"We have received many more solicitations for custom milling since the first of the year than we ever anticipated. We believe that accelerating re-activation of the Pride of the Wes Mill is a wise strategic move, particularly as the uncertain economy forces other mining companies to roll back their plans." John Ferguson, Director of Operations for Colorado Goldfields,

Of the many inquiries received, one U.S.-based investor group will be making a site visit at the end of April. This group intends to begin mining operations north of Ouray this summer. As part of an Alliance presently in formation with the Company and the investor group, between $500,000 and $700,000 will be deployed for facilities improvements directed toward the tailings ponds, electrical upgrades, and new drainage excavation. That will greatly accelerate the re-activation project.

A report by Robert Larson of Monadnock Mineral Services reveals that the property generating the ore for Colorado Goldfields to mill consists of approximately 800 acres of patented mining claims, from which significant gold has been produced. Surface and underground mapping and sampling was conducted along with approximately 43 core drill holes. Analysis estimated potential gold resources of 344,000 tons of 0.41 ounce per ton gold as “near-term” targets, and 780,000 tons of 0.40 ounce per ton gold as ´intermediate-term´ targets. ´Near-term´ targets are defined as those adjacent to, or within several hundred feet of existing mine workings, whereas ´intermediate-term´ targets were up to 4,000 feet to the east of the existing workings. One of the drill holes in the ´near-term´ targets encountered 70.7 feet of 0.127 ounce per ton gold, with one interval of 3.8 feet of 1.262 ounce per ton gold. One of the drill holes in the ´intermediate-term´ targets encountered 7.2 feet of 0.368 ounce per ton gold.

Larson went on to say, "This is an ideal venture for a small to medium-sized mining company to begin development and initiate test-mining with custom-milling within the existing mine workings. These properties have the potential of producing 400,000 ounces of gold from near and intermediate-term.

"The collaborative synergy is at its best, By leveraging the best from the investor group and Colorado Goldfields, we will be moving toward significant operating revenue much more quickly than planned. This project represents an initial gross revenue stream of $40,000 per month, which is only 20% of the Mill’s capacity. One or two additional custom milling projects could bring us to $2,000,000 per year in gross revenue very quickly," - C. Stephen Guyer, CFO for Colorado Goldfields.

Colorado Goldfields is focused on proven grounds that have multiple deposit discoveries and potential.

Following the proven discovery model, our specific business strategy in Colorado provides a unique combination of advanced, formerly producing properties with excellent exploration and production potential and a modern 500 to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame.

The Company has the option to earn an 80% interest in three extremely promising gold mining properties, featuring advanced, formerly producing mines: the Gold King, Mayflower and Mogul mines located in San Juan County in Southwest Colorado.

Gold Market

The stock market has tried the endurance of experienced hands sending gold prices through the roof and delivered tremendous buying power unheard of in recent time.

Many analysts believe that if inflation picks up, the Fed will have to raise interest rates. Taking gold even higher. Our Strategic Plan takes advantage of the rise in gold prices and the eventual decline in production cost.

The historical damage in the market was due, in part, to a weakening dollar, making denominated assets like gold and minerals more attractive. When the dollar is weak, gold is strong. Although a few days of trending seem to defy gravity, this only serves to expose the true volatile temperament of the market.