Property Location and Description

Located in northern Portugal, some 100 km east of city of Porto, the Moimenta-Almendra concession (“Moimenta-Almendra” or the “Concession”) consists of 3 separate blocks totalling 566 km² in area. These concession blocks partially surround the Penedono and Armamar-Meda concessions and are namely from west to east, Moimenta block (98 km²), Castainço block (102 km²), and Almendra block (365 km²) (Figure 1).

The concession area is easily accessible year round by an extensive network of paved and gravel roads. Infrastructure and local resources, including proximity to the national electrical grid, major population centres, major highways and coastal port facilities, are excellent.

Fig. 1: Location map of northern concessions: the Moimenta-Almendra concession consists of three separate blocks that are partially contiguous with the Armamar-Meda and Penedono concessions. Note location of major gold and tungsten targets in the area.

Ownership

Colt Resources Inc. (“Colt” or the “Company”) has a 100% interest in the Moimenta-Almendra concession. On October 1, 2008, the Company entered into a prospecting and exploration license agreement with the Direcção-Geral de Energia e Geologia (DGEG), a branch of the Government of Portugal, whereby the Company was granted the exclusive right to prospect and explore for base and precious metals on the Moimenta-Almendra concession.

The initial term of the exploration license agreement is for three years ending October 1, 2011, and can be extended twice on an annual basis.

Upon expiry of the initial term, Colt shall relinquish, on an annual basis, 50% of the area covered by the exploration license. In order to maintain the contract in good standing, Colt must carry out specified exploration programs, incur specified minimal annual exploration expenditures, and must also pay an annual license fee to the Government of Portugal. The Government of Portugal retains a right to either 10% of net mining income or a 1% to 4% Net Smelter Return (NSR).The Government of Portugal also retains a right to a discovery premium of 100,000€.

Exploration History

Several small scale, near surface to shallow underground, artisanal tin and/or tungsten mines were worked in the area, mostly during the first half of 20th century, particularly in the Almendra block. Modern exploration efforts were first carried in the 1970s by the SFM, Portuguese government exploration department, primarily aimed at the investigation of tungsten and tin occurrences.

In the 1970s to early 1980s, virtually the whole area was covered with regional reconnaissance exploration by the SPE-BRGM joint venture: stream sediment surveys and alluvial grain count surveys. Follow-up exploration work including trenching and drilling was carried out at a few mineral occurrences in the Almendra block.

In the late 1990s to 2004, Rio Narcea Gold Mines S.A. Sucursal em Portugal (“Rio Narcea”) undertook regional exploration work aimed primarily at the area covered by the Penedono concession: some of this regional work overlapped onto the Moimenta-Almendra concession. 

Colt has carried out reconnaissance work on the Moimenta and Castainço blocks. In the Almendra block, work by Colt has focused on the Numão gold, and the Almendra and Muchões tungsten targets (Figure 1).

Numão gold target

Located in the NE part of the Moimenta-Almendra concession, the area of Numão was chosen as a follow-up to historical gold and arsenic stream sediment anomalies. No mineral occurrences were known in the area prior to work carried out by Colt.

Preliminary prospecting and mapping work revealed granite-hosted, high grade gold mineralization consisting of millimetric to centimetric quartz-arsenopyrite-scorodite-pyrite veins, locally with enclosing envelopes of arsenopyrite-bearing greisen or sericitized granite. Mineralization was observed over an area some 200 m by 400 m.

Of 39 outcrop and float rock samples collected, 13 samples assayed greater than 1 g/t Au; 7 samples greater than 5 g/t Au; and, 4 samples greater than 10 g/t Au: the latter ranging from 13.81 g/t to 38.29 g/t Au. High grade results, > 5 g/t Au, were mostly from grab samples of thin quartz-arsenopyrite-scorodite or thin semi-massive arsenopyrite-scorodite veinlets in altered granite (Table 1).

Table 1: Numão Au prospect rock sample assay result highlights.

