Colossus Minerals surges on drill results

Between 1980 and 1986, the Serra Pelada precious metals deposit in Brazil’s Para state spawned the largest gold rush in South American history, and produced 2 million ounces of gold. Today Colossus Minerals (CSI-T) believes the deposit still has legs.

Drill results released today demonstrated 70.70 metres grading 53.59 grams gold per tonne, 20.77 grams platinum per tonne and 31.30 grams palladium, including 20.44 metres grading 158.82 grams gold, 67.14 grams platinum and 101.10 grams palladium from step-out drilling in the central mineralized zone.

By midday in Toronto Colossus shares had jumped $1.03 or 21.28% to $5.87 per share with 3.83 million shares changing hands. (The company has a 52-week trading range of 43¢ to $5.14 and has 58.1 million shares outstanding.)

Other drill highlights include Hole SPD-032, which returned 39.05 metres cutting 21.47 grams gold per tonne, 6.44 grams platinum per tonne and 9.36 grams palladium per tonne, including 4.80 metres at 161.87 grams gold, 49.85 grams platinum and 73.13 grams palladium.

Hole SPD-028 cut 8.80 metres at 60.05 grams gold, 0.07 gram platinum and 0.18 gram palladium, including 5.20 metres at 99.21 grams gold, 0.10 gram platinum and 0.25 gram palladium.

The central mineralized zone is characterized by hydrothermal carbonaceous and argillic alteration mainly of siltstones, inboard of siliceous alteration partially mantling the synclinorial hinge.

Ultra-high grade subzones, which carry a significant portion of the CMZ gold and platinum-group elements inventory, appear to present themselves in northeast -trending, sub-vertically dipping, shallowly-plunging envelopes. These high-grade envelopes exhibit strong down-dip continuity and also extend laterally for tens of metres, Colossus says.

The news follows results released on Sept. 3 outlining a new Western mineralized zone. Hole SPC-012 intersected 4.15 metres at 8.04 grams gold per tonne, 154.5 grams platinum per tonne and 245.8 grams palladium per tonne, including 2 metres at 14.05 grams gold, 304.6 grams platinum and 488.5 grams palladium.

Colossus reports that drilling in other areas, up to 400 metres south of the historical open pit, has also outlined substantial mineralisation, including high-grade gold and gold-PGE subzones.