Colorado’s first drill hole resulted in 242m of 0.63% copper and 0.85 g/t gold which a is a very respectable grade for a copper porphyry deposit. However, since that first hole grades have not been nearly as good.
[box type=”info” align=”aligncenter” ]Disclaimer: This is an editorial review of a public press release and may include opinions or points of view that may not be shared by the owners of geologyforinvestors.com or the companies mentioned in the release. The editorial comments are highlighted so as to be easily separated from the release text. Please view the full release here.[/box]
WEST KELOWNA, BRITISH COLUMBIA–(Marketwired – Oct. 1, 2013) – COLORADO RESOURCES LTD. (TSX VENTURE:CXO) (“Colorado” or the “Company”) is pleased to announce the results of a further five diamond drill holes completed at North ROK, including hole NR13-17 with 177m of 0.55% Cu Eq that included 68m of 0.79% Cu Eq. Of the five holes two were completed on the Mabon Zone and three on the Edon Zone.
[box type=”note” align=”aligncenter” ]This project is a good example of a very early stage exploration program. Unlike many projects that are worked and reworked over decades, Colorado is the first to drill on this project. Their drill program was preceded by a ground magnetic and IP survey, geologic mapping program and soil sampling – all of which helped to develop the initial drill targets.[/box]
Drill hole NR13-016, which was drilled between NR13-005 and NR13-008 (see News Release August 28, 2013), confirmed the continuation of mineralization between these holes. Drill hole NR13-017, which was drilled vertically 170m beneath and on the same sectional plane as drill hole NR13-011, demonstrated the mineralized zone as cored in drill hole NR 13-17 has significantly increased in grade and width relative to the shallower drill hole NR 13-11. Drill hole NR13-017 also demonstrated the mineralized system remains open to the northwest.
Drill testing of the on-strike continuation of the mineralized zone to the northwest of drill hole NR13-017 and to the southeast of drill hole NR13-013 is in progress with 2 diamond drill rigs currently on the property.
[box type=”note” align=”aligncenter” ]Colorado’s first drill hole (NR13-001) resulted in 242m of 0.63% copper and 0.85 g/t gold which a is a very respectable grade for a copper porphyry deposit. Even better that the mineralization started at the surface. However, since that first hole grades have not been nearly as good and these most recent results have followed that trend.[/box]
Table 1: MABON ZONE DRILLING NR13-016 and NR13-017
|Hole||Azimuth||Dip||Length||From||To||Interval||Cu %||Au g/t||Cu Eq %|
|*Copper equivalent grades are based on metal prices of: US$3.00/lb of copper and US$1,300 per troy ounce of gold using the formula Cu Eq = Cu % + Au g/t*0.632). No provision was made for metallurgical recoveries for the metals.|
[box type=”note” align=”aligncenter” ]As of this writing gold has fallen below the baseline $1300/oz used by Colorado in their CuEq calculations so these numbers are already inaccurate. Remember that Eq or “Equilavalent” calculations will fluctuate with commodity prices and generally assume a 100% recovery rate so should not be relied upon other than as a comparison to other deposits of a similar style.[/box]
Note: the lengths quoted represent core lengths and do not necessarily represent the true thickness of mineralized intervals. 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 – 10,000 ppm = 1 %). Any samples containing greater than 2000 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.
To view the Map, please visit the following link: http://media3.marketwire.com/docs/COLORADO-RESOURCES.pdf.
Three reconnaissance drill holes in the Edon Zone, located approximately 1.5 kilometres SE of the Mabon Zone near the property’s southeast boundary, were completed near the end of Phase II drilling. The purpose of these holes was to test areas of anomalous copper and gold in soils located within a large area of strong alteration on the periphery of the main Mabon 1 km x 2 km sulphide system.
Reconnaissance holes NR13-014, 015 and 018 did not intercept significant copper or gold mineralization, but did encounter sizeable intercepts of the favourable monzodiorite host displaying alteration patterns commonly associated with the margins of copper-gold porphyry systems. The results of these holes demonstrate that the Mabon discovery occurs within a very large hydrothermal system. The results further demonstrate that the main potential of the North Rok property is at lower elevations within the chargeability anomaly that extends an overall distance of 2 km from the Edon Zone to 500m northwest of the Mabon Zone.
Precision GeoSurveys of Vancouver, B.C. recently completed a high resolution airborne magnetic and radiometric survey over the North Rock property. The results of this survey will assist the Company in mapping the geology and magnetite associated mineralization beneath glacial cover on the northern and western extents of the property.
Adam Travis, President and CEO of Colorado Resources, commented: “We continue to drill at both ends of this robust mineralized system with two drill rigs now more than 1300m apart. Drill hole NR13-17, drilled 170m below hole NR13-011, highlights the fact that the system is very much open and on this section higher grade at depth”.
[box type=”note” align=”aligncenter” ]We have included a map of the project below. Three of the 5 holes reported on this release did not encounter mineralization, but from looking at the map it seems as though they were reconnaissance holes designed to test other magnetic anomalies in the area. They aren’t the first company to chase after phantom geophysics and they won’t be the last. Colorado’s task now will be to take another look at their deposit model and integrate the drill program results with their previous data.[/box]
Mr. 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.
Colorado is engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in Canada and is also aggressively seeking quality properties in the US southwest and Latin America.
Colorado’s current exploration focus is the advancement of its 100% owned North ROK and its optioned Eldorado projects, which are located within 10 to 18kms of the Red Chris mine development, in northern British Columbia.
ON BEHALF OF THE BOARD OF DIRECTORS OF
COLORADO RESOURCES LTD.
President and Chief Executive Officer
[toggle title=”We’ve skipped some of the boilerplate. You can read it in here.” state=”close” ]
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 reports filed on SEDAR at www.SEDAR.com for a more complete discussion of such risk factors and their potential effects.
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.
T: (604) 697-0028
C : (604) 614-2999
www.sterlingmarketingcorp.comColorado Resources Ltd.
President and Chief Executive Officer
T: (250) 768-1511
(250) 768-0849 (FAX)
Toll Free: (855) 768-1511Colorado Resources Ltd.
Chief Financial Officer
T: (250) 768-1511
(250) 768-0849 (FAX)
Toll Free: (855) 768-1511
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