Mining News: Northern Neighbors: Colorado expands North ROK copper-gold project

Colorado Resources Ltd. March 14 reported a deal to acquire full ownership of ROK-Coyote, a northern British Columbia copper-gold property that lies between Colorado’s North ROK property and Imperial Metals’ Red Chris Mine property. The ROK-Coyote porphyry prospect has been intermittently explored since the late 1960s. Work on the ROK portion of the property from 1976 to 1991, included mapping, geochemical surveys, geophysics, trenching and drilling. One hole drilled during this historical exploration cut 38.7 meters averaging 1.03 percent copper and 1.54 grams per metric ton gold. Little follow-up exploration was carried out until the discovery of the North ROK porphyry in 2013. Colorado said a review of the historical geophysical data suggests that the North ROK sulfide system trends onto the ROK-Coyote property for at least 1,200 meters, nearly doubling the immediate prospective strike. A number of other magnetic and induced polarization anomalies are noted along other separate historical grids and have not been drill tested. To acquire full ownership of ROK-Coyote, subject to underlying 2 percent net smelter return royalty agreements, Colorado has agree to issue Firesteel Resources Ltd. 1.5 million company units, with each unit consisting of one Colorado share and one warrant. Each warrant will entitle Firesteel to purchase a Colorado share at C45 cents for a period of two years. The underlying vendors' NSR royalty includes a 2 percent NSR agreement on three claims, which can be purchased for C$2 million, and a 2 percent NSR on 16 claims, of which 1 percent can be purchased for C$2 million.

-Shane Lasley