COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) is pleased to announce the initiation of a drilling program on its Red Sky Project, in a joint venture partnership with Kinross Gold Corporation (TSX: K, NYSE: KGC), one of the world’s leading senior gold producers.
The road accessible Red Sky Property is located approximately 150 kilometres west of Williams Lake and south of the community of Redstone. The property has the potential to host copper-gold porphyry style mineralization similar to Taseko’s Prosperity deposit as well as to host bulk tonnage gold mineralization similar to that found on Amarc’s Newton property 30 km to the southeast.
The Company is currently completing $500,000 of expenditure requirements under an exploration agreement with Kinross to complete a 50/50 JV earn in.
The Company completed a program of geological mapping, till and rock chip sampling, Induced Polarization and magnetometer geophysical surveying on the property earlier this summer. This work defined a partially open 600 x 1,000 metre chargeability anomaly in an overburden covered area up ice from a coincident copper, zinc, gold and silver geochemical anomaly defined by detailed till sampling.
An initial 4 hole, 700 metre drilling program has been initiated to test the chargeability anomaly which occurs in an area of extensive glacial cover.
Company President Adam Travis states “I am very pleased that we have been able to trace back initial government till anomalies more than 5 kilometres to their apparent source and that this area is underlain by a significant geophysical anomaly in an area of cover. Drill testing of this geophysical anomaly will give us an indication of the potential for the area to host economic mineralization”
Mr. Greg Dawson, 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.
President and Chief Executive Officer
For more information, please contact:
Colorado Resources Ltd.
Adam Travis, President and Chief Executive Officer or
Terese Gieselman, Chief Financial Officer and Secretary
T: (250) 768-1511
F: (250) 768-0020
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.