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Posts tagged ‘Colossus Minerals Inc (CSI)’

Q3 winning streak over: “Considerable underperformance” among Canadian miners in Q4

February 6th, 2014

by Ana Komnenic | February 6, 2014 | Reprinted by permission of MINING.com

Canadian mining stocks experienced a 45% decrease in market capitalization in 2013, with the last quarter alone showing a 9% drop, according to Ernst & Young’s Canadian Mining Eye Q4 2013 report.

It’s well known that concerns over global economic growth and uncertainty over what the U.S. Federal Reserve would do next dragged down commodity prices, leading companies to write down assets and cut costs.

But, despite some mild improvements in the third quarter, last quarter of 2013 unfolded much like the rest of the year—poorly.

The Canadian Mining Eye index—which tracks the performance of 100 TSX and TSXV mid-tier and junior companies with market capitalizations between $1.4 billion and $55 million in Q3—shed 9%. The preceding quarter the index rose by 5%.

“This indicated a considerable underperformance relative to the S&P/TSX Composite index that gained 7% in the fourth quarter,” according to the report.

Q3 winning streak over: “Considerable underperformance” among Canadian miners in Q4

Chart from Canadian Mining Eye Q4 2013, Ernst & Young

 

By commodity group, the only winners were among the diamond, platinum group metals, and coal and consumable fuels sectors.

The gold and fertilizer minerals sectors were hit the hardest; gold dropped 27% over the year and the potash industry was crushed by the breakup of the Russian-Belarusian potash cartel in July.

As for individual companies, Colossus Minerals TSX:CSI is the index’s biggest loser; the company experienced a net share price decline of 91% during the quarter.

One-third of the companies tracked by the Canadian Mining Eye index realized a net gain in the fourth quarter, compared with more than half in the third quarter.

Lucara Diamond TSX:LUC came out on top, gaining 66% on its share price. Brigus Gold TSX:BRD gained 42% throughout the quarter after its flagship Black Fox mine achieved record gold production.

But miners can take solace in the fact that 2013 is over and, at least according to Ernst & Young, 2014 will provide growth opportunities for companies across the sector.

“We note that a new year has brought some transactional activity for companies with good quality projects and lower valuations,” researchers wrote.

“Investors are likely to view the current underperformance as a buying opportunity as projects are de-risked. We expect companies to continue to adopt a disciplined approach to capital management and to seek creative financing options to withstand the downturn.”

Reprinted by permission of MINING.com

Colossus reports Brazil Serra Pelada Assays including 109.89 g/t Gold over 9.8m

April 25th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningColossus Minerals Inc TSX:CSI announced results from its Serra Pelada Project in Para State, Brazil. Assays include

109.89 g/t gold, 0.75 g/t platinum and 15.51 g/t palladium over 9.8 metres
(including 1,336.13 g/t gold, 8.46 g/t platinum and 188.14 g/t palladium over 0.8 metres)
3.09 g/t gold over 4 metres
5.01 g/t gold, 3.54 g/t platinum and 6.83 g/t palladium over 2.7 metres
20.93 g/t gold over 2 metres
11.54 g/t gold, 2.04 g/t platinum and 2.61 g/t palladium over 3.8 metres
14.46 g/t gold, 1.48 g/t platinum and 2.03 g/t palladium over 3.3 metres
1.32 g/t gold over 15.8 metres
5.57 g/t gold over 2 metres
3.38 g/t gold over 9.9 metres

President/CEO Claudio Mancuso said, “We are now confident that the GT Zone has the potential to become a much more meaningful part of the overall mineralization at Serra Pelada. The results also confirm the mineral potential of the upper limb which we will continue to test with systematic drilling. We are looking forward to continued flow of assay results from drilling as we step out up-plunge along strike.”

