Colossus Minerals Inc.
TSX : CSI

Colossus Minerals Inc.

September 03, 2009 07:30 ET

Colossus Minerals Drills 4.15 Metres @ 8.04 g/t Gold, 154.5 g/t Platinum and 245.8 g/t Palladium in Serra Pelada Western Mineralised Zone

TORONTO, ONTARIO--(Marketwire - Sept. 3, 2009) - Colossus Minerals Inc. ("Colossus") (TSX:CSI) is pleased to announce that the Company has successfully confirmed a new mineralized horizon called the Western Mineralised Zone ("WMZ") during its Phase II drilling program on the Serra Pelada Project, the Colossus-COOMIGASP joint venture located in Para State, Brazil.


HIGHLIGHTS

- SPC-012 intersected
  4.15 metres at 8.04 g/t gold, 154.5 g/t platinum and 245.8 g/t palladium,
  including
  2.0 metres at 14.05 g/t gold, 304.6 g/t platinum and 488.5 g/t palladium

- Ultra high-grades of platinum and palladium are hosted mainly by iron
  oxide-rich breccias with associated siliceous and haematitic-argillic
  alteration

- The Phase II drilling results indicate a shallowly dipping and plunging
  mineralised zone (the Western Mineralised Zone) outside the Central
  Mineralised Zone, along at least 50m strike length, open to the northeast,
  southwest and laterally

DETAILS

Drill-holes SPC-011 and SPC-012 (Colossus Phase II drill program) were pre-collared by reverse circulation to depths of 112 to 118m. Diamond "tails" below the pre-collars were then drilled for a total of 198m of HQ-core. Drilling was focused 120 to 150m to the west of Central Mineralised Zone, to the west of and under the historical Serra Pelada open pit. The prime target, the newly recognised Western Mineralized Zone ('WMZ'), is localised around the shallowly dipping siltstone-sandstone contact on the shallowly dipping lower limb of the northwest-facing, southwest-plunging, reclined synclinorium that plunges gently southwest from the historical open pit. The WMZ is characterised by strong siliceous- and haematitic-argillic alteration and iron oxide-rich breccias. Other targets in SPC-011 and SPC-012 included mineralisation in the siltstones and also in the sandstones below the siltstones. See Sections 450NE and 400NE and others plus a plan view of Serra Pelada drill traces at www.colossusminerals.com.

SPC-012, on Section 450NE, intersected the WMZ over 5.15m from 133.9m down-hole, corresponding to about 5m true thickness of the zone. Ultra high grades of PGE's, platinum (over 400 g/t) and palladium (over 700 g/t) were assayed in iron-oxide rich breccias and the WMZ exhibits high overall PGE/gold. Non-recovery of 1 metre of core is reflected in the assay interval (4.15m) being shorter than the WMZ down-hole interval. Low grade gold mineralisation was also intersected over 1m intervals in the overlying siltstones & underlying sandstones. Assay results for the WMZ in SPC-012 are summarised in the following table:


----------------------------------------------------------------------------
From                To            Assay
(metres,       (metres,        Interval       Gold    Platinum     Palladium
down-hole)   down-hole)      (metres)(i)       g/t         g/t           g/t
----------------------------------------------------------------------------
133.90          139.05             4.15       8.04       154.5         245.8
----------------------------------------------------------------------------
incl. 
134.8           139.05             3.25       9.43       197.3         313.9
----------------------------------------------------------------------------
incl. 
136.55          139.05             2.00      14.05       304.6         488.5
----------------------------------------------------------------------------

(i)Total assayed interval (greater than 0.5 g/t gold +PGE's) - excludes 
intervals of no core recovery; true widths to be established.

SPC-011 was collared near Section 400NE, 40 metres SSW of SPC-012 and was also targeting the WMZ down plunge there from, plus overlying siltstone and underlying sandstone-hosted mineralisation. A 3.0 metre assay interval, between 151.65 and 156.35 metres down-hole, yielded 2.89 g/t gold, 0.15 g/t platinum and 0.51 g/t palladium including assays up to 10 g/t gold and 2.5 g/t PGE's in siliceous and haematitic-argillic alteration in the WMZ. As in the case of SPC-012, poor core recoveries (loss of iron oxide -rich alteration) have probably resulted in underestimation of precious metal grades in the WMZ in SPC-011.

SPC-011 also intersected 1.6m of 4.32 g/t gold in altered sandstones, from 197.55m and below the historical Serra Pelada pit. This intersection, together with historical drilling data, may indicate largely untested mineralised zones in footwall sandstones.

Drilling at Serra Pelada is continuing unabated with four drill rigs turning. The aim of the program is to continue delineation and step-out drilling in the Central Mineralised Zone, step-out drilling to test the extent of the Western Mineralised Zone, deep drilling (circa 450m) to test the potential of an Eastern Zone, and to test for additional mineralization below the historic Serra Pelada pit. Additionally, metallurgical and geotechnical drill holes have been completed thus allowing future mine development planning to continue without delay.

Complete assay data set for SPC-012 plus drill-hole location maps for SPC-012 and SPC-011 will be posted on www.colossusminerals.com.

Vic Wall, Colossus President, comments, "The recognition of the Serra Pelada Western Mineralised Zone by the Colossus team and the first Phase II drilling results there from are truly encouraging. These already indicate at least 50m strike length of the WMZ which is open to the northeast and southwest and also laterally. Our particular challenge is to clarify the extents and distribution of the ultra high grade PGE's within the WMZ. As it close to proposed development infrastructure, the WMZ and underlying sandstone-hosted mineralisation will be subject of further drilling."

TECHNICAL INFORMATION

Four metre composites of SPC reverse circulation drill chips were collected at the RC drill rig, along with 1m drill advance samples. The composites were forwarded to Intertek's Parauapebas laboratory for gold assays. For any anomalous composites, assay samples were prepared by Intertek from the corresponding 4x1m samples and forwarded to Genalysis for gold, platinum and palladium assaying, as for core samples.

Sampling of SPC diamond drill-core (by Colossus personnel) and sample preparation (by Intertek Limited, Parauapebas) were carried out under strict protocols recommended in the 43-101 Technical Report on Serra Pelada. After photographing and logging, intervals of HQ core (drilling advances, averaging 1 m in length) were cut and/or split in half, yielding samples of 2 to 3 kilogram mass. Where core recoveries were low, intervals were composited to yield approximately 1 kilogram minimum sample masses. Intertek pulverised 1 or 2 kilogram splits (greater than 95% passing 106 microns) from the crushed (greater than 95% passing 1.7 mm), dried samples. A 200 gram aliquot was rotary split from each pulp by Intertek and these samples were securely shipped directly by Intertek to Genalysis Limited, Perth Laboratory. Duplicates, blanks and certified gold-PGE reference materials were inserted in the sample train by Colossus personnel prior to Intertek preparation work.

Genalysis inserted additional blanks, duplicates and high grade gold/PGE reference materials in the assay stream and replicate assays were performed routinely and on all medium to high grade materials. Fire assays for gold, platinum and palladium were on 25 gram subsamples utilising a lead-rich collector material and ICP-MS finish. Genalysis dispatched assay certificate originals directly to Resource and Exploration Mapping Ltd., an independent Company which manages Colossus' database.

The Genalysis assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures. Reference materials and also selected high value samples from all batches will later be check assayed independently.

Dr. Vic Wall, President of Colossus Minerals and qualified person under National Instrument 43-101, is responsible for this release and has verified the contents disclosed.

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: sixtyminutes.ninemsn.com.au/article.aspx?id=299887.

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