Colossus Minerals Inc. Announces COOMIGASP Shareholder Approval of Transfer of Mineral Rights to the Joint Venture Company and Start of Underground Development
TORONTO, ONTARIO -- (Marketwire) -- 09/02/10 -- Colossus Minerals Inc. (TSX: CSI) ('Colossus' or 'the Company') is pleased to announce that the shareholders of its joint venture partner, COOMIGASP (Cooperativa de Mineracao dos Garimpeiros de Serra Pelada), approved, by acclamation, the transfer of the mineral rights related to Mining License DNPM Nr. 850.425/1990 from COOMIGASP to Serra Pelada Companhia de Desenvolvimento Mineral ('SPC'). Colossus holds a 75% interest in SPC through its Brazilian subsidiary Colossus Geologia e Participacoes Ltda ('Colossus Brazil').
Colossus would also like to announce that development of a 3,500 metre underground decline has officially commenced. The decline will provide access for underground exploration and definition drilling, allow extraction of a bulk sample to evaluate the geostatistics of the bonanza-grade zones to facilitate a better understanding of the potential resource, and provide access for eventual underground production. The cost of the decline is estimated to be CDN $15 million and is expected to take 12 to 18 months to complete. However, underground drilling will commence in early 2011, well ahead of the decline completion. Colossus has also started earthworks on other site infrastructure including a future plant site, camp site, maintenance facilities, offices, and the tailings impoundment and has already completed earthworks for the underground portal and upgrades to the road into Serra Pelada.
(see http://colossusminerals.com/_resources/images/Portal_Construction.jpg)
On August 28, 2010, COOMIGASP members were invited to tour the Serra Pelada site and witness the commencement of development activities related to the mine. The visit was an overwhelming success with more than 8,000 members visiting the site.
(see http://colossusminerals.com/_resources/images/COOMIGASP_Members_Site_Tour.jpg)
'The approval by COOMIGASP shareholders reaffirms the cooperative's commitment to developing the project with Colossus,' stated Ari Sussman, CEO. 'It is an exciting time at Serra Pelada with start of development happening in conjunction with continued drilling of the Central Mineralised Zone extension, the Western Mineralised Zone and target generation on potentially other outlying zones.'
About Colossus:
Colossus is a minerals development company focused on the Serra Pelada high-grade gold-platinum-palladium project in Para State of Brazil. Between 1980 and 1986, Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage by 60 Minutes of this famous mining rush can be viewed at: http://sixtyminutes.ninemsn.com.au/article.aspx?id=299887.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Colossus, certain statements in this press release relating but not limited to the Company's exploration and development activities and intentions constitute 'forward-looking information' within the meaning of the Securities Act (Ontario) or 'forward-looking statements' within the meaning of the United States Private Litigation Reform Act of 1995. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. Forward-looking statements are frequently characterized by words such as 'target', 'plan', 'expect', 'project', 'intend', believe', 'anticipate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The factors include but are not limited to risks related to the joint venture operation, actual results of exploration activities, the inherent risks involved in the exploration and development of mineral properties, changes in project parameters as plans continue to be refined, delays in obtaining government approvals, the uncertainties of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties inherent to conducting business in Brazil and the rest of Latin America, the availability of supplies, unexpected adverse climate conditions, the reliance on only a few key members of management, as well as those factors discussed in the section entitled 'Risk Factors' in the Company's most recent Annual Information Form filed with Canadian provincial securities regulatory authorities and other regulatory filings which are posted on SEDAR at www.sedar.com. Unless required by law, Colossus undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Contacts:
Colossus Minerals Inc.
(416) 643-7655
info@colossusminerals.com
www.colossusminerals.com