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Press release from Marketwire

Colossus Minerals Discovers New Mineralized Zone, Extends Other Zones and Drills 52.43 Metres at 18.57 g/t Gold, 8.34 g/t Platinum and 11.33 g/t Palladium

Wednesday, October 06, 2010

Colossus Minerals Discovers New Mineralized Zone, Extends Other Zones and Drills 52.43 Metres at 18.57 g/t Gold, 8.34 g/t Platinum and 11.33 g/t Palladium08:00 EDT Wednesday, October 06, 2010 TORONTO, ONTARIO--(Marketwire - Oct. 6, 2010) - Colossus Minerals Inc. ("Colossus") (TSX:CSI) is pleased to announce the results of further diamond drilling on the Serra Pelada Gold-Platinum-Palladium Project, the Colossus-COOMIGASP joint venture located in Para State, Brazil. HIGHLIGHTS Central Mineralized Zone ("CMZ") -- SPD-055 intersected , in the CMZ, 52.43 metres at 18.57 g/t gold, 8.34 g/t platinum and 11.33 g/t palladium, including 11.87 metres at 42.34 g/t gold, 27.85 g/t platinum and 39.95 g/t palladium -- Three step-out holes to test the potential for the continuation of the CMZ onto the newly acquired land package have been completed with assay results expected in the near term GT Zone -- SPD-056B intersected 8.25 metres at 12.27 g/t gold, 0.58 g/t platinum and 0.92 g/t palladium including 4.89 metres at 20.33 g/t gold, 0.96 g/t platinum and 1.53 g/t palladium -- SPD-057 intersected 21.37 metres at 6.51 g/t gold, 0.60 g/t platinum and 0.96 g/t palladium including 5.70 metres at 15.38 g/t gold, 1.07 g/t platinum and 1.73 g/t palladium -- The SPD-056B and SPD-057 intersections are approximately true widths and extend the GT Zone discovered in SPGT-001, by more than 50 metres along strike Portal Zone -- SPD-066 intersected 1.82 metres at 32.07 g/t gold, a newly discovered mineralized zone, some 700 metres northwest of the CMZ DETAILSGold-platinum-palladium mineralization at Serra Pelada overprints metasediments occupying the hinge and limbs of a northwest-facing, southwest-plunging, reclined synclinorium that plunges gently southwest from the historical open pit. The CMZ comprises mainly steeply dipping bodies in the fold hinge zone but extends onto the upper and lower limbs of the fold. Characterized by intense hydrothermal carbonaceous and argillic alteration, mainly of siltstones, the CMZ is inboard of siliceous alteration partially mantling the synclinorial hinge. Shallowly dipping gold-platinum-palladium mineralization, for example the Western and GT zones, occurs within siliceous, argillic and carbonaceous alteration and iron oxide-rich breccias on the fold limbs.SPD-063 was drilled adjacent to the portal and plant site areas in the Colossus-COOMIGASP Joint Venture's new ground. The drill-hole encountered several mineralized intervals including 1.51 metres of 6.5 g/t gold, 0.02 g/t platinum and 0.06 g/t palladium. SPD-066 was stepped out 20 metres to the north and intersected 1.82 metres at 32.07 g/t gold. These intercepts represent a newly discovered mineralized zone some 700 metres northwest of the CMZ. The mineralized zone is in a lower limb structural position and appears to be shallowly dipping, hence the down hole intervals (tabulated below) are approximately true thickness. ---------------------------------------------------------------------------- From To Assay (metres, (metres, interval Gold Platinum Palladium Drillhole ID down-hole) down-hole) (metres) (g/t) (g/t) (g/t) ---------------------------------------------------------------------------- SPD-063 127.44 128.95 1.51 6.50 0.02 0.06 ---------------------------------------------------------------------------- less less than than 136.33 137.20 0.87 1.22 0.02 0.01 ---------------------------------------------------------------------------- less less than than 139.19 140.10 0.91 1.09 0.02 0.01 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SPD-066 less less than than 120.90 122.40 1.50 2.42 0.02 0.01 ---------------------------------------------------------------------------- less than 138.80 140.62 1.82 32.07 0.02 0.01 ---------------------------------------------------------------------------- less than 145.70 146.15 0.45 6.16 0.02 0.02 ---------------------------------------------------------------------------- SPD-056B and SPD-057 both intersected mineralization around the lower limb of the siltstone-cored fold. Respectively up and down plunge from the discovery hole (SPGT-001, 10.4 metres @ 28.4 g/t gold, 4.16 g/t platinum, 6.18 g/t palladium, see Colossus news release dated June 24, 2010), these drillholes have extended the GT zone, some 150 metres northwest of the CMZ, over more than 50 metres strike length. The drill intercepts (tabulated below) are approximately true widths in this shallowly dipping mineralized zone. Further drilling will clarify whether the GT zone is continuous with the Western Mineralized Zone (SPC-012, 4.15 metres @ 8.04 g/t gold, 154.5 g/t platinum, 245.8 g/t palladium, see Colossus news release dated September 3, 2009) which is in a similar structural setting and on the mineralized trend some 500 metres to the northeast. The GT Zone appears to strike southwest onto the Joint Venture's new ground. ---------------------------------------------------------------------------- From To Assay (metres, (metres, interval Gold Platinum Palladium Drillhole ID down-hole) down-hole) (metres) (g/t) (g/t) (g/t) ---------------------------------------------------------------------------- SPD-056B (GT Zone) 272.95 281.20 8.25 12.27 0.58 0.92 ---------------------------------------------------------------------------- incl. 272.95 277.84 4.89 20.33 0.96 1.53 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SPD-057 (GT Zone) 267.58 290.95 21.37 6.51 0.60 0.96 ---------------------------------------------------------------------------- incl. 280.75 286.45 5.70 15.38 1.07 1.73 ---------------------------------------------------------------------------- SPD-051, SPD-051A and SPD-055 were drilled to provide material for metallurgical grinding test-work and to clarify the distribution of high gold- and PGE-rich subzones in the CMZ. Assay results for the main mineralized intervals in these drill-holes are tabulated below.SPD-051, drilled toward the northeast from Section 00, intersected several steeply-dipping, gold-rich intervals and a high PGE/Au subzone before being aborted whilst still in mineralization. SPD-051A was stepped out 7 metres to the east and also drilled to the northeast, encountering several high grade subzones with distinct Au/PGE as well as platinum/palladium, separated by lower grade mineralization. SPD-055 was offset 11 metres to the northeast of and oriented similarly to SPD-034 (70.7 metres @ 53.59 g/t gold, 20.77 g/t platinum and 31.30 g/t palladium, see Colossus news release dated September 30, 2009). The long high grade intercept in SPD-055 included several ultra high grade intervals and is characterised by relatively high PGE/Au. ---------------------------------------------------------------------------- Assay From To interval (metres, (metres, (metres) Gold Platinum Palladium Drillhole ID down-hole) down-hole) (i) (g/t) (g/t) (g/t) ---------------------------------------------------------------------------- SPD-051 (CMZ) 186.20 189.00 2.80 5.23 0.17 0.88 ---------------------------------------------------------------------------- 199.95 201.15 1.20 14.35 0.24 0.67 ---------------------------------------------------------------------------- 204.85 206.25 1.40 19.67 0.32 0.94 ---------------------------------------------------------------------------- 211.70 231.30 19.44 2.65 3.54 9.73 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SPD-051A (CMZ) 181.20 186.94 5.24 1.24 5.38 5.33 ---------------------------------------------------------------------------- 207.20 215.40 8.20 14.23 4.54 9.67 ---------------------------------------------------------------------------- incl. 208.30 212.40 4.10 27.21 6.72 10.90 ---------------------------------------------------------------------------- 221.90 228.75 6.85 0.31 8.01 4.66 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SPD-055 (CMZ) 208.62 261.05 52.43 18.57 8.34 11.33 ---------------------------------------------------------------------------- incl. 212.30 224.17 11.87 42.34 27.85 39.95 ---------------------------------------------------------------------------- incl. 