Colorado eyes enticing North ROK targets

While Imperial Metals Corp. forges ahead with development of its Red Chris Mine Project in northwestern British Columbia, exploration fever is building a few miles to the northwest as Colorado Resources Ltd. delivers early excitement on ground that others have already explored.

Not only has the junior's aggressive 2013 exploration program on the 5,188-hectare (12,820 acres) North ROK property attracted attention from investors, it also helped to draw a slew of other explorers to the area.

The excitement started in April when Colorado reported drilling an exceptional 335-meter interval grading 0.51 percent copper and 0.67 grams per metric ton gold in the junior's first-ever drill hole at North ROK. Drill hole NR13-001 included a 242-meter interval of 0.63 percent copper and 0.85 g/t gold.

Formerly known as the "Rose Klappan" property, North ROK is located 70 kilometers (43 miles) south of Dease Lake, B.C. and straddles Highway 37, 15 kilometers (nine miles) northwest of the Red Chris development.

Exploration on the current claims at North ROK focused on the Edon stock where a large malachite stain was noted and numerous disseminated, fracture and quartz vein to stockwork hosted pyrite-chalcopyrite + molybdenite occurrences were discovered associated with propyllitic to phyllic alteration.

Since the mid-1980s, exploration work in the area has focused on the ROK-Coyote system to the immediate east and south of the North ROK property. In late 2009, Brett Resources Inc. staked the North ROK claim group and in 2010, carried out a reconnaissance program over the claims to test for possible extensions of the ROK Coyote copper-gold system to the north, west and east. The nine-day program included silt sampling of creek drainages, prospecting and rock sampling of color anomalies and known copper showings and occurrences and systematic rock chip sampling along elevation contour lines over the Edon stock and across the Plateau Minfile occurrence.

Silt samples from Mabon Creek and drainages off the northern end of the ridge east of Mabon Creek yielded elevated and anomalous copper, gold and molybdenum values. Rock grabs taken from phyllic altered andesites at the Mabon showing returned elevated and anomalous copper and gold values. Brett Resources, subsequently acquired by another company, was unable to follow up on its findings.

Enter Colorado Resources, with its attention refocused on northern British Columbia after several years exploring prospects in Yukon Territory. In addition, to the North ROK claims, the junior made plans in 2012 to explore the Eldorado property, which is adjacent to the Red Christ Mine project.

Flush with cash raised during its Yukon campaign, Colorado spent 2012 examining mineralization in the Mabon showing area with a ground magnetometer survey, an induced polarization geophysical survey, soil sampling and detailed prospecting. The work confirmed the presence of significant copper and gold mineralization, with grab samples returning values up to 1.0 percent copper and 4.4 g/t gold and defined sizable magnetic anomalies on the property.

Encouraging results

This season, Colorado continued to explore the property with an IP survey to the south, further geochemical surveying and diamond drilling.

"I have been working in the Red Chris area now for over 25 years and am confident that this untested geophysical anomaly is one of the better alkalic copper-gold porphyry drill targets I have seen given its location and geological setting next door to Red Chris," Colorado President and CEO Adam Travis after announcing the discovery hole in April.

Colorado June 6 reported results from the remaining three holes of its first 2013 drill program, which includes the impressive discovery in drill hole NR13-001.

The best intercept of the remaining three holes occurred in drill hole NR13-004, collared 100 meters southeast of NR13-001 and drilled at -45-degree dip at an azimuth of 040 degrees and intersected chlorite-quartz-pyrite mineralization, followed by strong secondary magnetite associated with mineralization for more than 205 meters similar to NR13-001.

NR13-004 then intersected epidote and quartz pyrite, with the final meters of the drill hole terminating in volcanic rocks.

The drilling encountered 205.2 meters averaging 0.40 percent copper and 0.50 g/t gold, including 131.0 meters grading 0.56 percent copper and 0.68 g/t gold.

Overall, this drill hole returned 324 meters grading 0.29 percent copper and 0.36 g/t gold.

Drill hole NR13-003 was drilled at -80 degree dip at the same location as NR13-001 and intersected strong magnetite breccia zones similar to NR13-001 for the first 152 meters and transitioned into quartz pyrite assemblages which returned significant gold values with the entire top 409 meters of the drill hole returning 0.14 percent copper and 0.29 g/t gold.

