Penedono
Advanced Exploration Stage Gold Concession in Portugal
Location
The Penedono concession comprises three separate blocks covering 102.471 km2, located in north central Portugal, four hours driving time from Lisbon. Roads provide ready access throughout the concession, infrastructure and local resources are excellent and the local population is supportive of resource development.
| Click image to enlarge |
 |
Mineralization
The concession is largely underlain by upper Paleozoic age leucocratic “S Type” two-mica granite. Rocks include equigranular to feldspar porphyritic, muscovite only to muscovite-biotite granite. AIl gold mineralization on the concession is hosted by the “two-mica granite”. Several clusters of auriferous quartz veins locally containing tungsten mineralization occur within a broad west-northwest trending 16 kilometre long belt.
Exploration History
The concession area was explored and exploited for gold since the Roman times. Numerous excavations attest to tungsten mining during the 1940s and 1950s. In the mid-1950s, the Santo Antonio gold mine (same vein system) went into production and operated for three years.
The most serious exploration work was executed by Rio Narcea Gold Mines S.A. From 1998 to 2005, the company conducted extensive exploration programs consisting of geochemical sampling, mapping, geophysics, trenching and diamond drilling. Reported expenditures totalled more than €1,300,000.
Including 2007 and 2008 Colt’s drilling programs, five drilling campaigns were completed on the concession since 1996, with a total of 5,233 metres in forty-six holes. To date twenty-five holes totaling 3,168 metres have targeted the Santo Antonio vein system.
Recent exploration Work done by Colt
In 2007, Colt drilled 12 holes (1,355 m) on the Vein 4 and 5 as the widely spaced Rio Narcea holes indicated further potential. Additional mineralized intercepts in veins 4 and 5 indicate a 260 metres strike Iength and a vertical extent of over 110 m. Veins 4 and 5 are considered open in aIl directions. Several gold intercepts in Vein 5 range from 0.23 to 8.96 g/t and vein widths were narrower at 0.57 to 1.53 m. A newly Iocated vein system oriented at 450 to Vein 4 was encountered to depths of 80 metres below surface. Notable intercepts include 1.21 g/t Au over a core Iength of 17.00 metres including 8.40 g/t Au over 0.57 metres.
In 2008, Colt drilled two of the westernmost known veins (Veins 11, 13) of the Santo Antonio cluster where no previous drilling has taken place. Gold and occasional tungsten mineralization was encountered not only in quartz veins but also in greisen-altered granite. The extent of greisen development is substantially greater than that seen in veins further east. Mineralized zones were intersected at depths up to 100 metres below surface. Intercepts of note include 4.62 g/t Au over 12.80 metres and 5.89 g/t Au over 8.14 metres in Vein 11 and 59.99 g/t Au over 1.47 metres in Vein 13. In one hole, tungsten grades of up to 0.30% W were reported.
| Click image to enlarge |
 |
Interpretation and Conclusions (according to 43-101 report)
The early mining history and the more recent exploration programs have identified several gold and tungsten mineralized areas on the Penedono concession. It s apparent that there exist hydrothermal systems with the capacity and potential to host significant gold and tungsten deposits. Colt’s exploration programs over the last two years have successfully met their objective of testing and delineating gold mineralized veins on the Santo Antonio area. Previously unexplored veins were drilled and in some cases, new mineralized vein zones were discovered. The full potential of the Santo Antonio and other gold mineralized areas on the concession have yet to be realized.
Recommended Exploration Program (according to 43-101 report)
Based on results to date a two-phase exploration program is planned.
Phase I proposed work entails detailed ground radiometric surveys, prospecting and rock sampling over Santo Antonio “West” (2008 drilling area), Marofa and Turgueira. Coincident radiometric-geochemical anomalies should be targeted by trenching and/or drilling.
Phase lI consists of continued exploration at Santo Antonio, Marofa and Turgueira areas to expand on the Phase I work. Drilling is proposed for Marofa and Turgueira (1,250 metres each) to expand the testing of the radiometric-geochemical anomalies. Part of the drill program should also be dedicated to Santo Antonio. A detailed sampling program of the Santo Antonio tailings is recommended to establish the gold-tungsten grade and the volume of mine tailings.
The Phase I program is estimated to cost €255,000, while Phase Il is estimated at €400,000. At an exchange rate of 1.55 (Nov/08 average exchange rate), the two-phase program equates to CDN $1,015,250.
| Click image to enlarge |
 |
Financial Obligations
- Under certain terms and conditions, Colt is also obligated to pay Rio Narcea Portugal (the seller of the concession) 1% Net Smelter Returns Royalty for a maximum amount of US $1,000,000
- Colt is obligated to pay to the Portuguese Government Exploration License fees, as follows:
- €5,125 on or before October 29, 2007 (already paid)
- €2,562.50 on or before October 29, 2008 (already paid)
- €5,125 on or before October 29, 2009
- Should the property be placed into commercial production, Colt is obligated to pay 4% Net Smelter Returns Royalty to the Portuguese Government