SOURCE: Colorado Goldfields Inc.

March 18, 2008 03:30 ET

Colorado Goldfields Inc. Purchases Underground Mining Equipment

LAKEWOOD, CO--(Marketwire - March 18, 2008) - Colorado Goldfields Inc. (OTCBB: CGFI) (the "Company") today announced the purchase of underground drills, parts and supplemental equipment for its Silverton, CO operations.

As part of ongoing strategic planning and discussions both internally and with potential underground mining contractors, management has determined that the best mining method at the Gold King Mine is traditional shrink stoping and rail haulage. To this end, the Company is undertaking to identify potential equipment suppliers and is pursuing additional equipment purchases as funding and/or exploration results dictate. Insofar as the Company has yet to pinpoint mineral reserves and acquire subsequent permits, management's familiarity with the potential of the Silverton projects forms the basis for the need to make timely equipment acquisitions. The Company acquired the comprehensive package of drills and parts for approximately 25% to 50% off of fair market value during a time of increasing scarcity of mining equipment. We believe these well-reasoned acquisitions are both an excellent opportunity as well as a prudent adjunct to our ongoing strategic planning.

Todd Hennis, President of Colorado Goldfields Inc., stated: "We had the fortunate opportunity to acquire a package of underground drills for potential future operations at the Silverton, Colorado projects. The package consists of 13 Gardner-Denver 83 jackleg drills, 14 Gardner-Denver 83 stoper drills, a significant Gardner-Denver parts inventory, drill steels and other supplemental items. We are continuing to negotiate with the same vendor for additional items such as tuggers, slushers, fans and other underground production equipment."

In related news, the Company wishes to advise that the ongoing engineering study for a new tailings facility and other improvements at the Pride of the West Mill at Silverton, Colorado are proceeding as planned.

In Mexico, the Company is moving ahead with plans for future operations as Mr. Hennis comments, "We are currently identifying potential suppliers of underground mining equipment and mill equipment for the potential increased operations of Besmer, S.A. de C.V. if our previously announced plan to acquire 75 % ownership of Besmer, S.A. de C.V. closes as anticipated."

On Behalf of the Board,
Colorado Goldfields Inc.
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Todd C. Hennis, President

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 include 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, 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 event 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. This press release may also contain information about adjacent properties on which the company has no right to explore or mine. We advise investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Contact Information

  • Contact Information:
    Todd C. Hennis
    Colorado Goldfields Inc.
    Tel. 303-984-5324
    10920 W. Alameda Avenue, Suite 207
    Lakewood, CO 80226

    Investor Relations
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