Mr. Adam Travis reports
COLORADO CONTINUES TO RETURN HIGH GRADE GOLD FROM INEL DRILLING AT KSP DISTRICT IN THE GOLDEN TRIANGLE, BC
Colorado Resources Ltd. has completed its 2016 fieldwork and drilling program on the KSP property and has released the assay results from Inel drill holes 31 to 45 (see attached table).
Since drilling commenced on June 18, 2016, 59 drill holes (totalling 8,861.8 metres) have been completed at KSP with an emphasis on the Inel area, where 53 holes were drilled. Consistent with the company's earlier news releases, Inel drill holes INDDHI1631 to INDDH1645 returned several high-grade gold intercepts, as well significant intercepts at multiple horizons as noted in the attached table. These results also document the first drill intercept in the interpreted southern extension of the AK trend in hole 42 more than 500 metres south of the AK adit and 500 metres west of the Discovery adit.
In addition to the drilling, a total of 990 soil and 511 rock samples were collected, and a further 50 square kilometres of geological mapping were completed. Geophysical surveys consisting of 10 line kilometres of induced polarization and 47 line kilometres of ground mag were also conducted by Walcott and Associates, and a 126-line-kilometre helicopter airborne VTEM time-domain system was undertaken by Geotech Ltd.
Adam Travis, Colorado's president and chief executive officer, stated: "We have had a very successful exploration season at KSP, completing more than double the amount of work required under our joint venture this year with an emphasis on drilling a portion of the gold-in-soil anomaly at the Inel target. Our 2016 Inel first-pass drilling program tested a 500-metre-by-600-metre area at approximately 75-metre to 100-metre centres and has returned several intercepts with multiounce gold values over one-metre apparent widths. Several of these higher-grade intersections are also enveloped by broader intervals such as INDDH16-025, which returned 99 metres of 2.11 grams per tonne gold. Drill hole INDDH16-042 returned four metres of 16.02 grams per tonne gold, including 53.1 grams per tonne gold, or more than 1.7 ounces per ton gold, across a drill indicated width of one metre. This drill hole is located 500 metres east of the Discovery adit, which reinforces the fact that the large target zones at Inel are only partially tested and that we have barely scratched the surface of this large, robust system. Although the 10-square-kilometre Inel-Khyber area is very significant, it is still only a small portion of the 305-square-kilometre KSP district, which hosts numerous kilometre-scale mineralized alteration centres. We look forward to continuing to advance what is undoubtedly one of British Columbia's best exploration projects."
Upon the completion of this year's exploration program, it is anticipated that approximately $6-million in cumulative exploration expenditures will have been incurred at KSP over the last three years. This would be one year ahead of schedule as per the underlying agreement with Seabridge Gold Inc. Under this agreement, Colorado has the right to earn an initial 51-per-cent interest in the KSP property by incurring $6-million in exploration expenditures and completing total cash payments of $500,000 (of which $225,000 has been paid to date). Colorado has the further right, at its sole election, to increase its interest to 80 per cent by incurring an additional $4-million in exploration expenditures.
Over the next few months, Colorado will be compiling and interpreting the remaining results from the 2016 surface exploration work and diamond drilling program and planning next year's exploration program at KSP.
INEL 2016 DRILL HOLES 31-45 -- SIGNIFICANT* INTERCEPTS
Hole Au Ag
Hole ID length From To Interval Au (oz/t) (g/t) Zn
(m) (m) (m) (m)(1) (g/t) (2) (3) (%)(4)
INDDH16-031 120 63 65 2 5.73
INDDH16-032 96 58 74.6 16.6 0.64
INDDH16-033 183 162 176 14 0.59
INDDH16-034 159 97 138 41 1 1.32
including 97 103 6 3.57
including 102 103 1 15.75 0.51
and 109.8 121 11.2 1.17
INDDH16-035 199.4 157 173 16 1.16
INDDH16-037 150 102 144 42 0.94
INDDH16-038 153 9.3 28 18.7 0.72
and 41 74 33 0.82
including 72 74 2 5.86
INDDH16-039 111 25.7 34.5 8.8 1.21 2.32
INDDH16-040 156 59 71 12 0.86
and 114 134 20 0.89
INDDH16-041 219 25 45 20 1.09
including 40 44 4 3.15
INDDH16-042 222 35 52 17 4.23
including 35 39 4 16.02 0.52 37.85 2.07
including 35 36 1 53.1 1.71 39.2 1.12
and 146 220 74 1.02
including 171 187 16 2.69 1.1
INDDH16-043 147 62.7 92.1 29.4 0.76
INDDH16-044 189 29 39 10 1.28 20.3 3.29
and 145.5 177 31.5 1.46
including 145.5 147 1.5 7.02
and 169 170 1 12.5 0.4
INDDH16-045 171 80 81 1 10.5 0.34 77.6 3.09
and 92 93 1 16.55 0.53 62.3 6.95
and 133 150 17 1.06
including 133 134 1 10.85 0.35 27.5
* Significant is defined as the product of metres multiplied by grade greater than 10,
with grade greater than 0.5 gram gold; for example: greater than 10 grams per tonne
gold over one metre or greater than one gram per tonne gold over 10 metres.
No significant results for INDDH16-036.
