SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

August 09, 2011 09:00 ET

Colorado Goldfields Inc. Completes First Steps of $400,000 Tailings Pond Reclamation

Gold Stocks

LAKEWOOD, CO--(Marketwire - Aug 9, 2011) - Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announced today that the Company has completed the first two tasks of Technical Revision 11, which specifies the complete reclamation of the Company's old tailings ponds. The entire reclamation project is estimated to be $400,000, which is currently part of the Company's financial warranty with the State of Colorado. Upon the Company's completion of the entire reclamation, the financial warranty will be returned.

"This revision, which was approved on June 27, 2011, lifts us out of the problems of the past and moves the Company a significant step forward toward Mill re-activation," stated C. Stephen Guyer, CFO of Colorado Goldfields.

The first task of TR-11 addressed the closure of test pits. In early summer 2010, six test pits were excavated in the upper and lower tailings pond areas for the purpose of obtaining information necessary to evaluate and prepare engineering designs for the potential deposition of additional mill tailings in this area. The two test pits in the lower tailings pond area were excavated to determine perched water levels relative to the mine dump rock that was placed in the southern portion of the lower tailings pond.

In order to prevent the possibility of cross-contamination between natural ground water and "perched" water in the tailings sands, the Company has: 1) re-excavated each pit to its lowest known depth, 2) filled each pit with six inches of hydrated lime and tailings sand, 3) filled each pit with at least 12 inches of bentonite and tailings sand, and 4) each pit has been filled to the original elevation with compacted tailings sand taken from the material excavated from each particular pit.

The second task was to close geotechnical drill holes. Two geotechnical holes were drilled in the east berm of the upper tailings pond area in July 2010 to obtain information necessary to evaluate foundation conditions and prepare engineering designs for the potential deposition of additional mill tailings in this area. These holes were: 1) re-collared and drilled to ten feet depth with hollow stem augers, 2) a grout/bentonite slurry was placed into each hole as the drill string was pulled out to seal the holes and prevent potential cross-contamination of ground water resources.

Gold stocks

About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCQB: 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.

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