Colorado Identifies New Mineralized Zone and Demonstrates Significant Continuity of Gold Copper Mineralization at North ROK
July 08 2014 - 7:30AM
Marketwired Canada
COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is
pleased to announce the results of 5 diamond drillholes totalling 2191 m on the
North ROK claims. The 2014 Phase I drill program followed the recommendations of
the NI 43-101 report to target the expansion of the known inferred resource and
drill tested kilometre scale geophysical anomalies that cluster around the
existing inferred resource. The location of the 2013 and 2014 drill collars are
illustrated on Figures 1 and 2, and the 2014 drill results are compiled in Table
1. All mineralized intervals are drill indicated widths as the precise
orientation of the mineralized zone relative to the drillhole orientation has
not yet been conclusively defined.
To view Figure 1 and Figure 2, visit the following links:
Figure 1: http://media3.marketwire.com/docs/NewsRelease14-007-Figure1.pdf
Figure 2: http://media3.marketwire.com/docs/NewsRelease14-007-Figure2.pdf
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NORTH ROK CU-AU PORPHYRY SYSTEM - REPORTED DRILL RESULTS TO DATE (Table 1)
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Total
Collar Depth From To Interval Cu Au (i)Cu
Hole Azimuth Dip (m) (m) (m) (m) % g/t EQ %
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NR14-030 40 -45 303.3 No Significant Results
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NR14-031 40 -45 450.5 308.5 388.9 80.4 0.442 0.124 0.520
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NR14-032 40 -65 415.8 277.4 415.8 138.4 0.111 0.088 0.167
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includes 293.7 332.6 38.9 0.265 0.238 0.415
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NR14-033 220 -65 419.1 No Significant Results
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NR14-034 32 -45 602.6 379.5 578.5 199.0 0.210 0.416 0.473
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includes 424.5 560.5 136.0 0.267 0.564 0.623
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includes 448.5 548.9 100.4 0.314 0.736 0.779
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(i) Cu EQ (copper equivalent) has been used to express the combined value of
copper and gold as a percentage of copper and is provided for illustrative
purposes only. No allowances have been made for recovery losses that may
occur should mining eventually result. Copper equivalent calculations
herein use metal prices of US $3.00/lb of copper and US $1,300 per troy
ounce of gold using the formula CuEQ= (Cu%+(Au g/t x0.632).
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The 2014 Phase I drill program succeeded in:
1. Intersecting new mineralized zones at the West Mabon Zone, associated
with 1.5 km long untested IP chargeability anomalies with DDH NR14-031
returning 80.4m of 0.124 g/t Au and 0.442% Cu. Current technical data
indicates that unlike the sub-vertically dipping North ROK Main Zone,
the West Mabon zone has an apparent 45 degree southwest dip (Figure 3)
which creates significant exploration potential along the western
margins of the IP chargeability over a distance of more than 1.5 km from
DDH NR14-034 to the Edon mineral occurrence. To view Figure 3, visit the
following link: http://media3.marketwire.com/docs/NewsRelease14-007-
Figure3.pdf
2. Demonstrating significant depth potential and continuity of gold-copper
mineralization over 250 metres below mineralization in DDH NR13-001 with
DDH NR14-034 returning 199 m of 0.416 g/t Au and 0.210% cu, including
100.4 m of 0.736 g/t Au and 0.314% Cu (Figure 4) . Copper - gold grades
within selected intervals of both DDH NR14-034 and DDH NR13-001 approach
that which would be permissive to bulk underground mining. The strength
of these copper-gold mineralized zones are continuing to depths
exceeding 400 m below surface. To view Figure 4, visit the following
link: http://media3.marketwire.com/docs/NewsRelease14-007-Figure4.pdf
3. Defining the broad, deposit scale geometries and controls on mineralized
zones. The presence of a second mineralized zone with a modest southwest
dip, when linked to the vertically orientated Mabon Zone, may (i)
significantly increase the preferred target area and net tonnage of
mineralized rock and (ii) significantly decrease the overall strip ratio
of any potential open pit development(i) (See Cautionary Note).