(1) The intervals reported in this release represent drill intercepts;
insufficient data are available at this time to state the true thickness of
the mineralized intervals; and all values are uncut.
(2) Gold values over 10.00 grams per tonne gold converted to troy ounces per
ton (Au grams per tonne divided by 31.10348).
(3) Silver greater than 30 grams per tonne silver reported.
(4) Zinc greater than 1 per cent reported.Results from the work to date at KSP have highlighted a number of points:
- Inel hosts three significant mineralized trends: At
least three stacked, gold-enriched, zinc-bearing sulphide zones at Inel
have been intersected in the 2016 drill holes. These zones or horizons
have been defined by drilling over a 350-metre dip distance and over a 600-metre
strike length. Anomalous surface geochemistry and geological mapping
suggest that the Inel target area is at least 1,000 metres in strike length
and 1,500 metres in width.
-
Inel makes the grade: Both high-grade gold (including values of 165.5
grams per tonne gold over one metre in INDDH-029) and broader, lower-grade gold (99 metres of
2.11 grams per tonne gold in INDDH-025) have been reported from the 2016 drilling to
date, demonstrating the potential for Inel to host significant gold
mineralization at all three stratigraphic and structural horizons.
-
Multiple alteration centres: Highly anomalous gold-copper-plus-or-minus-molybdenum surface geochemistry and the interpretation of
geological mapping have characterized several target alteration centres
not only in the Inel-Khyber area, but also at Pyramid Hill (four kilometres south
of Inel), Sericite Ridge (six kilometres southeast of Inel), Nee-Lake zone (nine kilometres southeast of
Inel) and at Pins (14 kilometres southeast of Inel), all of which are associated with
the Sky-Khyber thrust fault system. Similar zones of hydrothermal
alteration are also noted at Black Bluff (10 kilometres east of Inel) and Big
Rock (2.5 kilometres northeast of Inel) associated with long-strike-length second-order
structures.
Two short exploratory drill holes (TMDDH16-001 and TMDDH16-002) totalling 183 metres were drilled south toward the Tami showing from the same location (due to poor recovery in the first drill hole). They were located approximately 20 metres north of a 2014 channel sample (CH14-006 B) that returned 15 metres of 2.94 grams per tonne gold and 0.51 per cent copper. These short holes failed to intercept the mineralized intrusive as noted in the channel sample. Subsequent detailed geophysics and geological structural mapping have determined that the 2016 Tami drill holes were drilled underneath a shallow-dipping mineralized panel that dips away from these holes, and, as a consequence, they did not test the Tami target.
Four exploratory drill holes (KBDDH16-01 to KBDDH16-04) were drilled in the Khyber area. These holes tested surface gold-copper mineralization in the East Khyber area (KBDDH16-01), an anomalous zinc-and-gold-in-soil target along the Khyber ridge crest (KBDDH16-02 and KBDDH16-03) and in the vicinity of high-grade zinc boulders (KBDDH16-04). KBDDH16-01 was drilled 2.5 kilometres southeast of the main drilling area at Inel and more than 240 metres lower in elevation and intercepted 0.14 per cent copper and 0.01 per cent molybdenum over 100 metres from 32 metres to 132 metres, suggesting that Khyber may be zoning to a copper-molybdenum-plus-or-minus-gold system at depth. Drill holes KBDDH16-02, KBDDH16-03 and KBDDH16-04 located 1.2 kilometres to 1.5 kilometres southeast of Inel returned highly anomalous zinc values. For example, KBDDH16-02 returned 0.32 per cent zinc from the collar (2.57 metres) to 133 metres down the hole, suggesting that zinc is forming a halo to the higher-grade gold mineralization such as KBDDH14-003 (located 600 metres to 900 metres to the west), which returned 18.1 grams per tonne gold over 2.4 metres in the 2014 drill program.
Qualified person
Dr. Jim Oliver, PhD, PGeo, is the qualified person as defined by National Instrument 43-101 who supervised the work program and/or preparation of the technical data in this news release
Quality assurance/quality control statement on assay results where required
The 2016 samples were analyzed by ALS Minerals of Vancouver, B.C. Samples were prepared by the Prep-31b method, which involves crushing the entire sample to 70 per cent passing minus two millimetres, splitting off one kilogram and pulverizing the split to better than 85 per cent passing 75 microns. Base metal assays were first determined using the ME-ICP61 method, which reports results as parts per million. Any samples containing greater than 10,000 parts per million zinc were analyzed by the Zn-OG62 method, which reports results as percentages. Any samples containing greater than 100 parts per million silver were analyzed by the Ag-OG62 method, which reports results as parts per million. The gold assays were determined using the Au-AA25 fire assay method, which reports results in parts per million, and are equivalent to grams per tonne. Any samples returning greater than 100 parts per million gold were analyzed by the Au-GRA21 fire-assay method with a gravimetric finish. The analytical results were verified with the application of industry-standard quality assurance and quality control procedures.
About Colorado
Colorado's current exploration focus is to continue to advance the KSP property under option with Seabridge Gold Inc., located 15 kilometres along strike to the southeast of the past-producing Snip mine, and its 100-per-cent-owned North Rok property, located 15 kilometres northwest of the Red Chris mine development, both located in north-central British Columbia.
We seek Safe Harbor.
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