Colossus Minerals Continues to Wow Investors, Market
Source: James West, Midas Letter (9/30/09)
Investors in Colossus Minerals Inc. were pleasantly surprised by the company's press release today that announced drill core assay results of 70.7 meters that graded 53.6 grams per tonne gold and 20.77 grams per tonne platinum. . .
According to Vic Wall, Colossus VP of exploration, "The results of Colossus' Phase II step-out drilling have added materially to the definition of the main Serra Pelada gold-platinum-palladium ore-body. Between-section drilling has clarified the distribution of ultra high-grade gold-PGE subzones, demonstrating down dip and lateral continuity in envelopes that we have increasing confidence will be among the first to be mined in the new Serra Pelada. In other areas, up to 400 meters south of the historical open pit, Colossus drilling has outlined substantial mineralization, including high-grade gold and gold-PGE subzones. The intersections of gold-PGE mineralization north of our Phase I drilling, in areas where historical drilling had missed mineralization are also encouraging. We are following up with further drilling in this and more southerly parts of the Central Mineralized Zone, as well as additional between-section holes."
Brazilian-based mining giant CVRD, (NYSE:RIO) who held the rights to the mineral concessions underlying Serra Pelada until 2007, conducted a drill program across 200 holes, with the best intercept an astonishing 4,709 grams per tonne gold, 204 grams per tonne platinum and 1,117 grams per tonne palladium over 43 meters.
That's ore with a total value in excess of $162,000 per tonne, and constitutes one of the highest-grade gold intercepts in history.
Another hole yielded a 15-meter intersection of 7,800 grams per tonne gold, 460 grams per tonne platinum and 2,700 grams per tonne palladium, comprising ore with a value of just under $300,000 per tonne. This puts Serra Pelada firmly in the running as potentially one of the richest mineral deposits in the world, if not the richest.
CVRD's exploration confirms gold, platinum and palladium mineralization continuing under the pit for more than 450 meters, and to depths of 150 to 300 meters.
In February of 2007, the organization representing the garimpeiros who originally mined the deposit, COOMIGASP, was awarded the exploration license, effectively gaining control of the Serra Pelada pit and all of the underlying mineralization on a 100 hectare package. COOMIGASP and Colossus have formed a joint venture to explore the concession, with Colossus able to earn up to a 65% interest in the project.