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Colossus Minerals (TSX:CSI) Encounters Massive Drill Results at Brazil's Historic Serra Pelada Mine - Video Highlights of Resourcexinvestor Report on

June 9, 2011 - London

Vancouver, British Columbia, June 9, 2011 - Colossus Minerals (TSX:CSI) was featured in a report issued by has posted a "video news alert" about Colossus, including highlights from this report. If this link is not enabled, please visit and enter "Colossus" in the search box.


Colossus has been a market favourite since acquiring the gold-platinum-palladium Serra Pelada Mine in 2007. The Serra Pelada Mine is located in Brazil, which is the largest commodity based economy in South America. This area was only discovered in 1979 and hosted the largest ever gold rush in Latin America.


During the 1980s, up to 80,000 garimpeiros (artisanal miners) produced an estimated 2 million ounces of gold, along with platinum and palladium, from a 400 metre by 300 metre by 100 metre hand dug open pit.
Garimpeiros production declined due to pit wall collapse and flooding, causing the cessation of mining since the late 1980s.


Vale S.A., one of the world's largest mining companies, held the underlying title to Serra Pelada until 2007 and explored the area from 1980 to 1998, completing more than 200 drill holes in the Serra Pelada mineralized system. COOMIGASP, a registered Brazilian cooperative company comprised of the original garimpeiro miners, was granted the Exploration License by the Ministry of Mines & Energy in February 2007. The 100 hectare license was centered on the historic Serra Pelada pit. In July 2007, Colossus and COOMIGASP formed a joint venture to develop the project.


Nathan Pearson of Resourcexinvestor states that since Colossus got its hands on Serra Pelada, the news flow has been impressive.


Aside from relentless drilling, the company also procured a mining license, expanded its management team and secured an additional 7 square kilometres of ground.


The company raised approximately $69 million in gross proceeds last November from a bought deal led by GMP Securities. The financing, which included an over-allotment, was priced at $8.25.


On March 24th the company announced that it had encountered additional high-grade mineralization from a new 25,000 metre surface drill program.


Highlights from Hole SPD-095, which intersected three high grade subzones, included 7.81 metres at 136.43 grams per tonne gold, 294.20 grams per tonne platinum and 121.40 grams per tonne palladium from one intersection.


These results were followed on April 26th by additional results from the same drill program.


Highlights from Hole SPD-099 showed 7.3 metres at 1,494.7 grams per tonne gold, 516.6 grams per tonne platinum and 558.9 grams per tonne palladium, with a second intersection showing 4.35 metres at 37.39 grams per tonne gold, 2.75 grams per tonne platinum and 3.56 grams per tonne palladium.


Please go to their website to see these news releases in their entirety.


"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."


Here are comments from some of the analysts that follow Colossus.


Ron Stewart of Dundee Securities stated, "The results from drilling today continue to demonstrate the monster-grade nature of this deposit". He gave the company a $12 target speculative buy target on March 26th

On March 29th, Nicholas Campbell of Canaccord Genuity also gave the company a target of $12 and a speculative buy rating. He stated, "This round of exploration results continued to confirm the high-grade nature of the Central Mineralized zone at Serra Pelada and demonstrated the potential to expand the resource base".

On April 18th, Michael Gray at Macquarie Capital, gave Colossus a $14 target and an outperform rating, stating, "We are anticipating completion of a tailings impoundment and underground development which should de-risk the project as it approaches its expected production date of Q412".

With about 104 million shares outstanding, the company is capitalized at approximately $832 million, using a share price of $8.00.


Nathan Pearson further believes the purchase of a ball mill and related equipment brings the company another significant step closer to production. For a copy of his report, please visit


For a more information on Colossus Minerals, please visit their website, or phone Ann Candelario at 416-643-7655 or email


Barry Morgan, CFO

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Source: InvestmentPitch via Thomson Reuters ONE



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