Colossus Minerals Purchases Ball Mill and Announces Plans to Extract a 2,500 Tonne Bulk Sample at Serra Pelada
TORONTO, ONTARIO -- (Marketwire) -- 03/07/11 -- Colossus Minerals Inc. (the 'Company' or 'Colossus') (TSX: CSI) is pleased to provide an update on development activities at the Serra Pelada Gold-Platinum-Palladium Project, the Colossus-COOMIGASP joint venture located in Para State, Brazil.
The Company has agreed to purchase a ball mill and related equipment for a total cost of approximately US$620,000, which represents a greater than $2 million savings when compared with purchasing new equipment. The equipment is located in Para State, Brazil in the Carajas region approximately 100 kilometres (200 kilometres by road) from Serra Pelada and is in excellent condition. Closing of the acquisition is expected to take place on or about March 15, 2011 and delivery to site will occur in the following 90 days.
Additionally, Colossus is pleased to announce that it has finalized plans to extract an initial 2,500 tonne bulk sample from the upper portion of the Central Mineralized Zone ('CMZ'). The aim of the bulk sample is to characterize the distribution of mineralization across different sections of the upper portion of the CMZ. The material extracted in the bulk sample will include various mineralized sub-zones of the CMZ (i.e SPD-007: 25.80 metres @ 11.66 g/t gold, 12.07 g/t platinum and 18.34 g/t palladium) and the upper limb zone (i.e SPD-047: 5.00 metres @ 59.42 g/t gold, 5.46 g/t platinum and 9.07 g/t palladium). The bulk sample will commence during the first quarter of 2012. Also, the Company anticipates that two additional 2,500 tonne bulk samples will be extracted during 2012, covering both the middle and lower portions of the CMZ once underground development and dewatering provide access to these locations.
Randy Reichert, President and COO stated, 'The equipment acquisition secures a key component for the development of the Serra Pelada Project and will not only provide significant savings to the overall capital expenditures of the project, but more importantly will save a substantial amount of lead-time compared to purchasing similar equipment elsewhere, which would normally require up to twelve to eighteen months of delivery time. In addition, the purchase achieves an important step towards the Company's stated objective of seeing the project commence phase 1 production in 2012.'
2011 DEVELOPMENT MILESTONES UPDATE:
-- The Company's 25,000 metre Phase IV surface exploration drill program
is well underway following numerous delays due to unforseen variables
experienced during the first quarter of 2011. A second deep penetrating
drill rig has arrived at site and is expected to accelerate exploration
drilling of the CMZ extensions. A total of five drills are now in full
operation on the property and the Company is planning to add more drill
rigs in the coming months. Initial targets being tested (see figure 1)
are the CMZ extensions, the up-plunge extension of the GT Zone to
determine whether or not the GT Zone and the Western Zone are in fact
one single zone, the Portal Zone and other targets situated between the
CMZ and the Portal Zone (approximately 800 metres of strike length).
-- The 3,500 metre underground decline is progressing as planned, with well
over 200 metres now complete. In April 2011, a new shotcrete jumbo and
rockbolter will be delivered to the project and expectations are that
underground development will accelerate significantly to an approximate
advance rate of 10 metres per day. Completion of the decline is
anticipated in the second quarter of 2012.
-- The Company has placed a purchase order for two underground diamond
drills. Underground drilling on the first of many targets is scheduled
to commence during the summer of 2011. More underground drills may be
purchased at a later date as well.
-- Construction of a 200-person camp commenced in early November 2010 with
completion expected early in the second quarter of 2011. The camp
cafeteria is already in operation.
-- Construction of the tailings starter dam is scheduled to begin in May
2011 and is expected to be complete by the fourth quarter 2011.
-- Dewatering has commenced with more than half of the wells completed.
Installation of the dewatering pumps will start before the end of March
2011. It is anticipated that dewatering to a depth of 320 metres will be
complete by the second quarter of 2012.
-- Process plant engineering and design continues to progress. Construction
of the process plant is expected to begin in the third quarter of 2011
and is expected to be complete in the third quarter of 2012.
To view figure 1, please visit the following link: http://media3.marketwire.com/docs/CSI0307fig1.pdf
Technical Information:
Dr. Vic Wall, the Company's VP Exploration and a qualified person under National Instrument 43-101, is responsible for this release and has verified the contents disclosed.
About Colossus:
Colossus is an exploration and development Company focused on mineral resource properties in Brazil. The Company is currently focusing its efforts on the high grade gold-platinum-palladium Serra Pelada project in Para State, 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 the following link: 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 acquisition and delivery of equipment, estimated capital expenditures, and the Company's exploration and development plans, 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 'appear to', '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 equipment and 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.
Ann Candelario
VP Investor Relations
(416) 643-7655
acandelario@colossusminerals.com
www.colossusminerals.com