DESCRIPTION: Colossus Minerals Inc. is an emerging mineral exploration and development company focused on Brazilian gold. Led by its skilled management team and world-class Board of Directors, Colossus has developed a robust business model that is sensitive to creating value for its shareholders. The company's flagship project, Serra Pelada, has proven to be a geologically unique high-grade deposit with potential to delineate a significant gold/platinum/palladium resource. From 1979-1986, Serra Pelada hosted the largest precious metal rush in Latin American history. The deposit that was mined had some spectacular grades of precious metals including historical drill hole FD-032, which averaged 43 meters at 4709 g/t gold, 204 g/t platinum and 1174 g/t palladium.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
TGR: Colossus is making a push toward production at Serra Pelada, a high-grade precious metals project in Brazil. Could that stock be poised for another bump up if it brings that project to production?
James West: Oh, absolutely. You know if you want to compare Colossus to another company that's done well, you can compare it to Red Back Mining [which] was trading at less than a dollar [before] the Lundin Group took it over. . .I wrote about Red Back at $6., and it's now at $26. Colossus has the potential to do exactly the same thing based on the strength of Serra Pelada. I follow guys like Colossus CEO Ari Sussman. . .Ari's got the cream of that crop.
View Entire Article: James West: Financial System Headed South
Canaccord Capital, Morning Coffee
(06/25/10)
"Shares of Colossus Minerals rallied on new drill holes from its 75%-owned Serra Pelada project, an extremely high-grade, gold-platinum-palladium project in Northern Brazil. The highlight hole was an infill from the Central Mineralized Zone that returned 50.85 m grading 20.3 g/t gold, 3.4 g/t platinum and 4.9 g/t palladium. While this is a solid infill result, the stock is likely reacting to a significant discovery of two new mineralized zones—150 m NW and 50 m west of the Central Mineralized zones. Hole SPGT-001 returned 10.4 m grading 28.40 g/t gold, 4.16 g/t platinum and 6.18 g/t palladium, 150 m NW of the Central Mineralized Zone. Hole SPGT-00E returned 6.15 m grading 34.93 g/t gold, 0.96 g/t platinum and 3.05 g/t palladium, 50 m west of the Central Mineralized zone. These new discoveries represent incremental new high-grade tonnage potential on the original Serra Pelada parcel of land. Canaccord Genuity Mining Analyst Nicholas Campbell has built in 1Moz. of resource growth potential into his valuation to account for the exploration upside on the new land package. The discovery of new zones of mineralization within the original land package is an unexpected positive. Drilling should begin on the new land package within a few weeks, with initial results likely by August."
The Gold Report Interview with Charles Oliver (06/04/10)
Charles Oliver: When I first came to Sprott, Colossus was one of the first two companies that I put into the Sprott Gold and Precious Metals Fund. It has a project in Brazil that is one of, if not the highest, grade precious metals project on the planet. There are spectacular grades; you just won't see anything like it. Just a little bit of ancient history, back in the 1980s—I think it was 1985, 1986—there was a huge gold rush to the area. If you look at some of the old clips of 60 Minutes, you will see some 60,000 artisanal workers digging for gold with their shovels and carrying bags of dirt out of these pits. It was quite a sight.
TGR: You're talking about the Serra Pelada project?
CO: That is correct. When 60,000 people descend upon a property, it becomes very difficult to operate it as a commercial business. For the last 20 years, after the artisanal workers left, nothing really happened with it. A couple of years ago the management team at Colossus was able to negotiate a deal with the artisanal workers to go in there and look at commercially mining the remaining gold. Colossus is getting permits; it got some additional land around the area. I think it looks like a spectacular story. I think it's very cheap. There aren't any proper earnings and capital models out because Colossus is still putting together a resource, but I believe that if you sort of take the information that's out there, and apply some general rules of thumb, you will find that this is a very cheap and profitable operation. I believe it won't be long before we see analysts putting those numbers out there.
TGR: Even with the ownership stake from COOMIGASP (a local co-operative representing the interests of artisanal miners)?
"We don't know whether there was too much time on our hands or whatever, but we spent a little time with Gord Chan, the multi-talented Canaccord man of all trades. He's one of several writers who contributes to Canaccord's Morning Coffee. Oh yes and every once in awhile, he just happens to pick a stock or two right! We have records going back to a couple of ideas that he put out that have fared well over the years.
But anyway, time for a fresh bet. So we bet Gord a bottle of scotch (his selection is a bottle of scotch so we all know his poison) and he goes with Colossus Minerals. He suggests the mining company will be bought out sometime, hopefully before year-end and if it happens, needless to say, he expects a big pop in the price."
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