TORONTO, ONTARIO--(Marketwire - Mar 28, 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, after market close on March 27, 2013, filed its Annual Audited Financial Statements and Annual Management's Discussion & Analysis ("MD&A"). For additional information regarding development progress discussed below, please refer to the above documents which can be found on the Company's website or on SEDAR (www.sedar.com).
- J. Alberto Arias, Founder, General Partner and Portfolio Manager of Arias Resource Capital Management LP, who's shareholdings in Colossus recently exceeded 10% of the common shares has been appointed to the board of directors effective March 28, 2013.
- The Company remains on track to start initial production early in the second half of 2013 at a rate of 250 tonnes per day ("tpd"). The Company's ramp-up plans for reaching 1,000 tpd by the end of Q1 2014 are still on track.
- The Company continues with cautious and systematic development through the mineralized zone gathering valuable geotechnical information ahead of initial production. Rock quality has remained within expected parameters.
- Process plant construction remains on schedule for commissioning to begin early in the second half of 2013; the total project is currently 70% complete. More than 97% of engineering & procurement is complete, 80% of concrete has been poured, half the structural steel for the project has been delivered to site and structural steel erection commenced in late February.
- Other critical infrastructure construction also remains on schedule. The power line and power house are on track to be commissioned early in the second quarter of 2013 while the tailings dam is expected to be ready in conjunction with mill commissioning.
- The Company exercised its option under the Vale Option Agreement on Area B.
Claudio Mancuso, Chief Executive Officer commented, "I am delighted to welcome Alberto Arias to the board of directors. Alberto's mining experience in Latin America complements our Board's skills and we all look forward to working with him as we continue to advance Serra Pelada to production. On the operations side, we are making steady progress and we are now within five months of commissioning the process plant. Underground development and infrastructure construction are progressing towards our initial production target of early in the second half of 2013."
CONSTRUCTION AND DEVELOPMENT ACTIVITIES
The Company continues its systematic and cautious approach of developing through the mineralized zone. The development is being carried out under geotechnical supervision and the Company has focused on detailed mapping of the different ground conditions encountered and the ground support methods utilized. This geotechnical data is being incorporated into the Company's mine plan.
The Company has evaluated many different ground control techniques as it has progressed through the mineralized zone including new equipment and ground support tools and methods. The Company's focus in this evaluation was to determine the safest and most cost effective ground control practice to be applied across the varying rock packages and ground conditions that are present at Serra Pelada.
In conjunction with continued development through the mineralized zone, the Company has begun constructing additional underground infrastructure necessary to achieve 250 tpd of production early in the second half of 2013. Construction includes widening of the artisanal shaft which will be used as a ventilation raise and the development of a drift to tie the underground infrastructure to this ventilation raise. The ventilation project should be completed by the end of May and will allow the Company to start using multiple sets of equipment underground. Development of this drift towards the ventilation raise is entirely in the red siltstone and development rates have been as expected.
The various phases of the process plant construction, along with respective percentages complete are presented in the table below.
|Feb 7 Update||Mar 27|
|Ball mill refurbishment||95%||100%|
|Structural steel fabrication||25%||55%|
|Structural, mechanical, piping & electrical installation||Contract awarded||30%|
The Company has achieved a significant milestone this month substantially completing all concrete placement and commencing the structural, mechanical erection in various areas of the project including the transfer tower and conveyors, reagents building, mill feed bin and thickener. Please click on the link at the end of this release to see updated pictures of construction progress.
Surface construction activities continue to focus on the power house and tailings dam. Power house construction continues to progress with the structure now covered and construction of the mezzanine underway. Construction of the power house is 85% complete, generators are expected to be installed in the coming weeks and the power house is expected to be operational by mid-April. Connection to the grid is anticipated shortly thereafter. Tailings dam construction is approximately 10% complete and is slightly ahead of schedule. Earthworks are well underway and the completion of the tailings dam is on track to be completed in conjunction with mill commissioning.
VALE OPTION EXERCISE
On March 18, 2013, the Company exercised its option under the Vale Option Agreement. Vale S.A. will have 45 days from receipt of the notice of exercise from the Company to request additional documents supporting the exploration investments made to date in satisfaction of the Vale Option Agreement. The assignment of the mining rights on Area B to Serra Pelada - Companhia de Desenvolvimento Mineral is expected to occur within 30 days after Vale is satisfied the required exploration investments have been made in accordance with the Vale Option Agreement. For additional information regarding the Vale Option Agreement, please refer to the Annual Information Form dated March 27, 2013 which can be found on the Company's website or on SEDAR (www.sedar.com).
ADDITION OF J. ALBERTO ARIAS TO BOARD OF DIRECTORS
The Company's Board of Directors welcomes Mr. Arias to the Board. Mr. Arias has over 20 years of experience in international mining finance including being the Managing Director of Goldman Sachs - Metals & Mining Research from 1998 to 2006, covering the sector globally. Mr. Arias is originally from Peru, and has a family history, which spans three‐generations, of founding and managing mining companies. Mr. Arias has engineering degrees in mining and metallurgy and an MBA (B.Sc. from the Colorado School of Mines and three Masters degrees from Columbia University), mining industry operational experience, and holds a patent for a gold mineral processing technology
Arias Resource Capital Management ("ARCM"), a private equity firm focused solely on the metals and mining sector globally, with a primary focus in Latin America. ARCM manages approximately US$750 million for prominent foundations, endowments, banks, insurance companies, pension funds and family offices in the US and Latin America.
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 updated pictures of the construction progress, please visit the following link: