Colossus Minerals Inc.
TSX : CSI

Colossus Minerals Inc.

September 30, 2009 09:21 ET

Colossus Minerals Drills 70.70 Metres @ 53.59 g/t Gold, 20.77 g/t Platinum and 31.30 g/t Palladium

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2009) - Colossus Minerals Inc. ("Colossus") (TSX:CSI) is pleased to announce the results from step-out diamond drilling on the Central Mineralised Zone of the Serra Pelada Project, the Colossus-COOMIGASP joint venture located in Para State, Brazil.

HIGHLIGHTS

- SPD-034 intersected

70.70 metres @ 53.59 g/t gold, 20.77 g/t platinum and 31.30 g/t palladium (89.59 g/t gold-equivalent(ii)) including

20.44 metres at 158.82 g/t gold, 67.14 g/t platinum and 101.10 g/t palladium (275.17 g/t gold-equivalent )

- SPD-032 intersected

39.05 metres @ 21.47 g/t gold, 6.44 g/t platinum and 9.36 g/t palladium, (32.53 g/t gold-equivalent) including

4.80 metres at 161.87 g/t gold, 49.85 g/t platinum and 73.13 g/t palladium, (247.69 g/t gold-equivalent)

- SPD-028 intersected

8.80 metres at 60.05 g/t gold, 0.07 g/t platinum and 0.18 g/t palladium
including

5.20 metres at 99.21 g/t gold, 0.10 g/t platinum and 0.25 g/t palladium,
approximate true thicknesses of mineralisation

- These and other step-out drill -holes have contributed materially to the definition of gold-platinum-palladium mineralisation, including ultra high grade subzones in the Serra Pelada Central Mineralised Zone.

DETAILS

Diamond drill-holes SPD-023, -024, -025, -028, -030, -031, -032, and -034 of Colossus' Phase II drilling program, were HQ-cored for a total of 2326 metres. Drilling was focused on the Central Mineralised Zone ("CMZ"), which overprints metasediments occupying the hinge and inner limbs of a northwest-facing, southwest-plunging, reclined synclinorium that plunges gently southwest from the historical open pit. The CMZ is characterised by intense hydrothermal carbonaceous and argillic alteration mainly of siltstones, inboard of siliceous alteration partially mantling the synclinorial hinge. See Sections 00, 100NE and others plus a plan view of Serra Pelada drill traces at www.colossusminerals.com. Drilling results are outlined below, firstly between-section drilling and then sectional drilling progressively toward the historical pit.

SPD-031 and SPD-034 were collared on Section 50NE and drilled towards Section 00, respectively on initial azimuths of 224 and 229 deg. and -81 deg. inclinations. Both drill-holes were aimed at clarifying the structure, distribution and continuity of high grade gold-platinum-palladium subzones localised within the hinge region of the CMZ.

SPD-034 intersected continuous mineralisation (at greater than 0.5 g/t gold + platinum +palladium) over a down-hole interval of 74.35m in carbonaceous-and argillicly-altered siltstones. This interval exhibits four ultra high grade (greater than 100g/t gold -equivalent) subzones including 3.98m @713.1g/t gold, 316.5g/t platinum and 475.9 g/t palladium with replicated assays up to 1784g/t gold, 805g/t platinum and 1213g/t palladium, the highest grades so far drilled by Colossus. Assay results for continuously mineralised interval in SPD034 are tabulated below:



----------------------------------------------------------------------------
From Assay Gold-
(metres, To (metres, Interval Gold Platinum Palladium equivalent
down-hole) down-hole) (metres)(i) g/t g/t g/t g/t(ii)
----------------------------------------------------------------------------

198.90 269.60 70.70 53.59 20.77 31.30 90.10
----------------------------------------------------------------------------

incl.

207.05 227.49 20.44 158.82 67.14 101.10 276.80
----------------------------------------------------------------------------

(i) Total assayed interval (greater than 0.5 g/t gold equivalent) -
excludes intervals of no core recovery; true widths to be established.
(ii) Gold-equivalent calculated for US$992/oz. Au, $1275/oz. Pt, $295/oz. Pd


SPD-031 (testing mineralisation to the south of SPD-034) intersected two long intervals (23.55 & +40m) of continuous mineralisation, separated by thin interval of siliceous alteration. The hole was terminated in mineralisation, 40m short of its target length, due to mechanical failure. The lower mineralised interval in SPD-031 has high PGE:Gold ratio and shows a pattern of high grade subzones similar to that of SPD-034. Assays for the main continuously mineralised intervals in SPD-031 are tabulated below:



----------------------------------------------------------------------------
From Assay Gold-
(metres, To (metres, Interval Gold Platinum Palladium equivalent
down-hole) down-hole) (metres)(i) g/t g/t g/t g/t(ii)
----------------------------------------------------------------------------

198.80 213.35 22.75 1.41 0.11 0.23 1.60
----------------------------------------------------------------------------

219.40 259.40 37.00 8.14 4.07 5.35 15.10
----------------------------------------------------------------------------


The results from SPD-034 and SPD-031, together with previous on-section drilling (eg. SPD-002: 48.25m @ 30.57 g/t gold, 10.96 g/t platinum & 15.38 g/t palladium and others including SPD-033, primarily drilled for metallurgical test material, to be announced separately ), clarify the distribution of medium-, high-grade and ultra high-grade subzones and varying PGE:Gold in the CMZ in this area. Ultra-high grade subzones, which carry a significant portion of the CMZ gold & PGE inventory, evidently occur in northeast -trending, sub-vertically dipping, shallowly-plunging envelopes. These high grade envelopes exhibit strong down-dip continuity and also extend laterally for ten's of metres, as well as exhibiting systematic PGE:Gold ratio. Additional between-section drilling should add further confidence to this interpretation.

