COLORADO RESOURCES DRILLS 25.7 M OF 9.24 G/T AU AT INEL AND EXPANDS DRILL PROGRAM
Colorado Resources Ltd. (CXO.V) has provided an update on drilling at the Inel and Khyber zones on the KSP property under option from Seabridge Gold Inc., whereby Colorado has the right to earn an 80-per-cent interest.
Adam Travis, president and chief executive officer of Colorado, stated: “Although we started drilling only seven short weeks ago, we already have our second set of assay results from Inel drill holes 9 to 30. They have clearly demonstrated some very significant high-grade gold results up to 5.3 ounces per tonne gold over one metre, highlighted in the [attached] table. We are also seeing broader intervals (20 metres to 99 metres) returning greater than one gram per tonne gold, attesting to the robust nature of the mineralized system. We have met this year’s work commitment and, given our continued success, we have elected to expand our drill program and should be at the 51-per-cent earn-in level [of] expenditures by the end of this field season — more than a year ahead of schedule. The expanded and accelerated program will focus on follow-up of the current drill results at Inel and also commence drilling on the Khyber target located two kilometres to the south of Inel. There’s plenty of room at Inel for more mineralization as our first-pass drilling has tested only about 13 per cent of this impressive soil anomaly on a very broad pattern. This will also be our first drilling in the Khyber area this year, and our approach to testing this zone is based on the knowledge gained from our drilling at Inel. The Inel and Khyber target zones represent an area of approximately 10 square kilometres of the greater-than-300-square-kilometre KSP property, which has been recognized by government geologists as highly prospective with a geological setting similar to the KSM and Pretium camps located 30 kilometres to the east. Field crews have also been busy expanding soil coverage and examining/sampling outcrops to the north of Inel and other prospective areas of this large district under Colorado’s control.”
Inel drilling — holes 9 to 30 of 40 drill holes completed to date, values to 5.3 ounces per tonne gold
Since drilling commenced at Inel on June 19, 2016, a total of 40 drill holes (5,481.9 metres) have been completed. Complete assay results have been received for the first 30 drill holes at Inel and significant results from drill holes 9 to 30 are noted in the attached table (see news release dated July 19, 2016, for holes 1 to 8).
2016 work commitments met, expanded drilling program continues
Although Colorado has met its 2016 work commitments, based on the election to continue drilling, the company will work toward the 51-per-cent earn-in level. Upon declaring that it has satisfied the 51-per-cent earn-in requirements, Colorado, at its election, would then have the right to earn up to 80 per cent in the KSP property by incurring a further $4-million in work commitments within one year.
Khyber drilling commenced and Inel drilling to continue
Drilling has commenced on the Khyber zone located approximately two kilometres to the south of Inel. Initial drill testing at Khyber will focus on a 500-metre-by-1,500-metre gold-in-soil anomaly averaging greater than 500 parts per billion gold. This anomaly coincides with the favourable well-mineralized volcanic-sediment contact that also was noted at Inel. Work will also continue at Inel, targeting extension drilling in areas that are returning high-grade results.
Greg Dawson, PGeo, the company’s vice-president of exploration, is the qualified person as defined by National Instrument 43-101 that has reviewed and approved the technical content of this news release.
Quality assurance/quality control statement
The 2016 samples were analyzed by ALS Minerals of Vancouver, B.C. Samples were prepared by the Prep-31b method, which involves crushing the entire sample to 70 per cent passing minus two millimetres, splitting off one kilogram and pulverizing the split to better than 85 per cent passing 75 microns. Base metal assays were first determined using the ME-ICP61 method, which reports results as parts per million. Any samples containing greater than 10,000 parts per million zinc were analyzed by the Zn-OG62 method, which reports results in percentages. Any samples containing greater than 100 parts per million silver were analyzed by the Ag-OG62 method, which reports results in parts per million. The gold assays were determined using the Au-AA25 fire assay method, which reports results in parts per million and are equivalent to grams per tonne. Any samples returning greater than 100 parts per million gold were analyzed by the Au-GRA21 fire assay method with a gravimetric finish. The analytical results were verified with the application of industry-standard quality control and quality assurance procedures.