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Colt Resources: Additional Leases in Portugal

Contributed by Fox-Davies Capital

Colt Resources has announced that it has been awarded two mining leases and two additional exploration concessions in Portugal.

The awarding of an Experimental Mining Lease ("EML") at Tabuago is a very positive step forward. It covers an area of 45.12km3 and has been granted as a result of the successful exploration between 2007 and 2012 on the Armamar-Meda concession where Colt has established an Indicated Resource estimate of 1.494Mt grading 0.55% WO3 and containing 34Mlbs of contained metal and an Inferred Resource of 1.23Mt grading 0.59% WO3 and containing 16Mlbs of contained metal. The granting of an EML will enable Colt to proceed with the excavation of both an access adit and a vertical shaft into the Sao Pedro das Aguias deposit, for the purpose of testing the proposed mining method, gathering further information on the rock mechanical conditions, and extracting a bulk sample for pilot ore concentration work. In addition the surface diamond drilling programme will be continued to explore and evaluate the above referred deposits and exploration zones.

The Santo Antonio EML in North-Eastern Portugal covers a total area of 35.34km2. This concession was granted to a joint venture between Colt and Brazilian company, Contecnica, in which the latter will be the operator. The granting of this concession follows on the exploration project undertaken by Colt in the Penedono concession between 2007 and 2012. This area is due south of the Tabuago EML and has been mined for gold as recently as the 1950's. During the experimental mining period the Joint Venture's activity will focus on: trial open pit mining at Turgueira; recovery of gold from the Santo Antonio tailings; excavation of a new adit to access and de-water the Santo Antonio underground workings and recover blasted ore left in the old galleries for pilot metallurgical testwork; and continuing evaluation drilling of the vein deposits. The Borba exploration licence, 636km2, is due west of Lisbon on the Spanish border and has been the home to small scale copper mining. Exploration will be for copper and gold. The Cercal exploration license located in coastal Alentejo province, some 110km due South of Lisbon covers a total area of 455km2. It is located within the Iberian Pyrite Belt. The license area also encloses the Salgadinho stock work deposit, first discovered and explored between 1973 and 1979. The perception that the gold potential of this deposit was poorly investigated.