COLORADO RESOURCES LTD. ("Colorado" or the "Company") announces an update on the KSP Property under option from SnipGold Corp. (see News Release dated December 20, 2013). Colorado's compilation and reporting over the winter months highlighted not only the new discoveries of porphyry copper-gold style mineralization at the Tami and Pins Zones (see news releases dated October7 & 8, 2015) but also the high grade gold targets at Inel.
1.27 g/t Average Gold in Soil Anomaly Over 1.5 km2 at Inel
At Inel, a compilation of 1,215 soil samples (492 taken by CXO) in a 8.5 km2 area averaged 800 ppb gold and also highlighted a 1,000m x 1,500m area with 628 soil samples averaging 1,270 ppb gold (1.27 g/t gold) with a maximum value of 31,200 ppb gold (31.2 g/t gold). This 1.5 km2 anomalous gold in soil area is considerably larger than the areas tested by previous drillholes (Discovery Zone 0.35 km2 and AK Zone 0.25 km2). In many instances strong gold in soil anomalies occur > 500m from, and often uphill of, historical drilling (see Figure 1: http://media3.marketwire.com/docs/CXO0229.pdf).
Colorado's Geological Compilation Confirms Three Favorable > 1 km Trends
Colorado's surface geological work and review of historical drill logs indicate that in the Inel area there are at least three north trending > 1km long, gently dipping, stacked target zones within the 1.5 km2 Inel soil anomaly that are associated with the margins of mafic intrusions. Other, as of yet unidentified trends are likely to occur that would explain the gold in soil anomalies upslope of known mineralization.
Significant Historical Drilling Results- Only 1/4 of Favorable Trends Tested
Historical drilling at Inel was completed from 1984-1991 and consisted of both small AQ and BQ sized underground and surface drillholes with only approximately 40% of the drillcore sampled. A review of these drill hole results in the context of new geological understanding, indicates that the favorable trends have only been drill tested over approximately one quarter of their combined +3 km prospective strike lengths. Significant results were historically encountered such as drillhole IS130 returning 423.8 g/t gold over 3.5m at the Inel Creek Zone, drillhole IS116 returning 20.9 g/t gold over 7.4m at the AK Zone and drillhole IU040 returning 30.3 g/t gold over 4.0m at the Discovery Zone*.
Compelling Drill Targets- 5,000m Drill Program Planned
Based on Colorado's surface geological work it is now understood that these historical high grade gold drill intercepts are located along mineralized intrusive-sediment contacts, which have good strike continuity. The presence of at least three laterally continuous intrusive bodies which are spatially associated with these large (>1.25 km2) gold in soil anomalies provides a number of compelling near surface drill targets. Colorado plans a 5,000m larger NQ sized diamond drill program to commence this summer.
Greg Dawson, P.Geo is the Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data discussed in this news release.