Colossus Minerals (CSI-T) hit more high grade gold and platinum group elements (PGE) in Brazil, but failed to inspire the market with its results.
The highlight intersect came in at 27.9 metres grading 35.49 grams gold per tonne, 19.89 grams platinum and 25.14 grams palladium. Included in that stretch was 21.15 metres at 46.36 grams gold, 25.82 grams platinum and 32.64 grams palladium.
And while the hole represents the highest grades of platinum and palladium encountered at the Serra Pelada project to date, the market wasn’t getting behind the story. Midday in Toronto on June 4, the company’s shares were down 6¢ at $3.30 on 1.2 million shares traded.
Another hole from its second phase of diamond drilling intersected 17.8 metres at 16.15 grams gold, 1.69 grams platinum and 2.70 grams palladium and 5.53 metres at 0.70 grams gold, 9.32 grams platinum and 8.92 grams palladium.
Its first phase of drilling was highlighted by an intersect of 60.1 metres grading 24.23 grams of gold, 8.15 grams of platinum and 10.22 grams of palladium.
The company says the holes indicate there is lateral and vertical continuity of gold and PGEs in the Central Mineralized Zone (CMZ).
Serra Pelada sits in the Para state of Brazil. The project is a joint venture between Colossus and COOMIGASP — a Brazilian cooperative company that held the exploration licence for Serra Pelada.
In 2007 Colossus struck a deal with the group that allowed it to develop the remaining bedrock mineralisation at the site.
Colossus currently holds a 51% interest in the project, and will increase its stake by funding more exploration and paying COOMIGASP a premium for the gold reserve established by the joint venture.
Colossus is focusing on the CMZ which it says over lies metasediments occupying the hinge and inner limbs of a northwest-facing, southwest-plunging, reclined synclinorium that plunges gently southwest from a historical open pit.
The CMZ is characterized by intense hydrothermal carbonaceous and argillic alteration, inboard of siliceous alteration partially mantling the synclinorial hinge.
In the early 1980s the Serra Pelada area was the site of one of the biggest precious metals rush in Latin America.
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