COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) is pleased to announce the results of the first of two drill holes recently completed on its 100 % owned North ROK property located approximately 190 kilometres north of Stewart B.C and along Highway 37 south of the village of Iskut.
The property is underlain by volcanic and sedimentary rocks of the Upper Triassic, Stuhini Group to Lower Jurassic, Hazelton Group in a similar geologic setting to Imperial Metals Red Chris mine development (15 kilometres to the southeast) which has proven and probable reserves of 301.5 million tonnes grading 0.359 % copper and 0.274 g/t gold.
The Company has recently completed two drillholes (totalling 524.4 m) on the property based on a follow up of 2012 soil sampling, ground magnetic and IP surveying in an area around the Mabon showing. This work demonstrated that porphyry copper gold style mineralization and alteration is associated within a roughly 350 by 700 m copper-gold geochemical anomaly that is coincident with a similar sized area of increased magnetic susceptibility and I.P chargeability. Preliminary field work was cut short last fall due to winter conditions and anomalous zones remain open along strike.
Drillhole NR13-001 was targeted to test the northern part of the coincident soil geochemical, magnetic and chargeability anomalies and the entire length of hole NR13-001 returned 333.0 m of 0.51% Cu and 0.67 g/t Au. The first 242 metres of the hole was hosted in a typical porphyry copper style altered monzonite intrusion and returned 242.0 m of 0.63% Cu and 0.85 g/t Au. The last 91 metres of the hole intersected altered volcanics which weakened away from the intrusive contact but still returned 0.20 % Cu and 0.19 g/t Au.
The results are further summarized in the table below:
|Hole||From (m)||To (m)||Interval (m)||Cu (%)||Au (g/t)||Rock Type|
|NR13-001||2.00||335.00||333.00||0.51||0.67||Monzonite / Volcanic|
Drillhole NR13-001 was drilled at a -45 degree dip towards the northeast and the intervals above represent length down the hole. The Company has yet to collect sufficient data to determine how the downhole drill intervals might relate to the actual true thickness of mineralization.
The samples were analyzed by Acme Analytical Laboratories of Vancouver, British Columbia. Copper values were first determined using the 1DX ICP-MS method which reports values as parts per million (ppm). Any samples containing greater than 2000 ppm copper were assayed by the 7AR method, which reports values as percent copper. The gold results were determined using the G601 Fire Assay method which reports gold results in ppm and are equivalent to grams per tonne (g/t). The analytical results were verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures.
Colorado’s Technical Team is very encouraged by the fact that the observed drill core is consistently mineralized and altered over significant lengths of the monzonite intrusion and appears to be associated with a 350 metre by 750 metre magnetic feature.
Drillhole NR13-002 was targeted to test a second 500 by 700 metre magnetic feature on the flanks of the chargeability anomaly 350 m west of Hole NR13-001 and intersected weakly altered monzonite intrusion. Assay results for this hole are still pending but initial geological indications appear to indicate it is related to a different phase.
Given these highly encouraging results Colorado is planning further drilling to follow up this exciting discovery hole on the North ROK property and will continue working with the Tahltan First Nation and local contractors and consultants in order to give first opportunity to local communities.
Mr. Greg Dawson, P.Geo., is the Qualified Person as defined by National Instrument 43-101 who supervised the work program and preparation of the technical data in this news release.
Colorado is 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 quality properties in the US southwest and Latin America. Colorado’s primary exploration focus is on the Eldorado and North ROK properties in the Red Chris area.
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.
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