TORONTO, ONTARIO--(Marketwire - Dec. 15, 2011) - Colossus Minerals Inc. (the "Company" or "Colossus") (News - Market indicators)(CUSIP:91681L109) announces additional assay results from the 25,000 metre surface drilling program at its 75% owned Serra Pelada Gold-Platinum-palladium Project. The Serra Pelada Project is a Colossus-COOMIGASP joint venture located in the State of Pará, Brazil.

HIGHLIGHTS

• SPD-120 intersected several high-grade subzones within a continuously mineralized intercept of 74.35 metres grading 15.45 g/t gold, 4.54 g/t platinum and 7.04 g/t palladium in the Central Mineralized Zone ("CMZ"). These results confirm the continuity of and extend the high grade CMZ in one of the areas where an underground bulk sample will be extracted.
• SPD-118 intersected 6.61 metres at 44.40 g/t gold, 0.69 g/t platinum and 0.62 g/t palladium extending a high grade, upper-limb mineralized subzone onto Section 125SW.
• SPD-125 and SPD-128 extended high grade CMZ subzones onto Section 75SW intercepting 7.17 metres at 6.37 g/t gold, 20.62 g/t platinum and 19.17 g/t palladium.
• SPD-130 intersected 2.07 metres at 29.64 g/t gold, 5.19 g/t platinum and 7.31 g/t palladium extending high grade lower limb mineralization onto Section 25SW.
• SPD-123 intersected gold-platinum-palladium mineralization more than 1,000 metres to the southwest of the historic Serra Pelada open pit.
• Additional GT Zone drilling has demonstrated substantial horizontal widths of lower limb mineralization along 100 metres of strike length and has also established high grade mineralization (SPD-116: 0.95 metres at 24.26 g/t gold) in a shallow upper limb zone.

Claudio Mancuso, President & CEO of Colossus commented, "The latest drill results are significant as they extend the CMZ high-grade subzones and widen the GT Zone. We are particularly encouraged to see that the system is still mineralized more than 1,000 metres from the edge of the historic Serra Pelada pit at relatively shallow depths. Despite intersecting low grade mineralization on the 500 metre step-out down plunge on the CMZ, the drilling indicates that the structure should lie further southeast. Our drilling efforts will now focus on probing this section for potential high-grade mineralization."

DETAILS

This release documents results (Table 1, below) from drilling of the extensions of the CMZ and GT (lower-limb) mineralized zone, the significance of which are also discussed. Figure 1 shows the traces of the new drill-holes and plan views of the mineralized zones explored to-date at Serra Pelada.

TABLE 1: SIGNIFICANT DRILLING RESULTS

Central Mineralized Zone

SPD-120 was drilled between Section 00 and Section 50NE to better outline high grade subzones within the CMZ in one of the areas to be the subject of underground bulk sampling and to provide additional samples for metallurgical test work. Sub-parallel to SPD-034 (70.70 metres at 53.59 g/t gold, 20.77 g/t platinum and 31.30 g/t palladium) and SPD-113 (74.40 metres at 31.17 g/t gold, 3.02 g/t platinum and 6.78 g/t palladium) but offset about five metres from the latter drill-hole, SPD-120 encountered 74.35 metres of continuous mineralization grading 15.45 g/t gold, 4.54 g/t platinum and 7.04 g/t palladium. This intercept contains a number of high grade subzones (see Table I, including 7.80 metres at 60.2 g/t gold, 21.50 g/t platinum and 36.52 g/t palladium) which correlate well with the margins of those in SPD-034 and SPD-113.

In step-out drilling on the CMZ, SPD-130 (Section 25SW) targeted potential upper limb zones and the northwestern margin of the CMZ. The main intercept in SPD-130 (from 328.33 metres down-hole, 2.07 metres at 29.64 g/t gold, 5.19 g/t platinum and 7.31 g/t palladium) represents lower limb mineralization about 80 metres to the southeast of the GT zone encountered in SPD-056B and 50 metres northwest of fold-nose mineralization. Further drilling is underway to clarify whether the mineralization in SPD-130 is contiguous with the GT zone and also extensive lower limb mineralization around Section 100NE.

