Colossus Minerals Reports Results from Diamond Drilling Programs at Serra Pelada
TORONTO, ONTARIO -- (Marketwire) -- 02/28/13 -- Colossus Minerals Inc. (the "Company" or "Colossus") (TSX: CSI)(OTCQX: COLUF) announces assay results from surface and underground drilling programs on its 75% owned Serra Pelada gold-platinum-palladium Mine. The Serra Pelada Mine is a joint venture between Colossus and Cooperativa de Mineracao dos Garimpeiros de Serra Pelada ("COOMIGASP") located in the State of Para, Brazil.
HIGHLIGHTS
-- SPD-182 intersected 3.40 metres grading 13.28 g/t gold, 0.02 g/t
platinum and 0.06 g/t palladium increasing the width of the CMZ in this
location
-- SPD-184 intersected 26.65 metres grading 5.10 g/t gold, 11.22 g/t
platinum and 9.42 g/t palladium also increasing the width of the CMZ in
this location
-- Underground drilling encounters more high grade with hole SPUD-018
intersecting 3.60 metres grading 24.37 g/t gold, 0.28 g/t platinum and
0.88 g/t palladium
Claudio Mancuso, CEO of Colossus commented, "We are pleased that despite poorer than anticipated drill performance, the results demonstrate localized increases in the width of the CMZ. We are further pleased to be able to establish more effective drilling stations closer to the CMZ, which will increase the pace of delineation drilling and assist with mine planning."
DETAILS
Results from the surface and underground drilling programs at Serra Pelada can be found in Table 1 below and the drill hole collar locations as well as hole traces for holes mentioned in this news release can be seen in Figure 1 below.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/csi228-F1.pdf.
TABLE 1: SIGNIFICANT DRILLING RESULTS
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Drill-
Mineralized hole From To Interval Gold Platinum Palladium
Zone ID (m) (m) (i) (m) (g/t) (g/t) (g/t)
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CMZ SPD-182 194.20 197.05 2.85 5.56 0.47 0.65
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and 219.25 222.65 3.40 13.28 0.02 0.06
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and 286.50 287.70 1.20 9.98 3.14 3.89
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CMZ SPD-184 146.20 158.80 12.60 3.74 11.98 20.22
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Including
(ii) 148.15 150.45 2.30 12.49 53.16 84.80
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and 157.80 158.80 1.00 0.74 16.29 51.13
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and 178.50 205.15 26.65 5.10 11.22 9.42
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Including 183.90 184.70 0.80 100.80 112.71 46.36
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Including 184.70 185.60 0.90 5.55 69.13 52.47
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Including 202.25 203.35 1.10 4.29 19.05 20.19
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and 231.40 238.70 7.30 3.67 1.17 1.44
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and 245.40 247.40 2.00 5.41 0.86 1.65
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SPUD-013 179.50 180.70 1.20 17.06 0.64 1.07
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and 198.85 199.45 0.60 4.50 0.15 0.28
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SPUD-014 169.60 172.30 2.70 5.54 3.59 5.95
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and 174.60 179.65 5.05 1.21 0.29 0.33
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and 186.05 189.90 3.85 6.63 1.46 2.16
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and 192.70 197.20 4.50 3.15 0.66 0.71
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SPUD-015 170.60 179.50 8.90 4.12 0.62 1.06
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SPUD-018 59.85 60.65 0.80 23.07 0.02 0.01
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and 62.90 66.50 3.60 24.37 0.28 0.88
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including 64.60 65.70 1.10 66.17 0.88 2.71
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(i) True thickness not known and therefore core lengths are reported.
Intercepts determined on a 1 g/t (gold+ platinum+ palladium) cut-off grade
for the purpose of this release.
(ii) Poor core recovery for this interval. Therefore it will not be used in
resource or reserve calculations, but is reported in the table because the
core that was recovered provided the listed results for this interval.
