News From Colorado Goldfields
ColoradoGoldfields Inc. Acquires Silver Wing Mine (Part 2); Builds on $200 Million Resource of Gold, Silver, Copper, Lead, and Zinc; Perfect Fit for Pride of the West Mill
Gold Stocks
LAKEWOOD, CO -- Colorado Goldfields Inc. (OTCQB:CGFIA) (CGFIA.PK) announced yesterday that it had acquired the Silver Wing Mine in San Juan County, Colorado. This acquisition marks a significant expansion into other metals, both "precious" and "base," and provides Colorado Goldfields a greatly enhanced ability to capitalize on a wider number of market drivers for price-both investor economics and manufacturing.
The Silver Wing's poly-metallic ore contains 5 different recoverable metal values consisting of gold, silver, lead, copper and zinc. Colorado Goldfields will develop a mining and milling operation and produce approximately 14,500 tons annually of gold, silver, copper, lead and zinc concentrates. "The total estimated resource of the Silver Wing Mine could exceed $200 million with approximately 80% of the resource value composed of silver and copper minerals," stated Lee Rice, President & CEO for Colorado Goldfields.
"Since most of the ore in the district is poly-metallic, the Company's Pride of the West Mill was originally designed to specifically process this type of ore. The acquisition is a perfect fit for the processing capabilities of Colorado Goldfields," stated John Ferguson, Director of Operations.
To explain the new depth of revenue sources, Lee R. Rice, President and CEO of Colorado Goldfields, provides the following commentary regarding both the precious and base metals contained in the Silver Wing Mine.
Prices for all of the metals that will be produced from the Silver Wing Mine are determined by global precious metal and base metal commodity markets. As we have all observed, current prices are favorable and the long term outlook is positive based upon supply and demand fundamentals. In addition to the normal demands from the developed nations in North America and Europe, the long term outlook for sustained growth in Asian economies and as well other parts of the world is expected to continue to put upward pressure on base metal prices.
The precious metals to be produced from the Silver Wing Mine include gold and silver. While gold is critical for certain industrial and high technology uses and has value in the creation of jewelry, the price of gold is primarily based on "perception factors" including the perception of safe haven value in response to political uncertainties in many areas of the world and as a hedge against inflation of currencies.
Historically, silver prices have been driven more by manufacturing demand than macro-economic perceptions. Silver has many specialized industrial (especially photography), and high technology uses. Over the past 20 years silver has been priced primarily as a base metal; following industrial supply and demand factors. Because of more recent socio-economic and political developments, the price of silver is now partially driven by other factors including the perception of 'safe haven' value; including a hedge against deflation of currencies.
The base metals (lead, copper and zinc) provide critical raw material for the production of industrial and consumer products on a world-wide basis. The usage for lead, copper and zinc is a direct function of the overall world industrial production needs and consumer demand for touchable products. Prices for these metals are primarily set in the based on actual industrial factors of supply and demand.
"The Company now has a strong connection to both brick-and-mortar manufacturing and global macro-economic forces. This is huge advantage because it provides us with a revenue source that is continuous and stable," stated C. Stephen Guyer, CFO of Colorado Goldfields.
