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Colt Resources Inc: Excellent Metallurgical Results from Tabuago

Contributed by Fox-Davies Capital

Colt has received positive metallurgical results from testwork performed on samples taken from the Tabuago Tungsten Project plus the results from eleven holes from its exploration campaign at the near-by Tabuago-Aveleira gap, Aveleira and Quinta targets, all located in the Armamar- Meda concession in northern Portugal.

The metallurgical testwork was conducted by a Chinese metallurgical services provider on a 522kg sample. A final report of this investigation demonstrates a process flowsheet that includes flotation followed by acid leaching, achieved 87.2% overall tungsten recovery into a final concentrate containing 70.65% WO3 from an ore sample containing 0.64% WO3. This is an excellent outcome and the tungsten recovery is actually higher than the figure we are using in our model. The Company plans to conduct pilot mill testing on approximately 20t of ore from Tabuago later this year. This will probably require an access drive which will provide information on ground conditions, grade control and other factors. They also intend to investigate further the potential production of fluorite concentrate as a possible by-product. No fluorite production is included in our model either. These steps will go a long way to substantially de-risk the project. The drilling results, overleaf, were mixed. Colt has now mostly outlined the lateral limits of the Aveleira deposit, which seems therefore not to extend much at depth into the mountain. Future drilling at Aveleira will consist essentially of infill grid drilling in order to allow outlining of an indicated resource.

Three holes were drilled in the gap between Tabuago and Aveleira skarn tungsten deposits. Interestingly, hole DHT-88 was the best of the batch, with two distinct and well separated, thick and richly mineralized skarn horizons, much like at the Sao Pedro das Aguias deposit and the best portions of the Aveleira deposit. The testing of the Quinta zone NW of the Aveleira deposit intersected modest grades and a number of narrow and poorly defined skarn horizons. Results from DHT-88 show that the discovery area is not closed off to the north-west and initial results of drilling suggest the potential for mineralization to extend beyond the previous reported resource area. Drilling down-dip is also planned to test the contact relationship between the mineralized skarns and the granite located to the south-west of T abuago (Sao Pedro das Aguias).