Colossus Minerals Inc. (the
"Company" or "Colossus") (TSX:CSI - News) is pleased to provide
an update on development activities at the Serra Pelada
Gold-Platinum-Palladium Project, the Colossus-COOMIGASP joint venture located
in Para State, Brazil.
HIGHLIGHTS:
-- 3,500 metre underground decline in progress, 83 metres complete
-- Two Voest-Alpine roadheaders are in operation cutting the decline
-- Condemnation and site preparation drilling complete; focus shifting back
to exploration
-- Earthworks progressing on site infrastructure including future plant
site, camp site, maintenance facilities and offices
-- Negotiations underway for permanent electrical power to the site
-- Advancing plans for engineering and design of mill facility
Serra Pelada
2010 Development
In the first half of 2010, Serra Pelada Companhia de Desenvolvimento Mineral ("SPC"), the
Colossus-COOMIGASP joint venture company was granted environmental and mining
licenses for Serra Pelada paving the way for
development activities to commence (see press releases dated April 16, 2010
and May 7, 2010). Given the difficulties in drilling the Serra Pelada orebody at tight spacing
from surface, the company embarked on an ambitious underground strategy and
commenced development of a 3,500 metre decline to
provide underground drilling platforms and access to the orebody
for evaluation and future production (see Figure 1).
Development of the portal commenced
September 15, 2010 and by November 25, 2010 the portal was complete and 83 metres of the decline had been developed by Colossus
personnel. The Company anticipates that the 3,500 metre
development program will take 12 to 15 months to complete. Colossus has
completed earthworks on other site infrastructure including a future plant
site, camp site, maintenance facilities and offices. Construction of the
permanent main site office was completed in October 2010 and construction of
a mine maintenance facility has commenced (see Figure 2 for an overview of
Serra Pelada site infrastructure).
In order to speed up the decline
development, Colossus received delivery of two Voest-Alpine
road headers in November 2010. The units are now in operation and are
performing as expected with eight metres of
unsupported excavation achieved in the first ten-hour shift. Rock conditions
encountered to date in the decline are exceeding expectations.
Randy Reichert, Colossus President and
Chief Operating Officer commented, "The Serra Pelada
Project has advanced significantly during the second half of 2010. The
Project is now fully permitted, with the receipt of both the environmental
and mining licenses, the underground decline development is well underway and
there are over 250 employees working aggressively on all of our various
development initiatives. The Project is quickly taking shape and we are
looking forward to complementing our existing surface drill program with the
commencement of underground drilling in the first half of 2011."
Development Milestones for 2011
Mr. Reichert continued, "2011 will
be a transformational year for Colossus, driven by the achievement of several
important milestones squarely focused on advancing our development
plans."
1. Construction of a 200-person camp commenced in early November 2010 with
completion expected early in the first quarter of 2011.
2. Engineering of the tailings impoundment has commenced with Golder
Associates (Brazil) selected as the consultant for the engineering and
site investigations, and geotechnical drilling is underway. Completion
is expected in the first quarter of 2011.
3. Construction of the Phase 1 tailings dam is scheduled to start in March
2011 and is expected to be complete by the fourth quarter of 2011.
4. Hydrological engineering was recently completed by Australasian
Groundwater and Environmental Consultants Pty Ltd (Brisbane) and
dewatering of the arenites surrounding the orebody has commenced. It is
anticipated that Phase 1 dewatering to a depth of 150 metres will be
completed in the third quarter of 2011, with Phase 2 dewatering to a
depth of 320 metres expected to be complete by the second quarter of
2012.
5. Negotiations for permanent electrical power to the site are progressing
with Centrais Eletricas do Para - S.A. - CELPA, the regional power
supplier.
6. Plans to advance engineering and design of a mill facility are underway.
To view Figure 1: Proposed Underground
Development, please visit the following link: http://media3.marketwire.com/docs/csi_1130_fig_1.pdf
To view Figure 2: Mine Plan and Infrastructure,
please visit the following link: http://media3.marketwire.com/docs/csi_1130_fig_2.pdf
About Colossus:
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.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
Except for statements of historical fact
relating to Colossus, certain statements in this press release relating but
not limited to the Company's exploration 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 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.
Contact:
Ann Candelario
Colossus Minerals Inc.
VP Investor Relations
(416) 643-7655
acandelario@colossusminerals.com
www.colossusminerals.com |