Monday 21st September 2020

Resource Clips

Good To Go

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After the June resource estimate, Colt will begin a preliminary economic assessment and conduct exploration drilling on various strategic targets on the larger Montenor concession. The company expects the PEA to be completed by year’s end, which will coincide with a revised resource estimate, including the Montenor exploration drilling. Colt has even gone so far as to set an internal production target of late 2014 for the project. “The reason that we’re allowing ourselves to talk about this,” Perrault explains, “is we actually have the ability to commence mining, if we so desire, under the auspices of our Experimental Mining License. The other reason is the high-grade nature of what we’re developing. And the mineralization in some cases starts just a few metres from surface.”

Colt‘s other property of note is its 218-square-kilometre Armamar-Meda Tungsten Project, located in north-central Portugal. In November 2011, the company released its first mineral resource estimate: indicated resources of 760,000 tonnes at an average grade of 0.58% tungsten, inferred resources of 1.33 million tonnes grading 0.57%. “The area is still open in all directions. But what is interesting,” Perrault declares, “is that this deposit is two to three times the grade of what is being mined in Europe today.” An upgraded resource for Armamar-Meda is ongoing, which will be followed forthwith by a prefeasibility study. “We’re in discussions with several potential partners to bring this towards production,” Perrault reports. “It’s going extremely well. We believe that the exceptional nature of this project will allow us to be selective and get the best partner we can.”

If this project were situated in jurisdictions that people were more familiar with, we’d probably have a staking frenzy all around us —Nikolas Perrault

Portugal’s last gold mine closed in 1992, but as one of the countries hardest hit by the Eurozone crisis, it has been eager to embrace mining interest. This has “allowed us to lock-up arguably some of the best projects in the country,” Perrault says. Furthermore, the advantages of working in a first-world country that has had the same borders for 600 years are tremendous. “There are no beheadings; there is no malaria; you’ve got world class infrastructure. If this project was situated in jurisdictions that people were more familiar with we’d probably have a staking frenzy all around us.” He adds, “In our opinion, you would have a much more difficult time getting a project approved in many parts of North America than you would here.”

May 2 Colt completed an $8.7-million financing which should see the company through the next 18 months. While Perrault admits that Colt isn’t immune from the challenges faced by miners in today’s market, “We haven’t had any issues in terms of funding for two years. I think the fact that we’re able to attract high-quality investors in this environment is a testimony to the quality of the assets we have and the team we’ve put together.”

He concludes, “The projects themselves so far have caused no challenges that we haven’t been able to deal with. In both cases, we’re dealing with high-grade deposits, which obviously give them some robustness in case of an economic slowdown. The capital markets are more likely to keep me up at night than the projects.”

At press time, Colt Resources had 119 million shares trading at $0.47 per share for a market cap of $55.9 million.

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