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Press release from Marketwire

Colossus Minerals Drilling Extends the GT Zone and High-Grade Subzones in the Central Mineralized Zone and Intersects 74.40 Metres at 31.17 g/t Gold, 3.02 g/t Platinum and 6.78 g/t Palladium

Wednesday, September 07, 2011

Colossus Minerals Drilling Extends the GT Zone and High-Grade Subzones in the Central Mineralized Zone and Intersects 74.40 Metres at 31.17 g/t Gold, 3.02 g/t Platinum and 6.78 g/t Palladium06:30 EDT Wednesday, September 07, 2011TORONTO, ONTARIO--(Marketwire - Sept. 7, 2011) -Colossus Minerals Inc. (the "Company" or "Colossus") (TSX:CSI) is pleased to announce additional assay results from the 25,000 metre surface drilling program at its 75% owned Serra Pelada Gold-Platinum-Palladium Project. The Serra Pelada Project is a Colossus-COOMIGASP Joint Venture located in Para, Brazil. HIGHLIGHTS SPD-113 intersected several ultra high-grade subzones within a continuously mineralized intercept of 74.40 metres at 31.17 g/t gold, 3.02 g/t platinum and 6.78 g/t palladium in the Central Mineralized Zone ("CMZ"). These results confirm the continuity of and extend the high-grade CMZ in the first area to be underground bulk sampled in 2012. SPD-115 intersected 11.65 metres at 57.28 g/t gold, 6.58 g/t platinum and 7.66 g/tpalladium. This drill hole is the initial 25 metre step-out to the southwest targeting the extensions of SPD-095 (7.81 metres at 136.43 g/t gold, 294.20 g/t platinum and 121.40 g/t palladium). A second drill hole on this section will commence shortly targeting ultra high-grade mineralization encountered in drill hole SPD-099 (7.30 metres at 1494.7 g/t gold, 516.6 g/t platinum and 558.9 g/t palladium).In step-out drilling on the (lower limb) GT Zone SPD-110 has demonstrated that the (lower limb) GT Zone mineralization extends to Section 175NE and thus the GT Zone is likely continuous with the Western Zone, drilled some 250 metres to the northeast of SPD-110 SPD-103 and SPD-107 on Section 150NE indicate that the GT Zone is more than 40 metres wide in this area and up to ten metres true-thickness which includes high-grade gold mineralizationA fence of 500 metre step out drill-holes are planned on section 750SW after recent modeling predicts that the CMZ has been up-thrusted by a fault and is consequently much shallower than expected.A detailed geochemical program is nearing completion on the entire concession package and new targets have been generated. Details of the targets and planned drill program will be released in short order once all assay results have been received and interpreted. "We are finally starting to see improved productivity in diamond drilling pace after changes we implemented over the summer period," commented Ari Sussman, CEO and President. "The exploration focus for the balance of 2011 is going to be step-out drilling on the CMZ, follow up drilling on the ultra high-grade zone encountered in SPD-095, SPD-099 and SPD-115, and drilling of new targets outlined by extensive radiometrics and geochemical programs. We will announce further details in the coming weeks once all results are received and interpreted." DETAILS Gold-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. This release documents results (Table 1, below) from drilling of the extensions of the CMZ and also in extensions of the GT and LL lower-limb mineralized zones. Figure 1 shows the traces of the new drill-holes and plan views of the mineralized zones explored to-date at Serra Pelada.TABLE 1: Significant drilling resultsMineralized ZoneHole IDFrom(m)To(m)Interval*(m)Gold(g/t)Platinum(g/t)Palladium(g/t)GTSPD-101229.55230.851.301.691.780.79SPD-10351.0551.800.750.185.355.8055.3756.300.935.67<0.020.05175.96176.550.590.021.580.85217.42219.101.681.940.150.70219.41220.631.220.740.390.61224.52227.252.7314.831.823.62SPD-10741.5043.001.501.660.000.04201.35202.240.8943.620.891.09209.65212.472.822.452.554.25SPD-110129.10130.51.108.570.200.52182.50183.180.681.380.120.34191.90193.301.4010.620.421.45LLSPD-100264.60265.100.501.160.220.16265.60266.601.001.030.400.45CMZSPD-105206.10207.521.422.75<0.0200.005208.40209.100.701.11<0.020<0.005230.57233.202.638.661.252.27234.00235.001.003.37<0.0200.03242.85243.490.643.600.240.19246.11247.601.491.311.040.69250.62255.504.883.761.721.60262.90264.301.400.440.620.72265.10267.502.400.780.500.60CMZSPD-115249.20252.203.003.040.240.47253.05264.7011.6557.286.587.66including258.20260.202.00106.8512.9417.27262.70264.702.00151.209.4511.92CMZSPD-113182.10257.3074.4031.173.026.78including182.10183.601.5017.69<0.020.01201.36207.806.4420.124.247.10211.67220.108.4333.2710.2814.38226.11234.107.99172.719.8432.25246.96251.273.51126.368.4720.60254.40225.601.2023.76<0.020.21*True thickness not known, but intersections in the GT Zone represent approximate true vertical thicknesses. Intercepts determined on a 1 g/t gold-equivalent cut-off gradeCentral Mineralized ZoneSPD-113 was drilled obliquely between Section 50NE and Section 00 to better outline high-grade subzones within the