18 July 2013
Dear Colorado Goldfields Shareholders:
First and foremost, the Company wishes to thank each of its shareholders for their continued support through these challenging and unpredictable times. Even in the face of the continuing difficult U.S. and global economic conditions, along with the substantial stability problems in the capital and credit markets, the Company has remained dedicated to executing its business plan.
Progress with the Pride of the West Mill:
Activities reclaiming the old tailings ponds have been in progress since June. As of today, the tailings area has been re-graded in accordance with the final drainage contour and covered with 5,000 cubic yards of native inert material excavated from an on-site borrow area in compliance with the approved reclamation plan. The material was spread in a 12-inch thick layer to control wind erosion of the old mill tailings and will form the base for the final evapotranspiration cover as part of the on-going project to protect and improve the quality of ground water resources potentially affected from past tailings disposal practices.
Evaporation of the remaining water contained within the lined Cell 1A (approximately 150,000 gallons) of the Upper Tailings Pond area is 90% complete. When evaporation of all of the water from Cell 1A is complete, the liner will be folded in and the cell filled with inert native material as part of the approved reclamation plan.
Permitting work has also been on-going, especially to satisfy the remaining conditions of the approval granted in August 2012. Additional Engineering and geotechnical analyses for the Dry Stack Tailings disposal system are being completed by Sundale Associates in preparation for submittal of a Technical Revision. It is anticipated that the work will be completed and the Technical Revision submitted by mid-August for final approval. Following approval of the Technical Revision, construction of the Environmental Protection Facility can proceed.
A detailed and very comprehensive report on the Company was recently provided and distributed by Paul Cohen of Cohen Research and Grass Roots Research and Distribution, Inc. The report also contains a very thoughtful evaluation of the gold market in general and how that may affect Colorado Goldfields.
The full report may be found at the following link.
http://www.cologold.com/CGFI_Grass_Roots_Research_Report.pdf
The Company timely filed its most recent quarterly report on Form 10-Q. The report is available through the SEC's Edgar database at the following link.
http://www.sec.gov/Archives/edgar/data/1344394/000135448813003873/cgfia_10q.htm
Additionally, the report is also filed in XBRL format. The most recent Form 10-Q, and all SEC filings are available in HTML, PDF, or XBRL format at the following link.
http://www.irdirect.net/CGFI/sec_filings
Canadian National Instrument 43-101 compliant and SEC Guide 7 reports are available for the Company's two primary mines.
The Champion Mine report is available at the following link:
www.cologold.com/ChampionMine-Project-SEC-Guide7-Technical.pdf
The Silver Wing Mine report may be viewed at the following link:
www.cologold.com/Silver Wing Project Report 12-24-2012_comp.pdf
Again, thank you for your support.
Sincerely,
Colorado Goldfields Inc.
C. Stephen Guyer, Chief Financial Officer
CSG: mm