GREY:COLUF - Post by User
Post by
guido1077on Apr 07, 2009 7:32am
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Post# 15901311
nice morning note from Canaccord
nice morning note from CanaccordColossus Minerals* (CSI : TSX : $2.21), Net Change: 0.26, % Change: 13.33%, Volume: 873,766
Something up? Where is Lt. Horatio Caine? On a day when the spot gold and the majority of gold stocks were significantly lower, investors were piling into CSI. Canaccord Adams Mining Analyst Nicholas Campbell expects drill results out of Colossus any day now. Colossus is one of Campbell’s favourite stories and has been featured on Canaccord Adams’ most recent list of top takeover candidates. Earlier this month, Colossus closed an 11.5 million-unit offering, raising gross proceeds of $24.7 million for the company. With the financing, the company should have in excess of $31 million in the bank. Campbell expects the company to spend roughly $10 million in 2009 on its 75%-owned Serra Pelada gold/PGM project in Brazil. The 2009program will likely include 10,000m of core drilling, analysis of rock mechanics, metallurgy and environmental base line studies, with the objective of submitting a Final Exploration Report on the Serra Pelada project by the end of the year. Campbell believes that the Serra Pelada project has the potential to host a 3.5 million gold-equivalent resource. And remember that is not your average 3.5 million ounces of gold, the economics at Serra Pelada should be drool-worthy given the amazing high-grades Colossus is coming up with. The highlight interval reported by Colossus in early February was Hole FD-072, which returned a 7.88m interval grading 406.4 g/t gold, 98.4 g/t Platinum, 115.7 g/t Palladium, 2.74 g/t Rhodium and 1.52 g/t.