Colt Resources has completed an eight-hole drilling programme on the Santo Antonio vein system on its Penedono concession in Portugal. The 703-metre drill programme targeted veins No. 11 and No. 13 as expected.
Colt now has the first assay from its programme. A 12.8-metre interval in hole PPE-08-03, which tested the No. 11 vein, returned 4.62 grams of gold per tonne, with 143 parts per million of tungsten trioxide. Included in this interval was a 1.87-metre zone with 24.05 grams of gold per tonne, and 747 parts per million of tungsten trioxide.
This summer, Colt said it was attempting to raise C$5.0m through the sale of twenty million units. Colt has now closed the first tranche of this private placement, for C$0.225m, issuing 900,000 common shares at C$0.25, each accompanied by one warrant exercisable at C$0.30 over a three-year term.
Objective's view:
The result from this first hole into the Santo Antonio system is encouraging and is perhaps in line with our more optimistic expectations. Given the modest state of the company’s finances, and the current state of the financial markets, we continue to expect Colt will progress slowly at Penedono. We therefore believe the latest developments support our base-case and optimistic valuations for Penedono and Colt.
