TICKER: TSX: CSI
DESCRIPTION: Colossus Minerals Inc. (“Colossus”) is an emerging mineral exploration and development company focused on Brazilian gold. Led by its skilled management team and world-class Board of Directors, Colossus has developed a robust business model that is sensitive to creating value for its shareholders. To date, the company has two high-grade precious metals projects, one of which, considered to be their “flagship”-- Serra Pelada, has proven to be a geologically unique high grade deposit with potential to delineate a significant gold-platinum-palladium resource. From 1979-1986, Serra Pelada hosted the largest precious metal rush in Latin American history. The deposit that was mined had some spectular grades of precious metals including historical drill hole FD-032, which averaged 43 metres at 4709 g/t gold, 204 g/t platinum and 1174 g/t palladium.
WEBSITE: http://www.colossusminerals.com

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

I look at small companies, which I'm beginning to look at more, that have minable ounces in the ground, but they've been neglected. I looked at companies that have done a phenomenal job of turning themselves around and acquiring assets and building their production profile. And there are only a few of them. Today we like Colossus Minerals—they already have defined ounces proven and very high grades. When looking at the junior space you need to do your due diligence because it's a very murky and tricky field.
- The Gold Report Interview with Sheldon Intenwash (12/30/08)

"Metals analysts at Canaccord Adams highlighted 12 small-cap mineral exploration/development companies that have "strong working capital positions, above-average strong portfolios and strong management teams." They include B2Gold, Colossus Minerals, Exeter Resources, Fronteer Development Group, Hathor Exploration, Lake Shore Gold, MAG Silver, Minera Andes, Northern Dynasty Minerals, Rainy River Resources, Silverstone Resources, and Ur-Energy.

The currently prevailing circumstances prevailing within small-cap mining "create the potential for a series of mergers and acquisitions," the analysts suggested.

"Mergers among the small caps could increase as management teams become ʽhumbled' by current market conditions and recognize that combined entities could, in the long term, result in improved shareholders value," they noted. "In other cases, the combination of cash-rich companies with property-rich companies could synergistically result in improved shareholder value."

"We expect additional M&A activity to drive some renewed speculative appeal over the next several months," the analysts advised. Canaccord Adams outlined several possible M&A targets including . . .Colossus Minerals, Minera Andes. . .Rubicon Minerals".

- Mineweb, Canaccord Adams (12/23/08)

"Last week, Colossus released assay results from an additional three diamond drill holes completed at its Serra Pelada project:

• Hole SPD-0010 returned 87.58 metres grading 6.04 g/t gold, 2.49 g/t platinum and 4.36 g/t palladium (9.6 g/t AuEq). The hole was drilled on Section 75NE, 25 metres to the northwest of SPD-001 (which returned 88 metres of 14.38 g/t AuEq).

• Hole SPD-011 returned 89.55 metres grading 2.48 g/t gold, 0.47 g/t platinum and 0.84 g/t palladium (3.2 g/t AuEq).
Hole SPD-011 was also drilled on Section 75NE, testing the north-western margin (inner hinge zone) of the Central Mineralized Zone. The mineralization was substantially continuous throughout the 90 metres interval.

• Hole SPD-012 returned 0.5 metre grading 2.53 g/t gold, 24.4 g/t platinum and 16.5 g/t palladium (31.5 g/t AuEq), 8.1 metres grading 1.58 g/t gold, 1.10 g/t platinum and 1.21 g/t palladium (3.0 g/t AuEq) and 3.0 metres grading 3.85 g/t gold, 0.62 g/t platinum and 1.05 g/t palladium (4.7 g/t AuEq). This hole was drilled on Section 50NE and it undercut the mineralized intercept reported from Hole SPD-004 (which returned 57.1 metres grading 5.02 g/t gold, 2.45 g/t platinum and 3.80 g/t palladium). This hole was drilled too steeply and the core recovery was relatively poor.

• Holes SPD-010 and SPD-011 returned two of the longest mineralized intercepts reported to date from the Phase I drill program at the Serra Pelada project. Assay results for the remaining six drill holes (SPD-013-SPD-018) have yet to be reported from the Phase I program at Serra Pelada. The drill results completed to date at Serra Pelada continue to demonstrate the potential to delineate a very high-grade gold-platinum-palladium deposit, which could potentially be exploited as an underground operation..."
- Junior Mining Weekly (12/02/08)

"Colossus Minerals (TSX:CSI). It has a warrant out to 2011. So that’s quite a few years. They have gold properties in Brazil. The situation looks interesting."
- The Gold Report Interview with Dudley Baker, PreciousMetalsWarrants.com (11/18/08)

"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."
-NICHOLAS CAMPBELL, CANACCORD CAPITAL (11/11/08)