Mining News: Colorado budgets C$4M to expand stake in KSP

Colorado Resources Ltd. May 11 said it has made a final cash payment of C$150,000 and completed C$6 million of work at KSP, satisfying an agreement with SnipGold Corp., a subsidiary of Seabridge Gold Inc., to earn an initial 51 percent interest in the northern British Columbia gold property, a stake it hopes to increase to 80 percent by the end of the year. After completing a detailed review of the 2016 exploration results in the context of updated geological, geochemical and geophysical data, Colorado has budgeted C$4 million for a 2017 exploration program at KSP that is expected to include roughly 7,500 meters of drilling that will focus on areas to the west and north of the area drilled at the Inel target last year. One hole drilled at Inel last year cut 52 meters averaging 4.93 grams per metric ton gold and 2.7 percent zinc; including a two-meter intercept with 89.1 g/t gold and 2.3 percent zinc. Colorado said that many of the 2016 holes drilled on the margins of the areas being targeted this year ended in mineralization and are overlain by very strong gold-in-soil anomalies. Slated to get underway in July, the 2017 exploration at KSP been designed to meet the spending requirements to earn an additional 29 percent interest in the project. Once this earn-in requirement has been met, Colorado and Seabridge will form an 80-20 joint venture at KSP.

–SHANE LASLEY