4. Southwest Dipping Mineralization Implications - The existence of a
southwest dipping mineralized zone in the West Mabon area suggests that
the results of drilling in the Edon occurrence area, DDH's NR13-010, 13-
15 and 13-18 may require re-evaluation. All of these drill holes were
collared on 220 degrees azimuths and drilled at -45 degrees dips.
These drill holes could have potentially missed southwest dipping
mineralization similar to the newly discovered West Mabon Zone.
Similarly, DDH NR13-012 which was drilled at an azimuth of 220 degrees
and a dip of -45 degrees would not have been favorably orientated to
intersect southwest dipping mineralization like the West Mabon Zone.
5. Testing of Other Areas - Drill testing of the North Mabon chargeability
anomaly (DDH NR14-030) and tests of the extreme northeastern flank of
the Mabon mineralized zone (DDH NR14-033) produced no significant
results. A modest copper-gold intersection was obtained while targeting
fault offset mineralization with DDH NR14-032 coring 38.9 m of 0.265% Cu
and 0.238 g/t Au between 293.7 and 332.6 m.
Adam Travis, President and CEO of Colorado commented: "The results of the first
phase of the 2014 North ROK drill program have greatly expanded the size of the
currently known gold-copper mineralized zones, diversified the geometry of
mineralized zones, established the continuity of higher grade gold-copper
mineralization and introduced significant new potential into the North ROK
project. Colorado Resource's technical team is currently evaluating the results
of the first phase of the 2014 North ROK exploration program with the intention
of further testing this remarkable discovery".
Qualified Person
Greg Dawson, P.Geo. is the Qualified Person as defined by National Instrument
43-101 who supervised the work program and preparation of the technical data in
this news release.
QA/QC Statement
The samples were analyzed by Acme Analytical Laboratories of Vancouver, British
Columbia. Copper values were first determined using the 1DX ICP-MS method which
reports values as parts per million (ppm). Any samples containing greater than
10,000 ppm copper were assayed by the 7AR method, which reports values as
percent copper. The gold results were determined using the G601 Fire Assay
method which reports gold results in ppm and are equivalent to grams per tonne
(g/t). The analytical results were verified with the application of industry
standard Quality Control and Quality Assurance (QA-QC) procedures.
About Colorado
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 its North ROK
property, located 15 km's northwest of the Red Chris mine development, and to
commence field work on its KSP property optioned from SnipGold, located 15 km's
along strike to the southeast of the past producing Snip Mine, both located in
northern central British Columbia.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.
Adam Travis, President and Chief Executive Officer
NR 14-07
(i) Cautionary Note Regarding Reference to Inferred Resource
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for mineability,
selectivity, mining loss and dilution. These mineral resource estimates include
inferred mineral resources that are normally considered too speculative
geologically to have economic considerations applied to them that would enable
them to be categorized as mineral reserves. There is also no certainty that
these inferred mineral resources will be converted to measured and indicated
categories through further drilling, or into mineral reserves, once economic
considerations are applied. The mineral resource estimate referenced in this
press release uses the term "Inferred Mineral Resources". While this terms is
defined in and required by Canadian regulations (under NI 43-101), this term is
not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred
Mineral Resources" have a great amount of uncertainty as to their existence, and
great uncertainty as to their economic and legal feasibility. The SEC normally
only permits issuers to report mineralization that does not constitute SEC
Industry Guide 7 compliant "reserves" as in-place tonnage and grade without
reference to unit measures. U.S. investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be converted into
reserves. Colorado is not an SEC registered company.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, specifically the reference to
the inferred resource and any future exploration work at the North ROK project,
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 mineralization at North ROK conforms with the geological model as described
in the Company's Technical Report filed under the Company's profile at
www.sedar.com and the Company's website, that the Company continues to maintain
a good relationship with the local North ROK project communities, and that
future metal prices reflect or exceed those used in the resource estimate as a
result of future demand for metals. 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Colorado Resources Ltd.
Adam Travis
President and Chief Executive Officer
(250) 768-1511 or TF: (855) 768-1511
Colorado Resources Ltd.
Terese Gieselman
Chief Financial Officer
(250) 768-1511 or TF: (855) 768-1511
(250) 768-0849 (FAX)
www.coloradoresources.com
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