SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

March 02, 2009 08:00 ET

Colorado Goldfields Inc. Announces Pride of the West Mill LIVES!

LAKEWOOD, CO--(Marketwire - March 2, 2009) - Colorado Goldfields Inc. (OTCBB: CGFIA) announces re-activation agenda for the Pride of the West Mill. Local expert Peter Maisel of Maisel Excavating, LLC will perform initial redistribution of surplus milling by-products to areas on the property that will clear the way for delivering new ore. "Historically, milling operations in Southwestern Colorado similar in scope to the Pride of the West Mill have generated from $5 million to $15 million annual gross revenue and typically are profitable in the first year of operations," commented Maisel.

"We have received many more solicitations for custom milling since the first of the year than we ever anticipated," said John Ferguson, Director of Operations. "We believe that accelerating re-activation of the Mill is a wise strategic move, particularly as the uncertain economy forces other mining companies to roll back their plans."

The Company's comprehensive re-activation plan has several components developed collaboratively with the Colorado Division of Reclamation Mining and Safety including a new pond high water line and re-grading for proper drainage for sand tailings or inert material from the upper pond. A new perforated piping system will constantly monitor the ground water level.

Excavation of the old by-products into an impermeable clay barrier, reinforced with lime, lime kiln dust, and the addition of water and re-compaction to 90% proctor or greater will complete the proper relocation. The stockpile pad at the Mill entrance, after drainage verification, will then be ready to accept new ore," stated John Ferguson, Director of Operations.

"In these turbulent and quickly changing economic times, the ability to be extremely responsive and work collaboratively are keys to success. I am thankful that we have both. In addition to the results of our own drilling program, and the ultimate recovery of our own gold, bringing the Mill into production more quickly than originally planned will tap a revenue source for us, which frankly was generated by the very economic downturn that has caught others unprepared," said C. Stephen Guyer, CFO for Colorado Goldfields.

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/s/pdfs/CGFIFactSheet.pdf. An audio presentation of the CGFIA 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