NR13-002, drilled on a secondary target 350 meters west of the discovery hole, intersected a different phase of intrusion and did not encounter significant mineralization. Colorado theorizes that it may have not been drilled deep enough or at the correct azimuth to adequately test the IP chargeability anomaly.

The explorer also reported that its geophysical work has outlined a 1200-meter-by-1200-meter open-to-the-south chargeability feature, which has only been tested on its northernmost end by the drill program over a 100-meter area. A second 500-meter-by-1,000-meter open-to-the-north chargeability feature, located one kilometer (0.62 mile) north of the drill area also was discovered. To date less than 5 percent of the area of these geophysical anomalies has been tested by drilling.

A week later, Colorado reported the discovery of a new IP chargeability anomaly (>20 mv/v), located one kilometer (0.62 mile) north of the discovery drill hole, that is 500-800 meters wide and 1,300 meters long and open to the north.

The company also embarked on another C$2 million, 5,000-meter drill program to concentrate on a 300-400 meters wide by 1200 meters long magnetic anomaly.

"We have been very busy over the last few weeks completing ground geophysical, geochemical and geological surveys in preparation for future drilling.

We now have extensive technical data for the southern portion of our property in hand that will allow for an effective drill campaign to begin.

Significant mineralized intercepts from drill holes NR13-001, 003 and 004 correlate well with magnetic highs that occur over 1200-meter lengths and up to 400-meter widths and deeper than our surveys can detect at 500-meter depths," said Colorado President and CEO Adam Travis.

"Where we have intersected the magnetic high feature in three drill holes over 694 meters of cumulative lengths our average grade is 0.40 percent copper and 0.60 g/t gold.

To put that in context, the East and Main Zones at Imperial Metals' new Red Chris Mine occurs in a 200-500 meters wide by 1500 meters long zone (301.5 metric tons of 0.36 percent copper and 0.27 g/t gold).

We are also seeing other very prospective anomalies both to the north and south which indicate to me that we may also have the start of a mineralized trend not unlike the satellite zones at Red Chris."

A week after that, Colorado reported the results of new ground magnetic geophysical surveys that revealed two anomalies flanking the IP chargeability anomaly and one anomaly in the core of the IP anomaly. The magnetic anomalies flanking the IP anomaly measure about 300 meters by 750 meters and 200 meters by 700 meters, while the magnetic anomaly in the core of the IP chargeability anomaly measures about

20 mv/v), located one kilometer (0.62 mile) north of the discovery drill hole, that is 500-800 meters wide and 1,300 meters long and open to the north.

The company also embarked on another C$2 million, 5,000-meter drill program to concentrate on a 300-400 meters wide by 1200 meters long magnetic anomaly.

"We have been very busy over the last few weeks completing ground geophysical, geochemical and geological surveys in preparation for future drilling.

We now have extensive technical data for the southern portion of our property in hand that will allow for an effective drill campaign to begin.

Significant mineralized intercepts from drill holes NR13-001, 003 and 004 correlate well with magnetic highs that occur over 1200-meter lengths and up to 400-meter widths and deeper than our surveys can detect at 500-meter depths," said Colorado President and CEO Adam Travis.

"Where we have intersected the magnetic high feature in three drill holes over 694 meters of cumulative lengths our average grade is 0.40 percent copper and 0.60 g/t gold.

To put that in context, the East and Main Zones at Imperial Metals' new Red Chris Mine occurs in a 200-500 meters wide by 1500 meters long zone (301.5 metric tons of 0.36 percent copper and 0.27 g/t gold).

We are also seeing other very prospective anomalies both to the north and south which indicate to me that we may also have the start of a mineralized trend not unlike the satellite zones at Red Chris."

A week after that, Colorado reported the results of new ground magnetic geophysical surveys that revealed two anomalies flanking the IP chargeability anomaly and one anomaly in the core of the IP anomaly. The magnetic anomalies flanking the IP anomaly measure about 300 meters by 750 meters and 200 meters by 700 meters, while the magnetic anomaly in the core of the IP chargeability anomaly measures about

500 meters by 700 meters

The explorer said it was encouraged that these new coincident IP and magnetic anomalies appear to have a similar geophysical signature to areas of known mineralization North ROK.

