SOURCE: Colorado Goldfields Inc.

December 23, 2008 08:00 ET

Colorado Goldfields Inc. in Contract Negotiations With Kinross Gold Corporation (NYSE: KGC) on Acquisition of the Historic Sunnyside Mine in Silverton and Other Kinross Colorado Mining Properties

LAKEWOOD, CO--(Marketwire - December 23, 2008) - Colorado Goldfields Inc. (OTCBB: CGFIA) announced today that the Company has entered into contract negotiations with Kinross Gold Corporation for the acquisition of approximately 142 patented mining claims in proximity of Colorado Goldfields' operations in Silverton, Colorado.

The properties include the historic Sunnyside Mine, which is adjacent to the Gold King Mine controlled by Colorado Goldfields.

The Sunnyside Mine was discovered by George Howard and R.J. McNutt in the summer of 1873. It was mined continuously from 1880-1930 by several owners, including the Thompson Brothers, Judge Joe Terry, and the United States Smelting and Refining Company. It was San Juan County's largest producer and employer until 1991, and produced over one million ounces of gold. In the early 1980s, the mine employed over 300 people and produced 1,000 tons of ore per day.

"The Kinross acquisition program has the real potential of substantially increasing shareholder value for the Company by accelerating Colorado Goldfields' drilling program through access to the old Sunnyside Mine workings including underground shafts, tunnels, and portals, which leverages our current underground drilling abilities by at least three-fold. The Kinross properties add significant asset value to the Company's balance sheet and to the Company's overall mining operations," said Lee R. Rice, President and CEO of Colorado Goldfields.

In addition, Chief Financial Officer C. Stephen Guyer comments: "The Board of Directors of the Company has endorsed our exploring several well-placed merger opportunities with larger mining companies that have market capitalizations significantly higher than our Company represents today. Merger opportunities are being considered as a platform for our expanded drilling operations and as an early means of valuing and potentially monetizing The Company's mining operations' performance to date."

About Kinross

Kinross is a Canadian-based gold mining company with mines and projects in the United States, Brazil, Chile, Ecuador and Russia, and employs approximately 5,500 people worldwide. Kinross' strategic focus is to maximize net asset value and cash flow per share through a four-point plan built on: generating growth from core operations; expanding capacity for the future; attracting and retaining the best people in the industry; and driving new opportunities through exploration and acquisition. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).

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