Colorado Resources Ltd.
TSX VENTURE : CXO

Colorado Resources Ltd.

November 17, 2010 09:56 ET

Colorado Resources Ltd.: Heart Peaks Acquisition

WEST KELOWNA, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is pleased to announce it has acquired by staking the Heart Peaks project located approximately 45 kilometres northeast of the past producing Golden Bear Mine in northern British Columbia.

The Heart Peaks property consists of 2867 hectares covering rhyolitic volcanic centres, phreatic breccias and flow domes along a north trending three kilometre wide by five kilometre long graben structure. Widespread argillic alteration with pyrophyillite occurs over a 3 kilometre square area and includes local areas of silicification, opalization and the presence of alunite with associated anomalous levels of gold, silver, antimony, mercury and arsenic.

In 1980 a syndicate comprised of Newmont Canada, Lornex and J.C. Stephen made the initial prospecting discovery of rusty weathering quartz veins with anomalous levels of gold within this large alteration system. Between 1981 and 1983 work consisted of geochemical soil surveys, talus and rock sampling as well as limited hand trenching. In 1983 Kerr Addison Mines replaced Lornex in the syndicate and 49 kilometres of VLF-EM surveys were completed. In 1984 a total of 8 widely spaced, shallow NQ holes were drilled, and in 1987 an undocumented diamond drill program of two short holes tested the Mogul Zone. The property lay dormant until 1996 when U.S. Diamond Corp. under option from Inukshuk Capital Corp. completed heavy mineral silt sampling, a test induced polarization survey and 2 diamond drillholes.

Based on the previous work, mineralization appears to be associated with banded and/or vuggy quartz and rare amethyst veins along a 2 kilometre north to northeast trend, which includes the Top, Quartz Hill, Steep, End and Mogul Zones, with the most significant results to date from the Top and Quartz Hill Zones.

Four of the 1984 drillholes targeted the Top Zone, consisting of banded quartz vein float material with visible ruby silver (pyrargyrite or proustite) that assayed up to 0.9 oz/t Au and 36 oz/t Ag. Although the drillholes did not intersect significant mineralization (http://aris.empr.gov.bc.ca/ArisReports/13811.PDF), they were drilled 150 to 400 metres east of the best gold in soil geochemical anomaly (> 200 ppb Au) to test the inferred east-west strike of the veins.

Two of the 1984 drillholes targeted the Quartz Hill Zone, consisting of north-south trending 0.5-1.5 m wide white crystalline quartz veins, intersecting intense silicification and clay alteration, and noted as "the strongest seen in the 1984 drilling". It was reported that "a quartz flooded section of trachyte and trachyte breccias in Hole 84-4 from 25m to 140 m has an average gold grade of 0.015 oz/t" (http://aris.empr.gov.bc.ca/ArisReports/13811.PDF).

A compilation of drillhole assay data from this assessment report returned 0.464 g/t Au over 113.3 metres from 24.4 to 137.7 metres. This intercept has not been followed up.

Gold and associated arsenic heavy mineral concentrate silt anomalies, obtained in 1996 1 kilometre south and 1.5 kilometres northeast of the Top Zone, remain untested by follow up sampling or gridding. In addition gold, silver, arsenic and antimony heavy mineral concentrate silt anomalies also obtained in 1996, 3.5 – 5.5 kilometres to the north of the Top Zone, have not been followed up (http://aris.empr.gov.bc.ca/ArisReports/25151.PDF).

The above mentioned exploration results, which can be found on the B.C. government website at http://aris.empr.gov.bc.ca, are historical in nature. Although Colorado has not independently analyzed the results from previous exploration, the company believes the historical results provide an indication of the potential of the property and are relevant to ongoing exploration. The company is encouraged by the anomalous precious metal values obtained in previous exploration from the extensive alteration system (3 km2) at Heart Peaks. Colorado plans a program of detailed structural and alteration mapping and sampling in 2011, based on initial compilation of previous data, as soon as conditions permit in order to focus in on and better understand the controls to mineralization.

Qualified Person:

Ms. Jean Pautler, P.Geo., is the Independent Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data in this news release.

About Colorado

Colorado is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and the Yukon and is also aggressively seeking properties in Latin America. Colorado's primary focus is on the Hit Property located in the Similkameen Mining Division of British Columbia, in which it has the option to acquire a 100% interest.

ON BEHALF OF THE BOARD OF DIRECTORS OF

COLORADO RESOURCES LTD.

Adam Travis, President and Chief Executive Officer

NR 10-04

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for gold or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's prospectus dated September 16, 2010 for a more complete discussion of such risk factors and their potential effects, a copy of which may be accessed through the Company's page on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Colorado Resources Ltd.
    Adam Travis
    President and Chief Executive Officer
    (250) 768-1511
    or
    Colorado Resources Ltd.
    Terese Gieselman
    Chief Financial Officer and Secretary
    (250) 768-1511
    (250) 768-0020 (FAX)
    www.coloradoresources.com