Colossus Minerals GMP Update

Posted: January 25, 2013 | Author: | Filed under: Exploration Companies, Gold | Tags: , , , , , , , | Leave a comment
English: Crystaline Gold

English: Crystaline Gold (Photo credit: Wikipedia)

Cagliari - La Torre dell'Elefante

Cagliari – La Torre dell’Elefante (Photo credit: Gianni S. Piludu)

COLOSSUS MINERALS

(T-CSI) $4.33 -0.27
Again we note that there has been little joy in the precious metal sector the last while, but friends, and friends of friends and analysts tell us that one story that bares watching is that of Colossus Minerals.
They are expected to start production at about mid-year and with cash flow some hope to see the story re-rated (not that we have seen many, if in fact any mines brought on-stream, on budget and on time).  George Albino GMP report that was released shortly after the latest project update and he writes, “Elefante heading in the right direction:
Event: Initial core drilling results returned from Elefante exploration project:
• This morning Colossus announced the results of initial diamond drill testing of the Elefante area two km southeast of the main Serra Pelada mine. The company previously released auger drilling results testing the saprolite above the bedrock at Elefante (see the company release dated August 20th 2012).
• The drill results released today covered 365m across four drillholes, all completed in November and December of last year. The drillholes tested the highest grade portion of the anomaly defined by the auger program.
• The area tested so far is small – 25x50m, but is “proof of concept” for Elefante bedrock mineralization.
• All four holes hit significant precious metal mineralization (+2 g/t on a total precious metal basis). Best results were in EL-12-001 with an intercept of 5.7m at 5.41g/t Au with minor Pt and Pd. The highest grade PGM intersection was in EL-12-002 which hit 5.1m of

• It is noteworthy that the Au-Pd-Pt zones are not tied to the carbon alteration typical of the CMZ at Serra Pelada.
• Colossus intends to continue core drill testing of Elefante in 2013 in tandem with drilling efforts at the primary operation.

Impact—Positive:


• While these initial results are not particularly high grade nor do they define a large zone, they ARE critically important in showing that the processes that formed the CMZ affected a larger area, opening up more of the property for exploration (the Au-Pt-Pd assemblage is so unusual that we’re comfortable tying Elefante to the CMZ).
• The lack of carbon association also suggests that a wider variety of alteration styles are prospective, again opening up more potential on the overall project area.
Recommendation: Maintain Buy rating and C$11.50/sh target.

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Gold Standard Ventures

Posted: January 24, 2013 | Author: | Filed under: Exploration Companies | Tags: , , , , , , , | Leave a comment
Campaign poster showing William McKinley holdi...

Campaign poster showing William McKinley holding U.S. flag and standing on gold coin “sound money”, held up by group of men, in front of ships “commerce” and factories “civilization”. (Photo credit: Wikipedia)

Gold Standard Ventures

(GSV : TSX-V : $1.08)

Shares of Nevada-focused Gold Standard Ventures were moving higher after announcing assay results from a new, previously unknown zone of copper and silver mineralization in the historic Central Bullion target area.

Management highlighted that hole RRB12-03 intersected 65 feet of 3.06 oz silver per short ton (Ag/st) with 0.80% copper (Cu) and 0.08% molybdenum from 45 to 110 feet within a 250 foot thick zone of 1.3 oz Ag/st and 0.25% Cu, and a second higher-grade zone of 44 feet of 6.42 oz Ag/st with 2.48% Cu from 913 to 957 feet within a 187 foot thick zone of 1.7 oz Ag/st and 0.78% Cu.

Up to now, the Central Bullion target area has received only limited exploration due to drill permitting limitations. With the Plan of Operations finalized in December 2012, GSV can now proceed with a more aggressive drilling program. Commenting on the new results, GSV’s VP of Exploration, Dave Mathewson, stated “The Central Bullion target area has been of compelling interest from the onset of our Railroad exploration program because of the exceptional high grades of metals historically mined in the area combined with the presence of a large area of strong surface rock and soil geochemistry, and the limited amount drilling, especially with core, conducted in this target area.”

He further highlighted, “RRB12-03 is by far the best hole we have drilled in the area, and it appears to be indicative of an important new zone of mineralization.”