Colorado's Red Chris Area Eldorado Property Update
WEST KELOWNA, BRITISH COLUMBIA -- (Marketwire) -- 11/28/12 -- COLORADO RESOURCES LTD. (TSX VENTURE: CXO) ("Colorado" or the "Company") is pleased to announce the results of a 24 line kilometre deep sensing Induced Polarization Survey on the Eldorado Property, Red Chris Area northern British Columbia.
As announced on October 4, 2012 Colorado entered into an Option Agreement with Sunrise Resources (TSX VENTURE: SHI) ("Sunrise") to acquire up to a 75% interest in the Eldorado Copper-Gold Property located in northern British Columbia.
The Eldorado property covers the Eldorado and Bonanza Minfile copper-gold showings located approximately 7 km along strike to the northeast of Imperial Metals Red Chris Cu-Au deposit which is in the mine construction phase.
Previous work on the property outlined anomalous copper and gold in soils over a 500 m x 1000 m area and shallow induced polarization (IP) anomalies associated with an east west trending ridge and some of the only outcrop exposure noted on the property. Four short holes were drilled in 1980 (totalling 640.4 m) to test the IP anomalies. These holes encountered distal porphyry style mineralization and alteration with 3 metre intersections grading up to 0.23% copper and 0.79 g/t Au. Subsequent geophysical and geological work in 2004 in an area up to 1.5 kilometres to the east of the 1980 drilling returned modest anomalies but no further work was completed. In 2007 approximately 20 line kilometres of line cutting were completed however a proposed geophysical survey was not conducted.
Colorado staff recognized that previous exploration had only tested the Eldorado property to shallow (less than 100 m) depths. Given the experience at Red Chris in 2007 where a drill hole (Hole 07-335) targeting a deep I.P anomaly returned 1.01 % copper, 1.26 g/t gold and 3.92 g/t silver over 1024.1 m down the core of the mineralized system, Colorado elected to conduct a deep survey on the lines previously cut in 2007.
The 24 line km I.P survey was completed by Peter E. Walcott and Associates and consisted of 200 m dipole spacing with the ability to measure to 500 metre depths. This survey indicates a 1400 m x 2000 m moderate (greater than 10 mv) chargeability anomaly with two discrete shallow zones in the north central portion that were the focus of the 1980's drilling, but more importantly, shows a 500 m x 2000 m strong (greater than 15 mv) chargeability anomaly in the south that was not detected by previous surveys and has never been tested.
The Company is encouraged by the fact that there is a sizeable (500 m x2000 m) untested induced polarization anomaly located in a broad valley under cover in a similar geological setting only 7 kilometres east of Imperial Metals Red Chris deposit. The geophysical anomaly is similar in size, shape and strength to geophysical anomalies with associated mineralized bodies at both NGEx's GJ Property and Imperial Metals Red Chris Property. Highly anomalous copper and gold in soils located by previous work near the only outcrop on the property on the periphery of this geophysical anomaly also indicate that this sulphide system has the potential to carry anomalous copper and gold values.
The Company is well financed and has submitted exploration drill permits and plans to commence drilling as soon as permitting and weather allow.
"I have been working in the Red Chris area now for over 25 years and am confident that this untested geophysical anomaly is one of the better alkalic copper gold porphyry drill targets I have seen given its location and geological setting next door to Red Chris," said Adam Travis, Colorado Resources Ltd President and CEO.
Qualified Person
Mr. Greg Dawson, P.Geo., is the Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data in this news release.
About Colorado
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 quality properties in the US southwest and Latin America.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.
Adam Travis, President and Chief Executive Officer
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.
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Contacts:
Colorado Resources Ltd.
Adam Travis
President and Chief Executive Officer
(250) 768-1511
(250) 768-0020 (FAX)
Colorado Resources Ltd.
Terese Gieselman
Chief Financial Officer and Secretary
(250) 768-1511
(250) 768-0020 (FAX)
www.coloradoresources.com