Colorado Resources, a Canadian junior company headquartered in West Kelowna, British Columbia, reported progress at its Oro gold property in Yukon and its North ROK copper-gold property in British Columbia.
At the Oro property, Colorado Resources has entered into an option and joint venture agreement with a subsidiary of Gold Fields Ltd. for potential transfer to Gold Fields of up to a 70% interest in the property. The property covers approximately 36,000 ha and is located in the mineral-rich MacMillan Pass area of Yukon. Under the agreement, Gold Fields can earn a 51% interest in the property by making aggregate option payments of C$600,000 and incurring minimum exploration expenditures of C$7.5 million and up to $9 million to complete 10,000 m of drilling over a three-year period.
Gold Fields can earn an additional 19% interest by making aggregate option payments of $900,000 and incurring exploration expenditures of $11 million over the following two years.
At the North ROK property 190 km north of Stewart, British Columbia, Colorado Resources reported completion of four drillholes based on a follow-up of 2012 soil sampling and ground magnetic and IP surveying. As of late May, assay results were only available from the initial drillhole, which returned 333 m of 0.51% copper and 0.67 g/mt gold. The first 242 m of the hole were hosted in a typical porphyry-copper-style altered monzonite intrusion and assayed 0.63% copper and 0.85 g/mt gold. The last 91 m intersected altered volcanics that weakened away from the intrusive contact but still returned 0.20% copper and 0.19 g/mt gold.
Results from this initial hole sparked a steep increase in Colorado Resources’ stock price, which climbed from under C$0.20/share in late April to more than C$1.50/share in late May on the TSX-Venture exchange.