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Red Chip Featured Company: Colorado Goldfields, Inc. (CGFI.OB)

Colorado Goldfields, Inc. (CGFI.OB) is a new player in the mining field focused on the exploration and retrieval of gold and silver in the state of Colorado. The company is targeting its efforts on three historically proven mines that only require minor rehabilitation to achieve full-scale production sites. CGFI has obtained an 80% interest at the Gold King, Mayflower, and Mogul mines located in San Juan County, Colorado. All three mining properties are located within a 9-mile radius of the Pride of the West Mill, which consists of 120 acres of private land, an office building, a laboratory building, water rights, and a modern gravity, flotation and cyanide leach mill. The mill has the capacity to process up to 700 short tons per day.

The Gold King Mine is a 170-acre property with known gold potential. CGFI is reinterpreting the geological data and models of the mine, and will conduct a geophysics program in conjunction with surface drilling to better evaluate the steps required to move the site to production level within the next two to three years. The 250 acres of the Mayflower Mine can easily be accessed by a gravel road. Historically about 520,000 ounces of gold and 12.3 million ounces of silver were removed from the Mayflower Mine.

Echo Bay Mines, which owned the site in the 1980s, conducted further exploration of the site and found the continuation of historical ore grades below the main area that was mined. Due to financial issues, Echo was not able to proceed with its mining efforts. The Mogul Mine is a high-grade zinc/lead/silver property that adjoins the Gold King Mine. The site has not been actively mined since the early 1900s and has the potential for a large tonnage of ore. Historically, the ore grade from the site has been 6.5% zinc, 4% lead, and 0.75% copper.

John Ferguson, DOO of CGFI, recently stated, “We anticipate, subject to third party assay verification, that we will be able to determine if there are one or more mineable veins in this system parallel to the principal Gold King Davis vein. We are excited about the possibility of multiple veins containing historically unrecognized ore shoots.”

Ferguson continued with comments about the Mogul Mine, “The surface outcrop of the vein is approximately 40 feet wide. Historical data from mining in the zone above the drill holes indicates a good grade of silver, lead, copper and zinc with important gold. We are hopeful that drilling on the Mogul vein will indicate the existence of commercially viable ore.”

Let us hear your thoughts: Colorado Goldfields, Inc. Message Board

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