NEWS RELEASE
Colossus Minerals Provides Update on Exploration on Elefante Area Toronto, Ontario, August 20, 2012 – Colossus Minerals Inc. (the “Company” or “Colossus”) (TSX: CSI)(OTCQX:COLUF) is pleased to announce assay results from the auger drilling program on the Elefante Area located 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 All of the assay results have now been received from the auger testing program conducted to define targets for the diamond drilling program to be conducted in the fourth quarter of 2012. Seventy‐three auger holes were drilled to depths that ranged in length from two to nine metres. The final assay results of this auger drilling program returned the following highlights:
SPTRD‐135 returned values of 13.08 g/t platinum and 4.19 g/t palladium from 0.5 to 1.0 metre below surface.
SPTRD‐160 returned values of 4.40 g/t gold from 1.5 to 2.0 metres below surface.
SPTRD‐169 returned values of 8.70 g/t gold from 1.5 to 2.0 metres below surface.
Claudio Mancuso , President & CEO of Colossus commented, "The results of the auger drilling program highlight the potential of the Elefante Area and demonstrate Elefante’s value as a target for diamond drilling. We are excited to be able to commence diamond drilling later this year as the high grade intercepts in soils close to surface could have immediate economic potential.” DETAILS The most recent phase of auger drilling was designed to fine‐tune the targeting of a trend of mineralization identified in the previous phase of auger drilling. This mineralization trend returned encouraging results from near surface soil samples down to the saprolite portion of the hole just above the presumed bedrock. The latest results continue to demonstrate that the soil contains local pockets of high grade precious metal mineralization. The previously released results highlighted a 10.5 metre long interval that returned 0.64 g/t Au, 0.12 g/t Pt and 0.08 g/t Pd from auger hole SPTRD‐090 (see press release dated March 12, 2012 for more details). This was a follow‐up to an earlier phase of testing that highlighted holes SPTRD‐016 that returned a 5.5 metre interval of 0.20 g/t Au, 0.53 g/t Pt and 0.45 g/t Pd from the saprolite and SPTRD‐017 that contained 124.78 g/t Au, 6.52 g/t Pt and 7.67 g/t Pd from a 0.50 metre soil sample interval (see press release dated November 14, 2011 for more details). As noted above, a total of 73 additional auger holes were drilled in the final phase of auger drilling in this area (see figures 1 and 2 attached). The results are highlighted in Table 1 below and add to the
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interpretation of the anomalous samples identified in the previous phases of auger drilling over this area. The resulting interpretation shows a broad low grade east‐west trending halo predominantly coming from soil samples of the regolith. There are two higher grade clusters within this broad anomaly, the southernmost of which is associated with the holes that have encouraging precious metal results in the saprolite (see figure 3 attached). Diamond drill testing in the area will commence on the mineralized trend of which these three holes are a part. This work will help identify whether the high grade soil assay results are bedrock sourced. TABLE 1: AUGER DRILLING RESULTS
Area Auger‐hole ID From (m)
To (m)
Interval (m)
Gold (g/t)
Platinum (g/t)
Palladium (g/t) Lithology
Elefante SPTRD‐127 1.5 2.0 0.50 0.08 1.26 1.66 soil
Elefante SPTRD‐135 0.5 1.0 0.5 0.20 13.08 4.19 soil
Elefante SPTRD‐160 1.5 2.0 0.5 4.40 0.10 0.11 soil
Elefante SPTRD‐169 1.5 2.0 0.5 8.70 0.01 0.06 soil
Elefante SPTRD‐171 0.0 0.5 0.5 1.67 0.01 0.04 soil
Elefante SPTRD‐192 1.5 2.0 0.5 1.04 0.01 0.02 soil
Elefante Area Geology The Elefante Area is located approximately two kilometres southeast of the Serra Pelada Au+Pt+Pd deposit (see Figure 1 in this release). The host rock in this area consists of Archean aged (2.68 billion year old) sediments belonging to the Rio Fresco Formation which also hosts the Serra Pelada orebody. Outcrops of siltstone found in the Elefante area physically resemble those found in the pit wall of the historic Serra Pelada open pit but lack the classic reddish color of the oxidized sediments. The siltstone found in the Elefante area is a light to medium grey color. Diamond Drilling The first phase of drilling will consist of approximately 500 metres of HQ caliber drilling and will test for the bedrock source of the saprolite enriched auger drill holes as well as test the fold of the sedimentary package for signs of carbon upgrading similar to that which is found in the high grade Central Mineralized Zone at the Serra Pelada Mine.
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Technical Information
Auger sampling is conducted using a mechanical auger. Sampling of the drilled material (by Colossus personnel) and sample preparation (by Intertek Limited, Parauapebas and/or SGS Geosol, Parauapebas, Brazil) 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, the sampled intervals (drilling advances, averaging half a metre in length) were cut and/or split in half, yielding samples of two to three kilogram mass. Where sample recoveries were low, intervals were composited to yield approximately one kilogram minimum sample masses. Intertek and SGS Geosol pulverize 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.
The labs insert 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.
The Intertek and SGS Geosol assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures. A 200 gram aliquot of medium and high grade pulps were rotary split from each pulp by Intertek and SGS Geosol and one of these samples was securely shipped directly by Intertek to Genalysis Limited, Perth Laboratory for check assaying. A similar procedure is used for samples assayed at the SGS Geosol lab with the samples being securely transported to the Intertek lab in Parauapebas, Brazil for check assaying.
Graham Long, 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 under the symbols CSI, CSI.WT.A and CSI.NT respectively and in the United States its Common Shares trade on the OTCQX under the symbol COLUF. The Company is headquartered in Toronto, Canada.
http://video.au.msn.com/watch/video/the‐treasure‐of‐serra‐pelada/xx3k2px
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
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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.
