Precious Metals

Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) reported that some dewatering wells and pumps at its 75% owned Serra Pelada gold-platinum-palladium Mine have not performed to design specifications, and as a result, the Company has determined that additional dewatering capacity, which is currently being brought on line, is required to mine the Central Mineralized Zone in a sustainable, effective and efficient manner. The Company now anticipates a delay in gold production from the mine until late in the fourth quarter of 2013.

Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) reported that some dewatering wells and pumps at its 75% owned Serra Pelada gold-platinum-palladium Mine have not performed to design specifications, and as a result, the Company has determined that additional dewatering capacity, which is currently being brought on line, is required to mine the Central Mineralized Zone in a sustainable, effective and efficient manner. The Company now anticipates a delay in gold production from the mine until late in the fourth quarter of 2013.

HIGHLIGHTS

  • Mining has progressed through the CMZ with both water and ground conditions being managed. However, recently some dewatering wells and pumps have not performed to design specifications. As a result, the Company has determined that additional dewatering capacity, which is currently being brought on line, is required to mine the CMZ in a sustainable, effective and efficient manner.
  • As a result, mining activity through the Central Mineralized Zone (“CMZ”) has been delayed and resources have been re-deployed to focus on infrastructure development and additional dewatering in order to keep the Company’s plans of achieving 1,000 tonnes per day (“tpd”) in the first quarter of 2014 intact. Infrastructure development in the red and gray siltstone is not impacted.
  • The Company now anticipates a delay in gold production from the mine until late in the fourth quarter of 2013.
  • Management is currently evaluating the amount and timing of additional funds required to address the impact of the delay in the ramp-up and otherwise continue development and construction of the Serra Pelada Mine.
  • Underground development continues in the red and gray siltstone at better than anticipated daily development rates with three headings (main decline, ventilation expansion and northern mineralization access) currently being developed. The Company will continue developing mine infrastructure and expects to end the year with five access drifts ready to enter the CMZ late in the fourth quarter to commence production at 500 tpd.
  • The ventilation expansion project remains on schedule.
  • The Company anticipates commissioning the mill commencing in the third quarter with surface stockpiles of approximately 3,000 tonnes collected during the bulk sample program.
  • Process plant construction is currently 87% complete. Structural steel erection is now 85% complete. Commissioning of the plant remains on schedule for later in the third quarter.

Colossus Minerals CEO Claudio Mancuso said:

Although the Company has managed ground conditions and water, the Company has determined additional dewatering capacity is required to mine the CMZ in a safe, sustainable, effective and efficient manner. Additional dewatering capacity has recently been brought on-line with additional capacity being mobilized continuously over the next 60 days. Although the Company has changed its mine plan and ramp-up schedule, management is confident that the additional dewatering capacity will enable the Company to achieve its plan of processing 1,000 tpd by the end of the first quarter of 2014.

Click here to read the Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) press release

See this press release on Marketwire
Click here to see the Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) profile.

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