View Company Profile

Read more about Colossus Minerals

Contact:
Ann Wilkinson
VP Investor Relations
416.643.7655

by Ted Niles

Colossus reports Brazil Assays of 19.59 g/t Gold, 1.6 g/t Platinum, 3.26 Palladium over 4.2m

March 12th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningColossus Minerals Inc TSX:CSI announced results from the Elefante area of its Serra Pelada project in Pará State, Brazil. Assays include

4.63 g/t gold over 2 metres
16.08 g/t gold, 0.61 g/t platinum and 1.19 g/t palladium over 4.5 metres
(including 78.07 g/t gold, 2.63 g/t platinum and 5.21 g/t palladium over 0.9 metres)
19.59 g/t gold, 1.6 g/t platinum and 3.26 g/t palladium over 4.2 metres
(including 112.58 g/t gold, 6.21 g/t platinum and 9.76 g/t palladium over 0.5 metres)
11.87 g/t gold over 5.6 metres (including 88.65 g/t gold over 0.6 metres)
3.14 g/t gold, 1.67 g/t platinum and 3.07 g/t palladium over 5.2 metres
4.6 g/t gold over 5.3 metres
10.61 g/t gold, 2.07 g/t platinum and 3.26 g/t palladium over 2.4 metres
2.14 g/t gold, 0.76 g/t platinum and 4.45 g/t palladium over 6.4 metres

President/CEO Claudio Mancuso commented, “The auger results continue to expand the potential of the Elefante Area. The high-grade intercepts in soils close to surface could have immediate economic potential while the gold encountered in bedrock bodes well for our planned drill program on the Elefante Area. The drill results on the GT Zone and CMZ expand our knowledge of the upper and lower limbs indicating their potential to host additional mineralization. The GT Zone intercepts continue to suggest additional potential for this zone to expand down-plunge and along strike. We also continue to infill drill the CMZ in preparation for a bulk sample later this year.”

View Company Profile

Read more about Colossus Minerals

Contact:
Ann Wilkinson
VP Investor Relations
416.643.7655

by Ted Niles

Righting Past Wrongs

January 25th, 2012

Colossus Does Well by Doing Good in Brazil

By Ted Niles

By the time 60 Minutes aired its story about Brazil’s Serra Pelada gold mine in 1985, it had gone, in Ann Wilkinson’s words, “completely Wild West.” The site of the largest gold rush in Latin American history, hordes of mud-encrusted garimpeiros produced over two million ounces of gold from the remote Amazonian pit. The largest gold nugget found reportedly weighed 15 pounds. But, the VP of Investor Relations for Colossus Minerals TSX:CSI says, “This gold rush ended like many, badly.” The Brazilian army had taken over operations shortly after the deposit’s discovery, and CVRD—the state mining arm, since privatized and now known as Vale SA—discovered early on that in addition to Serra Pelada’s bonanza gold grades, it was also rich in platinum and palladium. It tried to reserve this information to itself.

“Once the hard-to-keep secret got out,” Wilkinson relates, “that CVRD wasn’t paying the artisanals for the platinum and the palladium in the deposit—that it was, in effect, stealing from them—all hell broke loose. The garimpeiros refused to get out of the pit; proper setbacks were not being maintained; lawlessness ensued; people were dying. It had to stop, and the Brazilian government, through CVRD, simply stopped dewatering the pit.”

Colossus Does Well by Doing Good in Brazil

Save for the odd attempt to access Serra Pelada’s world-beating gold and PGM grades using scuba gear, the deposit remained largely inaccessible. The government made some effort at restitution by awarding Coomigasp—a cooperative of garimpeiros—a portion of the Serra Pelada land package, with Vale retaining the underlying title. There were conditions, however. “What they basically said was this cannot, under any circumstance, be mined the way it was before,” Wilkinson reports. “To have 18,000 people digging a big hole in the Amazon, you must come up with a development plan and an environmental impact assessment. Accordingly, it became apparent to Coomigasp that this was not something within their ability to do.” So Serra Pelada’s wealth became trapped. In its determination to right past wrongs, the government upheld the garimpeiros’ right to the property, but the garimpeiros did not have the means to mine it.