For further information, please contact:
Ann Wilkinson, VP, Investor Relations Colossus Minerals Inc. Tel: (416) 643‐7655 Web site: www.colossusminerals.com Email: [email protected]
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Sc
SSf
SLTs(1)
SLTr
CGLSLTs(2)
LAT
SSs
REJ
SLTcb
Scss
Id
Igb
TRS
BXsed
Bxhem
646000
646000
646700
646700
647400
647400
648100
648100
648800
648800
9341
200
9341
200
9341
800
9341
800
9342
400
9342
400
9343
000
9343
000
9343
600
9343
600
Inset 2
Inset 1
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Elefante TargetAuger Program & Anomalous Zones
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X X
Inset 2
Inset 1
50 0 50 10025Meters
0 20 40 6010Meters1:1,000
1:2,500
t
Topo contour2 meter spacing5 meters spacing
LegendAuger Phase
Anomalous Zones (in soil, varying from 0 to 4 meters)
!. First Phase Auger Program!. Second Phase Auger Program
Low Grade ZoneHigh Grade Zones
Holes with anomalies in saprolites/transition zoneX SPTRD-016X SPTRD-017
Serra PeladaElefante Target
0 1,000 2,000500Meters
1:20,000
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XYXY
SPTRD-196
SPTRD-195
SPTRD-194
SPTRD-193
SPTRD-192
SPTRD-191
SPTRD-190
SPTRD-189
SPTRD-188
SPTRD-187
SPTRD-186
SPTRD-185
SPTRD-184SPTRD-183
SPTRD-182
SPTRD-181
SPTRD-180
SPTRD-179
SPTRD-178
SPTRD-177
SPTRD-176
SPTRD-175
SPTRD-174
SPTRD-173
SPTRD-172
SPTRD-171
SPTRD-170
SPTRD-169
SPTRD-168
SPTRD-167SPTRD-166
SPTRD-165
SPTRD-164SPTRD-163
SPTRD-162
SPTRD-161
SPTRD-160
SPTRD-159
SPTRD-158
SPTRD-157
SPTRD-156
SPTRD-155SPTRD-154
SPTRD-153
SPTRD-152
SPTRD-151
SPTRD-150
SPTRD-149
SPTRD-148
SPTRD-147SPTRD-146
SPTRD-145
SPTRD-144
SPTRD-143
SPTRD-142
SPTRD-141
SPTRD-140
SPTRD-139
SPTRD-138
SPTRD-137
SPTRD-136
SPTRD-135SPTRD-134
SPTRD-133
SPTRD-132
SPTRD-131
SPTRD-130
SPTRD-129
SPTRD-128
SPTRD-127
SPTRD-126
SPTRD-125
SPTRD-124
SPTRD-123
SPTRD-093
SPTRD-092
SPTRD-091
SPTRD-090
SPTRD-089
SPTRD-088
SPTRD-087
SPTRD-086
SPTRD-085
SPTRD-084
SPTRD-083
SPTRD-082
SPTRD-081
SPTRD-080 SPTRD-079
SPTRD-078
SPTRD-077
SPTRD-076
SPTRD-075
SPTRD-074
SPTRD-073
SPTRD-072
SPTRD-071
SPTRD-070
SPTRD-017SPTRD-016 Structures
Axe Fold# # Inverse Fault# # Inverse Fault inferred
Normal Fault
GeologySLTs(1) - Sand-siltstones,pink to redSLTcb - Black Siltstone withhigh carbon and marked by alternating levels of silt andclay.
Sc - Very foliated metamorphicrock composed mainly ofbiotite
LegendHoles with anomalies in saprolite/transitionzone
X SPTRD-016X SPTRD-017
Auger Phase!. Hole ID - Phase 1!. Hole ID - Phase 2
Topographic contour2 meters spacing5 meters spacing
0 20 40 6010Meters
1:500
t
Serra PeladaElefante Target
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XYXY
0.9
2.76
0.58
3.23
2.285
0.883
0.9771.4985.923
1.877
0.596
0.045
0.218
1.318
1.352
5.005
1.813
5.661 2.717
6.093
1.291
0.578
2.978
1.749 0.915
4.119
19.25
1.348 1.387
0.3502
0.1787
0.2883
0.6163
0.6162
0.2582
0.8746
1.6623
0.5254
0.5696
1.08790.6331
1.2621
0.6385
0.3025
0.5599
0.2747
1.0146
0.6276
0.7035
1.4829
0.5658
2.3007
1.1698
9.6479
5.6417
0.35740.2087
0.61280.3858
0.29840.4277
0.7447
0.22550.4727
0.5308
0.7623
1.2439
2.9405
7.0711
0.1775
0.27280.4362
0.2973
0.7439
1.3904
0.1165
0.6733
0.3245
0.4445
0.6097
2.5577
0.3549
0.2142
0.2589
1.1256
0.2378
5.7898
0.0844
0.0873
0.0757
0.0244
3.3337
9.3978
1.4028
0.6915
9.4765
18.6513
2.41261
24.917999 480.9809920.639999
0 20 40 6010Meters
1:500
t
Serra PeladaElefante Target
LegendHoles with anomalies in saprolite/transitionzone
X SPTRD-016X SPTRD-017
Auger Phase!. Phase 1!. Phase 2
Iso-contourAu+Pt+Pd (g/ton)
*Label is grade of Au+Pt+Pd
StructuresAxe Fold
# # Inverse Fault# # Inverse Fault inferred
Normal Fault
GeologySLTs(1) - Sand-siltstones,pink to redSLTcb - Black Siltstone withhigh carbon and marked by alternating levels of silt andclay.
Sc - Very foliated metamorphicrock composed mainly ofbiotite
Topographic contour2 meters spacing5 meters spacing
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