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), its 100% owned KingPin Property (see News Release dated April 21, 2016) and its HP Property under option to Centerra Gold Inc. (see News Release dated November 3, 2015) all located in the Golden Triangle area in northwestern British Columbia (see Figure 1: http://media3.marketwire.com/docs/cxo0616fig1.pdf).
Adam Travis, President and CEO of Colorado, states: "What an exciting exploration season we are kicking off drill programs targeting high grade gold occurrences starting at the KSP-Inel Zone and at HP under option to Centerra. With our recent acquisition of the KingPin property, which includes very prospective areas for both high grade gold and porphyry copper +/- gold, Colorado now controls over 640 km2 in the Heart of the Golden Triangle. Along with our North ROK and Kinaskan Projects near Imperial Metals Red Chris Mine* and our HP Project north of the past producing Golden Bear Mine* Colorado controls over 1,000 km2 in the Golden Triangle, more than double the landholdings of the next junior explorer in the region."
Field crews have been on site at KSP over the last few weeks conducting prospecting and geological mapping at lower elevations and preparing the Inel drill site and staging areas for the upcoming drill program. Core logging facilities have been completed near the end of the Alta Gas McClymont Creek access road and drill pads are currently being constructed at the Inel Zone with diamond drilling expected to commence this weekend.
The KingPin Property covers thirty-five BC Government Minfile (mineral) occurrences which include copper skarns, copper +/- gold porphyries, polymetallic veins and gold veins and favorable geology on strike between the past producing Granduc Mine* and Colorado's KSP Property under option from SnipGold and on the western doorstep to KSM* (see Figure 2: http://media3.marketwire.com/docs/cxo0616fig2.pdf).
Previous explorers in the 1970s focused on the copper potential and later work in the 1980s was mostly intermittent and fractured by multiple ownership which has now been consolidated by Colorado.
Some of the highlights based on Colorado's review of historical data include the following:
- Max Area - 15 Mineral occurrences cluster within 4 km of the Max Minfile occurrence and consist of porphyry, veins and skarn targets which appear to have been under appreciated for their gold potential even though areas like the Windy Tarn-Golden Jade zone reported a previous historical grab sample with a value of 45 g/t Au (See Assessment Report 21332).
- KingPin South - 3 Polymetallic +/- Gold Vein Mineral Occurrences are noted in the Granduc*-Doc area in the southern portion of the KingPin property in areas that have undergone significant glacial retreat since last worked and offer new areas to explore for vein targets similar to the adjacent Doc Property.
- Boulder Creek - 9 Mineral occurrences cluster in an area between Boulder Creek and the Unuk River in the SW portion of the KingPin Property. Gold potential of the vein and skarn targets is highlighted at occurrences like "Jim" with a previous historical grab sample which reported a value of 64 g/t Au (See Assessment Report EMPR AR 1911-66,67).
- KingPin West - over 15 kms of favourable geology on trend from the KSP property and is highlighted by gossans and at least 5 Mineral occurrences. The B.C. Minister of Mines Annual Report in 1911 noted the Fewright occurrence, which was poorly documented and located but described as "a ledge 100 feet wide that runs the entire length of seven claims, carrying silver, copper, gold and lead".
Colorado intends to conduct exploration on the KingPin Property later this summer to follow up on these areas using the knowledge it has gained while working on the KSP Property on trend to the northwest.
Centerra Gold Inc. has informed Colorado that it intends to shortly commence a 2,000m proposed drilling program at HP initially targeting the high grade gold Midas Zone.
Greg Dawson P.Geo, is the Qualified Person ("QP") as defined by National Instrument 43-101 that has reviewed and approved the technical content of this news release.