CXO Colorado Resources Ltd

COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") and
SnipGold Corp. (TSX VENTURE:SGG) ("SnipGold") are pleased to announce they have
entered into an Option Agreement, where Colorado has the right to acquire up to
an 80% interest in the southeastern quarter of SnipGold's Iskut Property. The
optioned area, which encompasses 6,745 ha and includes the Khyber Pass, Sericite
Ridge, Inel and Pyramid Hill copper-gold mineral occurrences, will be explored
jointly with an adjoining area of 22,201 ha recently acquired by Colorado. 


When taken together, these two areas (collectively referred to as the "KSP
Property", (see attached figure), will include 38 Minfile mineral occurrences
and cover approximately 300 km2. The KSP Property is located approximately 15 km
along strike to the southeast of the past producing Snip Mine which, from
1991-1999, produced over 1 million ounces of gold at a recovered head grade of
24.5 g/t Au (BC Minfile).


To view the Map, please visit the following link:
http://media3.marketwire.com/docs/JV_Tenure_Area.pdf. 


At Khyber Pass, SnipGold has reported exploration work from 1983-1990 outlined
an open-ended, 400 m wide x 1,200 m long gold in soil anomaly. Of the 1,100 soil
samples taken, the average assay result was 810 ppb Au with individual samples
returning assays up to 60 g/t Au. A total of 29 short drill holes totaling 3,241
m were completed in 1985, 1987 and 1990. These holes were drilled in multiple
orientations over 3 small targets, each measuring less than 150 m x 150 m. Drill
hole GO85-3 returned 74.7 m of 2.19 g/t Au and KB87-17, returned 61.3 m of 1.83
g/t Au. Higher grade intercepts include drill hole GO85-3 which returned 3 m of
9.5 g/t Au).


Sericite Ridge and Pyramid Hill are located between 2-7 km east of Khyber Pass
and cover large alteration systems with significant copper and gold values.


At Inel, exploration work from 1980-1991 peaked in 1988 with 570 m of
underground development and 54 underground drill holes totaling 4,258 m which
tested the Discovery zone. Within the centre section of this zone, underground
drill hole U88-3 returned 4.1 m of 26.37 g/t Au (BC Minfile).


Historical technical data suggest that the KSP Property has good potential to
host both high grade gold as well as bulk tonnage copper-gold mineral systems.
SnipGold and Colorado now control greater than 90% of the known mineral
occurrences within a 600 km2 district of very high mineral potential.


The Option Agreement includes aggregate cash payments by Colorado of $500,000
($50,000 on signing) and exploration work commitments of $6,000,000 ($500,000 in
year one), over a 4-year period to earn an initial 51% interest ("Initial
Interest"). Colorado may earn an additional 29% interest by making further work
commitments of $4,000,000 (the "Additional Interest"). Upon Colorado acquiring
an Initial Interest, the parties will form a conventional, participating
joint-venture under which should either party dilute their interest below 15%,
that party's interest will be reduced to a 1.5% NSR, one-half of which can be
purchased for $2,000,000.


Subject to TSX Venture Exchange ("Exchange") approval, Colorado has agreed to
contribute $150,000 in a SnipGold equity financing on a non-brokered private
placement basis in accordance with Policies of the Exchange.


Adam Travis, President and CEO of Colorado Resources, said "Snipgold's founders
are to be commended for assembling one of the most significant mineral
landholdings in northwestern British Columbia. Exploring the KSP Property fits
well with our team's technical strength. Our planned exploration program will be
aided both by new geological models developed in the Kerr Sulphurets Camp by
both Seabridge Gold Inc. and Pretium Resources Inc. as well as by recent
infrastructure development which has brought roads and power lines to the area's
doorstep. We look forward to an exciting 2014 field season, one in which we plan
to continue to advance exploration on the North ROK Property as well as
undertake initial exploration on the KSP Property with a view to prioritizing
numerous targets for future drilling. Colorado is currently funded to meet both
of these exploration objectives for the 2014 field season."


SnipGold's CEO John Zbeetnoff reports, "I am very pleased to enter this
Agreement with Colorado. Colorado is well funded and their technical team has
demonstrated exploration expertise that, I believe, will benefit shareholders of
both companies. This Option Agreement marks the first transaction that gives
SnipGold the opportunity to advance a portion of our Iskut Property with
meaningful expenditures while, maintaining minimal share dilution. SnipGold will
continue to seek additional strategic alliances through other earn-in
arrangements or undertake exploration through self-funded work programs on the
remaining portions of its extensive land package."


Qualified Person 

Dr. Jim Oliver, Ph.D, 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.


About Colorado

Colorado is engaged in the business of mineral exploration for the purpose of
acquiring and advancing mineral properties located in Canada and is also
aggressively seeking quality properties in the US southwest and Latin America. 


Colorado's current exploration focus is the advancement of its 100% owned North
ROK property, located 15 kms northwest of the Red Chris mine development, in
northern British Columbia.


About SnipGold

SnipGold Corp. is a Canadian junior exploration company focused on the
exploration and expansion of gold resources in northwest British Columbia.
SnipGold's board and management have significant experience in both the
discovery and development of gold projects. 


ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.

Adam Travis, President and Chief Executive Officer

NR 13-21

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the meaning of
Canadian securities laws. Such information includes, without limitation,
information regarding proposed exploration activities. Although the Company
believes that such information is reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking information is typically
identified by words such as: believe, expect, anticipate, intend, estimate,
postulate and similar expressions, or are those, which, by their nature, refer
to future events. The Company cautions investors that any forward-looking
information provided by the Company is not a guarantee of future results or
performance, and that actual results may differ materially from those in
forward-looking information as a result of various factors, including, but not
limited to, the state of the financial markets for the Company's equity
securities, the state of the market for gold or other minerals that may be
produced generally, recent market volatility; variations in the nature, quality
and quantity of any mineral deposits that may be located, the Company's ability
to obtain any necessary permits, consents or authorizations required for its
activities, to raise the necessary capital or to be fully able to implement its
business strategies and other risks associated with the exploration and
development of mineral properties. The reader is referred to the Company's
reports filed on SEDAR at www.SEDAR.com for a more complete discussion of such
risk factors and their potential effects.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Colorado Resources Ltd.
Adam Travis
President and Chief Executive Officer
(250) 768-1511
(250) 768-0849 (FAX)
Toll Free: (855) 768-1511
www.coloradoresources.com


SnipGold Corp.
John Zbeetnoff
Chief Executive Officer
(604)681-3989
(604) 681-3557 (FAX)
www.snipgoldcorp.com

Colorado Resources (TSXV:CXO)
Historical Stock Chart
From Oct 2024 to Nov 2024

Colorado Resources (TSXV:CXO)
Historical Stock Chart
From Nov 2023 to Nov 2024