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Colossus Minerals Intersects High Grade Gold Values in Diamond Drilling at Elefante

01/10/2013

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2013) - Colossus Minerals Inc. (TSX:CSI)(OTCQX:COLUF) reports assay results from the recent diamond drilling program on the Elefante area where earlier in the year auger drilling had returned values of gold, platinum and palladium. The Elefante area is located approximately two kilometres to the southeast of the Serra Pelada Gold-Platinum-Palladium Mine. The Serra Pelada Mine is a 75%/25% joint venture between Colossus and Cooperativa de Mineração dos Garimpeiros de Serra Pelada (COOMIGASP) located in the State of Pará, Brazil.

HIGHLIGHTS

  • Precious metal values are near surface
  • Possible new exploration target model as the samples containing precious metals lack the strong carbon upgrading associated with the mineralization at the Serra Pelada Mine
  • Mineralization is currently open in all directions as preliminary four-hole program tested a small proportion of surface anomalies
  • Hole EL-12-001 contained the highest overall gold value and returned 5.70 metres grading 5.41 g/t gold, 0.04 g/t platinum and 0.29 g/tpalladium
  • Hole EL-12-002 contained the highest overall platinum and palladium values and returned 5.10 metres grading 0.45 g/t gold, 1.27 g/t platinum and 2.04 g/tpalladium

Claudio Mancuso , CEO of Colossus commented, "We conducted this limited drill program to explore the possibility that mineralization encountered in previous soil and auger sampling programs continue into the bedrock. While we remain focused on development of the Central Mineralized Zone ("CMZ") where we continue progressing well with bulk sample extraction, we are encouraged by these results and anticipate that further exploration could lead to development of a satellite deposit. The area has seen little diamond drilling by Colossus and will be further explored in 2013. We look forward to providing an update on the progression of the bulk sample and other development activities in the next few weeks."

DETAILS

The Elefante area is located approximately two kilometres to the southeast of the Serra Pelada Mine (click the following link to view the accompanying map: http://file.marketwire.com/release/CSIfig1.pdf). The bedrock in the Elefante Area consists of Archean aged (2.68 billion year old) sediments belonging to the Rio Fresco Formation which also hosts the Serra Pelada orebody.

This release reports assay results for four HQ caliber diamond drill holes totaling 365 metres that were drilled in November and December 2012. The drilling program was a follow-up on encouraging precious metal results that came from an auger drilling program carried out over the Elefante area between January and May 2012 (see press release dated August 20, 2012 for details).

The objective of the diamond drilling program was to verify if the results that were encountered in soil sampling and auger drill hole programs were bedrock sourced. The mechanical auger cannot penetrate bedrock and can only drill to resistance (which usually means it ends in saprolite or the deeply weathered portion of the bedrock which lies just above the fresh bedrock). Auger drilling campaigns that preceded the diamond drilling program managed to outline a low grade (greater than or equal to 1 g/t combined gold + platinum + palladium) anomalous area roughly 200 metres long in an almost east-west direction and approximately 100 metres wide in a north-south direction (see map inset). Within this broad envelope lies a well defined, higher grade isocontour that was the main target of the diamond drilling program which tested an area roughly 25 meters (east-west) by 50 metres (north-south).

All four diamond drill holes returned values of gold, platinum and palladium with hole EL-12-001 returning the highest grade gold values of 12.64 g/t and 6.34 g/t while hole EL-12-002 returned the best overall platinum and palladium results with 1.27 g/t and 2.04 g/t respectively including a 1.25 metre interval that returned 0.07 g/t gold, 3.67 g/t platinum and 5.89 g/tpalladium. These results confirm that mineralization encountered in the soil and auger sampling programs conducted prior to the diamond drilling program continue into bedrock. The Elefante area has seen little drilling by Colossus and will be followed up in 2013.

A complete listing of results can be found in Table 1 below.

TABLE 1: ASSAY RESULTS

Area Drill-hole ID From (m) To

(m)
Interval* (m) Gold (g/t) Platinum (g/t) Palladium (g/t)
Elefante EL-12-001 8.10 12.70 4.60 0.08 0.29 1.03
and 17.10 22.80 5.70 5.41 0.04 0.29
Including** 17.10 18.80 1.70 12.64 0.07 0.47
including 18.80 19.80 1.00 6.34 0.02 0.32
Elefante EL-12-002 28.95 34.05 5.10 0.45 1.27 2.04
including 28.95 30.20 1.25 0.07 3.67 5.89
Elefante EL-12-003 35.30 40.50 5.20 0.32 0.78 0.74
Elefante EL-12-004 7.70 12.20 4.50 1.06 0.55 0.77
*Core lengths reported here. Intercepts determined on a 1 g/t (gold+platinum+palladium) cut-off grade for the purpose of this release.
** Less than 50% core recovery.

