Colorado Goldfields Commences Drilling at Mogul Mine

Colorado Goldfields Commences Drilling at Mogul Mine

August 19, 2008 Filed Under: Lead Mining, Precious Metal  

Colorado Goldfields Inc. commenced drilling at its Mogul Mine Project in San Juan County, Colorado. CGFI will drill multiple holes into various geologic zones to verify potentially recoverable gold and silver and to determine exactly where mining will yield the highest production.

Colorado Goldfields Inc.’s company Longyear 34 drill is drilling to intercept the Mogul-Brenneman-Washington vein on the Company controlled Mogul property. The objective of this drilling is to extend the Mogul base metal rich (with some gold and silver) below the old workings. It is anticipated that a 43-101 compliant resource can be indicated from this drilling coupled with historic data.

The Mogul Mine is situated on property that is located in the heart of the San Juan County gold fields and proven gold producing ground, 8 miles from Silverton.

The Mogul Mine is a high-grade zinc/lead/silver property that adjoins both the Gold King Mine and the Sunnyside Mine. The property was active from 1901-1909 as a precious metals mine, and has not had the benefit of exploration activity in modern times. The Mogul Mine has the potential to host a considerable tonnage of ore, and is the continuation of the George Washington vein of the Sunnyside Mine (Kinross Gold), which accounted for a large part of Sunnyside’s base metal production. The historic ore grade from the Mogul is approximately 6.5% zinc, 4% lead, 0.75% copper and varied precious metal content. Vein widths of up to 50 feet have been reported and an average approximate width of 8 to 10 feet appears on the surface.

The purpose of this drilling, as well as the previously announced drilling at the Company’s Gold King Mine, is to verify and expand the historic delineated tonnage at the property to N.I. 43-101 standards.

Drilling commenced July 19, 2008.

Colorado Goldfields Inc. (OTCBB: CGFI),, is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discovery. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern 500 to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.

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