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WEST KELOWNA, BRITISH COLUMBIA–(Marketwire – Sept. 21, 2011) – COLORADO RESOURCES LTD. (TSX VENTURE:CXO) (“Colorado” or the “Company”) is pleased to announce it has signed a letter agreement with two private individuals to acquire a 100% interest in the 8,546 hectare Aspen Grove South Property, located in southern B.C.
To earn its 100% interest, Colorado must issue 100,000 shares, subject to TSX Venture Exchange approval and grant the vendors a 2.5% N.S.R. of which the first 1.5% may be purchased for $1 million and the remaining 1% for $3 million.
The Aspen Grove South Property is centred around the Company’s Hit Gold Property which is located approximately 30 kilometres north of Princeton where Copper Mountain Mining Corp. recently put the Copper Mountain (Similco) copper-gold-silver mine back into production. This combined property covers a 6 km x 30 km area and along with the Company’s recent claim staking acquisitions brings the expanded Hit property to over 11,324 hectares.
The Company has recently completed a detailed trenching program over the main occurrence on the Hit Property to better understand the controls to mineralization. The area was mapped in detail and over 700 channel samples were collected. The Company eagerly awaits the results of these samples.
Although the area has seen a considerable amount of work since the 1970’s copper boom, many of the more than 19 known mineral minfile occurrences on the expanded Hit property have seen little detailed follow up, even when such work was recommended.
Examples of known mineral (B.C Minfile) occurrences on which work was recommended but not completed include the Pine, which is host to seams and disseminations of chalcopyrite and pyrite in reddish granite and quartz monzonite. Trenches excavated in an area 270 metres long and 60 to 90 metres wide averaged 0.20, 0.19 and 0.37 per cent copper over lengths of 48.8, 42.7 and 45.7 metres, respectively. The last recorded work on the Pine was in 1973.
At the Golden 1 occurrence, a gossanous zone up to 70 metres wide trends 160 degrees for up to 340 metres in a section of tuff and tuff breccia with minor lahar deposits and agglomerate. Mineralization consists of malachite, bornite, chalcocite and chalcopyrite. Samples taken from the zone have assayed over 1 per cent copper (Assessment Report 9821, page 5). The last recorded work on the Golden 1 occurrence was in 1984.
At the Vale occurrence, work by Cordilleran Engineering in 1991 defined a 400 m long gold in soil anomaly with several contiguous high values of up to 710 ppb Au. The anomaly could be reflecting high grade vein hosted gold mineralization similar to Gold Mountain Mining Corporation’s Elk deposit 12 km to the north of the property.
The Company is extremely encouraged by the prospective geological setting for both copper gold porphyries similar in nature to the recently opened Copper Mountain Mine and the potential for high grade gold in quartz veins like the Elk Deposit.
Qualified Person
Mr. Greg Dawson, P.Geo., is the Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data in this news release.
About Colorado
Colorado is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and the Yukon and is also aggressively seeking properties in Latin America. Colorado’s primary focus is on the Oro Property located in the MacMillan Pass area of the Yukon, in which it has the option to acquire a 100% interest.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.
Adam Travis, President and Chief Executive Officer
