North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Colorado Resources Ltd. Sep. 12 announced that its initial phase of 2017 drilling at the KSP property in northwestern British Columbia cut bonanza grade gold.

Identifying coarse visible gold in hole INDDH17-081, the company hand delivered five core samples centered on the VG to ALS Global Vancouver Laboratory for a coarse gold analysis. These samples averaged 1,670.5 grams per metric ton gold over 1.4 meters; including 4,470 g/t (130.38 ounces per ton) gold over 0.5 meters.

As a result, the coarse visible gold encountered in hole 81, six holes were drilled over a 150-meter along strike to the north. Assays are pending.

Colorado completed 8,100 meters of drilling in 40 holes during the initial phase of 2017 exploration focused on the Inel area at KSP. INDDH17-055 – drilled at Inel Ridge to test an area 50 meters below a 2016 intercept that returned 1 meter of 53.1 g/t gold – cut 2.6 meters of 31.59 g/t gold. Another intercept higher up in hole 55 cut 73 meters of 1.71 g/t gold.

The first hole drilled at KSP in 2017, INDDH17-054, tested a porphyry target at the eastern edge of the Inel intrusion where an induced polarization anomaly coincides with the contact between volcanic and sedimentary rocks. This hole cut 273.2 meters averaging 0.32 g/t gold and 0.08 percent copper from a depth of 5.8 meters to the bottom of the hole.

Colorado has received assay results from half of the holes drilled during the 2017 phase 1 program at KSP. These results have encouraged Colorado to immediately initiate a second phase of drilling that will extend into the fall.

"Sound exploration by our team is being rewarded with significant new discoveries and a better understanding of the Inel System with high-grade visible gold discovered; the recognition of new mineralized trends at Inel Ridge associated with the 8-kilometer-long Big Rock Deformation Zone; and the discovery of porphyry style gold-copper mineralization associated with the Inel Intrusion. These discoveries point to the fact that Inel is a large mineralized system with the capability of delivering high grades and large volumes of mineralized rock, said Colorado President and CEO Adam Travis. "With the recent completion of the $7.3M financing we are well positioned to continue to advance KSP and our other high quality Golden Triangle projects."

–SHANE LASLEY