Colorado Goldfields Inc. Announces New Approach in Pride of the West Mill Permit; Streamlines Dry Stack Tailings Repository; ...
March 01 2012 - 8:30AM
Marketwired
Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA)
announces its streamlined approach to tailings management, which
was contained in the Company's Rule 112-b Reclamation Permit
Amendment (AM-03) Application to the State of Colorado Division of
Reclamation, Mining, and Safety ("DRMS") submitted on January 27,
2012.
As a follow-up to its press release of February 28, 2012, the
Company details its new streamlined approach for tailings
management contained in the permit amendment application
filing.
"In the early part of the design process, we had identified a 35
acre site for a dry stack tailings repository. As the analysis
continued, it became clear that a much faster path to production
could be achieved by utilizing a location on our own property,"
stated Stephen C. Fearn, Consulting Engineer for Colorado
Goldfields.
Colorado Goldfields Inc. conducted geotechnical investigation,
flood and avalanche hazard studies of the proposed 35 acre mill
tailings repository site during the summer and fall of 2011.
Engineering studies were then conducted utilizing the results of
the geotechnical investigation and the hazard studies. As a result
of this analysis, significant challenges emerged to the development
of a viable and economic tailings repository on that property.
The proposed land was underlain by saturated substrate not
unlike the old tailings ponds at the Pride of the West Mill,
requiring significant additional analysis. A second site located on
the 35 acre property was found to be in the run-out zone of a major
avalanche slide path and was also located adjacent to the channel
of the Animas River.
Therefore, the team intensely re-evaluated the permitting,
engineering, total cost and construction scheduling requirements of
the original 35 acre plan. At the conclusion, a new site was
identified on property owned by Colorado Goldfields Inc. that
avoided the challenges of the 35 acre site. The new site would
require less time to permit, would have lower construction costs, a
shorter construction schedule and would result in bringing the
Pride of the West Mill into production at an earlier date. Although
the site is smaller than the original plan, it will result in lower
initial operating costs and not delay the planned re-activation
date of the facility.
The advantages of the new site incorporated in the current
permit amendment application are: 1) located on a dry alluvial
bench above the flood plain of the Animas River, 2) offers
significantly superior geotechnical foundation conditions with
simpler design and less expensive construction requirements, 3) has
no avalanche hazard, 5) is only 400 feet from the mill building
saving approximately 2 miles of haulage distance for the de-watered
mill tailings, 5) will serve as an archetype facility that will
expedite future design and regulatory approval of facilities for
future tailings repository needs.
Gold stocks
About Colorado Goldfields Inc. Colorado
Goldfields Inc. (OTCQB: CGFIA) (http://www.cologold.com) is a
Denver-based junior exploration and mining company primarily
exploring for gold and silver. Our seasoned management team targets
historic gold camps with strong potential for multiple deposit
discoveries. Currently, our business model in Colorado provides an
outstanding combination of former producing properties with
excellent exploration and production potential and a currently
inactive, modern, up to 700 ton per day capacity mill facility to
allow for an attractive short-term production time frame. We expect
that this strategic plan will allow Colorado Goldfields to reach
its goal of profitability, potentially within the next 18
months.
The Company has made available a current CGFIA Fact Sheet in PDF
format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.
Notice regarding forward-looking
statements This news release may contain forward-looking
statements or information within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements or information includes statements regarding the
expectations and beliefs of management. Forward-looking statements
or information include, but are not limited to, statements or
information with respect to known or unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information. Forward-looking
statements or information are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements or
information, including, without limitation, risks and uncertainties
relating to obtaining financing to meet the Company's exploration
program and operating costs during its exploratory stage, the
interpretation of exploration results and the estimation of mineral
resources and reserves, the geology, grade and continuity of
mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations, accidents, equipment breakdowns, title
matters, or other unanticipated difficulties with or interruptions
in production and operations, the potential for delays in
exploration or development activities or the completion of
feasibility studies, the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses,
commodity price fluctuations, currency fluctuations, regulatory
restrictions, including the inability to obtain mining permits and
environmental regulatory restrictions and liability, the
speculative nature of mineral exploration, dilution, competition,
loss of key employees, and other risks and uncertainties, including
those described under "Risk Factors" in the Company's Annual Report
on Form 10-K filed on November 23, 2011, which is on file with the
Securities and Exchange Commission at
http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm,
as well as the Company's other SEC filings. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements. Accordingly,
readers are advised not to place undue reliance on forward-looking
statements or information. The Company does not undertake any
obligation to release publicly revisions to any "forward-looking
statement," to reflect events or circumstances after the date of
this news release, or to reflect the occurrence of unanticipated
events, except as is required under applicable securities laws.
Cautionary note to U.S. Investors -- The United States
Securities and Exchange Commission permits U.S. mining companies,
in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or
produce. We use certain terms on this website (or press release),
such as "measured," "indicated," and "inferred" "resources," which
the SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosures in our 10-K which may be
secured from us, or from the SEC's website at
http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm,
his press release may contain information about adjacent properties
on which we have no right to explore or mine. We advise U.S.
investors that the SEC's mining guidelines strictly prohibit
information of this type in documents filed with the SEC. U.S.
Investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our
properties.
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Contact: Investor Relations Colorado Goldfields Inc.
866-579-9444 or 303-984-0524 http://www.cologold.com