TORONTO, ONTARIO--(Marketwired - June 18, 2013) - Colossus Minerals Inc. (the "Company" or "Colossus") (CSI.TO)(COLUF) is pleased to provide a development update for its 75% owned Serra Pelada gold-platinum-palladium Mine. The Serra Pelada Mine is a joint venture between Colossus and Cooperativa de Mineração dos Garimpeiros de Serra Pelada ("COOMIGASP") located in the State of Pará, Brazil.
- The Company remains on track for initial production in the third quarter of 2013 at a rate of 250 tonnes per day ("tpd"). Current planning indicates ramp-up to 1,000 tpd is achievable by the end of the first quarter of 2014. A photo update is included in this release.
- The Company has substantially completed its bulk sample program. Additional development is ongoing in the Central Mineralized Zone ("CMZ") for grade control purposes and to continue building a stockpile ahead of process plant commissioning. The Company currently has approximately 2,500 tonnes of material on the run of mine ("ROM") pad including lower grade halo mineralization and CMZ material. Assays are pending and initial grade reconciliation ongoing.
- The remainder of June and July will be focused on extending the excavation in the bulk sample access drift in order to build a 10,000 tonne surface stockpile ahead of mill commissioning in the third quarter. This stockpile will include bulk-sample material which will be segregated and processed separately for grade control testing. The Company also expects to begin development of a second access drift into the CMZ by the end of June.
- Project construction is currently 85% complete. Structural steel erection is now 55% complete. The ball mill is in place and all three gravity concentrators have been installed. Commissioning will commence in July starting with the primary crusher and progressing through other individual operating areas of the process plant.
- Other underground development remains on schedule and continues to average in excess of three metres per day. The drive towards the ventilation shaft remains on schedule.
- Other infrastructure development remains on schedule.
- Commissioning of the power house is complete and this facility is providing 100% of the Company's power requirements.
- The tailings dam is approximately 35% complete and is expected to be ready in conjunction with start of mill commissioning.
- The ventilation shaft has been collared and expansion is well advanced. The upgraded ventilation facility will be completed by the end of the third quarter.
Claudio Mancuso, Chief Executive Officer commented, "We continue to remain focused on development and beginning production in the third quarter of 2013. We have achieved a number of significant milestones in the past month such as substantially completing our bulk sample program, commissioning our power house, collaring the ventilation shaft and raising additional capital to provide flexibility during ramp-up. We are pleased with our development progress and look forward to pouring gold in the third quarter of this year."
CONSTRUCTION AND DEVELOPMENT ACTIVITIES
Underground development is progressing as planned. Significant milestones achieved since the last development update include:
- Substantial completion of bulk sample program. Development continues in the CMZ for grade control purposes and to continue building a stockpile ahead of process plant commissioning. Development of a second access drift into the CMZ is expected to commence by the end of June.
- The Company currently has approximately 2,500 tonnes of material on the ROM pad including lower grade halo mineralization and CMZ material. Assays are pending and initial grade reconciliation is ongoing.
- The remainder of June and July will be focused on extending the excavation in the bulk sample access drift in order to build a 10,000 tonne surface stockpile ahead of mill commissioning in the third quarter. This stockpile will include bulk-sample material which will be segregated and processed separately for grade control testing. The Company also expects to begin development of a second access drift into the CMZ by the end of June which is on schedule with the Company's ramp-up plans.
- Ground conditions remain within expected parameters and have been manageable using conventional practices and ground support tools currently on site.
- Underground dewatering also remains within expected parameters and the Company's pumping system has proved adequate for its current underground activities.
- Underground mine equipment needed to support 1,000 tpd is now on site.
- Technical services to support continued advancement of the mining program are in place and currently being supported by Hatch engineering.
- Ventilation expansion program is now in excess of 50% complete with connection of underground drive to ventilation shaft expected in July.
- Primary decline development is also continuing to support expansion of production planned for later in the year.
- Electrical reticulation has been expanded to support mining activities in several areas with an additional underground substation installed and commissioned during the past month.
The various phases of the process plant construction, along with respective percentages complete are presented in the table below.
|May 15||June 18|
|Structural steel fabrication||70%||95%|
|Structural, mechanical, piping & electrical installation||35%||55%|
|Tailings impoundment facility||20%||35%|
Process plant construction is progressing as planned. Significant milestones achieved since the last development update include:
- Over 95% of structural steel is currently on site with approximately 55% erected to date. Over 90% of all platework is now on site as well.
- Ball mill is now in place and the ring gear has been installed; all three gravity concentrators have also been installed in the ball mill building. To view a video of the ball mill being lifted into place, please click the following link: https://vimeo.com/68640198
- Significant progress has been made in erecting the conveyor systems.
- Primary screen and a number of tanks have been installed in the Scrubbing & Screening building. Scrubber is on site and installation of this piece of equipment has begun.
- Civil construction of gold room is complete and this area has been turned over to the mechanical contractor. Erection of tanks in the gold room area has begun and one tank is already in place.
- Master Control Centres 1 and 2 have been placed on steel columns; electrical work to commence shortly.
- In the thickener area, process water and fluidization water tanks have been installed, thickener tank base has been completed and bund walls were cast and poured.
- The primary crusher area structural steel, platework and associated equipment installation is approximately 90% complete. Electrical and instrumentation installations have started. Commissioning of the primary crusher is scheduled to occur in July.
- The reagent handling area structural steel, platework and associated equipment installation is approximately 90% complete. Electrical and instrumentation installations have started.
Other infrastructure construction is progressing as planned. Significant milestones achieved since the last development update include:
- Commissioning of the power house is complete and this facility is providing 100% of the Company's power requirements. Connection to the grid is expected by the middle of July. The Company is currently running two of the four generators and electrical reticulation across the project site is substantially complete.
- Construction of tailings dam has been advanced; construction of the diversion channel has been completed and the total construction is now 30% complete. The tailings dam is expected to be ready in conjunction with the start of mill commissioning.
- Widening of the ventilation shaft is also progressing on schedule. The shaft has been collared and approximately 10 metres of the shaft have been widened with concrete poured. The ventilation shaft expansion is expected to be completed by the end of the third quarter.
- Civil construction and structural steel erection for the laboratory has been substantially completed. Modular lab units are now on site and are expected to be installed shortly. Commissioning to commence in July with first processing of samples to occur in by the end of July.
Colossus is a development-stage mining company focused on bringing its 75% owned Serra Pelada gold-platinum-palladium Mine into production. The Serra Pelada Mine is a joint venture between Colossus and COOMIGASP located in the State of Pará, Brazil. Serra Pelada, located in the mineral prolific Carajas region in the State of Pará, 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. Colossus Minerals Common Shares, warrants and notes trade on the Toronto Stock Exchange (TSX) 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.
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 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.
To view the CSI Construction update, please visit the following link: http://file.marketwire.com/release/csi618i.pdf.