WEST KELOWNA, BRITISH COLUMBIA–(Marketwired – July 10, 2017) – COLORADO RESOURCES LTD. (TSX VENTURE:CXO) (“Colorado” or the “Company”) reports it has commenced its Phase I 7,500m drill program on the KSP Property which will focus on the Inel Target, and provides an exploration update on the North ROK and Green Springs Projects.
Adam Travis, Colorado President and CEO states, “Although we remain keenly focused on the drill program on the Inel Target at KSP and earning an 80% interest in the project, we have also been actively developing and expanding the technical data base on our other projects. Earning an 80% interest in KSP will significantly expand our options for advancing this great district in the most beneficial manner to our shareholders. North ROK continues to be one of BC’s best new porphyry discoveries in the last decade and our acquisition of the surrounding ROK-Coyote Property has significantly expanded the prospective trends between North ROK and the Red Chris Mine*. Our work at Green Springs continues to refine our drill targets as part of the follow up of the positive Phase I RC drill results reported this spring. It’s going to be another exciting exploration season and anticipated productive year for Colorado.”
KSP Property (Golden Triangle, B.C) – 2017 Phase I 7,500m Drill Program Commenced
Diamond drilling has commenced on the Inel target on the KSP Property which is anticipated to be completed by the end of August and satisfy the agreement requirements with SnipGold Corp. (a wholly owned subsidiary of Seabridge Gold Inc.) to earn an 80% interest in the KSP Property.
Detailed reviews of the geological, geochemical and geophysical data in the context of last year’s significant drill results have resulted in the selection of more than 20 drill sites at Inel of which multiple holes may be drilled from each site (see Figure 1). Many of this year’s drillholes will be longer (up to 350 m) in order to test down dip of the relatively shallow mineralization encountered in the 2016 drill program (see News Release dated May 11, 2017).
North ROK (Golden Triangle, B.C) –Targeted Sampling and Discovery of New Mineralization
Field crews were mobilized in June at the expanded North ROK Property to complete a targeted soil survey, prospecting and geological mapping. Colorado’s technical group is using the invaluable experience gained from the North ROK porphyry discovery to further guide and assess the potential of the adjacent and newly acquired ROK-Coyote property. The acquisition of the ROK-Coyote Property has increased the prospective area at North ROK from approximately 1,000 hectares to over 4,000 hectares and provides Colorado control over the majority of the prospective ground between Imperial Metals Red Chris Mine* and the North ROK porphyry discovery (see News Release dated March 13, 2017).
A total of 2,208 soil samples and 159 rock samples were collected during this program and geologic mapping not only increased the known size of the Mabon intrusion but also identified more than ten separate areas of copper mineralization associated with the eastern contact of the Mabon stock and other intrusive dyke rocks which were not previously recognized on the original ROK-Coyote Property.
Assay results from this sampling program are anticipated within the next month.
Green Springs (Nevada) – Expansion of Anomalies, Geophysical Survey, Future Drilling Proposed
A total of 1,067 soil samples were collected along with 6.3 line kilometres of IP Chargeability and Resistivity Geophysical Surveys and 15 km2 of geological mapping were completed at Green Springs during the month of May (see Figure 2). The revised and improved technical data will be used to facilitate the siting of future drilling (see News Release dated April 4, 2017).
The geophysical survey was conducted over the E Zone area to follow up on the results of RC Drillhole GSC17-01 (25 feet of 9.75 g/t Au**) to help determine possible geophysical signatures to the known mineralization located under cover. Interestingly, the known mineralization appears to correlate with a north-northwest trending >300 m long resistivity break and >500 m long silver in soil anomaly.
Geological mapping and further soil sampling was also focused in the A Zone and A Zone North areas.
Previous RC drill results in the A Zone include GSC17-05 with 130 feet of 1.07 g/t Au, GSC17-06 with 80 feet of 1.75 g/t Au and GSC17-08 with 125 feet of 1.37 g/t Au**. These drillholes targeted the underlying Pilot shale (as opposed to the Chainman shale which was mined by previous operators) with 12 BLEG (bulk leachable extractable gold) samples from the Pilot shale indicating variable gold recoveries in the Pilot shale in this area which will require further investigation.
A large area (200m x 800m) of Chainman shale is also noted in the A Zone area associated with jasperiod bodies and soil geochemical anomalies and has only been tested by two previous historical drillholes and will form the priority target in this area.
In the A Zone North area a large prospective zone (350m x 500m) of Pilot shale has been outlined by geological mapping and anomalous gold and silver in soil geochemistry and this target has never been drill tested.
This updated work will form the basis for the selection and subsequent permitting of future drilling.
QA/QC statement on Assay Results
The 2017 samples from the Green Springs Project were analyzed by Actlabs Kamloops, British Columbia. Samples were prepared by the S1 method, drying (60°C) and sieving (-80 mesh), save all portions. Base metal assays were first determined using the total digestion ICP and ICP/MS UT-1 method, which reports results as parts per million (ppm). The gold assays were determined using the 1A2 fire assay method which reports results in ppm and are equivalent to grams per tonne (g/t). Any samples returning greater than 10 ppm gold were analyzed by the 1A3 fire assay method with a gravimetric finish. Twenty two samples were run for bulk leachable gold using Actlabs 1A6 BLEG analytical procedure. The analytical results were verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures.
For more information on the KSP, Green Springs or North ROK Projects the reader is directed to the Company’s website at www.coloradoresources.com.
Qualified Person
Dr. Jim Oliver, Ph.D, P. Geo., the Company’s Chief Geoscientist, is the Qualified Person as defined by National Instrument 43-101 who reviewed the preparation of the technical data in this news release.
About Colorado
Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and Nevada. Colorado’s main BC exploration projects include the KSP property currently under option with Seabridge Gold Inc., the 100% owned Kingpin property, the 100% owned North ROK (ROK-Coyote) property and the 100% owned Kinaskan (Castle) property. Additionally Colorado holds an option on the Green Springs Property (Nevada) from Ely Gold & Minerals Inc.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.
Adam Travis, President and Chief Executive Officer
Cautionary Notes
*This news release contains information about adjacent properties on which Colorado has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties
**The intervals reported in this release represent drill intercepts and insufficient data is available at this time to state the true thickness of the mineralized intervals and all values are uncut.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, constitute “forward-looking information” as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including: that the Company’s financial condition and development plans do not change as a result of unforeseen events, that the Company obtains required regulatory approvals, that the Company continues to maintain a good relationship with the local project communities. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, which could result in delays, or cessation in planned work, that the Company’s financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company’s Management’s Discussion and Analysis reports filed under the Company’s profile at www.sedar.com. There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.
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.
Adam Travis
President & CEO
(250) 768-1511 or TF (855) 768-1511
(250) 768-0849 (FAX)
www.coloradoresources.com
Colorado Resources Ltd.
Terese Gieselman
CFO
(250) 768-1511 or TF (855) 768-1511
(250) 768-0849 (FAX)
www.coloradoresources.com