Colossus Minerals Drills 7.30 metres at 1494.7 g/t gold, 516.6 g/t platinum and 558.9 g/t palladium in Extensions of Central Mineralized Zone at Serra Pelada, Brazil
Toronto, Ontario, April 26, 2011 – Colossus Minerals Inc. (the “Company” or “Colossus”) (TSX: CSI) is pleased to announce additional assay results from the 25,000 metre surface drilling program at the Serra Pelada Gold-Platinum-Palladium Project, the Colossus-COOMIGASP Joint Venture located in Para State, Brazil.
- SPD-099 intersected two high-grade subzones in the Central Mineralized Zone (“CMZ”), including:
7.30 metres at 1494.7 g/t gold, 516.6 g/t platinum and 558.9 g/t palladium and
4.35 metres at 37.39 g/t gold, 2.75 g/t platinum and 3.56 g/t palladium
- The more westerly of these subzones exhibits the highest grades of gold+platinum+palladium so far encountered in Colossus drilling at the Serra Pelada Project
- These subzones correlate with, and significantly extend, the high-grade gold-PGE subzones encountered in SPD-095 (7.81 metres @ 136.43 g/t gold, 294.20 g/t platinum and 121.40 g/t palladium)
- SPD-096 shows that the GT zone around Section 100NE is more than 20 metres wide and contains high-grade gold and platinum-rich mineralization in iron oxide-rich breccias, including 1.2 metres at 36.0 g/t gold, 11.5 g/t platinum and 1.2 g/t palladium.
“Drilling such high-grade gold, platinum and palladium approximately 700 metres down plunge from the outcrop of the Central Mineralized Zone in the historic Serra Pelada pit continues to demonstrate the robustness of this mineralized system,” commented Ari Sussman, Colossus CEO. “We wait with great anticipation for early 2012 when construction of the underground decline advances to the point that enables the Company to see the Central Mineralized Zone first hand and extract the first of three 2,500 tonne bulk samples from it.”
Gold-platinum-palladium mineralization at Serra Pelada overprints metasediments occupying the hinge and limbs of a northwest-facing, southwest-plunging, reclined synclinorium that plunges gently southwest from the historical open pit. The CMZ comprises mainly steeply dipping bodies in the fold hinge zone but extends onto the upper and lower limbs of the fold. Characterized by intense hydrothermal carbonaceous and argillic alteration, mainly of siltstones, the CMZ is inboard of siliceous alteration partially mantling the synclinorial hinge. Shallowly dipping gold-platinum-palladium mineralization, for example the Western and GT zones, occurs within siliceous, argillic and carbonaceous alteration and iron oxide-rich breccias on the fold limbs. This release documents results (Table 1, below) from step-out drilling in the extensions of the CMZ and also in extensions of the GT- and Portal lower-limb mineralized zones.
TABLE 1: Significant drilling results
|Gold Equivalent ** |
*True thickness not known. Intercepts determined on a 1 g/t gold-equivalent cut-off grade
**Gold equivalent grades calculated for $1430/oz. gold, $1750/oz. platinum and $750/oz. palladium
Central Mineralized Zone
SPD-099 (Figure 1) was drilled south-easterly near Section 100SW on the Joint Venture’s extended ground package toward a CMZ target area which could not be previously drilled from the original 100 hectare concession (Area A) and 400 metres from the historic Serra Pelada open pit.
A steeply dipping, ultra high-grade gold-PGE subzone was intersected from 236.7 metres downhole and assayed 7.30 metres at 1494.7 g/t gold, 516.6 g/t platinum and 558.9 g/t palladium. Included within this interval is a 2.35 metre intercept of 4631.7 g/t gold, 1600.0 g/t platinum and 1730.0 g/t palladium, the highest grades yet encountered in Colossus drilling at Serra Pelada. The intercept, which is hosted in argillic, carbonaceous and siliceous altered metasiltstone, appears to correlate with the very high-grade gold-PGE intercept in SPD-095 (7.81 metres at 136.43 g/t gold 294.2 g/t platinum and 121.4 g/t palladium), over some 11 metres in the horizontal and 13 metres in the vertical from the SPD-099 intersection.
The gold-rich subzone, which assayed 4.35 metres at 37.39 g/t gold, 2.75 g/t platinum and 3.56 g/t palladium, was encountered further downhole at 246.44 metres. This intercept, plus the two other deeper intersections in SPD-099 appear to be steeply-dipping mineralization in metasiltstone host rocks. The deepest intersection appears to be shallowly dipping mineralization in sandstones and exhibits high Au/PGE.
At 17,890 grams x metres gold-equivalent, the ultra high-grade interval in SPD-099 is the highest-grade hole drilled outside of the historic Serra Pelada open pit. Further drilling, targeting the extensions of the CMZ high-grade subzones to the southwest and northeast is underway.
SPD-096 (on Section 100NE) encountered a 30 metre approximately true thickness of gold-PGE mineralization around the metasiltstone-dolomitic sandstone contact defining the lower limb of the Serra Pelada synform. Two high-grade intervals within this comprise iron-oxide rich breccias, the upper (from 225.95 metres) with high Au/PGE and the lower (from 228.6 metres) exhibiting high platinum grades. Core recoveries were poor in the mineralized parts of SPD-096 and better recoveries may have resulted in more extensive and higher grade intercepts. Nonetheless SPD-096 shows that the GT zone in the vicinity of section 100NE is more than 20 metres wide.
SPD-098 was drilled 25 metres to the northeast of SPD-096 and encountered a ten metre thickness of low grade GT zone mineralization within which two better grade intervals exhibited iron oxide-rich alteration. Further drilling on Section 125NE is targeting higher grade GT zone mineralization.
The occurrence of gold-PGE mineralized iron oxide rich breccias in the GT zone on Sections 100NE and 125NE supports the Company’s belief that the GT Zone and Western Zone may connect as one continuous zone with the potential for over 500 metres of strike length and open up and down plunge. Drilling will continue testing the yet undrilled portion between these zones to demonstrate this connection.
SPD-097 extended the lower limb mineralization of the Portal zone some 25 metres down plunge to the southwest of previous drill intersections. Step-out drilling will continue to test for extensions of this zone.
Diamond drilling was HQ cored. Sampling of core (by Colossus personnel) and sample preparation (by Intertek Limited, Parauapebas) 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 pulverised one or two kilogram splits (>95% passing 106 microns) from the crushed (>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.
Intertek inserted 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 by Intertek. The assay lab dispatched assay certificate originals directly to Resource and Exploration Mapping Ltd., an independent company, which manages Colossus’ database.
The Intertek assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures. 200 gram aliquots of medium and high grade pulps were rotary split from each pulp by Intertek and one of these samples was securely shipped directly by Intertek to Genalysis Limited, Perth Laboratory for check assaying.
Dr. Vic Wall, the 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.
Colossus is a development-stage mining company focused on bringing into production the high-grade gold-platinum-palladium Serra Pelada project, located in the mineral prolific Carajas region 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
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.
For further information, please contact:
Ann Candelario, VP Investor Relations Colossus Minerals Inc.
Tel: (416) 643-7655
Web site: www.colossusminerals.com