Enter Colossus Minerals. When the mine came up for tender in 2007, the company formed a partnership with Coomigasp—acquiring 75% of the property, with the cooperative retaining 25%. In addition to the original 100-hectare exploration license, the partnership bought in 2010 a further 774 hectares of contiguous property from Vale.

Why wasn’t Serra Pelada acquired by a larger mining concern? Wilkinson replies, “We can only surmise that a lot of the majors [who] passed viewed the de-risking of the project as challenging if not impossible. They would have considered the risks working with Coomigasp to be too great to overcome. But we’ve done that. They would have identified in the early stages that the permitting risk was too high. But we’ve overcome that. All of our permits are in place, and that’s in no small measure due to the wonderful relationship we have with Coomigasp.”

Other gold mines and gold projects globally are, I’m sure, very envious of the drill intercepts that we get. This is really and truly a unique land package —Ann Wilkinson

With construction underway and an $86-million financing completed last November, Colossus is a short step from its production target of the first half of 2013. An initial reserve estimate, however, is only expected shortly beforehand, in 1Q 2013. Wilkinson explains the tight timeline, “The challenge with Serra Pelada is that you have very high grades in very confined spaces. If you’ve got a very large-tonnage, low-grade deposit, you can reasonably predict that the grade will continue between 25- to 100-metre spaced holes. When you get much higher grades, the confidence declines because you need tighter drill spacing. If you try and model grades that vary between 15 grams per tonne and 4.7 kilos, your confidence and your statistical model rapidly breaks down. So we expect to have a reserve immediately ahead of mining. This is no different than some very high-grade deposits where the mines are in operation for a considerable number of years and never have much more than one- to three-years’ mine life outlined, because you have to drill tight enough to have the confidence to call something a reserve.”

Meanwhile the company has been releasing decidedly impressive results, with December 15 assays including

  • 44.4 g/t gold over 6.61 metres
  • 15.45 g/t gold, 4.54 g/t platinum and 7.04 g/t palladium over 74.4 metres
  • 9.5 g/t gold over 15 metres
  • 6.37 g/t gold, 20.62 g/t platinum and 19.17 g/t palladium over 7.2 metres
  • 29.64 g/t gold, 5.19 g/t platinum and 7.31 g/t palladium over 2.1 metres

September 7 assays include

  • 31.17 g/t gold, 3.02 g/t platinum and 6.78 g/t palladium over 74.4 metres
  • 57.28 g/t gold, 6.58 g/t platinum and 7.66 g/t palladium over 11.7 metres

Wilkinson quips, “How many gold-platinum-palladium deposits do you know of that run grades that look like this over the widths that are being intercepted?” A 35,000-metre surface and underground drill program for 2012 is underway.

While Serra Pelada is located in Brazil’s otherwise infrastructurally-challenged north, Wilkinson notes that Para State’s Carajas region is the exception to the rule. Vale’s nearby Carajas Mine—the world’s largest iron-ore mine—being the reason. “We’re blessed with having a very large and very influential neighbour who has invested billions of dollars in this region over the last number of years and is continuing to do so. It’s an ideal zip code to be in if you’re going to be developing a mine.”

Wilkinson concludes, “Other gold mines and gold projects globally are, I’m sure, very envious of the drill intercepts that we get. This is really and truly a unique land package. I think it’s fairly easy to calculate, based on speculation and guesstimates, that we’re considerably undervalued. It’s nice to be able to say in relative terms that we’ve been holding up better than our competitors, but I’m not sure that I like relative comparisons. The market is being kinder to us than they are to others, but there’s a good argument that our stock should be trading higher regardless of the external market environment.”

At press time, Colossus had 105.4 million shares trading at $7.18 for a market cap of $756.7 million. The company also recently acquired the Cutia property, located approximately 13 kilometres southeast of Serra Pelada.