212.30 213.60 1.30 114.30 61.81 96.49 ---------------------------------------------------------------------------- incl. 216.50 218.00 1.50 174.59 107.57 159.42 ---------------------------------------------------------------------------- incl. 243.20 244.35 1.15 130.80 38.45 43.82 ---------------------------------------------------------------------------- (i)Total assayed interval (greater than 0.5 g/t gold equivalent) - excludes intervals of no core recovery; true widths to be established.SPD-052, SPD-053, SPD-054, SPD-056, SPD-059, SPD-060, SPD-061, SPD-062 and SPD-064 were part of the condemnation drilling program which is now nearing completion. As expected, results were insignificant.Vic Wall, Colossus' VP Exploration comments, "Exploration drilling in the Serra Pelada Joint Venture's new ground is already meeting with success with the discovery of a relatively shallow mineralized zone. We will be following this up with further drilling which may also extend the GT Zone onto the new ground and hopefully demonstrate its continuity with the Western Mineralized Zone some 500 metres to the northeast. Drilling within the CMZ has continued to demonstrate the continuity of high grade gold-platinum-palladium mineralization and we look forward to receiving assay results from the recently completed three step-out holes."Figure 1: Drill Hole Location MapTo see Figure 1, please visit the following link: http://media3.marketwire.com/docs/clsf1.pdfTECHNICAL INFORMATIONDiamond drilling was HQ cored. Sampling of core (by Colossus personnel) and sample preparation (by Intertek Limited, Parauapebas) were carried out under strict protocols recommended in the 43-101 Technical Report dated January 31, 2010 on Serra Pelada. After photographing and logging, core intervals (drilling advances, averaging 1 metre in length) were cut and/or split in half, yielding samples of 2 to 3 kilogram mass. Where core recoveries were low, intervals were composited to yield approximately 1 kilogram minimum sample masses. Intertek pulverised 1 or 2 kilogram splits (greater than 95% passing 106 microns) from the crushed (greater than 95% passing 1.7 mm), dried samples. 200 gram aliquots were rotary split from each pulp by Intertek and one of these samples was securely shipped directly by Intertek to Genalysis Limited, Perth Laboratory. Duplicates, blanks and certified gold-PGE reference materials were inserted in the sample train by Colossus personnel prior to Intertek preparation work.Intertek and Genalysis inserted additional blanks, duplicates and high grade gold/PGE reference materials in the assay stream and replicate 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 ICP-MS finish by Genalysis, AA finish by Intertek. Both assay labs dispatched assay certificate originals directly to Resource and Exploration Mapping Ltd., an independent Company which manages Colossus' database.The Genalysis and Intertek assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures. The Intertek and Genalysis gold, platinum and palladium assays of Serra Pelada materials are in good agreement, and the Genalysis results are utilized in this compilation.Dr. Vic Wall, the 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.CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATIONExcept for statements of historical fact relating to Colossus, certain statements in this press release relating but not limited to the Company's exploration 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 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.About Colossus:Colossus is an exploration and development Company focused on mineral resource properties in Brazil. The Company is currently focusing its efforts on the high grade gold-platinum-palladium Serra Pelada project in Para State, Brazil. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage by 60 Minutes of this famous mining rush can be viewed at the following link: http://sixtyminutes.ninemsn.com.au/article.aspx?id=299887FOR FURTHER INFORMATION PLEASE CONTACT: Colossus Minerals Inc. Ann Candelario VP Investor Relations (416) 643-7655 acandelario@colossusminerals.com www.colossusminerals.com