Central Mineralized Zone
The three surface holes presented below, were drilled at the end of the 2012 drilling campaign and were designed to block off the northwestern side of the CMZ in various sections. However, two of the three holes intersected high-grade mineralization and extended the CMZ to the northwest.
SPD-182 was drilled along section 25SW and extended the CMZ intersecting 3.40 metres grading 13.28 g/t gold, 0.02 g/t platinum and 0.06 g/t palladium. This hole demonstrated that the CMZ is tucked in closer to the nose of the folded structure along this section and will be further drill tested from underground.
SPD-183 was drilled along section 88SW and was designed to block off the mineralized zone on the northwestern side. This hole contains no significant results thus accomplishing its goal. The nose of the folded structure containing the bulk of the mineralization at Serra Pelada lies roughly 45 metres southeast of the trace of this hole.
SPD-184 was drilled along section 88NE and intersected the undulating boundary of the CMZ and as a result contained intercepts over a 100 metre long core length that returned values such as 12.00 metres grading 3.92 g/t gold, 12.58 g/t platinum and 21.23 g/t palladium, as well as 26.65 metres grading 5.10 g/t gold, 11.22 g/t platinum and 9.42 g/t palladium. The position of mineralization in this hole increases the estimate of the horizontal width of the CMZ by approximately five metres. The true width of the CMZ in this location will be determined by underground drilling.
Underground Delineation Drilling
Underground drilling has been slower than anticipated as a result of the distance to the mineralized zone from the previous drill bay. This was reflected in the difficulty experienced in drilling the latest series of holes to their planned depths. This challenge has been resolved with the recent commissioning of drill bays closer to the CMZ and 45 metres lower in elevation than the previous drill bay. Holes from these new drill bays will be approximately half the distance to the CMZ than the holes reported in this release.
SPUD-013 was drilled from the drill bay roughly located on section 50NE and roughly 125 metres below surface (see Figure 1). The hole intersected the beginning of the CMZ and encountered a highlight of 1.20 metres grading 17.06 g/t gold, 0.64 g/t platinum and 1.07 g/t palladium before stopping in the mineralized zone due to technical difficulties. The mineralization encountered in the hole occurred approximately five metres sooner than what was predicted from modeling based on surface drill holes in the vicinity.
SPUD-014 drilled from the same bay as SPUD-013 and was successful in intersecting mineralization from roughly 163.5-197.0 metres down the hole. The mineralization began roughly ten metres sooner than the modeling based on surface drill holes. The hole had several good intervals, the highlight of which is 3.85 metres grading 6.63 g/t gold, 1.46 g/t platinum and 2.16 g/t palladium.
SPUD-015 was drilled from the same drill bay on section 50NE as the holes mentioned above but targeting the mineralized zone along section 0. The hole was completed to the planned distance and encountered the upper portion of the CMZ along a core length of roughly 50 metres. This hole was not expected to intersect high grade values as it occurs at the very top of the system where the upper limb and CMZ meet. The hole intersected 8.90 metres grading 4.12 g/t gold, 0.62 g/t platinum and 1.06 g/t palladium. The higher grade mineralization appeared roughly 15 metres earlier than the modeling with surface drill holes had predicted once again validating the need for the underground delineation program.
SPUD-016 was designed to undercut SPUD-015 at a distance of 10 metres below the mid-point of the mineralization encountered by SPUD-015. The hole was abandoned mid-distance due to technical difficulties.
SPUD-017 was the first hole from a new drill bay located on section 50NE but roughly 60 metres closer to the mineralization and 45 metres lower in elevation than the previous drill bay. SPUD-017 was designed as a geotechnical drill hole to test the ground ahead of future development.
SPUD-018 was the first delineation drill hole in the new drill bay as well as being the first hole in this section. It was designed to test for mineralization along section 50NE and to intersect the upper portion of the CMZ. Highlights from the hole include 0.80 metres grading 23.07 g/t gold and 3.60 metres grading 24.37 g/t gold, 0.28 g/t platinum and 0.88 g/t palladium. The mineralization began roughly 20 metres sooner than what the model predicted and represents a portion of the upper limb mineralized zone as it transitions into the upper part of the CMZ. The drilling continues along this section to delineate the CMZ at 10 metre intervals.
