TSX : $2.88
Expanding the zone, but does anyone care?
Colossus Minerals announced further drill results from their Serra Pelada project in Brazil. The drill holes which are testing the edge of the Central Mineralized Zone (CMZ) continued to demonstrate the potential of the deposit. Hole SPD-182 demonstrated that the CMZ is tucked in closer to the nose of the folded structure, returning 3.4 metres grading 13.28 g/t gold, 0.02 g/t platinum and 0.06 g/t palladium.
Underground delineation drilling has commenced from a new drill bay that is located 45 metres lower and half the distance to the mineralized zone. Highlights from the underground include Hole SPUD-018 that intercepted 0.8 metres grading 23.07 g/t gold and 3.6 metres grading 24.37 g/t gold, 0.28 g/t platinum and 0.88 g/t palladium. Overall, the results continue to delineate and extend the CMZ mineralization, while demonstrating localized increases in widths in certain areas.
Recently, CSI updated the market on development activitie s at Serra Pelada. The company commented that it remains on track to start initial production early in the second half of 2013 at an initial rate of 250 tonnes per day tpd and continue the ramp up phase throughout the remainder of 2013 to 500 tpd. The current plan envisages two active mining faces for 250 tpd of production, three to five mining faces for 500 tpd of production and six to nine mining faces for 1,000 tpd of production.
The company expects to achieve 1,000 tpd of production by the end of the first quarter of 2014. Shares of CSI have been down sharply over the past few weeks as the market focuses on the soft gold market, poor environment for juniors and milestone risks for Serra Pelada. Also weighing on the shares is the possibility that the company could be deleted from the S&P/TSX Composite Index, in its March quarterly review. The S&P/TSX will announce their official changes after the close on Friday, March 8, with these changes coming into effective after the close on Friday, March 15.
- Colossus Minerals Inc. High Grade Strike (amp2012.com)