Colossus Minerals Drills 109.89 g/t Gold, 0.75 g/t Platinum and 15.51 g/t Palladium in the Gt Zone and Continues to Expand Upper Limb Mineralization
TORONTO, ONTARIO -- (Marketwire) -- 04/25/12 -- Colossus Minerals Inc. (the "Company" or "Colossus") (TSX: CSI)(OTCQX: COLUF) is pleased to announce assay results from the 15,000 metre surface drilling program at its 75% owned Serra Pelada Gold-Platinum-Palladium Project. The Serra Pelada Project is a Colossus-COOMIGASP joint venture located in the State of Para, Brazil.
HIGHLIGHTS
GT ZONE
-- SPD-142 intersected 9.8 metres at 109.89 g/t gold, 0.75 g/t platinum and
15.51 g/t palladium including 0.80 metres at 1,336.13 g/t gold, 8.46 g/t
platinum and 188.14 g/t palladium. The hole was an up-plunge step out
and is located only 120 metres west from the historic Serra Pelada pit
indicating the potential for additional high-grade mineralization along
the GT Zone parallel to the pit.
-- SPD-149 intersected 11.54g/t Au, 2.04 g/t Pt and 2.61 g/t Pd over 3.8
metres. This hole filled an 80 metre gap in the GT Zone.
-- SPD-150 intersected the GT Zone and returned 14.46g/t Au, 1.48 g/t Pt
and 2.03 g/t Pd over 3.3 metres confirming the high-grade nature of this
part of the zone.
-- The new intersections in the GT Zone increase the overall width of the
zone by 10-35 metres down dip towards the lower limb portion of the
Central Mineralized Zone ("CMZ"). The GT Zone now extends for 550 metres
of strike length and remains open up-plunge to the northeast and down-
plunge to the southwest. Step-out diamond drilling will continue for the
balance of the 2012 drill program in order to delineate the full extent
of this important zone.
UPPER LIMB
-- SPD-146 intersected a high-grade interval on the upper limb containing
20.9 g/t gold over a 2.0 metre interval demonstrating the potential of
this part of the extensive fold structure.
Claudio Mancuso, President & CEO of Colossus commented, "We are now confident that the GT Zone has the potential to become a much more meaningful part of the overall mineralization at Serra Pelada. The results also confirm the mineral potential of the upper limb which we will continue to test with systematic drilling. We are looking forward to continued flow of assay results from drilling as we step out up-plunge along strike."
DETAILS
This release documents results (Table 1, below) from drilling of the GT Zone and that portion of the lower limb between the GT Zone and the CMZ, the significance of which are also discussed. Figure 1 shows the positions of the new drill holes and plan views of the mineralized zones being explored on the Serra Pelada property.
TABLE 1: SIGNIFICANT DRILLING RESULTS
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Mineralized Drill-hole From To Interval Gold Platinum Palladium
Zone ID (m) (m) (i)(m) (g/t) (g/t) (g/t)
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GT SPD-142 167.40 177.18 9.78 109.89 0.75 15.51
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including 167.40 168.20 0.80 1,336.13 8.46 188.14
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GT SPD-144 329.95 333.96 4.01 3.09 0.43 0.27
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GT SPD-145 186.20 188.90 2.70 5.01 3.54 6.83
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Upper Limb SPD-146 177.0 179.0 2.00 20.93 0.02 0.03
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including 177.0 178.0 1.00 40.35 0.02 0.06
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GT and 314.40 315.60 1.20 2.79 1.82 1.03
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GT SPD-149 158.10 161.90 3.80 11.54 2.04 2.61
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including 159.70 160.70 1.00 18.48 1.03 1.97
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and 160.70 161.90 1.20 20.34 4.34 4.83
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GT SPD-150 278.00 281.30 3.30 14.46 1.48 2.03
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GT SPD-152 274.50 290.30 15.80 1.32 0.19 0.25
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Upper Limb SPD-155 69.80 71.80 2.00 5.57 0.32 0.56
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GT and 244.30 254.15 9.85 3.38 0.10 0.11
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(i)True thickness not known, but intersections in upper and lower limb
mineralization represent approximate true vertical thicknesses. Intercepts
determined on a 1 g/t (gold+ platinum+ palladium) cut-off grade
GT Zone and Lower Limb Mineralization
Drilling continues to focus on the lower limb mineralization, in particular the GT Zone and the gap between this zone and the CMZ. The potential for the GT Zone to become a meaningful part of the overall mineralization at Serra Pelada is becoming more apparent especially with the intersections of high-grade gold in hole SPD-142 and the upper limb portion of hole SPD-146 (see Figure 1 below). The GT Zone now extends for 550 metres of strike length and remains open up-plunge to the northeast and down-plunge to the southwest. Step-out diamond drilling will continue for the balance of the 2012 drill program in order to delineate the full extent of this important zone.
