Jan 13 2011
COLORADO RESOURCES LTD. (TSX VENTURE:CXO) has announced it has entered into an agreement to purchase a 100% interest in 4 Yukon gold properties.
Three of the Properties - Sol, Nid and Bach - are located in the Macmillan Pass area, approximately 360 kilometres northeast of Whitehorse. The fourth property - Al - is located in the Aishihik Lake area, approximately 170 kilometres northwest of Whitehorse.
The Sol Property consists of 206 claims (4,171.5 hectares) and is located between the Company's Oro Property (see News Release dated November 22, 2010) and Teck Resources Ltd.'s road accessible Nidd lead-zinc-silver property. The addition of the Sol Property brings Colorado's landholdings to 536 claims (10,854 hectares) covering more than a 28 kilometre-long belt of faulted and folded Paleozoic sedimentary rocks which are highly prospective for Carlin-type gold deposits.
The Nid Property consists of approximately 72 units (1458 hectares) located 20 kilometres west of the Company's Oro Property. Nid covers a previously reported Yukon Minfile occurrence (1050 057) where quartz veins are associated with a 1 kilometre hornfels zone at the contact between an intrusion and sediments. An arsenopyrite-rich grab sample from a narrow vein assayed 8.3 g/t Au.
The Bach Property consists of 42 claims (850.5 hectares) and is located 30 kilometres southwest of the past producing Plata Mine and 75 kilometres west of the Company's Oro Property. In 1998, the region containing the Bach Property was targeted for regional exploration by Viceroy Exploration (Canada) Inc. on the basis of several coincident, gold-arsenic-mercury-antimony anomalies from government silt sampling across Earn Group stratigraphy. Follow up silt and soil sampling resulted in the identification of a 1 x 3 kilometre anomalous zone sited along a structural contact between Paleozoic chert and shale-siltstone.
The Al Property consists of 66 claims (1330 hectares) covering a gold prospect previously worked by Kerr Addison in the 1980's. Kerr Addison identified large areas of silica-limonite alteration within brecciated volcanic, metasedimentary schist, gneiss, and granite. Assay values of up to 2,550 ppb Au were reported from silicified quartz schist. The Company believes the Al prospect has geological similarities to deposits in the White Gold District to the north, due to the style of mineralization and the complex stratigraphic and structural setting near the edge of a Coffee Creek Suite intrusion.
The Properties were acquired from the Selwyn Syndicate for total consideration of $286,000 in cash, issuing 300,000 common shares of the Company and are subject to a 2% NSR which can be bought down to 1% at a cost of $1 million. Payment to the vendors is to be made within 10 days of the TSX Venture Exchange approving the transaction. The Selwyn Syndicate is a private group comprised of three arm's length parties - Mr. Ron Netolitzky (60%), Mr. Rupert Allan (10%) and Mr. Michael Cathro (15%) - and one non-arms length party - Mr. Adam Travis (15%).
Mr. Adam Travis, President of the Colorado, stated, "Through this transaction with the Selwyn Syndicate, the Company has been able to significantly enlarge its landholdings in two newly emerging areas of the Yukon and to increase its exposure to "Carlin" and "White Gold" style mineralization exploration targets."
Qualified Person:
Mr. Michael Cathro, P.Geo., is the Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data in this news release.
Source: COLORADO RESOURCES LTD.