Colossus reports Brazil Assays including 15.45 g/t Gold over 74.4m

December 15th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningColossus Minerals Inc TSX:CSI announced drill results from its Serra Pelada project in Para State, Brazil. Highlights include

44.4 g/t gold over 6.61 metres
15.45 g/t gold, 4.54 g/t platinum and 7.04 g/t palladium over 74.4 metres
8.84 g/t gold, 1.04 g/t platinum and 1.55 g/t palladium over 8.3 metres
12.55 g/t gold over 2 metres
9.5 g/t gold over 15 metres
6.37 g/t gold, 20.62 g/t platinum and 19.17 g/t palladium over 7.2 metres
29.64 g/t gold, 5.19 g/t platinum and 7.31 g/t palladium over 2.1 metres

President/CEO Claudio Mancuso commented, “The latest drill results are significant as they extend the CMZ high-grade subzones and widen the GT Zone. We are particularly encouraged to see that the system is still mineralized more than 1,000 metres from the edge of the historic Serra Pelada pit at relatively shallow depths. Despite intersecting low grade mineralization on the 500-metre step-out down plunge on the CMZ, the drilling indicates that the structure should lie further southeast. Our drilling efforts will now focus on probing this section for potential high-grade mineralization.”

View Company Profile

Contact:
Ann Wilkinson
VP Investor Relations
416.643.7655

by Ted Niles

Colossus reports Brazil Assays as high as 1,494.7 g/t Gold over 7.3m

April 26th, 2011

Colossus Minerals Inc TSX:CSI announced assays from its Serra Pelada Project in Para State, Brazil. Results include 1,494.7 g/t gold, 516.6 g/t platinum and 558.9 g/t palladium over 7.3 metres (including 4,631.7 g/t gold, 1,600 g/t platinum and 1730 g/t palladium over 2.4 metres), 37.39 g/t gold, 2.75 g/t platinum and 3.56 g/t palladium over 4.4 metres, 3.02 g/t gold over 5.1 metres, 24.9 g/t gold over 0.7 metres, and 36 g/t gold and 11.5 g/t platinum over 1.2 metres.

CEO Ari Sussman stated, “Drilling such high-grade gold, platinum and palladium approximately 700 metres down plunge from the outcrop of the Central Mineralized Zone in the historic Serra Pelada pit continues to demonstrate the robustness of this mineralized system. We wait with great anticipation for early 2012 when construction of the underground decline advances to the point that enables the company to see the Central Mineralized Zone first hand and extract the first of three 2,500 tonne bulk samples from it.”

View Company Profile

Contact:
Ann Candelario
VP Investor Relations
416.643.7655

by Ted Niles

Colossus reports Brazil Assays of 59.66 g/t Gold, 70.68 g/t Platinum over 6.9m

March 24th, 2011

Colossus Minerals Inc TSX:CSI announced assays from its Serra Pelada Gold-Platinum-Palladium Project in Para State, Brazil. Highlights include 63.83 g/t gold, 3.37 g/t platinum and 3.92 g/t palladium over 1.8 metres, 59.66 g/t gold, 70.68 g/t platinum and 45.95 g/t palladium over 6.9 metres, and 136.43 g/t gold, 294.2 g/t platinum and 121.4 g/t palladium over 7.81 metres.

VP Exploration Vic Wall stated, “After focusing on condemnation drilling and other activities to support development, we have launched a 25,000-metre surface drill program to develop the resource and realize the potential of the Serra Pelada gold-PGE Project. Five drill rigs are now operational and additional high capacity rigs will be added in the coming months. We are particularly excited by the intersection of very high-grade gold-PGE subzones in the CMZ extensions and are following up on these and stepping-out further on the CMZ. The prospects of the conjunction of the GT and Western zones are looking good and we look forward to further extensions and discoveries of mineralized zones in the Serra Pelada Joint Venture’s expanded land package.”

View Company Profile

Contact:
Ann Candelario
VP Investor Relations
416.643.7655

by Ted Niles