CMZ in the first area to be the subject of underground bulk sampling and to provide additional samples for metallurgical test work. Sub-parallel to SPD-034 (70.70 metres at 53.59 g/t gold, 20.77 g/t platinum and 31.30 g/t palladium), but intersecting the CMZ with an average offset of 10 metres from the latter drill-hole, SPD-113 encountered 74.40 metres of continuous mineralization at 31.17 g/t gold, 3.02 g/t platinum and 6.78 g/t palladium. This intercept contains a number of ultra high grade subzones (see Table 1, including 7.99 metres @ 172.71 g/t gold, 9.84 g/t platinum and 32.25 g/t palladium) which correlate well with the margins of those in SPD-034 but exhibit higher Au/PGE and higher Pd/Pt.In step-out drilling on the CMZ, SPD-115 (Section 125SW) was targeted at down-plunge extensions of high-grade subzones encountered in SPD-095 and SPD-099 (Section 100SW). The major intercept in SPD-115 (from 253.05 metres down-hole, 11.65 metres @ 57.28 g/t gold, 6.58 g/t platinum and 7.66 g/t palladium) is consistent with the continuity of high grade subzones over 50 metres of the CMZ, between Section 100SW and those encountered in SPD-072 on 150SW. SPD-102 and SPD-105 were targeted at upper limb and deeper CMZ mineralization on Section 150SW. SPD-105 intersected (from 206.1 metres) the westerly margin of the upper limb mineralization previously encountered on this Section. Drilled between SPD-65 and SPD-072, SPD-105 also encountered several steeply dipping subzones (from 230.57 metres down-hole, 2.63 metres @ 8.66 g/t gold, 1.25 g/t platinum and 2.27 g/t palladium and also from 250.62 metres, 4.88 metres @ 3.76 g/t gold, 1.72 g/t platinum and 1.60 g/t palladium). These intercepts are 8-10 metres from those in SPD-072, extending width and depths of the subzones. SPD-102 closed out mineralization further to the west of SPD-065.The first drill-holes (SPD-104 and SPD-109) on Section 200SW respectively encountered low grade upper and lower limb mineralization in broader Au-Pt-Pd anomalous intercepts.SPD-108, on Section 250SW also intercepted upper limb gold mineralization, around 273 metres down-hole, and steeply dipping mineralization at around 300 metres down-hole. Four drill-holes on Section 300SW were abandoned before reaching target depths because of drilling problems. A new pad has been built to enable drilling of this Section.Further drilling is underway on the CMZ targeting the up- and down-plunge extensions of the ultra high- grade subzones encountered in SPD-095 and SPD-099.Geological modeling of Area C is consistent with the main, siltstone-cored synclinorium extending through Section 750SW but offset in this area by a significant fault that appears to upthrow the synclinorium to relatively shallow depth. This target is to be tested in an approximately 500 metre step-out of exploration drilling onto section 750SW. GT ZoneFour new drill-holes examined the lateral extents of the GT Zone and its continuation towards the Western Zone to the northeast (Figure 1).SPD-101 (on Section 100NE) intersected 25 metres of lower limb mineralization which included (from 229.55 metres down-hole) 1.30 metres @ 1.69 g/t gold, 1.78 g/t platinum and 0.79 g/t palladium, showing, by comparison with SPD-086A and SPD-096, that the GT Zone in this area has at least 40 metres of lateral extent.SPD-103 and SPD-107 (Section 150NE) extended the GT Zone a further 50 metres to the northeast. Both drill-holes intersected + 10 metres of lower limb mineralization which included high grade intercepts (respectively, from 224.52 metres: 2.73 metres @ 14.83 g/t gold, 1.82 g/t platinum and 3.62 g/t palladium and from 201.35 metres: 0.89 metres @ 43.62 g/t gold, 0.89 g/t platinum and 1.09 g/t palladium). These intercepts also show the GT Zone to have at least 40 metres of (sub-horizontal) lateral extent on Section 100NE. Although primarily targeting the GT Zone, SPD-103 and SPD-107 also intersected upper limb mineralization at shallow depths, less than 60 metres from surface. Gold-platinum-palladium mineralization in both drill-holes comprised +10 metres thick low grade intervals exhibiting some high-grade intercepts (eg., SPD-103, from 51.05 metres: 0.75 metres @ 0.8 g/t gold, 5.35 g/t platinum and 5.80 g/t palladium and from 55.37 metres: 0.93 metres @ 5.67 g/t gold). The lateral and horizontal extents of this upper limb mineralization are unknown and will be followed up with further drilling. SPD-110 extended the GT Zone onto Section 175NE, intersecting 1.40 metres @ 10.62 g/t gold, 0.42 g/t platinum and 1.45 g/t palladium from 191.90 metres down-hole within a thicker, low-grade intercept. Core recoveries were low in the hematite-clay altered and iron oxide-rich breccias encountered in this interval, so grades and thicknesses of mineralization may be understated.The northeasterly extensions for the GT Zone demonstrated by this round of drilling appear to show that the Western Zone and GT Zone represent the same zone of mineralization over a strike length of more than 500 metres (Figure 1) with substantial