SPD-119, SPD-128 and SPD-125 were drilled in a progressively more shallowly-inclined fan on 75SW which has been largely undrilled to date. SPD-119 encountered weak upper limb mineralization and several narrow mineralized subzones (Table 1) around the margins of a unexpectedly large silicified "internal" unit within the siltstone prior to intersecting significant lower limb mineralization (from 315.3 metres down hole, 4 metres at 6.27 g/t gold) and a gold-rich subzone in the underlying sandstone. Further drilling will clarify whether this lower limb mineralization extends laterally and to the northeast and southwest. SPD-128 intersected upper limb mineralization with high Au/PGE (including, from 187.65 metres, 2.02 metres at 12.55 g/t gold), whereas the comparable mineralization in SPD-125 (Table 1, 189.30 to 198.05 metres) is of lesser grade. Further down-hole SPD-128 intersected two steeply dipping subzones with different Au/PGE, respectively from 194.5 metres, 14.96 g/t gold and from 272.73 metres, 7.17 metres at 6.37 g/t gold, 20.62 g/t platinum and 19.17g/t palladium, open at depth. The SPD-125 intercept from 273.02 metres (8.28 g/t gold, 1.04 g/t platinum and 1.55 g/t palladium) appears to correlate with the eastern margin of the high Au/PGE subzone in SPD-128 and is open to shallower depths.

SPD-118, on Section 125SW, intersected high grade upper limb mineralization including from 203.7 metres: 0.62m at 159.76 g/t gold, 7.09 g/t platinum and 5.94 g/t palladium and from 208.93 metres: 1.38 metres at 139.03 g/t gold. This upper limb zone appears to extend for more than 150 metres along plunge and remains open to the northeast & southwest at high grades.

SPD-114A, on Section 200SW, intersected upper limb mineralization (Table 1, from 246.34 metres down-hole) which may represent the margins of the subzone encountered in SPD-118 (see above). Other intercepts in SPD-114A (Table 1) are of steeply dipping gold-platinum-palladium mineralization, the first encountered on Section 200SW.

SPD-126 and SPD-123 drilled on Sections 450SW and 750SW respectively (Figure 1), are step-out holes designed to test for CMZ mineralization along strike and down-plunge of the known zone. Both holes encountered the CMZ and, although assay results were anomalous, the lithologies drilled indicate that the holes did not intersect the heart of the fold hinge that hosts the high grade mineralization. The drilling does indicate that this structure should lie further southeast and will be the target of future drilling. These intersections are the most southerly and among the deepest so far encountered in Colossus' CMZ drilling to date.

GT Zone

Five new drill-holes tested the lateral extents of the GT Zone and its continuation up-plunge to the northeast (Figure 1). Each drill hole intersected several intervals of mineralization (Table 1) over vertical extents of five to 14 metres showing the continuity of this zone over a strike length of 100 metres with horizontal widths up to 50 metres.

• SPD-121 (Section 175NE), showed that high PGE/gold subzones (Table 1, from 185.85 metres and 191.25 metres) remain open along strike;
• SPD-116 and SPD-122 (section 150NE intercepts in Table 1, below 200 metres) show that the GT zone is more than 30 metres wide and open along strike;
• SPD-117 intercepts (Table 1, below 195.8 metres) indicate that the zone is at least 10 metres wide and open to the southwest on Section 125NE; and
• SPD-124 intercepts (Table 1) show that the zone is open to the southwest on Section 100NE. Drilling for GT Zone mineralization in this and other areas will be best tested by underground drilling along the ramp currently being driven towards the deposit.

Although primarily targeting the GT zone, SPD-121, SPD-116 and SPD-122 also intersected upper limb mineralization at shallow depths, less than 60 metres from surface (Table 1). The intersection in SPD-116 (from 44.2 metres, 0.95 metres at 24.26 g/t gold) indicates that this zone may contain a high grade "core" that will be the focus of additional drilling over the 100 metres of strike length so far demonstrated. 

Serra Pelada Geology

Gold-platinum-palladium mineralization at Serra Pelada overprints metasediments occupying the hinge of a large fold. The CMZ comprises mainly steeply dipping bodies in the fold hinge zone but extends onto the upper and lower limbs of the fold. The GT Zone represents shallowly-dipping gold-platinum-palladium mineralization and occur as siliceous, argillic and carbonaceous alteration and iron oxide-rich breccias on the fold limbs.

Technical Information

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 pulverized 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. However, because of lack of adherence to Colossus' sub-sampling protocols and apparently poor performance on reference materials for assay batches several lots were re-assayed and the results averaged. 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 Senior 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.

About Colossus:

Colossus is a development-stage mining company focused on bringing its Serra Pelada project into production. Serra Pelada, located in the mineral prolific Carajas region in the State of Pará, Brazil, is host to one of the highest grade gold and platinum group metals deposits in the world. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage of this famous mining rush by 60 Minutes can be viewed by following the link below. Colossus Minerals shares, warrants and notes trade on the Toronto Stock Exchange (TSX) under the symbols CSI, CSI.WT.A and CSI.NT respectively. The Company is headquartered in Toronto, Canada.

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.

To view Figure 1: Plan View of Serra Pelada Mineralized Zones, please visit the following link: http://media3.marketwire.com/docs/csi1215figure1.pdf.