As per the terms of an exploration contract with Kinross Gold, Colorado Resources has completed $500,000 of the cost requirements. Kinross Gold is a prominent gold manufacturer.
Based on the exploration results, the company has opted for a 50-50 joint venture partnership with Colorado Resources on the Red Sky property, which is situated towards the south of the community of Redstone roughly 150 km by road, west of Williams Lake in British Columbia.
The Red Sky property has the possibility to host bulk tonnage gold mineralization, which is akin to that discovered on Amarc's Newton property situated about 30 km southeast of Red Sky. The property also has the possibility to host copper-gold porphyry style mineralization that resembles Taseko's Prosperity deposit.
Colorado Resources had funded the work program that included magnetometer geophysical surveying, geological mapping, induced polarization, till and rock chip sampling and 628 m of diamond drilling in four broadly spaced holes. The drilling was conducted to examine a partially exposed, chargeability anomaly in a region enclosed by glacial overload that is up-ice from silver, gold, zinc and copper geochemical anomaly outlined by comprehensive till sampling.
The drilling encountered andesitic volcanic rocks, which remained cut by numerous intrusive bodies. A number of faults with related clay modification, minor silicification, inconsistent sulphide accumulations and potassic modification were identified within the wider zones of weak to moderate propylitic modification. This kind of modification pattern is generally seen on the porphyry copper systems’ margins. In addition, analytical results were uniform with the geochemical signature identified on porphyry copper systems’ margins, wherein core copper mineralization is typically covered by a halo of high zinc values. The RS11-04 hole returned a 101.4 m intercept grading 0.26% zinc.
Colorado Resources’ President Adam Travis said that the company is looking forward to work with Kinross in 2012 for additional testing of the property with a geophysics and drilling program.