Colossus is a real sleeper that has the potential to become a household word overnight. The reason is simple: Serra Pelada. The picture below tells the story.
Core from drilling completed last month is now at the lab, and if the results continue to demonstrate rich mineralization over long intercepts with good continuity between holes, the stock could easily take off in a northerly direction. With the vast amount of data available to the company, feasibility is scheduled to get under way in 2010.
The Projects
1. Serra Pelada
Colossus stunned the mining world last year with its successful acquisition of Serra Pelada, one the most dramatic and fought-for mines ever to emerge in Brazil.
A report published in Economic Geology in 2002 cites an internal report by Companhia Vale do Rio Doce that says, “The remaining reserve of Serra Pelada is currently estimated at 3.7
Mt @ 15.20 grams per tonne gold, 4.09 grams per tonne of palladium, and 1.89 grams per tonne of Platinum. Two of the authors of the report were employees of CVRD at the time of its publication.
At today’s prices, that implies a contained metal value of over $2 Billion. But this information is not compliant with National Instrument 43-101.
Latin America’s biggest gold rush started in 1979 with the discovery of Serra Pelada, which brought over 70,000 “garimpeiros” (artisinal miners) to the site 90 km southeast of the town of Marabá in Pará State, Brazil. An estimated 2 million ounces of gold were recovered by this virtual army of hand miners, who carried sacks of muck and rock up steep trails and ladders for processing at the lip of the pit, which eventually measured 400 meters by 300 meters. Unknown quantities of platinum and palladium were also recovered from the operation.
To understand the historical significance and sheer human effort that went into this pit during this period, a viewing of this video (produced by 60 Minutes Australia) is a must:
Listen to the video pretty interesting
sixtyminutes.ninemsn.com.au (click on the link in the article).
colossusminerals.com |