horizontal widths and potentially mineable thicknesses. Comprising vertically stacked subzones, the GT-Western Zone will require drilling from underground to clarify the distribution of the very high grade "plumbs" within this Zone.LL ZoneSPD-100 confirmed the presence of another zone of lower limb Au-Pt-Pd mineralization, the LL Zone between the GT and Portal zones (Figure 1). No core recovery between the two intercepts in Table 1 may have resulted in understatement of the thickness and grade of this mineralization. Further drilling is required to find the high-grade core of this zone and its lateral extents.Other TargetsA surface geochemical sampling program has been largely completed on the entire concession package. Numerous gold, platinum and palladium anomalies have been encountered. High order anomalies are being followed up by motorized auger drilling and trenching to clarify bedrock and transported regolith -hosted mineralization. The results of this program and related drilling targets will be outlined shortly. Technical Information Diamond 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 National Instrument 43-101 Technical Report dated January 31, 2010 on the Serra Pelada Project. After photographing and logging, core intervals (drilling advances, averaging one metre in length) were cut and/or split in half, yielding samples of two to three kilogram mass. Where core recoveries were low, intervals were composited to yield approximately one kilogram minimum sample masses. Intertek pulverized 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. Intertek inserted 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 by Intertek. The assay lab dispatched assay certificate originals directly to Resource and Exploration Mapping Ltd., an independent company, which manages Colossus' database. The Intertek assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures. However because of lack of adherence to Colossus' sub-sampling protocols and apparently poor performance on reference materials for assay batches corresponding to SPD-101,-102 and -103, these lots were re-assayed and the results averaged. 200 gram aliquots of medium and high grade pulps were rotary split from each pulp by Intertek and one of these samples was securely shipped directly by Intertek to Genalysis Limited, Perth Laboratory for check assaying.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.To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/csi0907fig1.pdf. About Colossus:Colossus is a development-stage mining company focused on bringing into production the high-grade gold-platinum-palladium Serra Pelada project, located in the mineral prolific Carajas region in Para State, Brazil. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Colossus Minerals shares trade on the Toronto Stock Exchange (TSX) under the symbol CSI. The Company is headquartered in Toronto, Canada.CAUTIONARY STATEMENT REGARDING FORWARD‐LOOKING INFORMATIONForward-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. Certain information contained in this press release, including any information relating to Colossus Minerals Inc.'s ("Colossus" or the "Company") future financial or operating performance may be deemed "forward-looking". All statements in this press release, other than statements of historical fact, that address events or developments that Colossus expects to occur, are "forward- looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions or their negative connotations, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond the Company's ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause Colossus' actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: price levels and volatility in the spot and forward markets for commodities; the uncertainties inherent to current and future legal challenges Colossus is or may become a party to; controls, regulations and political or economic developments in the countries in which the Company does or may carry on business; changes in national and local government legislation in Canada, Brazil or any other country in which Colossus currently does or may in the future carry on business; the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that Colossus operates; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and Brazil; significant capital requirements; impact of any hedging activities; taxation; additional funding requirements; loss of key employees; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; and competition. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding as well as other risks discussed under the heading "Risks Factors" included in Colossus' latest Annual Information Form filed at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this press release are qualified by these cautionary statements. Colossus expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. FOR FURTHER INFORMATION PLEASE CONTACT: Ann CandelarioColossus Minerals Inc.VP Investor Relations(416) 643-7655acandelario@colossusminerals.comwww.colossusminerals.com