SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

August 21, 2013 08:00 ET

Colorado Goldfields Announces Total Estimated Resources of the Champion Mine and the Silver Wing Mine Greater Than 1 Million Tons Valued in Excess of $433 Million

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LAKEWOOD, CO--(Marketwired - Aug 21, 2013) - Colorado Goldfields Inc. (OTCQB: CGFI) is pleased to announce that the Company's contractual ownership rights for the Champion Mine and the Silver Wing Mine were increased and augmented on May 6, 2013. The increase provides the Company with a measured and indicated resource of 1,030,900 tons of ore that is expected to be processed at the Company's Pride of the West Mill located northeast of Silverton, Colorado.

Work conducted by Lee R. Rice in developing resource estimates from available data for these properties has concluded that this resource, when de-rated for mill recovery (but not allowing for smelter losses), will yield 103,600 ounces of gold, 4,524,000 ounces of silver, 12,300 tons of copper, 9,500 tons of lead, and 8,000 tons of zinc valued at more than $433 million.

Although further exploration is expected to significantly increase resource quantities at both mine properties, the current resource is sufficient to feed the Pride of the West Mill at full capacity for approximately 11.3 years.

Mr. Rice is President and CEO of Colorado Goldfields Inc. and is a Qualified Person (QP) as defined by Canadian Securities Administrator's National Instrument 43-101 (NI43-101) standards to perform resource and reserve estimates and to prepare NI43-101 technical reports. Mr. Rice is a Registered Professional Engineer in the state of Colorado and is a Registered Member of the Society for Mining, Metallurgy, and Exploration, Inc. as well as a member in good standing of a number of other professional technical societies. Mr. Rice has practiced internationally as an exploration geologist since 1970 and has been a practicing engineer of mines since 1974.

The Pride of the West Mill is located 5.3 miles northeast of Silveton, Colorado. The Mill is situated on approximately 120 acres of patented mining claims on San Juan County Road 2, within a nine air-mile radius of the Champion Mine, the Silver Wing Mine, the King Solomon Mine, and numerous other mine properties. The Mill is located within the famous "San Juan Triangle" mining center of southwestern Colorado, which also includes the historic mining towns of Telluride and Ouray, and encompasses one of the most richly mineralized areas of North America.

About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCQB: 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. A 3D animation showing ore processing may be viewed on the Company's website at: http://www.cologold.com/prideofthewest.htmA video tour of the Pride of the West Mill may be viewed at: http://www.cologold.com/uploads/2009-05-14_Mill.wmv

The Company has made available a current CGFI 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-K filed on November 23, 2011, which is on file with the Securities and Exchange Commission at http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm, 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-K which may be secured from us, or from the SEC's website at http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm, 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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