Colossus Minerals' latest drill results for its Serra Pelada project include a cut 7.3 metres @ 1,494.7 g/t gold, 516.6 g/t platinum and 558.9 g/t palladium in hole 99

Source: Kip Keen, April 26, 2011 - mineweb.com

HALIFAX -

The latest bonanza grade gold-PGM drill results from the Serra Pelada project in Brazil are making it easy for Colossus Minerals (TSX: CSI) to live up to its name.

Since 2007 Colossus Minerals and 25-percent joint-venture partner COOMIGASP have been pushing the southwestern extent of high-grade gold, platinum and palladium mineralization beyond a historic open-pit mine. There, during the 1980s, an army of as many as 80,000 Garimpeiros - artisanal miners - carted out two million ounces gold from what is now a water-filled, 400-metre long, 300-metre wide and 100-metre deep pit.

Over the past few years Colossus has drilled exceptional, high-grade gold-PGM intercepts at Serra Pelada, particularly from the Central Mineralized Zone (CMZ) that so far extends 700 metres southwest from the open-pit. For example, just over a month ago Colossus proclaimed its highest ever platinum grades in hole 95 @ 2,251 g/t platinum, along with 713 g/t gold and 727 g/t palladium over 0.7 metres.

Now, in a step-out hole not far from hole 95, the grades have gotten even better for Colossus. Hole 99 hit a whopping 7.3 metres @ 1,494.7 g/t Au, 516.6 g/t Pt and 558.9 g/t Pd, starting about 237 metres downhole. The hit in hole 99 was about a dozen metres horizontally and vertically from hole 95's high-grade intercept, Colossus reports.

On news of the high grades, Colossus' shareprice had gained nearly four percent and was trading at C$8.55 as of press time.

The stellar drill result, beyond extending CMZ mineralization, validates Colossus' decision last year to option from Vale a much larger 774 hectare block of land mostly to the south of its 100-hectare open-pit concession. Colossus could not have drilled hole 99, or hole 95, without the new land package.

While Colossus CEO Ari Sussman noted in a statement that the latest intercepts show "the robustness of this mineralized system," he placed greater emphasis on ongoing underground excavation of a decline, which will soon snake through the CMZ. That, he said, will give Colossus a first hand look at CMZ mineralization and the ability to extract the first of three, planned 2,500-tonne bulk samples, starting in 2012.

The latest round of drill results, including hole 99, are part of a 25,000-metre drill program. In March, Vic Wall, Colossus vice president of exploration, stated five drill rigs were turning at Serra Pelada.