COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) is pleased to announce it has received results from the 2011 exploration program completed on its 11,324 hectare Hit Property (the “Property”) located approximately 27 km’s north of Princeton, B.C.
The 2011 program consisted of a detailed compilation of all the historic and recent work completed on the Property, followed by a trenching program at the Hit Main Zone. The compilation work indicates that the property covers more than 19 previous minfile occurrences and has high potential for copper-gold porphyry style mineralization in a geologically similar setting to the Copper Mountain Mine to the south and the Afton Mine to the north.
At the Hit Main Zone, gold mineralization occurs in mesothermal quartz veins that are hosted in a 40 metre wide shear zone as demonstrated by previous trenching. The 2011 trenching program exposed a 120 by 25 metres portion of the main zone and was channel sampled across its entire width with the channels at 2 to 4 metres spacing. In total 736 channel samples were collected.
A 26 metre section in the southern part of the exposed system was dominated by well mineralized multi-episodic quartz veins that at a cut-off grade of 2.4 g/t gold averaged 5.58 g/t gold and 56.8 g/t silver over an average horizontal width of 1.4 metres (estimated true width of 1.1 metres). The best interval from this section returned 10.6 g/t gold and 98 g/t silver over an estimated true width of 1.0 metre. A select sample quartz vein material from this interval returned 55.8 g/t gold and 577 g/t silver.
The table below summarizes some of the better grade intercepts returned from other parts of the exposed vein system.
|Trench||Sample||From||To||Width||Gold (g/t)||Silver (g/t)|
|Trench 90-07 SE wall||170606||2.40||3.00||0.60||9.80||122|
|Trench 90-07 NWwall||170615||4.30||5.30||1.00||7.40||76.0|
The focus of the compilation program was to bring together and analyze all of the historic geophysical data and the geophysical data collected by the Company in 2010. The results of this compilation demonstrate that the shear zone that hosts the quartz veins at the Hit Main zone is clearly defined as a linear conductive feature containing several discreet zones of lower magnetic intensity. This feature, called the Hit Shear Zone, is at least 2.5 kilometres in length, extending from south of the Hit showing northwest to the property boundary. Except at the trenched area at the Hit Showing, the Hit Shear Zone is covered by glacial till and has never been tested by trenching or drilling.
Adam Travis, President and CEO, states “we are encouraged that our trenching program demonstrated the continuity of gold mineralization at the Hit Main Zone and are excited that our geophysical data demonstrates that the known mineralization occurs within a much larger potentially mineralized system”.
The Company is planning a program of trenching and diamond drilling to test for potentially larger gold mineralized quartz veins along the 2.5 kilometre extent of the Hit Shear Zone.
The samples were sent to Ecotech Laboratory Ltd. in Kamloops for 30 gram gold fire assay and 28 elements ICP analyses. National Instrument 43-101 compliant procedures included laboratory standards and blanks inserted into the sample stream and locked sample chain of custody from the sample site to the analytical laboratory. Final check independent second laboratory assays were also sent to Acme Analytical Laboratories in Vancouver however these have not yet been received
The program was managed by Leo Lindinger, P.Geo. of Renaissance Geoscience Services Inc. an independent Qualified Person. The technical content of this press release was reviewed by Greg Dawson, P.Geo.
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.