The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
Potential to Become Low-Cost Gold Producer
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NICHOLAS CAMPBELL, Canaccord Genuity
(11/11/2008)
"The Serra Pelada project is a unique high-grade gold-rich PGM deposit located in Northern Brazil. To date, 16 of the 20 holes completed returned average gold-equivalent grades in excess of 10 g/t gold, including a 46.7-metre interval grading 43.0 g/t and a 17.6-metre interval grading 287.7 g/t. A historical resource estimate completed by Vale outlined a 3.7 million tonne resource grading 15.2 g/t gold, 1.89 g/t platinum and 4.09 g/t palladium, and drilling to date has demonstrated a positive reconciliation compared with previous results. Colossus has engaged Kevin Rosengren and Associates and GeoTek Solutions to undertake geotechnical investigations of the Serra Pelada deposit. The Serra Pelada project is located within the Carajas Mineral Province of Brazil, known for its iron ore mining operations. The local infrastructure is excellent and likely to improve with Vale’s development of the Serra Leste Iron Ore project, which is adjacent to the Serra Pelada project. We believe the Serra Pelada project could be developed into a low-cost gold producer with significant platinum and palladium by-product credit, making the company an attractive target for a senior to intermediate PGM or precious metal producers. Potential candidates to acquire Colossus include Impala Platinum, Kinross Gold and Eldorado Gold. We have a C$2.00 per share target price on Colossus Minerals Inc. based on a 0.7x multiple to our 10% discounted NAV, using Canaccord Adams’ commodity price deck." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
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