SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

August 19, 2009 08:00 ET

Colorado Goldfields Acquires California Mining Properties -- Part 1 of 3 in a Series

LAKEWOOD, CO--(Marketwire - August 19, 2009) - Colorado Goldfields, Inc. (OTCBB: CGFIA) announces today that it has signed a Letter of Intent to acquire the Eddy Gulch collection of properties located in Siskiyou County, California, USA.

According to geologist's research, the Eddy Gulch properties may contain at least 1.23 million ounces of gold below the current workings of the properties. At a gold price of about $935 per ounce, this represents a potential resource of $1.15 billion. Applying after mining and milling expenses, there is a potential for more than a $700 million profit. Furthermore, the district has similar potential on the properties for miles on strike to the east and west.

The Eddy Gulch group of properties includes a 20-acre patented lode claim and a 5-acre patented mill site. There are also fifteen 20-acre unpatented lode claims, a 20-acre placer claim and five 160-acre association placer claims.

The properties cover a two mile long section of vein apex across the head of Eddy Gulch, a tributary of the North Fork of the Salmon River, on the north slope of the Salmon Mountains, at an elevation range of 3,600 feet to 4,800 feet above mean sea level. The surrounding lands are the Liberty Mining District and timberland of the Klamath National Forest.

Tom Ferrero, C.E.G., California and Oregon, stated, "In my 25 plus year career as a geologist I have, during nearly every mine evaluation project, found what I call the 'limiting factor' that determines why production stopped and why there is a low or zero chance for delineating additional reserves. The Eddy Gulch Group is one of the only deposits for which I have found no limiting factor."

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.

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.

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

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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