Colorado Identifies Nine More Target Zones at Inel

 

WEST KELOWNA, BC - Colorado Resources reported the results of ongoing interpretative work of the 2016 Inel drill results in the context of newly reported surface soil geochemical, geological and geophysical data together with historical results. Adam Travis, Colorado President and CEO states: "Great exploration projects just keep getting better with continued exploration and KSP is no exception. We are underway with the interpretation of the 2016 exploration drill results from Inel with our updated surface work. Our 2016 exploration drill results at Inel correlate well with the surface geochemistry. We have also recognized that gold mineralized zones are not restricted to the volcanic/sediment contact as originally thought. Nine other zones, similar in size and gold intensity in soils, occur in the vicinity of the area drilled. These nine target zones plus the area at depth below the 2016 drilling offer significant exploration potential. Geophysical survey results also highlight a number of compelling features that correlate well with the geochemical and geological anomalies. We are also looking forward to advancing our recent acquisition in Nevada, Goldsprings. It will allow us to continue to add shareholder value in a highly prospective terrane in the near term while we await the start of the 2017 drill program at Inel and the further exploration of the 305 km2 KSP property in the Heart of the Golden Triangle."

2016 Drillholes Tested 1 of 10 Surface Gold in Soil Anomalies & Only to an Average Depth of 125 m.

A review of the 2016 Inel assay data indicates that a total of 5,872 samples were collected from 7,484.5 m of drill core of the total 7,874.5 m drilled. A total of 1,989 samples (31.6% of meters drilled) returned ≥0.25 g/t gold at a length weighted uncut average grade of 1.46 g/t gold, which is a testament to the strength of the mineralizing system. A total of 650 samples (9.9% of the meters drilled) returned ≥1.00 g/t gold at a length weighted uncut average grade of 3.63 g/t gold.

The 2016 drilling tested the central core of the soil geochemical anomaly over a 300 m x 600 m area to an average depth of approximately 125 m from surface. Results from the 2016 drill program were previously reported and have highlighted high grade gold results over 1-4 m lengths and multi-gram gold results over tens of meters. 

The drill results support the validity of the gold in soil anomaly over the area drilled, and provide significant encouragement for future testing the remaining 9 target zones at Inel-Khyber, each highlighted with a well-developed gold in soil anomaly. When reviewed in the context of the drillhole results and surface geochemistry, it is noted that gold anomalous zones are not restricted to just the main contact between the volcanics and sediments in a semi-conformable nature as originally thought. As a consequence, exploration targets are now known to occur from near surface and to greater depths than anticipated. As well, the mineralization is hosted by a broader range of rock types than initially anticipated.

Mineralization encountered in the sediments is believed to be related to either steeper feeder structures or other favorable structural-chemical traps. These geological signatures are vectoring towards the Inel Intrusion contact in an area which has seen no previous drilling (West Discovery Target). Surface geochemical anomalies also occur within the Inel Intrusion (Big Bowl and Western Slopes Targets) and overlying sediments upslope and above a volcanic/ sediment contact that has a significant mappable extent (Inel Ridge Target). We are expanding our understanding of the rock types and structures which can host mineralization. The centre of the Inel soil anomaly area was drill tested with 51 drillholes in 2016 and covers approximately 15 hectares where a total of 111 soils average 0.92 g/t gold, 505 ppm copper and 2,901 ppm zinc (see Figure 1).

The Inel area hosts at least six other targets adjacent to the area drilled in 2016, and these areas range in size from 8-18 hectares and which have returned average gold values in soils from 0.66 g/t to 2.91 g/t gold. Three other targets at Khyber located approximately 1-2 kilometers south of Inel range in size from 5-18 hectares and have returned average gold values from 0.73 to -1.07 g/t gold. Most of the soil or talus fine samples within the anomalies were collected on either 25 or 50 meter sample spacings on lines 100 meters apart.