Colorado Goldfields Inc. (OTCQB: CGFI) (OTCQB: CGFID) announces
that it has entered into a Modified Purchase Agreement that adds
the mineral resources from approximately 238 acres of adjoining
patented claims to the Champion Mine including the historic North
Star and Gladstone mines. This addition brings the Champion Mine
property to over 590 acres of patented claims.
Work conducted by Lee R. Rice from available data in developing
the Preliminary Technical Report for the Champion Mine identified
an additional poly-metallic resource in the North Star and
Gladstone mines of 140,000 tons containing 36,000 ounces of gold,
820,000 ounces of silver, 25.7 million pounds of lead, 6.4 million
pounds of zinc, and 2.2 million pounds of copper.
The combined resource would contain 112,000 ounces of gold,
3,250,000 ounces of silver, 57.5 million pounds of lead, 14.3
million pounds of zinc and 9.4 million pounds of copper.
Based on the revised report, the gross value of the additional
metal is approximately $117 million. Total gross value of the
estimated resource for the combined resource is over $348 million
dollars.
Tonnage Metal Content
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Resource Category (tons) Gold (oz.) Silver (oz.)
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Measured 12,594.5 2,729.4 198,035.1
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Indicated 435,887.1 106,823.6 3,522,922.4
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Inferred 709,599.7 709,599.7 5,634,801.3
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Measured and Indicated Only 448,481.6 109,552.9 3,720,957.4
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Mill Recovery Rate (%) 80.0 94.0
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Recovered Metals Gold (oz.) Silver (oz.)
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Measured + Indicated Resource 87,642.3 3,497,700.0
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Metal Price Gold (oz.) Silver (oz.)
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$ 1,675.00 $ 31.50
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Value Total Gold Silver
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Measured + Indicated Resource $ 348,371,149 $ 146,800,930 $ 110,177,550
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Value per ton $ 776.78
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Average price for year 2012
Metal Content
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Resource Category Lead (lb.) Copper (lb.) Zinc (lb.)
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Measured 1,848,869 244,333 445,844
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Indicated 55,638,209 9,193,364 13,863,349
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Inferred 84,746,569 15,908,911 21,087,215
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Measured and Indicated Only 57,487,078.0 9,437,697.2 14,309,193.8
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Mill Recovery Rate (%) 90.0 95.0 95.0
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Recovered Metals Lead (lb.) Copper (lb.) Zinc (lb.)
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Measured + Indicated Resource 51,738,370.2 8,965,812.4 13,593,734.1
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Metal Price Lead (lb.) Copper (lb.) Zinc (lb.)
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$ 0.94 $ 3.45 $ 0.87
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Value Lead Copper Zinc
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Measured + Indicated Resource $ 48,634,068 $ 30,932,053 $ 11,826,549
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Value per ton
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Average price for year 2012
Mr. Rice is President and CEO of Colorado Goldfields Inc. and is
a Qualified Person (QP) as defined by Canadian National Instrument
43-101. Mr. Rice is a Registered Professional Engineer in the state
of Colorado and is a member in good standing of the Society for
Mining, Metallurgy, and Exploration, Inc. as well as being a member
in good standing of a number of other professional technical
societies. Mr. Rice has practiced internationally as a mine
exploration geologist since 1970 and has been a practicing engineer
of mines since 1974.
The Pride of the West Mill ("Mill") is located 5.3 miles
northeast of Silverton, Colorado. The Mill is located on
approximately 120 acres of patented mining claims on San Juan
County Road 2, within a nine air-mile radius of the Silver Wing
Mine, the King Solomon Mine, and many other mine properties. The
Mill is located within the famous "San Juan Triangle" mining center
of southwestern Colorado, which also includes the historic mining
towns of Telluride and Ouray, and encompasses one of the most
richly mineralized areas of North America.
On May 6, 2013, the Company entered into a modified extension
contract for purchase of the Champion Mine. The terms of the
modified and extended contract provide that the Company:
1. Issue to Jo Grant an additional 50,000,000 four-year
restricted shares of Class A Common Stock on or before May 6, 2013.
These shares were issued in May 2013.
2. Pay $3,000,000 to Jo Grant, only for the purpose of
consummating the contract to buy and sell real estate (Land),
between Jo Grant Mining, Inc. (as the Buyer), and a Texas limited
liability company, (as the Seller), dated October 9, 2012, no later
than September 3, 2013, which was extended from May 6, 2013. The
contract to buy and sell real estate (Land) is for the purchase of
the Champion Mine.
3. To pay to Jo Grant an additional sum of $50,000, ($100,000 in
total), no later than September 3, 2013, which was extended from
May 6, 2013.
4. Include an additional 238 acres and 20 additional patented
claims, bringing the total to 591 acres and 70 patented claims.
5. Provide Jo Grant for a period of 99 years a 5% Net Smelter
Royalty ("NSR"), from the Champion Mining Claims as revised. The
payment of the NSR shall be made not more than 45 days after the
close of the month during which the payment is received from the
smelter or buyer on which such NSR is calculated. Gold stocks
About Colorado Goldfields Inc. Colorado
Goldfields Inc. (OTCQB: CGFI) (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. A 3D
animation showing ore processing may be viewed on the Company's
website at: http://www.cologold.com/prideofthewest.htm. A video
tour of the Pride of the West Mill may be viewed at:
http://www.cologold.com/uploads/2009-05-14_Mill.wmv
The Company has made available a current CGFI 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,
this 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