While minor amounts of carbon have been identified in outcrops during the mapping of the Elefante area and some minor carbon identified during core logging, no significant carbon upgrading similar to that identified with the CMZ at the Serra Pelada Mine could be reported in the Elefante drill holes even though they returned values of gold, platinum and palladium. This indicates that the classic "Burro Preto" zone which is associated to the CMZ at the Serra Pelada Mine may not be the only readily identifiable marker for mineralization in this type of sediment. Once the geology and the occurrence of precious metal mineralization at the Elefante area are better understood, a new exploration target for mineralization on the Serra Pelada property may develop.

The results are currently being interpreted and the immediate focus of the follow-up drilling will be to expand the known zone and define its limits.

Serra Pelada Geology

Gold-platinum-palladium mineralization at Serra Pelada overprints metasediments occupying the hinge of a large fold. The CMZ comprises mainly a steep dipping carbonaceous alteration zone in the fold hinge that also extends onto the upper and lower limbs of the fold for a limited distance. The Lower Limb represents shallow-dipping, gold-platinum-palladium mineralization predominantly associated with an iron oxide rich breccia as well as iron oxide rich argillic alteration and locally carbonaceous alteration on the lower limb of the main fold. The upper limb mineralization is characterized by an iron oxide rich breccia similar to that found in the Lower Limb. The lithologies containing mineralization at the Elefante area do not share the same characteristics or degree of alteration as the typical ore zone at the Serra Pelada Mine and may represent a new target for ore on the property.

Technical Information

Diamond drilling was HQ cored. Sampling of core by Colossus personnel and sample preparation by Intertek Limited, Parauapebas and/or SGS Geosol, Parauapebas, Brazil were carried out under strict protocols recommended in the National Instrument 43-101 Technical Report dated January 31, 2010 on the Serra Pelada Project. After photographing and logging, core sample intervals were cut and/or split in half, yielding samples of various weights depending on the sample length. Where core recoveries were low, intervals were composited to yield approximately one kilogram minimum sample mass. Intertek and SGS Geosol pulverize one or two kilogram splits (>95% passing 106 microns) from the crushed (>95% passing 1.7 mm), dried samples. Duplicates, blanks and certified gold-PGE reference materials were inserted in the sample train by Colossus personnel prior to Intertek preparation work.

The labs insert additional blanks, duplicates and high grade gold/PGE reference materials in the assay stream and replicate or duplicate assays were performed routinely and on most medium- to high-grade materials. Fire assays for gold, platinum and palladium were on 25 gram subsamples utilizing a lead-rich collector material and AA finish.

The Intertek and SGS Geosol assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures.

Graham Long , Vice President, Exploration of Colossus, is a qualified person under National Instrument 43-101 and is responsible for this release and has verified the contents disclosed.

About Colossus:

Colossus is a development-stage mining company focused on bringing its 75% owned Serra Pelada Gold-Platinum-Palladium Mine to production. The Serra Pelada Mine is a joint venture between Colossus and Cooperativa de Mineração dos Garimpeiros de Serra Pelada (COOMIGASP) located in the State of Pará, Brazil. Serra Pelada, located in the mineral prolific Carajas region in the State of Pará, Brazil, is host to one of the highest grade gold and platinum group metals deposits in the world. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Colossus Minerals shares, warrants and notes trade on the Toronto Stock Exchange (TSX) under the symbols CSI, CSI.WT.A and CSI.NT respectively and in the United States its Common Shares trade on the OTCQX under the symbol COLUF. The Company is headquartered in Toronto, Canada.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Forward-looking statements in this press release include statements regarding the timing and nature of future exploration and development programs that are dependent on projections that may change as drilling continues, or if unexpected ground conditions are encountered. The Company does not currently have any mineral properties that are in production or that contain a reserve as defined by National Instrument 43-101. In addition, areas of exploration potential are identified which will require additional drilling to determine whether or not they contain similar mineralization to areas that have been explored in more detail. Significant additional drilling is required at Serra Pelada to fully understand system size.

Except for statements of historical fact relating to Colossus, certain statements in this press release relating but not limited to the Company's exploration and development plans, activities and intentions, constitute "forward-looking information" within the meaning of the Securities Act (Ontario) or "forward-looking statements" within the meaning of the United States Private Litigation Reform Act of 1995. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. Forward-looking statements are frequently characterized by words such as "target", "plan", "expect", "project", "intend", believe", "anticipate" and other similar words, or statements that certain events or conditions "appear to", "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The factors include but are not limited to risks related to the joint venture operation, actual results of exploration activities, the inherent risks involved in the exploration and development of mineral properties, changes in project parameters as plans continue to be refined, delays in obtaining government approvals, the uncertainties of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties inherent to conducting business in Brazil and the rest of Latin America, the availability of equipment and supplies, unexpected adverse climate conditions, the reliance on only a few key members of management, as well as those factors discussed in the section entitled "Risk Factors" in the Company's most recent Annual Information Form filed with Canadian provincial securities regulatory authorities and other regulatory filings which are posted on SEDAR at www.sedar.com. Unless required by law, Colossus undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact Information:

Colossus Minerals Inc.

Ann Wilkinson

VP, Investor Relations

(416) 643-7655

awilkinson@colossusminerals.com

www.colossusminerals.com