Colorado Resources Ltd.
TSX VENTURE : CXO

Colorado Resources Ltd.

November 15, 2010 10:26 ET

Colorado Resources Ltd.: Hit Property Update

WEST KELOWNA, BRITISH COLUMBIA--(Marketwire - Nov. 15, 2010) - COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is pleased to announce it has received results from the 2010 geophysical program conducted on its wholly owned Hit Property located approximately 27 km's north of Princeton, B.C.

The program consisted of a total of 16 line kilometres of Induced Polarization and Magnetometer surveys completed by Walcott Geophysics of Vancouver. This work as recommended by Leo J. Lindinger P.Geo. in his February 2010 43-101 Report (filed on www.sedar.com) infilled and extended the existing geophysically anomalous areas partially defined from the 2007 surveys.

At the Hit Minfile occurrence previous workers have partially defined a 30-100 m wide shear zone, striking north to northwest for at least 380 metres, hosting mineralization in quartz veins and stockworks. Historical channel sampling in 1990 of the north-trending quartz vein system, in the southern half of the shear zone, reported an average grade of 12.3 grams per tonne gold and 119 grams per tonne silver over a strike length of 109.7 metres and an average width of 1.4 metres (B.C Assessment Report 21402, page 13). Two drillholes in 1991 intersected weakly mineralized sections of the shear that hosted weakly pyritic quartz veins within erratically mineralized fault gouge and alteration zones. Gold values in drill core ranged up to 0.60 gram per tonne (Assessment Report 22084, page 10). It is important to note that these holes were abandoned prior to their target depths due to poor ground conditions, and were in Lindinger's opinion inadequately sampled. These exploration results referred to above are historical in nature and were compiled before NI 43-101 field practise standards and can be found on the B.C governments website at http://aris.empr.gov.bc.ca. Colorado has not independently analyzed the results of previous exploration. However Colorado believes these historical results provide an indication of the potential of the property and are relevant to ongoing exploration.

The HIT prospect is currently poorly exposed due to reclamation in the area and was in the opinion of Leo J. Lindinger P.Geo, insufficiently explored by trenching prior to drilling in 1991. The entire length of the mineralized structure could have been exposed at surface to verify style, orientation, continuity and grade of the veins and stockworks prior to testing at depth through drilling. The mineralization observed at surface at the HIT prospect remains open to the north and at depth.

The 2010 geophysical program outlines a resistivity low over the Hit Zone that extends more than 1.5 km north of the zone indicating that the zone may extend under deeper overburden in that direction. At least 8 other sub-parallel chargeability and resistivity features varying in strike length from 400 metres – 2000 metres have been outlined by the recent geophysical surveys indicating probable shear zones with the potential to host mineralization. Based on the results of the 2010 geophysical program the Company is submitting a Notice of Work for trenching and a contingent drill program to the Ministry of Energy, Mines and Petroleum Resources for approval on the Hit Property.

Qualified Person:

Mr. Leo J. Lindinger, 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, 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 10-03

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 Toll Free: 1-888-860-2666
    or
    Colorado Resources Ltd.
    Terese Gieselman
    Chief Financial Officer and Secretary
    (250) 768-1511 or Toll Free: 1-888-860-2666
    (250) 768-0020 (FAX)
    www.coloradoresources.com