Colossus Minerals Inc. Announces the Commencement of Phase II Drilling and a Corporate Update
Colossus Minerals Inc. (“Colossus” or the “Company”) (TSX:CSI) is pleased to announce that a phase II diamond drilling program at Serra Pelada has commenced. Additionally, a revised corporate strategy has been designed to better reflect the current economic environment. After reviewing all facets of the Company’s operations, measures have been implemented in order to maximize value from the approximate C$9.5 million of cash and equivalents currently on hand:
Serra Pelada Gold‐Platinum‐Palladium Project: Phase II of Colossus’ drilling program has commenced. The 5,000 metre program, to be completed by May 2009, involves step‐out drilling toward the historic Serra Pelada open pit as well as further resource delineation work on the Central Mineralised Zone.
Colossus will drill additional holes for geotechnical investigations under the guidance of its geotechnical consultants, Kevin Rosengren and Associates and Geotek solutions. Related hydrology studies utilizing the Company’s boreholes have recently commenced. A large diameter drill‐hole in the Central Mineralised Zone will also provide samples for metallurgical studies on the recovery of gold and platinum group elements from Serra Pelada mineralisation.
Colossus’ Brazilian subsidiary, Colossus Geologia e Participacoes Ltda., has negotiated a more favourable payment schedule on the 15% net profit interest the Company purchased for US$4.2 million announced August 11, 2008 (see press release). Under the original agreement, Colossus has paid US$2.0 million with outstanding payments of US$1.0 million due on January 3, 2009 and US$1.2 million on July 3, 2009. Under the revised agreement, Colossus will pay US$50,000 and issue 378,100 common shares in the capital of Colossus, with the remaining US$2.0 million payable in equal installments culminating on June 15, 2011.
Natividade Gold Project – Colossus has formalised a one‐year extension on both the option payments and exploration expenditure schedule on the Company's Natividade 10,000‐hectare gold project in the state of Tocantins, Brazil. Colossus can earn up to 70 per cent of Natividade, which comprises two exploration licenses held by Terra Goyana Mineracao Ltda. Assuming more normalized market conditions, Colossus intends to conduct a Phase I reverse circulation drilling program during the second half of 2009.
Sumidouro Gold Project –Colossus has elected to not proceed with optioning the Sumidouro gold project due to its limited fit with the Company’s plans in the current economic environment.
The Company is proud to announce the launching of its new and improved website, www.colossusminerals.com to better serve our shareholders and potential investors.
Final compilation of analytical results from Phase I drilling is nearing completion and results will be released in short order.
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. In addition, the Company has another project, the Natividade Gold Property, in the State of Tocantins, Central Brazil.
For further information, please contact: