Drilling at Penedono yields encouraging gold assays
Colt Resources completed an eight-hole drill programme on the No. 11 and
No. 13 veins at Penedono. Assays from No. 13 include 39.67 grams of gold per
tonne over 2.23 metres, and 13.35 grams per tonne over 1.41 metres. Assays
from the No. 11 vein included 3.45 grams of gold per tonne over 17.6 metres
and 5.90 grams per tonne over 8.14 metres. Work on the project also
produced modest tungsten values.
Armamar Meda continues to develop as a tungsten prospect
Colt Resources collected several channel samples from the outcropping skarn
horizon on the Armamar Meda property since our initiation note of June 2008.
Channel sampling at San Pedro das Aguias produced 0.36 percent tungsten
over 23.3 metres. At Tabuaco, tungsten values ranged from 0.12 percent
tungsten oxide to 1.02 percent tungsten oxide, over true widths that varied
between 2.0 and 4.65 metres. Assays with tungsten above 0.1 percent were
also noted at Azenha Velha, Quinta Do Paco, Bebezes and Quinta. As well,
many of the samples also produced elevated tin assays.
Colt is adding a gold prospect in the Gaspesie region of Quebec
Late last year, Colt Resources agreed to acquire four properties on the
Gaspesie region of southeastern Quebec. The properties occur in an area with
known mineral showings and sediment anomalies deemed prospective for
gold and copper. The company must spend C$0.45m over the next two years.
An increased valuation based on promising early results
Our revised model places a base-case value of C$0.28 per share on Colt.
This is slightly higher than our previous estimate of C$0.26 of June 2008. Our
more optimistic assessment of C$0.79 per share, based on higher probabilities
of exploration success, reflects the potential offered by further drilling on
Penedono. Continued development offers potential for further increases.