SPD-028, tested a shallowly dipping, upper limb position in the CMZ on Section 100SW. A gold-rich subzone, about 8 metres true thickness, was intersected at about 200 metres depth, plus other gold-rich intervals at greater depths. Assay results for continuously mineralised interval in SPD-028 are tabulated below:



---------------------------------------------------------------
From Assay
(metres, To (metres, Interval Gold Platinum Palladium
down-hole) down-hole) (metres)(i) g/t g/t g/t
---------------------------------------------------------------

201.30 210.10 8.80 60.05 0.07 0.18
---------------------------------------------------------------

incl.

204.90 210.10 5.20 99.21 0.10 0.25
---------------------------------------------------------------

(i) Total assayed interval (greater than 0.5 g/t gold equivalent)
- excludes intervals of no core recovery; true widths to be
established.


SPD-030, drilled further east on Section 100SW appears to have intersected (from 198.9m, 1.5m@6.82g/t gold) the same gold-rich subzone as SPD-028, but dropped unexpectedly and grazed its target, a high PGE subzone further down-hole, intersecting discontinuous gold-platinum-palladium mineralisation.

SPD-024 and SPD-032 are the first holes drilled on Section 25SW, each testing hinge zone mineralisation, SPD-024 undercutting SPD-032. The latter drill-hole encountered a long interval of high PGE:Gold ratio and a high grade gold-platinum-palladium subzone at greater depth in the inner fold hinge. Assays for the main continuously mineralised intervals in SPD-032 are tabulated below:



---------------------------------------------------------------
From Assay
(metres, To (metres, Interval Gold Platinum Palladium
down-hole) down-hole) (metres)(i) g/t g/t g/t
---------------------------------------------------------------

208.15 243.25 32.55 1.00 1.39 1.85
---------------------------------------------------------------

incl.

208.15 217.05 8.90 1.89 3.85 5.69
---------------------------------------------------------------

248.80 291.25 39.05 21.47 6.44 9.36
---------------------------------------------------------------

incl.
268.00 272.80 4.80 161.87 49.85 73.13
---------------------------------------------------------------


SPD-024 exhibits higher Gold:PGE ratio than SPD-032, with a substantial medium grade gold-rich zone in the lower fold hinge. Both holes also encountered gold-PGE subzones (e.g. SPD-032 from 305.35m, 1.4m @ 4.55g/t gold, 1.28g/t platinum and 1.73g/t palladium) in sandstones underlying the siltstones. Assays for the main continuously mineralised interval in SPD-024 are tabulated below:



---------------------------------------------------------------
From Assay
(metres, To (metres, Interval Gold Platinum Palladium
down-hole) down-hole) (metres)(i) g/t g/t g/t
---------------------------------------------------------------

248.25 273.10 24.85 7.85 0.36 0.66
---------------------------------------------------------------

incl.

264.65 272.60 7.95 17.14 1.04 1.90
---------------------------------------------------------------


SPD-023 was drilled above SPD-011 on Section 75NE, to examine inner hinge mineralisation. Two substantial intervals of mineralisation, separated by siliceous alteration, were intersected, the upper of these exhibiting higher PGE:Gold ratio. Assays for the main continuously mineralised intervals in SPD023 are tabulated below:



---------------------------------------------------------------
From Assay
(metres, To (metres, Interval Gold Platinum Palladium
down-hole) down-hole) (metres)(i) g/t g/t g/t
---------------------------------------------------------------

172.95 216.00 43.05 5.69 1.33 1.71
---------------------------------------------------------------

255.43 264.60 8.27 12.42 1.05 1.98
---------------------------------------------------------------


SPD-025 was drilled to the northwest of SPD-022 on Section 125NE and successfully located fault-offset mineralisation that largely evaded the latter drill-hole. Of the 134 metres intersection of mineralised siltstone, a total of 40 metres is above 0.5 g/t gold plus PGE's. The main continuously mineralised interval is in a lower limb position and has high PGE:Gold ratio. Assays for this interval in SPD-024 are tabulated below:



---------------------------------------------------------------
From Assay
(metres, To (metres, Interval Gold Platinum Palladium
down-hole) down-hole) (metres)(i) g/t g/t g/t
---------------------------------------------------------------

268.55 283.46 14.91 4.34 2.16 3.20
---------------------------------------------------------------

incl.

275.30 279.85 4.55 10.60 2.96 3.64
---------------------------------------------------------------


Complete assay data sets for the drill-holes in this release plus a drill-hole location map will be posted shortly on www.colossusminerals.com.

Vic Wall, Colossus VP of Exploration comments, "The results of Colossus' Phase II step-out drilling have added materially to the definition of the main Serra Pelada gold-platinum-palladium ore-body. Between-section drilling has clarified the distribution of ultra high grade gold-PGE subzones, demonstrating down dip and lateral continuity in envelopes that we have increasing confidence will be among the first to be mined in the new Serra Pelada. In other areas, up to 400 metres south of the historical open pit, Colossus drilling has outlined substantial mineralisation, including high grade gold and gold-PGE subzones. The intersections of gold-PGE mineralisation north of our Phase I drilling, in areas where historical drilling had missed mineralisation are also encouraging. We are following up with further drilling in this and more southerly parts of the Central Mineralised Zone as well as additional between-section holes."

TECHNICAL INFORMATION

Sampling of SPD 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 most 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 a minerals development company focused on gold and platinum group metals 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.

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