SOURCE: Colorado Goldfields Inc.

December 16, 2008 10:20 ET

Colorado Goldfields Reports Gold Assay Results (Part Two of Two-Part Release); CEO States Gold Analytics Is 100x of Standard Exploratory Drilling; Confirms Gold in New Unexplored Ground

LAKEWOOD, CO--(Marketwire - December 16, 2008) - Colorado Goldfields Inc. (OTCBB: CGFIA) is pleased to present final summary results from the 2008 Gold King Extension Exploration Program. The Company confirms that the Gold King Extension has gold-bearing dense mineralization structures continuing from historical Gold King Mine workings into new unexplored ground.

"The detailed nature of our sampling program provides a wealth of multi-element geochemical analytical results. The information gained from this multi-element analysis program is an order of magnitude greater than 100 times what is revealed in a standard exploration drilling program," said Lee Rice, CEO of Colorado Goldfields. "This wealth of information affords the Company a distinctly extraordinary advantage. We will drill smarter, not harder," added Rice.

"Our 2008 drilling program has successfully confirmed that the Gold King Extension has tremendous potential for new discoveries along its approximately 3,250 feet of strike length. We have determined through strategic drilling, that the Gold King Extension hosts favorable, well-developed, and continuous structural zones (see diagram), such as the A and B Vein Zones. We were also successful in returning sample intervals that contain ore grade mineralization," said Jonathan Moore, Project Geologist.

"Our 2008 drilling program is a resounding success. The Company's mandate was to definitively assess the Gold King Extension. The Gold King Mine and Gold King Extension have a historical resource estimate of approximately 400,000 ounces of gold, and 1.3 million ounces of silver. Our objective focused on achieving two clear results: 1) intercept strong, continuous structures, 2) with comprehensive detailed sampling, discover solid indications that ore grade mineralization is present. Our strategy of surface drilling in the Ross Basin was absolutely the right approach," said Jonathan Moore, Project Geologist.

The assay analysis results of the Company's drill core samples instantly confirmed a series of strong parallel NE-SW trending quartz veins, many with significant, sometimes dense mineralization. As assay results began accumulating, our highest expectations were realized, in that we confirmed the Gold King Extension has a gold-bearing dense mineralization structural trend that continues from historical workings into new unexplored ground.

Fire assay analysis, by internationally certified Assayers Canada, of 409 core samples is summarized in the table below.

                    From      To    Interval     Gold         Silver
Hole ID    Zone     (ft)     (ft)     (ft)    (oz per ton)  (oz per ton)
-------    ----   -------  -------  --------  ------------  ------------
CG08-01      A      639.2    644.0    4.8           0.01           2.50
CG08-01      A      669.0    675.0    6.0           0.02           7.90
CG08-01      B      818.5    822.0    3.5           0.00           0.36
CG08-01      B      869.0    870.7    1.7           0.03           0.54
CG08-01      B      922.0    924.0    2.0           0.31           2.71
Including           922.7    923.5    0.8 ft        0.75           4.69
CG08-01      D    1,162.0  1,165.0    3.0           0.01           0.74
CG08-01      E    1,313.0  1,317.0    4.0           0.04           2.36

CG08-02      A      667.3    670.6    3.3           0.01           1.33
CG08-02      B      823.1    826.0    2.9           0.10           0.88
Including           824.2    825.0    0.8 ft        0.33           1.38
CG08-02      B      839.0    841.9    2.9           0.01           0.56

CG08-03      A      636.0    639.0    3.0           0.01           2.15
CG08-03      A      656.0    659.0    3.0           0.05           4.85
CG08-03      A      680.0    688.5    8.5           0.01           1.14
CG08-03      B      862.0    867.0    5.0           0.13           4.48
Including           862.0    863.0    1 ft          0.40           4.29

-- all widths are drill widths, not corrected for true thickness
-- assays reported in g/tonne (ppm), converted by using 34.285 factor
-- internal standards and blanks submitted by QAQC policy
-- samples sent to Lab as whole rock drill core

Significant intervals are as follows.

--  Hole CG08-01 contains 2 feet of 0.31 ounces per ton gold and 2.71
    ounces per ton silver, which includes 0.8 ft of 0.75 ounces per ton gold
    and 4.69 ounces per ton silver.
    
--  Hole CG08-02 contains 2.9 ft of 0.10 ounces per ton gold and 0.88
    ounces per ton silver, which includes 0.8 ft of 0.33 ounces per ton gold
    and 1.38 ounces per ton silver.
    
--  Hole CG08-03 contains 5 ft of 0.13 ounces per ton gold and 4.48 ounces
    per ton silver, which also includes 1 ft of 0.40 ounces per ton gold and
    4.29 ounces per ton silver.
    

All three of these significant intercepts confirm that 'ore grade' gold and silver mineralization is present in the newly recognized structures (veins) continuing northeast from the Gold King Mine.

"Gold is where you find it. When you find it follow it wherever it goes." -- John Ferguson, Director of Operations

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