SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

July 14, 2011 08:00 ET

Colorado Goldfields Inc. Pride of the West Mill Financial Warranty Complete; $300,000 of State of Colorado DRMS Approved Work Commences

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LAKEWOOD, CO--(Marketwire - Jul 14, 2011) - Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announced on July 12, 2011, that it had satisfied the Joint Stipulation, dated February 4, 2011, between the Company and the Colorado Division of Reclamation, Mining and Safety ("DRMS").

The Division has also approved 9 separate work activities at the site. Local contractor Maisel Excavation has begun work to replace water pipelines and prepare the site for executing reclamation of the tailings ponds in accordance Technical Revision 11 to the permit. Technical Revision 11 was approved on June 27, 2011.

Furthermore on June 3, 2011 Colorado Goldfields submitted a Notice of Intent to Conduct Prospecting Activities ("NOI"), on its 35-acre dry stacking site. This notice describes the necessary work to be performed pursuant to constructing the major portion of Amendment No. 3 to the reclamation permit. The DRMS approved this NOI on June 21, 2011.

As part of the geotechnical investigation, Registered Engineer David Trautner will use truck mounted drilling equipment to perform the field exploration. Auger test borings will be performed on the project site to a depth of 60 feet. SPT tests will be performed in the test borings at intervals of five (5) feet. The subsurface information obtained during the field study will be used to determine the stability of the substrate. Soil samples will also be tested in a laboratory for the necessary indications of stability.

The laboratory tests include:

  • Moisture content and dry density,
  • Three (3) Atterberg Limits tests which are used for general classification purposes of the samples tested, and,
  • Three (3) Sieve analysis tests to assess the grain distribution.

The test holes will be closed and sealed in accordance with State of Colorado DRMS procedures that will protect ground water resources.

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About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCQB: CGFIA) (http://www.cologold.com) is a Denver-based junior exploration, mining and milling 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.

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