TSX-V: CXO
VANCOUVER, BC, July 14, 2020 /CNW/ - COLORADO RESOURCES LTD. (TSX-V: CXO)
("Colorado" or the
"Company") is pleased to announce the commencement of
exploration at the Castle Project in the Golden Triangle region of
Northern British Columbia (Figure
1). The field program is designed to minimize physical contact with
local communities and strictly adhere to Covid-19 guidelines
established by the British Columbia Government, local First Nations
and the Company (available on the Company website here).
The 2020 field program will be comprised of surface sampling,
mapping, and an induced polarization ("IP") survey at the highly
prospective Castle Property where past exploration discovered two
porphyry copper-gold systems. The two systems, Castle East
and Castle Main, are located five and eight kilometres
("km"), respectively, along trend to the west of GT Gold Corp.'s
Saddle North copper-gold deposit (Figure 2) where GT Gold announced
a maiden resource on July 7, 2020
(see GT Gold news release), which includes an Indicated Resource*
of 1,809 million pounds ("Mlb") copper ("Cu"), 3.47 million ounces
("Moz") gold ("Au") and 7.58 Moz silver ("Ag"), and an Inferred
Resource of 2,982 Mlb Cu, 5.46 Moz
Au and 11.64 Moz Ag.
The intent of the 2020 field program at Castle will be to define
drill targets in anticipation of a 2021 drill campaign with the
goal of discovering additional porphyry and high-grade gold
deposits along the Castle-Saddle trend.
Castle-Saddle Trend
The Castle-Saddle Trend is an approximately 10 km-long belt of
structurally disrupted, variably altered and mineralized monzonitic
intrusions with associated soil and geophysical anomalies. The
Castle-Saddle Trend is part of a cluster of Latest Triassic (207 –
206 Ma) porphyry copper-gold systems in Northern Stikinia, which
include the Red Chris mine, Newcrest Mining's GJ deposit, and
Colorado's Mabon (North ROK)
deposit. Mineralized copper-gold porphyry systems that have been
discovered along the Castle-Saddle Trend to date include the Saddle
North Deposit on GT Gold Corp.'s Tatogga Property, and Castle East
and Castle Main on Colorado's
Castle Property.
2020 Exploration Program
Although drilling to date at Castle Main and Castle East have
generally returned intervals of lower grade mineralization than the
Saddle North Deposit, higher grade mineralization has been
intersected including 4 metres ("m") grading 2.14% Cu, 4.88 grams
per tonne ("g/t") Au, and 73.2 g/t Ag (historic drill hole CA13-03)
at Castle Main. The mineralization in both areas is open in
multiple directions. In addition, large portions of the
Castle-Saddle Trend on Colorado's
ground remain untested by drilling; this includes the 1.36 km long
gap between Castle Main and Castle East where high grade copper
mineralization (up to 3.78% Cu in historic grabs) has been sampled.
The 2020 field program, which is designed to lay the framework for
a robust drill program in 2021, will test the hypothesis that there
are multiple unexplored porphyry centres along the Castle-Saddle
Trend. Areas of focus for the 2020 exploration program will
include:
Moat:
Along the eastern property boundary with
GT Gold's Tatogga property, elevated gold (up to 0.649 g/t),
silver, arsenic, copper and antimony in talus fines will be better
defined through infill contour soil sampling and geological mapping
(see News Release December 9, 2019).
Exploration at Moat is designed to track epithermal gold-silver
mineralization at Saddle South westwards across the Colorado/GT Gold claim boundary. A north-south
transect near the claim boundary will also be evaluated for an
induced polarization survey line.
Castle East:
Three of four 2019 drill holes at
Castle East intersected intervals of low-grade
copper-gold-molybdenum mineralization in sericite-pyrite altered
volcanic rock and monzodiorite intrusions (e.g. 242.8 m grading 0.07% Cu and 0.03 g/t Au in
drill-hole CAE19-02). The style of mineralization and alteration is
the same as that found in the upper levels and shoulders to the
main potassic altered domains in the Saddle North Deposit where
higher grade mineralization is hosted. Detailed geological mapping
and expanded rock sampling at Castle East, along with hyperspectral
analysis of surface and drill core samples, is proposed to help
vector into a higher grade portion of the Castle East porphyry
copper-gold system.
Castle South:
At Castle South a two km-long IP
chargeability anomaly coincident with a thrust panel of Upper
Triassic sedimentary rock remains untested by drilling and is open
to the east and west. Where the chargeability anomaly may extend
eastwards beyond the limit of the IP survey, an antiformal window
exposes volcanic rock intruded by monzodiorite dykes beneath the
thrust panel. Soil lines that cross the window of exposure have
moderately to strongly elevated molybdenum, arsenic, bismuth, and
antimony +/- copper and gold. A single IP line that approaches the
area from the north indicates increasing chargeability. Infill soil
sampling and geological mapping at Castle South in 2020 will better
refine drill targets and a proposed IP survey will delineate the
potential extent of a blind porphyry target beneath the thrust
panel.
Qualified Person
The Qualified Person responsible for
the technical information in this news release is David Fleming, P.Geo., VP Exploration, who has
approved the technical information included herein. Any
reference to adjacent properties should not be relied upon.
*As stated in GT Gold Corp.'s July 7,
2020 news release, the Saddle North Mineral Estimate
consists of an Indicated Resource of 298 Mt grading 0.28%
copper, 0.36 g/t Au and 0.8 g/t Ag for a total of 1,809
million pounds Mlb Cu, 3.47 Moz Au
and 7.58 Moz Ag, and an Inferred
Resource of 543 Mt grading 0.25% Cu,
0.31 g/t Au and 0.7 g/t Ag for a total of 2,982 Mlb Cu, 5.46
Moz Au and 11.64 Moz Ag.
We seek safe harbor.
About Colorado
Colorado Resources Ltd. is exploring for high-grade gold and
copper with a focus on the Golden Triangle and Toodoggone areas of
British Columbia. The property
portfolio includes the Company's flagship Castle property, a
porphyry copper-gold project located in the Red Chris mining
district of the Golden Triangle neighbouring GT Gold's Tatogga
property, and Newcrest Mining's GJ property. Other properties
include KSP, North ROK, ROK-Coyote, and Kingpin in the Golden
Triangle, Sofia in the Toodoggone
district, and Heart Peaks and Hit in other strategic districts
within British Columbia. These
assets are being advanced by a newly assembled technical and
management team with experience in exploration, permitting and
discovery.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.
"Joseph
Mullin"
Joseph Mullin
Chief Executive Officer and Director
Cautionary Note Regarding Forward-Looking
Statements
All statements, trend analysis and other information
contained in this press release about anticipated future events or
results constitute forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "believe", "plan", "estimate",
"expect" and "intend" and statements that an event or result "may",
"will", "should", "could" or "might" occur or be achieved and other
similar expressions. All statements, other than statements of
historical fact, included herein, are forward-looking statements.
Although the Company believes that the expectations reflected in
such forward-looking statements and/or information are reasonable,
undue reliance should not be placed on forward-looking statements
since the Company can give no assurance that such expectations will
prove to be correct. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements, including the risks, uncertainties
and other factors identified in the Company's periodic filings with
Canadian securities regulators as well as the risk that the ongoing
COVID-19 pandemic may have on the Company's business. Important
factors could cause actual results to differ materially from
Colorado expectations.
Forward-looking statements are based on estimates and opinions of
management at the date the statements are made. Colorado does not undertake any obligation to
update forward-looking statements except as required by applicable
securities laws. Investors should not place undue reliance on
forward-looking statements.
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.
SOURCE Colorado Resources Ltd.
