Colossus explores extended land package

The gold-platinum-palladium enriched Central Mineralized zone at Colossus Minerals‘ (CSI-T) Serra Pelada project dips southwestward, away from the surface area that was historically mined out in what became the largest precious metal rush in Latin American history. 

The other main zone at Serra Pelada is the GT zone on the lower limb of folded siltstone in an iron-rich breccia. 

There has been little exploration outside of these two main zones, which are the focus of the project’s development via a decline.

Recently, however, Colossus started a soil geochemical program targeting new areas of the land package to determine its exploration potential, and has discovered “extensive anomalies” from soil geochemical work and follow-up auger drilling.

Highlights from 5,277 soil geochemical samples collected outside the Serra Pelada resource-delineation area included 736 samples of combined gold-platinum-palladium over 0.1 gram per tonne, 163 samples over 0.5 gram and 73 samples over 1 gram, with a maximum value of 21.9 grams.

The samples outlined an area greater than half a square kilometre in the Elefante and Young Garimpo sections of gold-platinum-palladium surface anomalies. Initial auger drilling of the anomalies intersected high grades in each of the areas, including 124.78 grams gold per tonne, 6.52 grams platinum per tonne and 7.67 grams palladium per tonne over 2 metres in Elefante, and 3.79 grams gold, 0.68 gram platinum and 2.57 grams palladium over 2 metres. The intercepts were determined at a cut-off grade of 0.3 gram gold-platinum-palladium per tonne.

Eight auger holes in the Elefante area encountered highly anomalous values in mineralized bedrock siltstones, including 0.68 gram gold, 1.42 grams platinum and 1 gram palladium over 2 metres in hole 16, and 2.14 grams gold, 1.46 grams platinum and 8.09 grams palladium over 1 metre in hole 17.

Key findings of the program so far suggest that the rock types in the south and southeast portion of the property are similar to those found in the main mineralized corridor, but belong to a separate sedimentary package. Colossus has also confirmed that the deformation in the Young Garimpo and Elefante areas is similar to that found in the area of the Central Mineralized zone, and that the Young Garimpo and Elefante areas have a number of exploration pits and working shafts that indicate garimpeiro work.

“Our ongoing development and new appreciation of the property-wide exploration potential will allow us to provide some exciting news in the coming months,” Claudio Mancuso, the company’s president and chief executive, said in a prepared statement.

Serra Pelada is being developed as a joint-venture project between Colossus and Coomigasp, a Brazilian-registered cooperative company representing the garimpeiros who had mined Serra Pelada.

At presstime Colossus traded at $7.26 per share within a 52-week trading range of $5.14-$9.87 per share. The company has 104.9 million shares outstanding.

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