"I'm very pleased with the progress our technical team has made on our North ROK property not only to fine-tune our next phase of drilling but also to advance other exploration targets on our claims. I look forward to a very exciting next round of drilling," Travis added.

Investor, junior interest

When news of Colorado's discovery at North ROK reached the markets, investors reacted with a burst of enthusiasm that sent the junior's shares soaring on the TSX Venture Exchange. When the trading started on April 25, Colorado's shares sold for C16 cents, but by market close that day the shares traded at C54 cents. The share price continued to climb for several weeks, peaking May 21 at C$1.74. By July 22, the junior's shares were trading at C79 cents.

Investor enthusiasm for Colorado shares appears to be waning as additional drill results have been reported. However, fellow explorers appear to remain eager to tackle the region's porphyry copper-gold mysteries.

Orex Minerals Inc., for example, reported June 26 that signed an option agreement to earn a 100 percent interest in the 3,082.38-hectare (7,616.6 acres) Persistence Claims from Cazador Resources Ltd., a private project generator owned by Colorado's Travis. The two separate blocks of the Persistence claims are located near Hwy 37 some 11.5 kilometers (7.3 miles) south-southwest of the North ROK Property.

Among other juniors seeking to explore the area are Entourage Metals Ltd., which June 3 said it took a 100 percent option on the 6,499-hectare (16,059 acres) Odin copper-gold property, 22 kilometers (13.7 miles) north of North ROK and 35 kilometers (22 miles) from Red Chris.

On June 3, Victory Ventures also reported that drilling had begun on its 448-hectare (1,107 acres) Copau property, 11 kilometers (7 miles) northeast of Red Chris, to test a prospective IP anomaly.

A $20,000 purchase of the 654-hectare Railway property posted May 31 places Granite Creek Gold Ltd. 11 kilometers (7 miles) northeast of North ROK. Romios Gold Resources Inc. June 1 reported the acquisition of another 2,900 hectares "in the vicinity" of Red Chris, bringing its northwestern B.C. land package up to 80,000 hectares (197,680 acres).

Following Ashburton Ventures Inc.'s early May acquisitions totaling 1,500 hectares (3,706.5 acres) adjacent to and contiguous with North ROK, the company reported on May 28 that it staked 852 hectares (2,105 acres) contiguous with the Hat copper-gold project being drilled by Doubleview Capital Corp. roughly 115 kilometers (71 miles) northeast. Ashburton has since applied for permits to drill the Zetu and Nerok claims near North ROK.

West Cirque Resources on May 22 reported a follow-up program for its Castle copper-gold property 15 kilometers west of North ROK and 25 kilometers northwest of Red Chris. The project has undergone historic drilling and, last year, an IP survey. Under a deal signed in March, Freeport-McMoRan Copper & Gold Inc. may earn an initial 51 percent interest in Castle and two other northwestern B.C. properties held by West Cirque by funding a total of $8 million over four years. West Cirque wholly owns 431 hectares at Castle, while another 603 hectares have been optioned by Bearclaw Capital Corp.

On May 17 Revolver Resources revealed its 60 percent option of Summit B property, 1,394 hectares contiguous with North ROK. Firesteel Resources reported a tentative agreement on May 14 to option 70 percent of its ROK Coyote property, "right in the heart of the recent activity" at North ROK and Red Chris, to ASX-listed OZ Minerals. Firesteel's Copper Creek, another porphyry copper-gold property closer to Doubleview's Hat project, is the object of a May 6 letter of intent in which Prosper Gold Corp. would acquire an 80 percent interest. Pending a definitive agreement, the deal would give the capital pool company its TSXV qualifying transaction.

TAD Mineral Exploration Inc. May 9 said it had increased its regional land package by about 926 hectares in addition to an 876-hectare copper-gold prospect the company picked up a few days earlier.

Redhill Resources Corp. May 6 said it optioned an initial 50 percent of Yellow Chris South from Teuton Resources Corp., leaving Teuton with about 10,256 hectares remaining in the region.

Serengeti Resources Inc. reported May 1 that it staked the 5,675-hectare Red Chris North property about 10 kilometers (six miles) north of the North ROK discovery.

Contiguous to Red Chris, meanwhile, graphite explorer Canada Carbon Inc. holds the 5,260-hectare Red Chris South copper-gold prospect.