COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) announces an update on the KSP Property under option from SnipGold Corp. (see News Release dated December 20, 2013), its 100 % owned KingPin Property (see News Release dated April 21, 2016) and its HP Property under option to Centerra Gold Inc. (see News Release dated November 3, 2015) all located in the Golden Triangle area in northwestern British Columbia (see Figure 1).
Adam Travis President and CEO of Colorado states: “What an exciting exploration season we are kicking off drill programs targeting high grade gold occurrences starting at the KSP- Inel Zone and at HP under option to Centerra. With our recent acquisition of the KingPin property which includes very prospective areas for both high grade gold and porphyry copper +/- gold Colorado now controls over 640 km 2 in the Heart of the Golden Triangle. Along with our North ROK and Kinaskan Projects near Imperial Metals Red Chris Mine* and our HP Project north of the past producing Golden Bear Mine* Colorado controls over 1,000 km 2 in the Golden Triangle more than double the landholdings of the next junior explorer in the region.”
Field crews have been on site at KSP over the last few weeks conducting prospecting and geological mapping at lower elevations and preparing the Inel drill site and staging areas for the upcoming drill program. Core logging facilities have been completed near the end of the Alta Gas McClymont Creek access road and drill pads are currently being constructed at the Inel Zone with diamond drilling expected to commence this weekend.
The KingPin Property covers thirty-five BC Government Minfile (mineral) occurrences which include copper skarns, copper +/- gold porphyries, polymetallic veins and gold veins and favorable geology on strike between the past producing Granduc Mine* and Colorado’s KSP Property under option from SnipGold and on the western doorstep to KSM* (see Figure 2).
Previous explorers in the 1970’s focused on the copper potential and later work in the 1980’s was mostly intermittent and fractured by multiple ownership which has now been consolidated by Colorado.
Some of the highlights based on Colorado’s review of historical data include the following:
- Max Area - 15 Mineral occurrences cluster within 4 km of the Max Minfile occurrence and consist of porphyry, veins and skarn targets which appear to have been under appreciated for their gold potential even though areas like the Windy Tarn- Golden Jade zone reported a previous historical grab sample with a value of 45 g/t Au (See Assessment Report 21332).
- KingPin South - 3 Polymetallic +/- Gold Vein Mineral Occurrences are noted in the Granduc*- Doc area in the southern portion of the KingPin property in areas that have undergone significant glacial retreat since last worked and offer new areas to explore for vein targets similar to the adjacent Doc Property.
- Boulder Creek- 9 Mineral occurrences cluster in an area between Boulder Creek and the Unuk River in the SW portion of the KingPin Property. Gold potential of the vein and skarn targets is highlighted at occurrences like “Jim” with a previous historical grab sample which reported a value of 64 g/t Au (See Assessment Report EMPR AR 1911-66,67).
- KingPin West – over 15 km’s of favourable geology on trend from the KSP property and is highlighted by gossans and at least 5 Mineral occurrences. The B.C. Minister of Mines Annual Report in 1911 noted the Fewright occurrence, which was poorly documented and located but described as “a ledge 100 feet wide that runs the entire length of seven claims, carrying silver, copper, gold and lead”.
Colorado intends to conduct exploration on the KingPin Property later this summer to follow up on these areas using the knowledge it has gained while working on the KSP Property on trend to the northwest.
Centerra Gold Inc. has informed Colorado that it intends to shortly commence a 2,000m proposed drilling program at HP initially targeting the high grade gold Midas Zone.
Greg Dawson P.Geo, is the Qualified Person (“QP”) as defined by National Instrument 43-101 that has reviewed and approved the technical content of this news release.
*This news release may contain 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.
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 is also seeking opportunities in Southwest USA and Latin America.
Colorado’s current exploration focus is to continue to advance: the KSP property optioned from SnipGold, located 15 km’s along strike to the southeast of the past producing Snip Mine; its 100% owned North ROK property, located 15 km’s northwest of the Red Chris mine development, both located in northern central British Columbia.
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
T: (250) 768-1511
F: (250) 768-0849
TF (855) 768-1511
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.
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