COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company“) is pleased to announce that it has completed the initial 2017 phase of drilling on its 100% owned KSP Property on time and under budget. Forty (40) drillholes totaling 8,100 meters were completed in Phase 1 drilling this year, focusing on the Inel area of the KSP Property. Significant drill results from this drill program have encouraged Colorado to immediately initiate a Phase 2 drill program that will extend into the fall.
Adam Travis, President and CEO of Colorado states: “Sound exploration by our team is being rewarded with significant new discoveries and a better understanding of the Inel System with high grade visible gold discovered, the recognition of new mineralized trends at Inel Ridge associated with the 8km long Big Rock Deformation Zone and the discovery of porphyry style gold – copper mineralization associated with the Inel Intrusion. These discoveries point to the fact that Inel is a large mineralized system with the capability of delivering high grades and large volumes of mineralized rock. As a result of these substantial results we have commenced immediately with a Phase 2 drill program that will continue into the fall. With the recent completion of the $7.3M financing we are well positioned to continue to advance KSP and our other high quality Golden Triangle Projects”.
The assay results of the first 20 drillholes are presented here; INDDH17-054 to INDDH17-073, as well as a special rush services on a section of drill hole INDDH17-081. The accompanying map as Figure 1 details the locations of the highlights summarized below:
1. V.G. (Visible Gold) Zone – Coarse Visible Gold Intersection at Inel [4,470 g/t Au (130.38 oz/t) over 0.5m] – Coarse visible gold was identified in drill hole INDDH17-081 (see Company website under KSP Photo Gallery for photos) and as a result, a total of 5 samples (2 samples above and 2 samples below the visible gold interval) were hand delivered to ALS Global Vancouver Laboratory for a coarse gold analysis. The table below provides details of the analytical results for these 5 samples:
The interval from 35.6-37.0m has a length weighted average of 1.4m of 1,670.51 g/t Au.
As a result of the identification of coarse visible gold in INDDH17-081 six drill holes (assays not yet received) were spaced approximately 50m apart over a 150m of strike to the north of INDDH17-081. Drill holes were positioned to the north where potential is open with more than 350m between INDDH17-081 and INDDH17-078. Particular attention is being paid to the controls of mineralization in all high grade intersections.
A review of the screen metallic assays (posted to the Company’s website) indicate that a good portion of the gold is in the fine fraction in both intervals from 35.6-36.1m and 36.1-37.0m and although coarse visible gold was not noted in the adjacent drillholes (no assays yet received for these drillholes nor in the remainder of INDDH17-081) neither was it noted in a sample from 36.1-37.0m which returned a screen metallic assay of 10.35 g/t Au shown in the table above.
2. Inel Ridge Zone (31.59 g/t Au over 2.6m) – INDDH17-055 (total length 249m) was drilled on Inel Ridge to test an area 50m below a 2016 intersection of 1.0m of 53.10 g/t Au in INDDH16-042. Drillhole INDDH17-055 intersected 2.6m of 31.59 g/t Au, including 1.1m of 63.30 g/t Au and also returned 73.0m of 1.71 g/t Au1 and ended in mineralization:
INDDH17-056 was also drilled from the same setup as INDDH17-055 but at a different azimuth and failed to return significant results suggesting that the probable trend of mineralization is sub-parallel to the >8 kilometer (“Km”) Big Rock Deformation Zone (“BRDZ”).
INDDH17-057 was abandoned due technical problems, no samples were collected and it was re-collared as INDDH17-058 which was drilled approximately 300m northeast of INDDH17-055 on a different target and away from the BRDZ. INDDH17-058 returned 7.48 g/t Au over 0.9m from 151.8m to 152.7m1.
Three additional new drill holes have been collared to test a 300m strike extension of the BRDZ to the northeast along Inel Ridge as shown on the Figure 1.
The gold mineralization encountered in drill holes INDDH16-042 and INDDH17-055 is interpreted to parallel the BRDZ and has encouraged Colorado to also layout additional holes to the south of the historic Discovery Zone (South Discovery Target) 450m southwest of Inel Ridge.
3. Camp Porphyry Zone (0.43 g/t Au and 0.11% Cu over 195.4m) – INDDH17-054 (total length 279m) Colorado’s first drillhole of the 2017 field season was sited to investigate the eastern edge of the Inel intrusion where an Induced Polarization (I.P.) Chargeability Anomaly coincides with the contact between the volcanics and sediments (see news release dated May 11, 2017).
The results for drillhole INDDH17-054 indicate that portions of the Inel intrusion contain broad intervals of disseminated gold-copper mineralization:
Four new drillholes, at approximately 200m centers, are also planned for this year’s Phase 2 program to further test the broad zones of gold-copper mineralization associated with the Inel Intrusion.
The Company also completed 15 Phase 1 drillholes sited primarily on a prominent gold in soil anomaly downslope of the 2016 drilling towards the Inel intrusion, in an area called Inel Basin. Six³ of these drillholes failed to return significant results but the other nine drillholes encountered broad intervals of lower grade gold and copper (see following table). These results suggest that this area is a weaker part of the system and has been downgraded to allow greater focus on other areas:
QA/QC statement on Assay Results
Colorado inserts certified standards, blanks, and field duplicates consisting of half core samples, into each batch of samples at regular intervals. The 2017 samples were analyzed by ALS Global of Vancouver, British Columbia. Samples are prepared by crushing the entire sample to 70% passing -2mm, riffle splitting off 1kilogram and pulverizing the split to better than 85% passing 75 microns. The core samples also undergo a robust duplicate assay program that tests rejects and pulps for reproducibility. Samples are also sent to an umpire lab. The gold assays are determined by Au-AA25 fire assay method which reports results in parts per million (ppm) (equivalent to grams per tonne (g/t)). Any samples returning greater than 5.0 g/t gold are analyzed by Au-GRA21 fire assay method with a gravimetric finish, samples with a fire assay or gravimetric finish that report values gold equal to or higher than 10.0 g/t Au are analysed by screen metallic method (Au-Scn-21). Samples with coarse visible gold are fire assayed using the Au-CON-01 method and then undergo Au-SCN-21 procedure. Colorado inserts coarse particle-sized blank material before and after coarse gold samples to assess any carry over of gold to the next sample.
Base metal assays are first determined using the ME-ICP61 method, which reports results as parts per million (ppm). All analyses that reach the overlimits of ME-ICP-61 are reanalyzed with an Ore Grade method. The analytical results are verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures.
For more information on the KSP Project the reader is directed to the Company’s website at www.coloradoresources.com.
Dr. Jim Oliver, Ph.D, P. Geo., the Company’s Chief Geoscientist, is the Qualified Person as defined by National Instrument 43-101 (“QP”) who approved the scientific and technical disclosure in this news release.
John Zbeetnoff, P.Geo., is a QP and a consultant to the Company who provides oversight on the QA/QC program for Colorado and designed in concert with ALS Global Vancouver the process for the handling of the selected samples from drillhole INDDH17-081.
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 Nevada. Colorado’s main BC exploration projects include the KSP property, the North ROK Property, the Kinaskan-Castle Property and the KingPin Property, all 100% owned by Colorado. Additionally Colorado holds an option on the Green Springs Property in Nevada from Ely Gold & Minerals Inc.
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 & CEO; or Terese Gieselman, CFO
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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