Colossus Minerals Inc. [Blockierte Grafik: http://www.theaureport.com/images/AU_icon.jpg]
TICKER: TSX: CSI
DESCRIPTION: Colossus Minerals Inc. (“Colossus”) is an emerging mineral exploration and development company focused on Brazilian gold. Led by its skilled management team and world-class Board of Directors, Colossus has developed a robust business model that is sensitive to creating value for its shareholders. To date, the company has two high-grade precious metals projects, one of which, considered to be their “flagship”-- Serra Pelada, has proven to be a geologically unique high grade deposit with potential to delineate a significant gold-platinum-palladium resource. From 1979-1986, Serra Pelada hosted the largest precious metal rush in Latin American history. The deposit that was mined had some spectular grades of precious metals including historical drill hole FD-032, which averaged 43 metres at 4709 g/t gold, 204 g/t platinum and 1174 g/t palladium.
WEBSITE: http://www.colossusminerals.com
Closing Of $24.7 Million Bought Deal Financing (3/10/09)
The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates. "TGR: Are you also following Colossus Minerals Inc. (TSX:CSI)?
JW: Yeah, Colossus, too, actually, a good one. Past producers have taken at least 4 to 5 million ounces out of the old Serra Pelada pit. At one point, 80,000 garimperos were climbing in that pit and carrying burlap sacks full of raw material.
TGR: That's quite an image.
JW: It is. There's a great photo on Colossus's website; it's something else. They're in an exploration phase. They've had some great drill results with high-grade gold, silver, and platinum group metals.
TGR: All in the same mine?
JW: All in the same pit, yeah, and they're stepping out from there and having the same result. It's extremely high-grade PGMs; some of the drill core intercepts would be worth $80,000 per ton, if not more. It's a great story. It's taking a while to unfold. I haven't really seen a lot of news flow out of them. I doubt they're exploring right now because it's the rainy season in Brazil, but I assume they're going to start another phase of drilling as soon as the rainy season ends."
- The Gold Report Interview with James West (02/17/09) "This week, Colossus closed an 11.5 million-unit offering, raising gross proceeds of $24.7 million for the company. With the financing, the company should have in excess of $31 million in the bank. Canaccord Adams Metals & Mining Analyst Nicholas Campbell expects the company to spend roughly $10 million in 2009 on its 75%-owned Serra Pelada gold/PGM project in Brazil.
The 2009 program will likely include 10,000m of core drilling, analysis of rock mechanics, metallurgy and environmental base line studies, with the objective of submitting a Final Exploration Report on the Serra Pelada project by the end of the year. The final exploration report is required before a Mining Lease can be issued on the Serra Pelada Project.
If the company can keep to this timeline, a Mining Lease could be approved on the project by mid-2010. An option payment of ~US$5.9 million is payable to COOMIGASP 60 days after a Mining Lease is granted. With this financing, Colossus should have sufficient funds to complete its Phase II and Phase III programs at Serra Pelada and make the option payments to COOMIGASP as part of its earn-in agreement.
Campbell believes that the Serra Pelada project has the potential to host a 3.5 million gold-equivalent resource. And remember that is not your average 3.5 million ounces of gold, the economics at Serra Pelada should be drool-worthy given the amazing high-grades Colossus is coming up with. The highlight interval reported by Colossus in earlier February was Hole FD-072, which returned a 7.88m interval grading 406.4 g/t gold, 98.4 g/t Platinum, 115.7 g/t Palladium, 2.74 g/t Rhodium and 1.52 g/t. As spot prices, this is a 7.9m interval grading 547.6 g/t AuEq!"
-NICHOLAS CAMPBELL, CANACCORD CAPITAL (03/12/09)
"Wednesday's market action saw shares of Colossus Minerals (TSX: T.CSI) power 49% higher to $2.38 after the miner reported results for the first systematic assaying of drill core for the complete platinum group element suite from the Serra Pelada Project in Brazil, which included 7.88 metres of 406.4 grams per tonne (g/t) gold, 98.4 g/t platinum, 115.7 g/t palladium, 2.74 g/t rhodium, 1.52 g/t iridium, 0.19 g/t ruthenium, and 0.03 g/t osmium."
- Stockhouse (02/14/09)
Colossus released initial rhodium and iridium assay results from its 75%-owned Serra Pelada gold/PGM project in Brazil. The highlight interval reported by the company was Hole FD-072, which returned a 7.88m interval grading 406.4 g/t gold, 98.4 g/t Platinum, 115.7 g/t Palladium, 2.74 g/t Rhodium and 1.52 g/t. As spot prices, this is a 7.90m interval grading 547.6 g/t AuEq. CSI reported rhodium grades of between 0.2 g/t and 7.7 g/t with iridium grades of between 0.1 g/t and 4.9 g/t. Prior to this release, there have been no public rhodium and iridium assay results available from Serra Pelada.
We have begun to see M&A activity increase in 2009 and, given the significant equity issues that have been completed by many senior and intermediate precious metal companies, we believe that another wave of M&A is likely in 2009. The unique high-grade nature of the Serra Pelada gold/PGM project should attract interest from several potential suitors. Canaccord Adams Metals & Mining Analyst Nicholas Campbell believes that Colossus is a high-priority acquisition target.
-NICHOLAS CAMPBELL, CANACCORD CAPITAL (02/12/09)
We are initiating coverage on Colossus Minerals Inc. with a SPECULATIVE BUY recommendation and a 12-month target price of $2.75 per share.
- High grade exploration potential at Serra Pelada (75% interest) with excellent infrastructure, access to labor, and PGE mineralization
- Exploration potential great enough to attract takeover
- Pending catalysts for the stock include ongoing drilling success at, and delineation of an initial NI 43-101 resource estimate for, Serra Pelada; and completion of a scoping study by late 2009 that could lead to a feasibility study in 2010
- Well-financed for aggressive exploration and evaluation program in 2009
Our 12-month target price of $2.75 per share is based on the average of the valuation methodologies. Our positive outlook for Colossus at this preliminary stage (resource delineation stage) is warranted, based on management's ability to fast-track the delineation of resources at Serra Pelada through modeling and re-assaying (2,000 m) the historical drilling database (40,000 m of drilling conducted by Vale Inco from 1980-1998). In addition, the company's ongoing Phase II drill program (~5,000 m) is expected to further expand and reconfirm the exploration work conducted by Vale Inco. We arrive at our 12-month target price by applying three valuation techniques to our expectation that the company's ongoing exploration/re-assaying programs have the potential to delineate ~3.0 million ounces in gold resources, in the next 12 months. Our three valuation techniques indicate a range of potential values of $1.57 to $3.80 per fully diluted share, averaging $2.74 per fully diluted share.
-OVAIS HABIB, EVERGREEN CAPITAL PARTNERS (02/11/09)
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