A preliminary soil survey of very limited extent was run over the prospect: grid consisted of three 100 m spaced lines with stations at 25 m. Results from 72 soil samples shows a local anomaly, some 125 m to 225 m wide and 240 m long, with values >10 ppb Au and >80 ppm As, and peaks of 297 ppb Au and 1872 ppm As. Additional field work including a more extensive soil survey grid is planned.

Almendra tungsten target

Situated at the eastern limit of the Moimenta-Almendra concession, the Almendra area shows numerous W-Sn artisanal and small scale mining works that date from the early to mid 20th century. Known tungsten mineralization in the area consists of medium to coarse grained, single to parallel bands of scheelite rich skarn horizons. These horizons are hosted within tightly folded metasedimentary rocks and outcrop over an area some 0.5 km wide by 2.9 km long. Locally, skarn horizons are centimetre size up to a metre wide and up to 50 to 100 m long: typically stretched and pinched out along strike. Preliminary mapping in the area has delineated a 30 m wide zone with numerous thin skarn bands that outcrop discontinuously for some 1.1 km.

Of 23 skarn grab samples collected, 19 samples returned assay results > 0.10% WO₃; 12 samples > 0.50% WO₃; and 5 samples > 1.00% WO₃: ranging from 1.18% to 1.80% WO₃ (Table 2).

Table 2: Almendra W prospect rock sample assay result highlights.

Muchões tungsten target

The Muchões area is located some 5.5 km west of the Almendra target (Figure 1). There are known W-Sn mineral occurrences and historical tungsten geochemical anomalies at the SE limit of the area. Northwest of these occurrences, rock samples, mostly of medium to coarse grained weakly banded skarn outcrop and suboutcrop, were collected over a total strike length of 6 km. Of 26 selected skarn grab rock samples, 18 samples assayed > 0.10% WO₃; 7 samples > 0.50% WO₃; and 4 samples > 1.00% WO₃: ranging from 1.14% to 2.90% WO₃ (Table 3).

Table 3: Muchões W prospect rock sample assay result highlights.

Santa Comba area

Near the SE portion of the Moimenta-Almendra concession, the Santa Comba area is located some 7 km south of the Muchões prospect (Figure 1). The general area has been the site of extensive W-Sn semi-artisanal mining in the early to mid 20th century: at least 155 separate surface workings. The area was chosen as a target in light of past artisanal mining and historical geochemical anomalies.

Located within the area are alluvial anomalies of gold, scheelite, and cassiterite (grain counts) and stream sediment anomalies of arsenic, bismuth, tungsten, and tin. Alluvial anomalies are found in an E-W to NE-SW trending, elliptical shaped zone 5 km long by 2 km wide.

Mineralization appears to be related to ENE trending shear zones and quartz veining within a syntectonic granitic intrusion. Old surface mining works follow shear zones and greisen alteration in granite over an area 150 m wide by > 800 m long. Observed mineralization consists of arsenopyrite, pyrite, chalcopyrite, molybdenite, wolframite, cassiterite, azurite, bornite, covellite, malachite, and chrysocolla. Mineralization is hosted in two mica granite and occurs in thin quartz veinlets and veins, disseminated in greisen zones, and disseminated in the host granite.

All 16 grab rock samples collected show background Au values. However, all samples show anomalous values of either Ag, Cu, As or Bi: 6 samples > 20 ppm Ag and up to >200 ppm Ag; 9 samples show Cu values > 1000 ppm Cu: range from 1104 ppm to 5309 ppm Cu; 12 samples > 1000 ppm As: range from 1381ppm to 17795 ppm As (Table 4).

Table 4: Santa Comba area rock sample assay result highlights.

References

Colt Resources Inc. 2010, ÁREA DE PROSPECÇÃO E PESQUISA DE MOIMENTA – ALMENDRA, Relatório de Trabalhos e Investimentos Realizados no 2º Semestre de 2009

Corrula, L. M. 2010, LICENÇA DE MOIMENTA-ALMENDRA BLOCO DE ALMENDRA Sector de Santa Comba, RELATÓRIO DE ACTIVIDADES, Março de 2010