Colossus Minerals Inc. (COLUF)

[investor15]

Expert Analysis

Colossus Minerals Inc.
theaureport
http://www.theaureport.com/pub/co/597#quote

The Gold Report Interview with Peter Krauth (3/27/13) "I like Colossus Minerals Inc., a developing precious metals miner. Its flagship project, Serra Pelada in Brazil, is fully permitted and has environmental, installation and mining licenses going back to 2010. The mine is under construction, with first production planned for early H2/13. It has done all kinds of metallurgical testing and expects very good recoveries. The company has come across some extremely high-grade intercepts for gold, platinum and palladium. Some of the high-grade intercepts have been 4,600 g/t gold over admittedly short intercepts, about 2–2.5m sections, 1,600 g/t platinum and 1,700 g/t palladium. Its margins are likely to be extremely wide, so it should be a very profitable producer. Some of the grades at Serra Pelada are among the highest on record. The project has drilled 100,000m to date, and a lot of exploration upside remains. . .

"[Colossus] has a $75M contingency for construction and working capital. It sold some of its production in advance to Sandstorm Gold Ltd. and Sandstorm Metals & Energy Ltd., but it has the right to repurchase half of those commitments. Platinum and palladium production will be relatively important, in addition to gold. This makes it an interesting way to play the PGM space. Investors can be part of a company that is very close to production and should have attractive profit margins. . .Colossus would be a trophy piece for a miner that wanted to own potentially large, high-grade reserves in a good, relatively safe jurisdiction." More >

Morning Coffee (3/12/13) "Shares of Colossus Minerals surged as traders anticipated positive updates from the company?s Serra Pelada gold/platinum mine in Brazil. . .mining operations remain on track to start initial production early in the second half of 2013 at an initial rate of 250 t/d and continue the ramp up phase throughout the remainder of 2013 to 500 t/d. . .the company expects to achieve 1,000 t/d of production by the end of the first quarter of 2014. . .the bulls get giddy like school girls when they look at cash costs, capital intensity and eye popping drill holes."

Morning Coffee (3/1/13) "Colossus Minerals Inc. announced further drill results from its Serra Pelada project in Brazil. . .[Hole SPD-182 returned] 3.4m grading 13.28 g/t gold, 0.02 g/t platinum and 0.06 g/t palladium. . .highlights from the underground include Hole SPUD-018, which intercepted 0.8m grading 23.07 g/t gold and 3.6m grading 24.37 g/t gold, 0.28 g/t platinum and 0.88 g/t palladium. Overall, the results continue to delineate and extend the Central Mineralized Zone mineralization, while demonstrating localized increases in widths in certain areas."

Morning Coffee (2/11/13) "Colossus Minerals Inc. provided investors with a positive update surrounding progress at its Serra Pelada mine in Brazil: The company commented that it remains on track to start initial production early in H2/13 at an initial rate of 250 mtpd and continue the ramp up phase throughout the remainder of 2013 to 500 mtpd. . . .Colossus also noted that underground development is progressing well with a number of infrastructure projects necessary to support full-scale mining now complete or well underway."

George Albino, GMP Securities (2/8/13) "At Colossus Minerals Inc.'s Serra Pelada, we are pleased to see development progressing on track (and in some cases, ahead of schedule). With completion of the bulk sample by the end of the quarter, an initial resource/reserve estimate expected in early Q2/13, ongoing development efforts and, of course, continuing exploration updates, H1/13 should prove to be an eventful period for the company; we reiterate our Buy rating and CA$11.50 target."

http://www.theaureport.com/pub/co/597#quote