Serra Pelada Geology
Gold-platinum-palladium mineralization at Serra Pelada overprints metasediments occupying the hinge of a large fold. The CMZ comprises a mainly steeply dipping carbonaceous alteration zone in the fold hinge that also extends onto the upper and lower limbs of the fold for a limited distance. The Lower Limb Zone represents shallowly-dipping, gold-platinum-palladium mineralization predominantly associated with an iron oxide rich breccia as well as iron oxide rich argillic alteration and locally carbonaceous alteration on the lower limb of the main fold. The upper limb mineralization is characterized by an iron oxide rich breccia similar to that found in the lower limb.
Technical Information
Diamond drilling was HQ cored. Sampling of core by Colossus personnel and sample preparation by Intertek Limited, Parauapebas and SGS Geosol, Parauapebas, Brazil were carried out under strict protocols recommended in the National Instrument 43-101 Technical Report dated January 31, 2010 on the Serra Pelada Project. After photographing and logging, core sample intervals were cut and/or split in half, yielding samples of various weights depending on the sample length. Where core recoveries were low, intervals were composited to yield approximately one kilogram minimum sample mass. Intertek and SGS Geosol pulverize one or two kilogram splits (greater than 95% passing 106 microns) from the crushed (greater than 95% passing 1.7 mm), dried samples. Duplicates, blanks and certified gold-PGE reference materials were inserted in the sample train by Colossus personnel prior to Intertek preparation work.
The labs insert additional blanks, duplicates and high grade gold/PGE reference materials in the assay stream and replicate or duplicate assays were performed routinely and on most medium- to high-grade materials. Fire assays for gold, platinum and palladium were on 25 gram subsamples utilizing a lead-rich collector material and AA finish.
The Intertek and SGS Geosol assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures. A 200 gram aliquot of medium and high grade pulps were rotary split from each pulp by Intertek and SGS Geosol and one of these samples was securely shipped directly by Intertek to SGS Geosol Lab in Parauapebas, Brazil for check assaying. A similar procedure is used for samples assayed at the SGS Geosol lab with the samples being securely transported to the Intertek lab in Parauapebas, Brazil for check assaying.
Graham Long, Vice President, Exploration of Colossus, is a qualified person under National Instrument 43-101 and is responsible for this release and has verified the contents disclosed.
About Colossus:
Colossus is a development-stage mining company focused on bringing its 75% owned Serra Pelada gold-platinum-palladium Mine into production. The Serra Pelada Mine is a joint venture between Colossus and Cooperativa de Mineracao dos Garimpeiros de Serra Pelada (COOMIGASP) located in the State of Para, Brazil. Serra Pelada, located in the mineral prolific Carajas region in the State of Para, is host to one of the highest grade gold and platinum group metals deposits in the world. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Colossus Minerals shares, warrants and notes trade on the Toronto Stock Exchange (TSX) under the symbols CSI, CSI.WT.A and CSI.NT respectively and in the United States its Common Shares trade on the OTCQX under the symbol COLUF. The Company is headquartered in Toronto, Canada.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Forward-looking statements in this press release include statements regarding the timing and nature of future exploration and development programs that are dependent on projections that may change as drilling continues, or if unexpected ground conditions are encountered. The Company does not currently have any mineral properties that are in production or that contain a reserve as defined by National Instrument 43-101. In addition, areas of exploration potential are identified which will require additional drilling to determine whether or not they contain similar mineralization to areas that have been explored in more detail. Significant additional drilling is required at Serra Pelada to fully understand system size.
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 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 Wilkinson
VP, Investor Relations
(416) 643-7655
awilkinson@colossusminerals.com
www.colossusminerals.com