Colorado Gold Fields Inc. is a purchaser and explorer of gold and mineral properties throughout its home state of Colorado. The company potentially has access to some of Colorado’s richest gold and mineral properties that have been dormant for decades. Colorado Gold Fields holds an option to acquire an 80-percent undivided interest in the Gold King and Mogul Mine properties comprising 44 patented and 13 unpatented mining claims located in San Juan County, Colorado; and a 70-percent undivided interest in 19 patented mining claims in the Mayflower mine.
The aforementioned properties were once among the most prolific producers of gold, silver and other minerals in Colorado, but have been dormant since the 1990s due to environmental concerns. Estimates show that the Gold King property may have as much 406,000 ounces of gold and almost 4 million ounces of silver. In fact, Colorado Gold Fields began drilling at Gold King earlier this week.
The company also has an inactive mill that it says can reach a capacity of 500 tons to 700 tons per day production when activated. The mill is valued at $12 million, and several smaller mining companies have already approached Colorado Gold Fields about use of it. In an effort to boost shareholder return, the company plans to open access to the mill.
With gold being the commodity many banks and investors turn to around the world when oil prices soar and the US dollar weakens, Colorado Gold Fields may warrant a look by potential investors. The company announced yesterday that its board of directors locked up 40,500,000 shares, or 40 percent of its float, for two years, and the company believes it can be profitable within 18 months. The company also has an international focus via the recent acquisition of a Mexican rival.
Shares of Colorado Gold Fields currently trade at 11 cents and have had average volume of over 188,000 a day for the last three months, an especially high volume for companies of this size. Colorado Gold Fields has a market value of almost $10 million.
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