Location

Serra Pelada is situated in the mineral prolific Carajas Province near the towns of Curionopolis and Parauapebas, Para State, northern Brazil. Access and infrastructure are excellent (view regional geology).

History

Discovered in 1979, Serra Pelada was the site of the largest ever gold rush in Latin America (view Serra Pelada Garimpo). During the 1980’s up to 70,000 garimpeiros (artisanal miners) produced an estimated 2 million ounces of gold plus platinum and palladium, from a 400x300m open pit. Garimpeiro production declined due to pit wall collapse and flooding causing the cessation of bedrock mining since the late 1980’s.

CVRD, which held the underlying title to Serra Pelada until 2007, explored the area from 1980 to 1998, completing more than 200 drill holes in the Serra Pelada mineralized system (view Serra Pelada, 2007).

COOMIGASP, a registered Brazilian Cooperative company, was granted Exploration License 1485 (DNPM process 850.425/90) by the Ministry of Mines & Energy in February, 2007. This 100 hectare license is centered on the Serra Pelada pit (view Serra Pelada, 2007).

In July 2007 COLOSSUS and COOMIGASP formed a partnership to develop the remaining bedrock mineralization at Serra Pelada. Under the terms of this joint venture, COLOSSUS will manage and operate the project, earning a majority interest by funding exploration and paying COOMIGASP a premium for the gold reserve established by the joint venture. Details of this agreement may be found in Colossus Minerals Prospectus on www.sedar.com. COOMIGASP will separately develop the ‘monteira’ (tailings and waste from the Serra Pelada garimpo), with initial financial and technical assistance from COLOSSUS. 

Gold-Platinum-Palladium Mineralization

The Serra Pelada deposit is hosted by Archaean metasediments of the Rio Fresco Group which unconformably overly greenstone belts and gneissic basement, intruded by several ages of mafic-ultramafic and granitoid plutons (view local geology).

High grade gold-platinum-palladium mineralization is hosted mainly by fine-grained carbonaceous rocks, but also occurs in iron oxide-rich breccias and silicified zones (Grainger et al, 2002). The deposit is oxidized to depths of around 300m. Consequently sulfides are lacking and gold and PGE’s occur mainly as metals and alloys (Cabral et al, 2002).

The central mineralized zone at Serra Pelada was mined along about 350m of strike length to depths of about 120m. CVRD drilling in this area encountered some remarkable intersections, for example drill hole FD-0032, 43m. (from 40m) assaying 4709g/t gold, 204g/t platinum and 1174g/t palladium (Cabral et al, 2002) (view long section of open pit).

CVRD drilling confirmed that gold-platinum-palladium mineralization extends under the pit and for more than 450m strike length to the western boundary of 850.425/90. In these areas mineralization has been encountered at depths of 150-350m (view cross section 100SW) and constitutes the prime target of the COLOSSUS-COOMIGASP joint venture.

Tallarico (2000) and CVRD (2006) modeled the central mineralized zone as arcuate in form, with a steeply dipping eastern margin and more shallowly dipping limbs to the west (view cross section 00). The highest grades of gold, platinum and palladium occur in the moderately to steeply dipping parts of the central zone which is up to 150m in vertical extent and in places  more than 50m wide (view mineralized column). CVRD (2006) and COLOSSUS interpret the central mineralized zone as occupying the hinge zone of a reclined syncline which plunges gently to the southwest. Additional noble metal mineralization occurs to the east and west of the central zone.

The geochemical character of Serra Pelada mineralization (Cabral et al, 2002; Grainger et al, 2002) is consistent with its deposition by progressive reduction of highly oxidized brine(s) in a structurally controlled hydrothermal plumbing system postdating the main regional deformation of the Rio Fresco Group.

COLOSSUS-COOMIGASP program

Accomplished to date:

• completed a detailed topographic survey including the capture of remaining CVRD drill collars
• acquired 45,000m of CVRD drill core and advanced a program of re-sampling and re-assay program for gold,  PGE’s and other elements of potential economic significance
• begun modeling of the historical drill hole database to guide drilling
• completed seventeen drill holes (5129 metres) of an initial 5000m resource delineation campaign.  The results of the three diamond drill holes for which assays have been received to date may be viewed by clicking on the respective number, SPD-001, SPD-002, SPD 003, SPD-004, SPD-007, SPD-008. SPD-001 and SPD-007 may be viewed also on Section 100NE and SPD-002, SPD 003 and SPD-008 may be viewed also on Section 00.

Program for 2008, budget C$6.6 million:

• finish the re-assay program and 3D geological model
• complete 8,000m of core drilling
• initiate baseline environmental studies

Program for 2009, budget C$9.0 million:

• conduct of a further 12,000m of diamond drilling
• establish a 43-101 compliant resource
• complete a scoping study leading to the application for a mining lease and a feasibility study in 2010.