SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

August 27, 2009 08:00 ET

Colorado Goldfields Acquires California Mining Properties -- History of the Properties, 1.23 Million Ounces of Gold, Part 2 of 3 in a Series

LAKEWOOD, CO--(Marketwire - August 27, 2009) - Colorado Goldfields Inc. (OTCBB: CGFIA) is pleased to present additional historical data on the Eddy Gulch properties, which are currently under a Letter of Intent for purchase by Colorado Goldfields.

An estimate of the total potential resource from historical data is 1.23 million ounces of gold, representing $1.15 billion at $935 per ounce. That estimate is derived by attributing 1) half of the 2 million ounces from placer production to erosion from Eddy Gulch, 2) adding the reported placer production of 150,000 ounces, and 3) reported lode production of 81,352 ounces from mines at Eddy Gulch.

The following table shows historical lode production from the properties valued at today's gold price of approximately $935 per ounce. Historic lode production would be valued today at over $76 million. The production data shown below is from California State Mineralogist's reports and numerous private geologic reports.

                                           Gold Production
Mine                          Years       Dollars ($935/Oz.)     Ounces
-----------------------     ---------     ------------------     ------
Klamath                     1863-1865     $        2,668,490      2,854
Klamath                     1870-1881     $       18,932,815     20,249
Klamath                     1883          $        1,356,685      1,451
Klamath/Mt.                 1900-1906     $        8,323,370      8,902
Union & Union Extension     1863-1932     $       13,570,590     14,514
Mt. Laurel                  1863-1886     $       27,141,180     29,028
Laurel                      1906-1910     $        4,070,990      4,354
                                          ------------------     ------
Totals                      1863-1932     $       76,064,120     81,352
                                          ------------------     ------


In the 1850s, placer mines in Eddy Gulch produced 150,000 ounces of gold. The source of the placer gold was the series of lode deposits that strike across the head of Eddy Gulch, the principal one being the structure now covered by the Eddy Gulch Group of claims. The Mountain Laurel Mine and the Klamath Mine, the greatest producers in Eddy Gulch, were discovered in 1862, and the Union Mine about the same time. The Anna Johnson Mine was discovered in 1895.

The 1925 California State Mineralogist's report states that the placer mines in the North Fork of the Salmon River from Sawyers Bar (Eddy Gulch) to Forks of Salmon, produced about 2 million ounces of gold.

In an all stock transaction, Colorado Goldfields will acquire the Eddy Gulch Properties in exchange for shares of Class A Common Stock. The acquisition is of course subject to mutual due diligence by both Colorado Goldfields and Eddy Gulch. The due diligence period extends to September 30, 2009.

All roll-up acquisitions by the Company will be all stock transactions. The shares issued in these transactions will be restricted, and furthermore locked up beyond the 6 months required by Rule 144. C. Stephen Guyer, CFO for Colorado Goldfields, reaffirms his lock-up of 20,000,000 shares as previously reported on August 7, 2009 and corrects the calculation then reported as "Proceeds from the sale of stock owned by Mr. Guyer in 2009 total $26,400." The corrected calculation is "Net proceeds from the sale of stock owned by Mr. Guyer for calendar 2009 total $34,849."

World Market Media will consistently release breaking news and content updates on Colorado Goldfields at: www.worldmarketmedia.com/CGFIA.

About World Market Media, Inc.

World Market Media utilizes cutting edge social media platforms to connect the world's securities exchanges and their various investment communities with the goal of creating the world's first Global Online Investment Community. WMM implements innovative media solutions to produce real world market results for clients delivering in-house services including public and investor relations, advertising, marketing, social media, web-traffic, search marketing, web development, branding and audio/video and motion graphics production.

For further information and to view our press releases please visit our Social Media Newsroom at: www.worldmarketmedia.com/SMNR and our blog at www.wmmblog.com.

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
    303-984-0524
    http://www.cologold.com