SOURCE: Colorado Goldfields Inc.

December 15, 2008 10:15 ET

Colorado Goldfields' CEO Lee R. Rice Sits for 2008 "State Of The Union" Interview With Company's CFO C. Stephen Guyer; Mr. Rice Discovers Bonanza Gold Potential

LAKEWOOD, CO--(Marketwire - December 15, 2008) - Colorado Goldfields Inc.'s (OTCBB: CGFIA) CEO Lee R. Rice was recently interviewed by the Company's CFO C. Stephen Guyer regarding the success of this season's drilling program and what the program revealed. Following is the interview.

Mr. Guyer: Given your 40-year background in exploration mining, and in particular junior mining companies, what in particular made this season's drilling program so successful?

Mr. Rice: Colorado Goldfields' 2008 drilling program encountered the vein system in its projected location, proving that the Gold King vein system continues into this previously unexplored area and confirming the possibility of additional ore bodies in this vein system. The vein system that was highly productive in the Gold King mine runs generally N 25° E. Two sets of cross structures running N 7° W and N 34° W appear to have localized ore deposition and yielded the most productive stopes in the mine. This vein system was projected to extend Bonita Peak, but no exploration from the mine workings or from the surface was extended into this virgin territory.

In addition, the three drill holes completed during the 2008 exploration program were able to retrieve samples of the vein material and country rock enabling us to begin the task of evaluating the extent and grade of mineralization present in the veins.

The confirmation that this vein system continues into the unexplored area and is not truncated or offset and that it bears precious and base metal mineralization is a huge success. It lays the groundwork for our future exploration of the approximately 3,250 feet of property between the Gold King and the extended Sunnyside vein system.

Mr. Guyer: What was the intention of our exploration activities undertaken in 2008?

Mr. Rice: The original plan for our exploration effort in 2008 was to access the Gold King workings and begin refurbishment of the mine adit to facilitate exploration from underground drilling stations proximal to the Gold King vein. When this proved infeasible, a drilling program was planned and undertaken to reach portions of the projected Gold King vein system from the surface.

The unexplored area is situated in a downdropped block of terrane, a graben, between the Bonita Fault and the Ross Basin Fault. It was not known whether the Gold King vein continued across the Bonita Fault into the graben or to what extent the graben faults affected mineralization in the vein system.

Our 2008 exploration program was planned to encounter the extension of the Gold King vein system and to evaluate the potential for ore grade mineralization in that length of the vein system within the graben.

Mr. Guyer: What did the 2008 exploration program reveal?

Mr. Rice: First of all, the drilling program confirmed that the Gold King vein system extends into the graben block and that it is not truncated or significantly displaced laterally by the bounding faults.

An important consideration in the search for ore in the Silverton area is to characterize where you are vertically in this epithermal vein system. The uppermost portions of the veins contain the greatest proportion of gold in the vein mineralization. The proportion of gold decreases with depth while the proportion of silver increases. At greater depths, silver decreases and the lead content of the veins increases. This process continues with increasing depth into zinc and finally copper mineralization. In many parts of the Silverton and Eureka districts, erosion and mass wasting have removed the uppermost portions of the vein mineralization exposing veins on the surface with predominantly silver and base metal mineralization.

The Gold King and the Sunnyside mines are situated reasonably high in the vein mineral zonation. They both produced significant amounts of precious metals, but graded downward into base metal mineralization. The downdropped block between these mines has been shown to contain the same vein system that comprised the Gold King mine, but the uppermost areas of the vein system in that block now lie adjacent to the existing mine workings where gold grades were declining downward. This suggests that higher gold grades may be encountered in the veins within the previously unexplored graben block.

A very exciting new result of this year's exploration program confirmed that at least two episodes of mineralization took place in this area. This discovery occurred during my analysis of assay results in the last 48 hours.

The presence and quantity of pathfinder elements in drill core samples of the country rock suggest that a subsequent episode of mineralization was not as vertically extensive as the initial episode and that it occurs at a deeper position in the epithermal system than earlier mineralization. This "overprinting" complicates the search for ore, but carries with it the possibility of additional precious metal ore bodies, even bonanza gold, at deeper levels than were encountered in the mines that exploited vein material from the first mineralizing episode.

Mr. Rice has been at the helm of Colorado Goldfields since September 2008, and brings over 40 years of geological and engineering experience to the enterprise. Mr. Rice has been a Registered Professional Engineer in Colorado for more than 30 years and is a Registered Member of the Society of Mining, Metallurgy and Exploration. Mr. Rice is also a director of International Beryllium Corporation, a public company traded on the Toronto Venture Exchange with its headquarters in Vancouver, British Columbia.

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