News ----
June 29, 2011 09:00 ET
Colorado Goldfields Inc. Acquires Utah Payday and Rage Uranium Mines; 63 Unpatented Uranium Claims With an Estimated Value Equal to $14,000,000
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LAKEWOOD, CO--(Marketwire - Jun 29, 2011) - Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announces that it has purchased the Payday and Rage Mines. The claim group consists of 63 (55 Payday and 8 Rage) claims, located in Township 32 South, Range 24 East, Sections 25, 26, 35, in San Juan County, Northeast of Monticello, Utah.
In 2006 a preliminary geology report was constructed by Clive Bailey, a Registered Professional Geologist and Arizona Registered Sanitarian. "The property has unpatented mining claims covering an area of almost 2 square miles. The claim group covers an area where the favorable upper rims of the salt wash member of the Morrison Formation (Jurassic in Age) exist almost intact," stated Bailey.
Bailey's report went on to say:
"While on the Payday claims I spent time looking at the rim thickness, alteration, and viewed Uranium and Vanadium mineralization in several adits. Seven samples were taken to establish the grade and uranium to vanadium ratio for economic purposes, including two government drill holes (1950s), two vent holes, and a series of drill holes above the exposed rims with one hole on the claim group. The claim area covers ground where the favorable upper Saltwash member is intact. Two areas of super favorability cross the claim group.
"As a Professional Geologist with five years experience in Uranium (33 years overall), I conclude the Payday claims cover an area of good potential to develop a new uranium vanadium deposit within the virgin claim area."
Based upon the preliminary geological report and information from the Atomic Energy Commission, the seller of the properties extrapolated a resource estimate of 45,000 tons of uranium bearing ore. Uranium averages .27% per ton, which is 5.4 pounds per ton, yielding 243,000 pounds. On May 30, 2011, the spot market price for Uranium was $57.50 per pound. Therefore, total estimated Uranium value would be $13,972,500.
Colorado Goldfields will be constructing an N1431-01 Report to confirm and verify the value of these assets.
"Market forces continue to tell us that diversifying into other metals, both precious and exotic, will greatly enhance the Company's ability to leverage both its physical facilities and management expertise," stated C. Stephen Guyer, CFO for Colorado Goldfields.
Colorado Goldfields acquired the properties in all stock transaction consisting of 125,000,000 shares of 1-year restricted Class A Common Stock and 125,000,000 shares of 2-year restricted Class A Common Stock.
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