WEST KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2011) - COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is pleased to announce it is very actively exploring several of its British Columbia and Yukon Properties this summer and is providing the following project updates.
Oro Property, Yukon
Fugro Airborne Surveys has recently completed a 2000 line kilometre helicopter-borne DIGHEM EM/Magnetic survey over Colorado's 100% owned Oro Property located near MacMillan Pass, Yukon. This geophysical work, although preliminary in nature, has identified significant features that require ground follow up.
A total of over 7,000 soil samples, 300 silt samples and 500 rock samples have been taken to date across the 15 km wide x 30 km long property. Although the majority of samples are awaiting laboratory analyses, as an integral part of Colorado's technical program all soil and silt samples are analysed in the Company's field laboratory utilizing a Niton bench top XRF (x-ray fluorescence) analyser to collect real time semi-quantitative results for several pathfinder elements known to characterise Carlin style gold occurrences for immediate follow up.
Heart Peaks, BC
Fugro Airborne Surveys has recently completed a 977 line km helicopter-borne DIGHEM EM/Magnetic survey on Colorado Resources 100% owned Heart Peaks Project.
The results of this survey, along with preliminary geological reconnaissance undertaken in conjunction with a major company property examination, has led the Company to significantly expand the property to cover an area in excess of 14,396 hectares along a 6 km x 20 km prospective corridor.
Assay results obtained by previous exploration companies on this property have returned values up to 28.0 g/t (0.9 opt) gold and 1120 g/t (36 opt) silver from banded epithermal quartz veins over 20 cm widths. Evidence for bulk tonnage potential is also indicated in a previous drill-hole which returned 0.464 g/t gold over 113.3 metres from 24.4 to 137.7 metres.
The Company plans to continue with its geological mapping and sampling program and to begin exploration on its newly expanded tenure holdings.
Hit Property, BC
The Company recently received government permits and is currently completing a trenching program over the main showing area and along strike to better understand the gold mineralization within this complex shear and vein system. This work will define targets for subsequent diamond drilling.
In 2010, the Company completed an induced polarization geophysical survey which outlined a resistivity low over the Hit Zone that extends more than 1.5 km north of the main showing indicating that the zone may extend under deeper overburden in that direction.
Red Sky Property, BC (Kinross Gold Corp. (TSX:K) ("Kinross") Joint Venture)
The Red Sky Property is located approximately 150 kilometres west of Williams Lake south of the community of Redstone. Under the terms of an agreement noted in a News Releases dated February 9, 2011 Colorado Resources acquired the Red Sky Property under an assignment agreement in March 2011 (previously called Redstone Property) from Osisko Mining Corporation ("Osisko") (who had recently acquired Brett Resources). The Company is currently completing the $500,000 expenditure requirements under the exploration agreement with Kinross to fund the 50/50 JV earn in.
Recently the Company has completed detailed till sampling, geological mapping and rock chip sampling plus a 25 line km Induced Polarization ("IP") and Magnetometer geophysical survey completed by Peter E. Walcott & Associates geophysical contractors. The Company is pleased to report that a partially open ended 600 m x 1000 m chargeability anomaly lies coincident with the up ice direction of the anomalous till results was returned from an area of extensive till cover.
Both the Company and Kinross are encouraged by the results of this geophysical program and have approved drill testing of this IP chargeability anomaly.
Mr. Adam Travis, President of Colorado Resources states: "I am very pleased with the technical team we have assembled in short order and the significant progress our Company has made in rapidly advancing our 'Carlin style' Oro Property and Heart Peaks Project and the interest these properties have already generated from major mining companies. The subsequent acquisition of a significant landholding by Newmont within the MacMillan Pass area of the Yukon is further evidence for this area's high potential to host Carlin style mineralization. Our technical team has also advanced our Red Sky property, in a joint venture with Kinross, and our Hit Property both to the drill stage and continues to identify other opportunities for exploration during the Yukon 'off-season'.
Our significant cash position (>$15 million) courtesy of a financing announced earlier this year co-led by Macquarie and Dundee and also the participation by both Kinross and Osisko has allowed us to aggressively pursue opportunities. I look forward to the continuation of a very exciting field season culminating with drilling on a number of our projects."
Ms. Linda Dandy, P.Geo., is the Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data in this news release.
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 Oro Property located in the MacMillan Pass area of the Yukon, 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
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.