Sep 02, 2008

Colorado Goldfields Assesses Alternative Water Treatment Technologies

Company testing two technologies in San Juan County, Colo.

Colorado Goldfields, Inc. (CGFI) initiated two projects to assess alternative water treatment technologies in the Cement Creek watershed of San Juan County, Colo., one of which is in conjunction with the U.S. Environmental Protection Agency (EPA) and the U.S. Bureau of Land Management.

One project tests the Rotating Cylinder Treatment System at a proposed district-scale water treatment facility near Gladstone, Colo. The U.S. government is providing the bulk of the project's funding. Testing is being performed by Ionic Water Technologies, Inc. of Nevada. CGFI is providing test work locations, equipment, water containment vessels and personnel.

Separately, CGFI will be testing an Ionic State Modification (ISM) system, developed by Blue Sky Water Treatment Technologies, Inc., to potentially treat the water discharge at the Company's Gold King site.

"If the Blue Sky ISM system works for the Gold King 7 level discharge, it will be a cost-effective solution for us and potentially addresses numerous discharges by other parties in the Cement Creek watershed,” CGFI's CEO Todd Hennis said. “The Blue Sky ISM system should generate significantly less metal sludge than conventional treatment systems, or even the RCTS technology, and can be operated with minimal personnel. The Blue Sky ISM technology also does not require large water treatment settling ponds, thereby reducing the environmental footprint on the land and reducing our production costs."