The current drilling is focusing on expanding the GT Zone further as results from holes SPD-142, SPD-152 and SPD-155 indicate that the lower limb is well mineralized and locally contains thicknesses not typically encountered thus far. Holes SPD-144, SPD-146, SPD-152 and SPD-155 are some of the first holes specifically targeted to test outside of the defined GT Zone trend to try and connect the GT mineralization to the lower portion of the CMZ. These holes were successful in intersecting lower limb mineralization confirming the extension of the GT Zone towards the CMZ by 10-35 metres.
SPD-142 was drilled on section 375NE and designed to test the potential for additional high-grade mineralization along the GT Zone trend. The hole was an up-plunge step out and is located only 120 metres west of the historic Serra Pelada. The hole returned 109.89 g/t gold, 0.75 g/t platinum and 15.51 g/t palladium over 9.78 metres including a high-grade intercept of 1,336.13 g/t gold, 8.46 g/t platinum and 188.14 g/t palladium over 0.80 metres. This hole proves that high grade potential exists within the vast lower limb system and that GT Zone may simply be a higher grade portion within this larger mineralized zone. The current plan is to conduct tightly spaced holes around the intercept at 25 metre intervals in order to reveal the extent of the high-grade mineralization in this area before heading up-dip along the lower limb.
SPD-149 was drilled on section 325NE and designed to fill an 80 metre gap in the northeastern portion of the GT zone. The hole was collared on the interpreted northwestern limit of the GT Zone boundary. The hole returned 11.54 g/t gold, 2.04 g/t platinum and 2.61 g/t palladium over 3.80 metres including two subintervals containing 18.48 g/t gold over a 1.00 metre core length and 20.34 g/t gold over a 1.20 metre core length. There are very few holes that have been drilled to the northwest of SPD-149, making the up-dip potential of the zone very promising. Continued drilling of these large gaps and up-dip along the zone has the potential to add to the overall mineralization.
SPD-150 was drilled on section 25NE in order to confirm the presence of high-grade gold mineralization down-dip of previous holes SPD-056B and SPD-057 (see press release dated October 6, 2010 for results). The hole returned 14.46 g/t gold, 1.48 g/t platinum and 2.03 g/t palladium over 3.30 metres. Drill hole SPD-152 was drilled 61 metres southeast and along the same line as SPD-150 and encountered a thick interval of lower grade material. Additional drilling in between these two holes is planned in order to better understand the transition of the mineralization from a three metre high-grade interval to an almost 16 metre thick lower grade interval. The portion of the GT Zone up-dip from hole SPD-150 is open and will be drill tested in the near future.
Drill holes SPD-144 (50SW), SPD-145 (200NE), SPD-152 (25NE) and SPD-155 (midway between 125 and 150 NE) were drilled to specifically test for the occurrence of GT Zone type mineralization outside of the currently defined strike trend and these holes all intersected mineralization of varying grades and thicknesses (see Table 1 above). The mineralization encountered ranged in thickness from a few metres to over 15 metres demonstrating the precious metal potential of the large lower limb.
Upper Limb Mineralization
SPD-146 was drilled on section 50SW and designed as a 25 metre step out hole southeast of hole SPD-144. The hole returned 20.93 g/t gold, 0.02 g/t platinum and 0.03 g/t palladium over 2.0 metres in the upper limb contact area and 2.79 g/t gold, 1.82 g/t platinum and 1.03 g/t palladium over 1.2 metres further extending the mineralization southeastward of the current GT Zone trend and indicating that precious metals exist in the gap between the two zones. The high-grade upper limb gold intersection demonstrates the potential of this part of the extensive fold structure to add to the overall mineralization at Serra Pelada. Hole SPD-155 also encountered high-grade gold values in the upper limb portion of the fold structure. While the upper limb has not yet been specifically targeted, the results to date indicate that it may have a key role in expanding the overall mineralization at Serra Pelada.
Serra Pelada Geology
Gold-platinum-palladium mineralization at Serra Pelada overprints metasediments occupying the hinge of a large fold. The CMZ comprises mainly steeply dipping bodies in the fold hinge zone but extends onto the upper and lower limbs of the fold. The GT Zone represents shallowly-dipping gold-platinum-palladium mineralization and occurs as siliceous, argillic and carbonaceous alteration and iron oxide-rich breccia on the lower fold 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 intervals (drilling advances, averaging one metre in length) were cut and/or split in half, yielding samples of two to three kilogram mass. Where core recoveries were low, intervals were composited to yield approximately one kilogram minimum sample masses. 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 Genalysis Limited, Perth Laboratory 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 Serra Pelada project into production. Serra Pelada, located in the mineral prolific Carajas region in the State of Para, Brazil, 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. Coverage of this famous mining rush by 60 Minutes can be viewed by following the link below. 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.
http://video.au.msn.com/watch/video/the-treasure-of-serra-pelada/xx3k2px
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.
To view Figure 1: Plan View of Serra Pelada Mineralized Zones, please visit the following link: http://media3.marketwire.com/docs/csi0425fig1.pdf.
Contacts:
Colossus Minerals Inc.
Ann Wilkinson
VP, Investor Relations
(416) 643-7655
awilkinson@colossusminerals.com
www.colossusminerals.com
