of our flow thru expenditures. With Colorado's strong treasury we will also have the opportunity to follow up on the early summers work as we continue to explore other advanced opportunities to leverage our cash position."
Mr. J. Greg Dawson, P.Geo., is the Independent Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data in this news release.
Colorado is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and the Yukon and is also aggressively seeking properties in Latin America. Colorado's primary focus is on the Oro Property located in the MacMillan Pass area of the Yukon, in which it has the option to acquire a 100% interest.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.
Adam Travis, President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for gold or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's prospectus dated September 16, 2010 for a more complete discussion of such risk factors and their potential effects, a copy of which may be accessed through the Company's page on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.