LAKEWOOD, CO--(Marketwire - March 11, 2010) - Colorado Goldfields Inc. (OTCBB: CGFIA) is pleased to announce that the permitting process for its Pride of the West Mill officially commenced on Friday February 19, 2010. Following intense study, analysis, and collaboration, the Company's 500-page permit amendment application was deemed "complete for filing" under the Colorado Mined Land Reclamation Act by the Colorado Division of Reclamation Mining and Safety. The approval date is expected to be May 20, 2010.
"This is a seminal moment for the Company as we forge a new path in custom 'toll' milling not yet seen in Colorado nor in many western mining states. This is a major step toward achieving the Company's strategic plan of operating revenue by the fall of 2010," stated Stephen Guyer, CFO of Colorado Goldfields.
"Assuming approximately $750,000 in new funding to re-activate the mill, toll milling will generate $6 million in gross revenue over the next 24 months. During that time, exploration and development of the Company's own mines will continue, and subject to additional development capital, the Company will begin milling its own ore in June 2011. At that point the Company is full speed ahead toward a five year projected $125 million cumulative net cash flow. The mill becomes the cash flow engine that feeds additional mine acquisitions expanding our 'enterprise value' model over time," stated Guyer.
The Pride of the West Mill is especially valuable since it is the only production size mill in the entire regions of Southwestern Colorado, Northwestern New Mexico, Northeastern Arizona, and Southeastern Utah. These many regions comprise thousands of miles of land area. Within just a 50 mile radius of the mill there are over 1,000 mines and many gold and silver mining companies, some with live mining operations and multiple mining properties and others in progress with reactivation. Of the several hundred junior mining companies in North America, Colorado Goldfields enjoys the distinction of being the only one with the capability to perform its own milling. Milling is the process of extracting gold and silver from ore that has been drilled and removed from the mine itself. Every mining operation needs milling to be able to eventually produce and sell its gold and silver.
The Company received an endorsement from Colorado State Senator Bruce Whitehead who in a meeting with Company management stated, "Colorado Goldfields is positioned to become an economic driver in our community with the real near term possibility of generating over 150 new jobs in the Silverton mining district alone."
The Company's business model includes mining exploration and the reactivation of The Pride of the West Mill, and is also committed to development of the resources in an environmentally sound manner. "I support the Company in their efforts to provide job opportunities and economic development in my Senate District, and appreciate their commitment to a low impact approach to development of the minerals in this pristine part of the state," stated Senator Whitehead.
Between now and March 18, 2010, the Company will be publishing written notices and soliciting public comment as part of the normal approval process. The permit amendment document is public record and may be requested from the Company and time via email at: Info@cologold.com, subject line: "Permit Amendment."
Live footage from our Pride of the West Mill in the Silverton Mining District of San Juan County, Colorado, may be viewed at http://www.cologold.com/uploads/2009-05-14_Mill.wmv.
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About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCBB: CGFIA) (http://www.cologold.com) is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discoveries. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern, up to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.
The Company has made available a current CGFIA Fact Sheet in PDF format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.
Notice regarding forward-looking statements
This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.
Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.