Colossus Minerals Provides Development Update for Serra Pelada

 Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) released a development update for the Serra Pelada gold-platinum-palladium Mine in Brazil. The Company’s development remains on schedule to commence initial production in the second half of 2013. Underground development is in progress and development at the face is continuing through the mineralized zone. The construction of critical infrastructure also remains on schedule.

As quoted in the press release:

Highlights

  • The Company remains on track to start initial production early in the second half of 2013 at an initial rate of 250 tonnes per day (“tpd”) and continue the ramp up phase throughout the remainder of 2013 to 500 tpd. The current plan envisages two active mining faces for 250 tpd of production, three to five mining faces for 500 tpd of production and six to nine mining faces for 1,000 tpd of production. The Company expects to achieve 1,000 tpd of production by the end of the first quarter of 2014
  • The rock quality during collection of the bulk sample remains within expected parameters from geotechnical work completed prior to first access to the mineralized zone. The Company continues with systematic and cautious development as this is the first time accessing the mineralized zone and it is providing valuable geotechnical information ahead of initial production..
  • Dewatering is progressing well from both surface and underground while dewatering of the historic pit to within five metres of the solids level is 95% complete. Underground water inflow rates remain within expectations.
  • Process plant construction remains on schedule for commissioning to begin early in the second half of 2013; the total project is currently 60% complete. More than 95% of engineering & procurement is complete, 55% of concrete has been poured and structural steel erection will commence by the middle of February.

Colossus Minerals Inc. CEO, Claudio Mancuso said:

We are now within six months of commencing our commissioning phase. Both underground development and infrastructure construction are progressing well towards our initial production target of early in the second half of 2013. Going forward, the Company will provide development updates monthly so that construction and development progress can be tracked as we strive towards our most important milestone; production at Serra Pelada.

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