M-2 : Colorado Goldfields declare purchase of mining properties in California
Published in M2 EquityBites on Thursday, 20 August 2009 at 10:30 GMT
Copyright (C) 2009, M2 Communications
Exploration and mining company Colorado Goldfields Inc (OTCBB:CGFIA) said on Wednesday that the company has entered into a Letter of Intent to acquire the Eddy Gulch properties in Siskiyou County, California, in exchange for shares of Class A common stock in an all-stock transaction.
The Eddy Gulch properties are expected to contain at least 1.23 million ounces of gold. This represents a potential resource of USD1.15bn at a gold price of about USD935 per ounce. There is a potential for more than USD700m profit applying after mining and milling expenses.
The group of properties includes a 20 acre patented lode claim and a five acre patented mill site. There are also 15, 20 acre unpatented lode claims, a 20 acre placer claim and five 160 acre association placer claims.
