Serra Pelada

Serra Pelada is situated in the mineral prolific Carajas region near the towns of Curionopolis and Parauapebas, Para State, northern Brazil, where access and infrastructure are excellent. There are no weather impediments in the area where Serra Pelada is located.

Infrastructure & Geology

Serra Pelada Garimpo, 1983

Discovered in 1979, Serra Pelada hosted the largest ever gold rush in Latin America. During the 1980s, up to 80,000 garimpeiros (artisanal miners) produced an estimated 2 million ounces of gold plus platinum and palladium, from a 400m x 300m x 100m hand dug open pit. Garimpeiro production declined due to pit wall collapse and flooding causing the cessation of bedrock mining since the late 1980s. 

Vale, which held the underlying title to Serra Pelada until 2007, explored the area from 1980 to 1998, completing more than 200 drill holes in the Serra Pelada mineralised system.

 

 

850.425/90 – Colossus concession showing collars of Vale’s historical drilling (black), Colossus’ Phase I drilling (red), and Colossus’ Phase II drilling (aqua)

COOMIGASP, a registered Brazilian cooperative company, was granted Exploration License 1485 (DNPM process 850.425/90) by the Ministry of Mines & Energy in February, 2007. This 100 hectare license is centered on the Serra Pelada pit.

In July 2007, COLOSSUS and COOMIGASP formed a partnership to develop the remaining bedrock mineralisation at Serra Pelada. Under the terms of this joint venture, COLOSSUS will manage and operate the project, earning a majority interest by funding exploration and paying COOMIGASP a premium for the gold reserve established by the joint venture. Details of this agreement may be found in Colossus Minerals Prospectus on www.sedar.com. COOMIGASP will separately develop the ‘monteira’ (tailings and waste from the Serra Pelada garimpo), with initial financial and technical assistance from COLOSSUS.

774 Hectares of additional ground contiguous to Serra Pelada

In March 2010, the Company successfully acquired 774 Hectares of additional ground contiguous to Serra Pelada. The ownership structure of the total land package remains 75% to Colossus and 25% to Coomigasp.

The Serra Pelada deposit is hosted by Archaean metasediments of the Rio Fresco Group which unconformably overlain by greenstone belts and gneissic basement, intruded by several ages of mafic-ultramafic and granitoid plutons.

High-grade gold-platinum-palladium mineralization is hosted mainly by fine-grained carbonaceous rocks, but also occurs in iron oxide-rich breccias and silicified zones (Grainger et al, 2002). The deposit is oxidized to depths of more than 300m. Consequently, sulfides are lacking and gold and PGE’s occur mainly as metals and alloys (Cabral et al, 2002).

The Central Mineralized Zone at Serra Pelada was mined along about 350m of strike length to depths of about 110m. Vale drilling in this area encountered some remarkable intersections. For example drill hole FD-0032, 43m. (from 40m) assaying 4709g/t gold, 204g/t platinum and 1174g/t palladium (Cabral et al, 2002).

 

 

Long-section of the Historical Pit

Vale drilling confirmed that gold-platinum-palladium mineralisation extends under the pit and for more than 450m strike length to the western boundary of 850.425/90. In these areas, mineralisation has been encountered at depths of 150-350m and constitutes the prime target of the COLOSSUS-COOMIGASP joint venture.

Tallarico (2000) and Vale (2006) modeled the Central Mineralized Zone as arcuate in form, with a steeply dipping eastern margin and more shallowly dipping limbs to the west.

 

 

Drill Section 00

The highest grades of gold, platinum and palladium occur in the moderately to steeply dipping parts of the central zone which is up to 150m in vertical extent and in places more than 50m wide.

 

 

Only known photo of mineralized column at Serra Pelada

Vale (2006) and COLOSSUS interpret the Central Mineralized Zone as occupying the hinge zone of a reclined syncline which plunges gently to the southwest. Additional noble metal mineralization occurs to the east and west of the central zone.

The geochemical character of Serra Pelada mineralisation (Cabral et al, 2002; Grainger et al, 2002) is consistent with its deposition by progressive reduction of highly oxidized brine(s) in a structurally controlled hydrothermal plumbing system postdating the main regional deformation of the Rio Fresco Group.

 

Accomplished to date:

• Completed a detailed topographic survey including the capture of remaining Vale drill collar
• Acquired 45,000m of Vale drill core and advanced a program of re-sampling and re-assay program for gold,  PGE’s and other elements of potential economic significance 
• Developed a 3D geological model to guide drilling
• Completed an initial  resource delineation campaign  comprising seventeen diamond drill holes  for 5129 metres of coring with 18 drill hole.
• The gold-platinum-palladium assays for the respective drill holes and the context of the drill holes are outlined in the Assay Results tab

  

Program for 2010:

The program for 2010 is to continue exploration while pushing towards development of the project. Permitting of the project was set out as a key objective for 2010.

• 43-101 report has been updated
• Received approval of the Brazilian Economic Assessment (PAE)
• Received the Preliminary Environmental License (March 9, 2010)
• Received the Installation License (April 16, 2010)
• Received the Mining License (May 10, 2010)
• Continued surface drilling to clarify very high-grade subzones, ore body extensions, and other targets
• Resource modeling is on-going
• Metallurgical testing using gravity, flotation, and hydrometallurgical techniques. Results from metallurgical testing are expected to be completed in Q3 2010
• Geotechnical and hydrological engineering are on-going
• Mine engineering of a decline to provide access for underground diamond drilling has been completed
• Mine engineering for production planning is on-going
• Engineering for and design of a mill facility starting with a gravity circuit will start Q3 2010
• Engineering of additional processing will start following completion of metallurgical testing
• Tailings impoundment engineering has been started and should be complete Q4 2010

 

3D Site Plan

In order to further define the Serra Pelada deposit an underground exploration development will be implemented starting in mid 2010. The purpose of this underground development will allow Colossus Minerals Inc. to better define the deposit through underground diamond drilling. The development will also allow for a bulk sample to be collected and sampled to better define the gold and PGM grades of the deposit.

 

 

 

General Site Plan

Starting in mid 2010 a decline will be driven using a 60 ton Voest Alpine Roadheader. Roadheader technology was chosen over conventional underground drill and blast mining because of the low compressive strength (UCS = 10 to 15MPa) and relative competency of the meta-siltstone rock that the decline will be driven in. Roadheaders when working in ground that is conducive to their use typically have advance rates of more than double that of conventional drill and blast operations. The roadheader will cut a tunnel 5 meters wide and 5.5 meters tall with a full arched roof. Mined waste will be loaded into haul trucks and brought to surface for disposal. It is expected that the first underground exploration drilling will occur during the 4th Quarter 2010.