Trading Symbols: GTP - (CNSX)
P01 - (FRANKFURT)
COLTF.PK - (USA OTC Pink Sheets)
MONTREAL, Aug. 10 /CNW Telbec/ - Colt Resources Inc. ("Colt" or the "Company") is very pleased to announce that is has executed an agreement with privately owned Australian Iron Ore PLC whereby Colt will become the operator of and acquire, in two stages, 100% ownership of the Montemor gold project located in southern Portugal. The transaction is subject to the approval of the Direcçao-Geral de Energia e Geologia (DGEG), a division of the Portuguese Ministry of Economy and Innovation.
On January 28, 2009, Iberian Resources Portugal Recursos Minerais Unipessoal Lda (Iberian Resources Portugal), a Portuguese subsidiary of Australian Iron Ore PLC (AIOC), submitted to the DGEG a request for an Experimental Mining License covering the Montemor gold project.
The agreement between Colt and AIOC states that upon DGEG approval, Colt will pay AIOC (euro)60,000 and become 51% owner and operator of the project. Upon award of the Experimental Mining License to the Colt-AIOC joint venture by the DGEG, Colt will pay AIOC (euro)125,000, issue to AIOC 3,000,000 common shares of Colt, and Colt will become 100% owner of the Montemor gold project. The common shares of Colt to be issued will be escrowed with gradual release of 500,000 shares every four (4) months over a twenty-four (24) month period from the date of granting of the Experimental Mining License.
Subject to approval of the DGEG, Colt will become operator of the Montemor gold project and immediately undertake the responsibility of finalizing and submitting documentation required to obtain an Experimental Mining License for the Montemor gold project area and prepare a NI 43-101 compliant resource estimate.
The President and CEO of Colt, Nikolas Perrault, commented, "We are very excited about this agreement. This will immediately give us a development stage gold project in addition to our existing exploration stage properties in Portugal. We are looking forward to making the Montemor gold project the first gold mine to open in Portugal in nearly 60 years."
About the Montemor Gold Project
The Montemor gold project is an advanced stage exploration project located some 100 km east of Lisbon, near the town of Santiago do Escoural, in the Alentejo region of southern Portugal. Access to the project is excellent; there are no weather impediments to operating a mine year round; and, the area has abundant power, being close to the Portuguese national grid.
Gold occurs in a series of deposits located along the Boa Fé shear zone: a major shear zone formed within a strongly folded Proterozoic volcano-sedimentary sequence of the Ossa Moreno tectonic zone. Some forty (40) gold prospects and deposits have been identified in the greater region of Montemor and surrounding areas. Individual deposits defined within the Montemor area include Banhos, Casas Novas, Chaminé, Ligiero, Caras, Covas, Braços, Braços South and Tabuleiros. The principal deposits of economic interest are Casas Novas, Chaminé and Braços.
Gold mineralization occurs disseminated in biotite schists and in quartz veins. It is associated with arsenopyrite mineralization and zones of silicified biotite schist with adjacent local quartz veining. Gold mineralization occurs in proximity to breccias zones, fault intersections and shear zones. Within individual deposits, gold mineralization is largely near-surface and considered to be amenable to open pit mining or shallow underground.
In the general Montemor area, gold exploration has been carried out and concessions held by various operators including BP Minerals (1984 - 1986), Sociedade Minera Rio Aretezia Lda (Riofinex - Rio Tinto group) (1984 - 1992), and Portuglobal Exploraçoes Mineiras - Auspex Limited (1995 - 1999). In 1996 Portuglobal farmed out its project in a joint-venture with Montemor Resources Inc. In 1999, Portuglobal relinquished the exploration concession over the Montemor gold deposits.
On September 29, 2004, Iberian Resources Portugal Recursos Minerais Unipessoal Lda (Iberian Resources Portugal), at the time a 100% owned Portuguese subsidiary of Iberian Resources Limited (ASX:IBR de-listed), signed an exploration contract with the government of Portugal covering much of the area formerly held by Portuglobal. On May 10, 2007 Tamaya Resources Limited (ASX:TMR) acquired a 86.5% interest in Iberian Resources Limited. On October 28, 2008, due to the unprecedented collapse of copper prices, Tamaya Resources Limited was put under Voluntary Administration. On January 2, 2009, Iberian Resources Portugal was sold to Australian Iron Ore PLC.
The Montemor gold project is at an advanced development stage. Previous operators have undertaken extensive work including some 510 trenches and 1157 drill holes: 308 diamond drill holes, 176 reverse circulation holes (RC), 20 rapid air blast holes (RAB), and 653 open hole percussion holes. Other work carried out includes metallurgical testing by Riofinex (1991) and Iberian Resources Limited (2006), and environmental base line studies by Riofinex (1991). Resource estimates were undertaken by or on behalf of Riofinex (1991), Iberian Resources Limited (2004, 2005), and Tamaya Resources Limited (2007, 2008).
During 2007, in preparation for an application for an Experimental Mining Licence, Tamaya Resources Limited commissioned Stage 1 of the Montemor feasibility study including metallurgical testing, commencement of baseline work an environment impact assessment, resource modelling, mine planning and appointment of a contractor to manage the tailings dam site selection and design work (Tamaya Resources Limited 2007 Annual Report; press release dated November 15, 2007).
The reader is cautioned that all information herein is based on press releases, prior data and reports obtained and prepared by previous operators. Colt has not independently verified all the information concerning the Montemor gold project obtained from previous operators. Colt has not completed the work necessary to verify the classification of previous mineral resource estimates and is not treating the mineral resource estimates as NI 43-101 compliant. Colt's Qualified Person, Mario Justino, P.Geo., VP Exploration, has not verified mineral resource estimates, including geological model, parameters, and key assumptions used in such estimates.
About Colt Resources Inc.
Colt Resources Inc. is a Canadian based junior exploration company engaged in acquiring, exploring, and developing mineral properties with an emphasis on tungsten and gold. It is currently focused on advanced stage exploration projects in Portugal, where it is the second largest lease holder of mineral concessions.
Colt's most advanced projects include the Tabuaço tungsten project and the Penedono gold project, located on the company's Armamar-Meda and Penedono concessions, respectively. Both projects have seen recent drill programs with very encouraging high grade tungsten and gold grades, respectively (see press releases: http://www.coltresources.com/en/press_releases).
Portugal is a mining-friendly country of the European Union (EU) with easy access, excellent infrastructure and a hard-working available labour force. Colt maintains excellent government relationships at both state and municipal levels. The company is currently reviewing potential EU financial incentive programs.
The Company's shares trade on the Canadian National Stock Exchange (CNSX), symbol: GTP; the USA OTC Pink Sheets under the symbol: COLTF.PK; and on the Frankfurt Stock Exchange, symbol: P01.
The technical portions of this news release have been prepared and approved by Mario Justino, P.Geo., Vice President Exploration for Colt, a Qualified Person as defined by National Instrument 43-101.
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes", "anticipates", "plans", "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in those forward-looking statements. The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Colt Resources Inc.
For further information: For further information: Nikolas Perrault, President & CEO, Colt Resources Inc., Tel: (514) 394-0009 Ext: 1, Fax: (514) 394-0888, firstname.lastname@example.org; Aurelio Useche, Director & CFO, Colt Resources Inc., Tel: (514) 394-0009 Ext: 2, Fax: (514) 394-0888, email@example.com; Helen Bilhete, Director Investor Relations, Colt Resources Inc., Tel: (514) 394-0009 Ext: 5, Fax: (514) 394-0888, firstname.lastname@example.org