The Energy Report - Colossus Minerals Inc. TSX: CSI

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Colossus Minerals Inc.

TICKER: TSX: CSI

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. To date, the company has two high-grade precious metals projects, one of which, considered to be their "flagship"—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.
WEBSITE: http://www.colossusminerals.com
Closing Of $24.7 Million Bought Deal Financing (3/10/09)

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

"Colossus has experienced a pullback in its share price along with the rest of the junior mining space; however, it did not participate in the rally as other junior miners did when the price of gold ran up from October to December 2009. An equity financing and subsequent warrant acceleration slaked much of the investor demand for CSI shares in 2009. In 2010, investors appear to be waiting for the company to de-risk the Serra Pelada project. We are waiting for metallurgy, mining methodology, approval of an EIA, receipt of a development permit and a land deal with Vale. As these hurdles are overcome and investors' confidence builds, we expect the share price to rally. Colossus has C$103 million in cash and an additional C$31 million in in-the-money options and warrants, which we expect will be more than sufficient to finance the development of Serra Pelada."
- Junior Mining Weekly (02/02/10)

"Colossus Minerals has a 75% interest in the high-grade gold-platinum-palladium Serra Pelada project in Brazil. It's a very unique project that was mined in the 1980s by garimpeiros. Colossus has reported phenomenal grades and widths, such as 70.7 metres of 53.59 g/t gold, 20.77 g/t platinum and 31.30 g/t palladium.

Colossus has a healthy cash position and provides great gold price and exploration leverage."
- The Gold Report Interview with Craig Stanley (01/19/10)

"The S&P/TSX Global Gold Index fell 2.8% to 335. The best weekly performers were: Exeter Resource Corp. (40.7%, SPEC BUY), Rubicon Minerals (15.2%, Not rated) and Colossus Minerals (14.8%, SPEC BUY)."
- Precious Metals Weekly (12/21/09)

"Our expectation is that 2010 could bring with it above-average commodity prices, along with mixed broad-market activity. Overall, we are optimistic that the upcoming year will provide good opportunities in the small cap mining sector. Our top pick companies maintain a foundation that includes above-average management and active exploration/development programs on top-quality targets/assets over the next 6-18 months. Our top picks represent a cross section of companies that we believe have the opportunity to outperform based on the re-rating potential of a developing asset, commodity leverage combined with growth potential, or speculative appeal relating to high-profile exploration potential. Our top picks, while all subject to some sovereign risk, are concentrated in areas we deem to be acceptable jurisdictions.

Colossus Minerals Inc. (CSI : TSX | SPECULATIVE BUY, target C$9.50)

Primary asset is the Serra Pelada project, an extremely high-grade gold-platinum-palladium project in northern Brazil. Colossus is earning a 75% interest in the project. With the warrant expiry date now passed (27 November 2009), we expect Colossus to play catch-up with the rest of the junior gold space."
- Junior Mining Weekly (12/03/09)

"'What do tigers dream of when they take their little tiger snooze?' - Stu Price, The Hangover. Colossus shook off its warrant hangover yesterday. On October 26, 2009, CSI announced that it would accelerate the expiry of 5.5 million warrants ($2.70 strike price) and 0.7 million broker warrants ($2.15 strike price) to November 27, 2009. Since that announcement, the price of gold has risen more than US$150/oz, to nearly US$1,200/oz and Colossus announced that it had amended its earn in agreement with COOMIGASP, creating increased clarity and a significantly reduced upfront royalty payment, freeing up capital to develop the project.

Canaccord Adams Mining Analyst Nicholas Campbell notes that during that same period, CSI shares underperformed other junior gold company shares, despite the growing momentum in the sector.

. . .The company is focused on the development of its 75%-owned Serra Pelada project, an extremely high-grade, gold-platinum palladium project in northern Brazil. Campbell believes is arguably one of the highest-grade undeveloped precious metal projects on the planet. CSI is one of Campbell's top picks and now that the warrant expiry date has passed, he expects Colossus to play catch-up with the rest of the junior gold space. He believes the next catalysts are: 1) Exploration results from the Serra Pelada project; 2) Approval of the Brazilian exploration report; 3) Metallurgical tests results; and 4) Land acquisitions around Serra Pelada."
- Morning Coffee, Canaccord Capital (12/02/09)

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