SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

April 17, 2009 08:00 ET

Colorado Goldfields Inc. -- First in a Special Series on the Pride of the West Mill

LAKEWOOD, CO--(Marketwire - April 17, 2009) - Colorado Goldfields Inc. (OTCBB: CGFIA) presents this first in a special series on the Pride of the West Mill and its significance to the Company. Various quoted statements and historic facts stated below derive from Company research and specifically a treatise authored by Dawn Bunyak, for the Department of the Interior in 1999 on an inactive historic landmark mill less than 10 miles from the Company's Pride of the West Mill.

Of the several hundred junior mining companies in North America, Colorado Goldfields enjoys the distinction of being the only one with the capability to perform its own milling. Milling is the process of extracting gold and silver from ore that has been drilled and removed from the mine itself. Every mining operation needs milling to be able to eventually produce and sell its gold and silver.

The Pride of the West Mill is especially valuable since it is the only mill in the entire regions of Southwestern Colorado, Northwestern New Mexico, Northeastern Arizona, and Southeastern Utah. These many regions comprise thousands of miles of land area. Within just a 50 mile radius of the mill there are over 1,000 mines and many gold and silver mining companies, some with live mining operations and multiple mining properties and others in progress with reactivation.

The Pride of the West Mill was originally constructed on 120 acres of land in 1940 and totally rebuilt in 1971 by Dixilyn Corporation to reach its capacity of 500 tons per day ("TPD"). The Pride of the West Mill was last operated in 2004 by John Ferguson, Colorado Goldfields' Director of Operations.

But, why are mill ownership and operations so significant? The 1849 California gold rush launched the United States into a period of western exploration, expansion, and settlement. Early miners used "low tech" methods: hand tools, such as pans, rockers, sluices and water. The gold rush in California was succeeded by gold rushes in many of the Rocky Mountain States, including Colorado. As the easily retrievable gold was quickly snapped up by early miners, gold had to be extracted from more "complex" (containing many metals) ore.

Inventors in Australia, Great Britain, and the United States developed a process of flotation that could concentrate complex ore. The process included crushing ore to a fine powder, mixing it with chemically laden water, introducing bubbles into a water bath, minerals adhering to bubbles, which float to the surface. The mineral-laden froth is scraped off and dried. In 1905, an Australian mill unlocked the economical concentration process for minerals (metallic and non-metallic) through flotation. The process, as well as mill design, made flotation commercially viable. By 1912, flotation was in use in the United States.

Floatation is the basic technology of the Pride of the West Mill. Arthur J. Weinig and Irving A. Palmer of the Colorado School of Mines said in 1930, "The flotation process is undoubtedly the most important development in the recovery of metals from ores that has taken place during the present century. No other method of ore treatment has ever effected such great changes in metallurgical practice in so short a time."

John Ferguson, Company Director of Operations who has personal experience with operating The Pride of the West Mill and states, "When I was managing the mill operations for its then owners back in the 1990s, I knew then as I know now, the tremendous benefit owning the mill will have on any company with drilling and mining operations of their own, and as a stand alone state of the art floatation process mill serving mines from hundreds of miles around."

"In our next installment on The Pride of the West Mill, we will take the reader into the mill facility and anticipated ore processing as we know it today, among other insights," states the Company's CFO Stephen Guyer.

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.

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