COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") announces further to entering into a definitive option agreement with Ely Gold & Minerals Inc. ("ELY") (TSX VENTURE:ELY) (see News Release dated December 6, 2016) on the Green Springs Property, it has undertaken geological mapping, collected 642 soil samples, and is in the process of updating the existing permits in preparation for an initial RC drill program.
Adam Travis, Colorado President and CEO states; "Our technical team and contractors have done a great job in the last month of advancing the Green Springs Property. Our 2016 soil sampling program has expanded the previous gold in soil anomalies and discovered a new zone; many of these anomalies are still open for expansion (see Figure 1). Planned sampling at the "A" Zone North area was delayed due to winter conditions preventing access. Updated geological mapping is also increasing our understanding of the controls to mineralization. Our exploration emphasis will be on expanding the known mineralization associated with the Lower Chainman Formation and testing for higher grade feeder structures and other potentially good host rocks along the mine trend. We will also continue to explore the several gold in soil anomalies outside the mine trend that are associated with just a few of the 200 known and largely unexplored jasperiod bodies on the Greens Springs Property."
Expansion and Discovery of New Gold in Soils Geochemical Anomalies
Previous soil sampling1 at Green Springs highlighted a number of significant trends associated with the old pits and also in areas upslope and as far away as 3 km to the northeast of the pits at the "A" Zone North (untested by drilling). The Mine Trend is a 3 km long by approximately 500 m wide north -south trending corridor which covers the main areas of previous sampling, drilling and limited mining. Within this trend gold in soil anomalies (> 50 ppb gold) were noted upslope of the "C" and "C North" pits (untested by drilling) and to the east and southeast of the "D" pit (partially tested by drilling).
During December 2016 Colorado completed the collection of 642 soils to follow up on previous open ended gold in soil anomalies and to cover favorable geology. To date the results from a total of 468 soil samples have been received. These results are already highlighting and expanding the "D "Zone East (a 350 m x 650 m area > 50 ppb gold) upslope and to the east of the "D" pit and the new discovery of the "G" Zone (a 200 m x 200 m area >50 ppb gold which is untested by drilling) located 1.3 km to the east of the "C" pit. No work has been completed so far by Colorado in the vicinity of the "A" Zone North (a 200 m x 500 m area > 50 ppb gold).
Dr. Jim Oliver, Ph.D, P. Geo., the Company's Chief Geoscientist, is the Qualified Person as defined by National Instrument 43-101 who reviewed the preparation of the technical data in this news release.