SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

October 06, 2009 08:00 ET

Colorado Goldfields Completes Acquisition of Brooklyn Mine; Company CEO and CFO Third Appearance on "The Big Biz Show" With Russ and Sully

LAKEWOOD, CO--(Marketwire - October 6, 2009) - Colorado Goldfields Inc. (OTCBB: CGFIA) is pleased to announce that the Company has completed execution of a Mining Lease with Option to Purchase Agreement for the Brooklyn Mine in San Juan County, Colorado. The terms of the agreement include the issuance of 75,000,000 restricted shares of Class A common stock in Colorado Goldfields restricted in a lock up for a period of 3 years during which no sales or other conveyances may be undertaken, a work commitment averaging $200,000 per year, and a 5% Net Smelter Royalty. The lease automatically renews so long as ores, minerals, or metals are being produced or sold.

The properties consist of approximately 600 acres of patented and unpatented claims located along the historic Brooklyn Mine and associated structures. Since its discovery in the year 1900, the Brooklyn Mine has consistently produced exceptionally high-grade gold ore.

An historic resource estimate of $13.8 million (14,535 ounces of gold times $950 per ounce) at a grade of 0.69 ounces per ton contained in two established and accessible ore shoots below the existing workings is based on well-documented and confirmed prior exploration. "We are targeting grades of 0.30 to 0.90 opt Au, however the Brooklyn Vein has produced ore with grades as high as 30.0 ounces of gold per ton," stated Jonathan Moore, Project Geologist. "The Brooklyn represents a property that is perfectly aligned with our Company's strategy of targeting past producing mining properties in historic districts for exploration and production," said Moore.

Also, Company Executives Lee R. Rice and C. Stephen Guyer were invited back for a third interview on the "Big Biz Show," which airs today October 6, 2009, at 4:10pm EDT. The interview will also be available Wednesday morning on the Company's website at:

http://www.cologold.com/uploads/2009-10-06_BigBizShow.wmv.

About Big Biz Radio, Inc.

Big Biz Radio Show could be best described (actually it WAS described by The Wall Street Journal) as "Business with a Bar Room slant. It is a talk show that covers business and the business of life, sports and any other thing its two hosts feel are relevant." The show has been on the air for over 12 years. Its contents are replayed on the Wealth Television (Herring Broadcast Group) network of radio stations.

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.

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 http://www.worldmarketmedia.com/home/blogs-world-market-media.aspx.

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