43-101 out on Silver Wing Mine
Colorado Goldfields Announces NI 43-101 Technical Report for Silver Wing Mine; Total Estimated Resource Valued In Excess of $120 Million
Gold Stocks
LAKEWOOD, CO - Colorado Goldfields Inc. (OTCQB:CGFI) announces that it has
received a Preliminary Technical Report for the Silver Wing Project located in San Juan County, Colorado. The report was prepared by Lee R. Rice, P.E. in accordance with Canadian National Instrument 43-101 criteria.
The Report concludes:
"Available data confirm the presence of a 400,000 ton polymetallic resource in the properties constituting the Silver Wing Mine Project. This resource, when mined and processed through the company's Pride of the West Mill may yield more than 8,000 ounces of gold, 720,000 ounces of silver, 19.2 million pounds of copper, 10.8 million pounds of zinc, and 8.8 million pounds of lead worth more than $120 million."
The report further states:
A preliminary examination of project development and operating costs indicate the economic feasibility of the project with substantial profitability for the operator. The work performed to date indicates that development of the project is warranted."
The report details the available information about the Silver Wing Mine, the mine workings, and the metallic mineral deposits associated with the property. It contains assessments by the author, by employees of Colorado Goldfields Inc., and by professional geologists and engineers contracted by the company estimating the quality and quantity of mineralization that may be economically extracted.
The Silver Wing Project is a polymetallic mine production project located on private land holdings in one of the richest and most prolific metallogenic provinces on earth, the Colorado Mineral Belt. Previous development and production at the Silver Wing have left a lengthy haulage adit intersecting several vein structures that were partially developed by stoping. Data from previous production, channel sampling, and a number of exploratory drill holes confirm a remaining resource of more than 433,000 tons.
Mr. Rice is President and CEO of Colorado Goldfields Inc. and is a Qualified Person (QP) as defined by Canadian National Instrument 43-101. Mr. Rice is a Registered Professional Engineer in the state of Colorado and is a registered member in good standing of the Society for Mining, Metallurgy, and Exploration, Inc. as well as being a member in good standing of a number of other professional technical societies. Mr. Rice has practiced internationally as a mine exploration geologist since 1970 and has been a practicing engineer of mines since 1974.
The Pride of the West Mill ("Mill") is located 5.3 miles northeast of Silverton, Colorado. The Mill is located on approximately 120 acres of patented mining claims on San Juan County Road 2, within a nine air-mile radius of the Silver Wing Mine, the King Solomon Mine, and many other mine properties. The Mill is located within the famous "San Juan Triangle" mining center of southwestern Colorado, which also includes the historic mining towns of Telluride and Ouray, and encompasses one of the most richly mineralized areas of North America.
On October 31, 2012, the Company entered into a contract for purchase of the Silver Wing Mine. The terms of the contract provide that the Company issue 12,000,000 4-year restricted shares Class A Common Stock and pay the former owners a 5% Net Smelter Royalty ("NSR"), from the Champion Mining Claims. The complete purchase contract may be viewed in the Company' Form 8-K filed on November 6, 2012.
