COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) is pleased to announce it has signed a letter agreement with two private individuals to acquire a 100% interest in the 8,546 hectare Aspen Grove South Property, located in southern B.C.
To earn its 100% interest, Colorado must issue 100,000 shares, subject to TSX Venture Exchange approval and grant the vendors a 2.5% N.S.R of which the first 1.5% may be purchased for $1 million and the remaining 1% for $3 million.
The Aspen Grove South Property is centred around the Company’s Hit Gold Property which is located approximately 30 kilometres north of Princeton where Copper Mountain Mining Corp. recently put the Copper Mountain (Similco) copper-gold-silver mine back into production. This combined property covers a 6 km x 30 km area and along with the Company’s recent claim staking acquisitions brings the expanded Hit property to over 11, 324 hectares.
The Company has recently completed a detailed trenching program over the main occurrence on the Hit Property to better understand the controls to mineralization. The area was mapped in detail and over 700 channel samples were collected. The Company eagerly awaits the results of these samples.
Although the area has seen a considerable amount of work since the 1970’s copper boom, many of the more than 19 known mineral minfile occurrences on the expanded Hit property have seen little detailed follow up, even when such work was recommended.
Examples of known mineral (B.C Minfile) occurrences on which work was recommended but not completed include the Pine, which is host to seams and disseminations of chalcopyrite and pyrite in reddish granite and quartz monzonite. Trenches excavated in an area 270 metres long and 60 to 90 metres wide averaged 0.20, 0.19 and 0.37 per cent copper over lengths of 48.8, 42.7 and 45.7 metres, respectively. The last recorded work on the Pine was in 1973.
At the Golden 1 occurrence, a gossanous zone up to 70 metres wide trends 160 degrees for up to 340 metres in a section of tuff and tuff breccia with minor lahar deposits and agglomerate. Mineralization consists of malachite, bornite, chalcocite and chalcopyrite. Samples taken from the zone have assayed over 1 per cent copper (Assessment Report 9821, page 5). The last recorded work on the Golden 1 occurrence was in 1984.
At the Vale occurrence, work by Cordilleran Engineering in 1991 defined a 400 m long gold in soil anomaly with several contiguous high values of up to up to 710 ppb Au. The anomaly could be reflecting high grade vein hosted gold mineralization similar to Gold Mountain Mining Corporation’s Elk deposit 12 km to the north of the property.
The Company is extremely encouraged by the prospective geological setting for both copper gold porphyries similar in nature to the recently opened Copper Mountain Mine and the potential for high grade gold in quartz veins like the Elk Deposit.
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.