Colossus Minerals (CSI.TSX) announced the acquisition of the Cutia Property from Cooperativa Mista do Garimpeiro de Cutia (“COOMIC”). The Cutia property is located approximately thirteen kilometers to the southeast of its 75%-owned Serra Pelada Gold-Platinum-Palladium Project. Serra Pelada is a Colossus-COOMIGASP joint venture in the State of Para, Brazil.
Colossus‘ wholly-owned subsidiary, Grifo Geologia e Participacoes Ltda., purchased 75% of the Cutia Property from COOMIC for R$3.6 million (approximately USD $2.0 million based on a USD/BRL exchange rate of 1.80).
* Cutia is part of the Rio Novo geological unit, which also hosts Serra Pelada, and comprises 633 hectares
* The property is accessed from Parauapebas using the same road currently used to access the Serra Pelada Project
* Artisanal miners produced approximately 65,000 ounces of gold at Cutia in a short period of time between 1988 and 1992 before manual extraction ceased throughout Brazil
Claudio Mancuso, President and CEO of Colossus:
“The relationship we’ve built with COOMIGASP and the community has led to opportunities to partner with other groups in order to expand our regional footprint around Serra Pelada. The Cutia Property, although grassroots in nature, exhibits promising geological potential. As we continue to develop Serra Pelada and come closer to commercial production in 2013, we feel that now is the time to begin building a pipeline of promising properties around Serra Pelada in order to leverage the investment in infrastructure and personnel we have made at our flagship property.”