COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) announces it has acquired a 100% interest in 32,825 ha in the Golden Triangle area in northwestern British Columbia through combination of staking (29,425 ha) and purchase of the Max claims (3,400 ha) from a third party (collectively referred to as the “KingPin Property”).
The KingPin Property covers thirty-five BC Government Minfile (mineral) occurrences and favorable geology on strike between the past producing Granduc Mine* and Colorado’s KSP Property under option from SnipGold. With the addition of the KingPin Property Colorado now joins the ranks as one of the largest landholders in the region with claims covering approximately 65 km’s of prospective geology. See Figure 1.
Adam Travis, President and CEO of Colorado states, “Colorado’s management and technical team’s experience in the region spans over 50 years combined and resulted in the strategic decision in 2013 to pursue the option to acquire an 80% interest in the KSP Property. Since 2013 Colorado has worked alongside BC government geologists to bring further attention to this prominent belt that shares many geological similarities to the KSM/Pretium* camp located 30 km to the southeast. We look forward to the upcoming drill program focusing on the high grade gold targets at Inel (see news release of February 29, 2016) and advancing the KingPin Property in a similar manner to achieve what we have accomplished to date at KSP.”
Mineral occurrences on the KingPin Property include copper skarns, copper porphyries, copper gold porphyries, polymetallic veins and gold veins.
Previous explorers in the 1970’s focused on the copper potential and may have not properly recognized or evaluated the gold potential. Colorado intends to advance exploration on the KingPin Property following further review and compilation of the historical data by its technical team.
Pursuant to an arm’s length purchase agreement dated April 20, 2016 (the “Agreement”) between the Company and a third party (the “Vendor”), the Vendor has agreed to sell its 100% interest in the Max Property to Colorado subject to a retained 2% net smelter returns royalty (the “NSR”) for the following consideration:
- On signing a $20,000 cash payment to the Vendor; and
- 200,000 common shares of Colorado to be issued to the Vendor within 10 days of TSX Venture Exchange (“Exchange”) approval.
The Company has the option to purchase from the Vendor 1% of the NSR for $1,000,000 within 240 day of commercial production and thereafter at any time the remaining 1% for $5,000,000. The Max Property will form part of the KingPin Property and the Agreement is subject to Exchange approval.
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.
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.