The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
CXO: TSX-V
President and CEO: Adam Travis
Executive Chairman: Larry Nagy
Vice President, Exploration: Greg Dawson
Chief Geoscientist: Jim Oliver
Colorado Resources Ltd. focused in 2013 primarily on exploring its North ROK and 75-percent-optioned Eldorado properties near the Red Chris mine development area about 70 kilometers (43 miles) south of Dease Lake in northwestern British Columbia.
North ROK is comprised of 14 mineral tenures covering 5,188 hectares (12,820 acres).
The company also owns the Hit and Heart Peaks properties in northwestern British Columbia and holds an option to acquire a 100 percent interest in the Oro Property located in east-central Yukon Territory.
In early 2013 the company completed a four-hole drill program at North ROK that returned very encouraging assay results.
These include hole NR13-001with its entire length of 333 meters averaging 0.51 percent copper and 0.67 grams per metric ton gold; and hole NR13- 004 with 205.2 meters averaging 0.40 percent copper and 0.50 g/t gold, starting at 158.8 meters depth and including 131.0 meters averaging 0.56 percent copper and 0.68 g/t gold starting at 182.8 meters depth.
In addition, Colorado completed ground geophysical, geochemical and geological surveys in preparation for future drilling.
Based on encouraging initial drill results as well as geophysical and ground work, the company's board of directors approved a C$2 million budget for a 5,000-meter follow-up drill program designed to concentrate on a 300-400 meter-wide by 1200-meter-long magnetic anomaly.
Colorado Aug. 28 reported results from nine additional drill holes (3,148 meters), which enlarged the North ROK porphyry body to over 500 meters in strike length, maintained average grades of more than 0.5 percent copper-equivalent (0.3 percent copper and 0.37 g/t gold) in more than 1,800 meters of mineralized intersections, and returned significant porphyry mineralization from 10 of 12 holes.
Colorado President and CEO Adam Travis said he was particularly encouraged by hole NR13-013, the farthest mineralized intersection from the discovery hole, which was terminated at the drill's maximum capacity (565 meters depth), but was still returning mineralized material grading 0.24 percent copper and 0.11 g/t gold (0.31 percent copper-equivalent from the bottom of the hole.
Colorado also said it received approval from B.C. regulators to drill an additional 40 holes on the North ROK property.
At the 3,600-hectare (8,896 acres) Eldorado property, meanwhile, Colorado completed a 1,431-meter, five-hole initial drill program in July that was designed to test a 600-meter by 2,000-meter chargeability anomaly that extends to a depth of at least 500-meters and is coincident in part with historic copper and gold soil anomalies. The company said in August that it was encouraged by the insight gained from the drilling and is currently preparing follow-up exploration which could include further drilling.
Colorado and vendors of the Oro property agreed May 1 to amend the existing option to reduce remaining cash payment obligations to C$600,000, and accelerate common share payment and advance royalty payment dates.
On May 6, Colorado entered into an option and joint venture agreement with Gold Fields Selwyn Exploration Corp., whereby Colorado has agreed to transfer to Gold Fields up to a 70 percent interest in the Oro Property.
Gold Fields Selwyn is a subsidiary of Gold Fields Ltd. The Oro property covers about 36,000 hectares (88,956 acres) is located in the mineral-rich MacMillan Pass area of the Yukon Territory.
The Oro property was acquired due to its favorable geological setting along the Yukon "Carlin Gold" Trend, which also hosts Atac Resource's Rau, Osiris and Tiger zones.
Previous work in the area included a trench of talus fine material that returned 44 meters of 2.5 grams per metric ton gold.
In July, Colorado reported that Gold Fields had begun a C$2 million exploration program, including 3,000 meters of diamond drilling.
Gold Fields planned to focus on the Oro Main Zone, an 800-meter by 4,000-meter area containing a large number of multi-element soil geochemical anomalies, which have been defined by more than 19,000 soil samples, 1,900 rock samples, 2,000 line kilometers of airborne geophysical data, the excavation of 15 trenches and the completion of detailed property-scale geologic mapping by Colorado in the 2011 and 2012 exploration seasons.
Cash and short-term deposits: C$6.1 million (June 30, 2013)
Working capital: C$5.9 million (June 30, 2013)
Market capitalization: C$16.2 million (Sept. 27, 2013)
110 - 2300 Carrington Road,
West Kelowna, BC
Canada V4T 2N6
Tel: 250-768-1511
Fax: 250-768-0849
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