Issue link: http://resourceworld.uberflip.com/i/134727
MINING Colorado Resources seeks to build on drilling success by Simon Rees Sometimes all it seems to take is one robust drill result to get the ball rolling, a return that produces a buzz of expectation, positive market reaction and a welcome reminder of better days potentially around the corner. This was recently the case for Colorado Resources Ltd. [CXO-TSXV]. On April 25, it unveiled results for NR13-001 drilled at its North ROK property about 190 km north of Stewart, British Columbia. It intersected 0.51% copper and 0.67 grams gold/tonne (g/t) from 2-335 metres, the first 242 metres returning 0.63% copper and 0.85 g/t gold. The market was swift to react: Colorado's stock traded at $0.16 at the close April 24, climbing to $0.65 by the close April 26; it stood at $1.39 on May 22. But behind NR13-001 has been a great deal of work. "I've been coming into the area since 1987 as a geologist working for various different companies, [and] I've held the ground where the North ROK discovery is located for 12 years," Colorado President and CEO Adam Travis told Resource World. In staking the land, Travis was spurred by a 1994 government geology report on the wider area. It briefly-mentioned a rock sample taken from what would become the North ROK discovery that returned 0.4% copper and 0.4 g/t gold, he said. Several ventures and options were established to develop the property, although the opportunity to do groundwork failed to materialize. "We never did much work there; we never got down and dirty," Travis said. But with Colorado, he finally had his chance. Early-stage work in autumn 2012 demonstrated porphyry copper gold-style mineralization and alteration within a copper-gold geochemical anomaly. This anomaly measures about 700 metres by 350 metres and coincides with a similar-sized area of increased magnetic susceptibility and IP chargeability. "The work encouraged us to apply for a drilling permit during the winter," Travis said. In spring 2013, what became a four-hole drill campaign was started. The results for the other three holes are still pending at time of writing, while NR13-001 continues to capture people's imagination. Colorado is now taking stock of the drilling to date. "With the information we've got coming in, a pause also allows us to work on [necessary] full disclosure to shareholders and to potential new shareholders," Travis said. Meanwhile, the company is pushing ahead with more surface work. "We've got geological crews, geophysical crews and geochemical crews now on site. There's also a crew undertaking archeological work … We're catching up with the surface work in anticipation of expanding the drill program," Travis said. For financing, Colorado finds itself in a robust position compared with many others in its peer group. "We've north of $7 million in the bank, having been quite prudent over the past couple of years. That helps us [and] people want to invest," Travis said. "In a few weeks' we can choose where to go next; whether we continue drilling using our existing treasury or whether we will consider a financing option," he added. "There are lots of avenues to consider and that's a good situation to be in." n JUNE 2013 James Tashoots, top, cuts diamond drill core at the North ROK property in northwest British Columbia and Theresa Quock, core technician, below. Photo Colorado Resources Ltd. www.resourceworld.com 29