Anyone have any idea why COLUF down today despite gold and silver nicely up?
I know they diluted recently. I'm looking to buy some in a few weeks. Got in the 30 cent range recently.
Colossus opened around .17 today. Currently sitting at about .22 which is down about 46% today.
Market cap of 38 Million which is way below their enterprise value.
They issued a construction and development update and it seem that the dewatering is still a big problem. They even mention a possible connection with an aquifer which doesn't sound too good. Imagine the mine refilling endlessly. They are addressing this by increasing dewatering capacity.
They lost their CEO yesterday and appointed their CFO as interim CEO.
They report that they are finally going to get around to issuing a 43-101 resource estimate for Serra Pelada sometime in the 2nd qtr of 2014.
Colossus is still drilling and finding more Pt Pd & Au at decent grades.
Below is copied part of the recent report:
CONSTRUCTION AND DEVELOPMENT UPDATE
As of November 14, 2013, the Company had completed approximately 2,300 metres of total development; 1,500 primary and 800 metres secondary development. On July 15, 2013, the Company announced that some dewatering wells (bores) and pumps were not performing to design specifications and, as a result, the Company required additional dewatering capacity in order to mine the Central Mineralized Zone ("CMZ") in a sustainable, effective and efficient manner.
As disclosed in September 2013, several bores and pumps have been repaired and six bores are now operating. Refurbishment of three additional bores was not successful. Total dewatering capacity is currently at 790 m3 per hour. Three more bores are in the process of being refurbished. Two additional bores with a capacity of 250 m3 per hour each are being established. Installation of this equipment has been delayed due to issues of mobilizing drill rigs to site and equipment supply. It is currently expected that the first of the two new wells will be operational by early December 2013.
The rate of recharge to the bore field has been observed to be approximately 20% higher than anticipated during the period September and October 2013. This is being investigated by our hydrological consultants. It is considered likely that this is the result of interconnection with an aquifer. Recently, the rate of recharge has reduced to the rate expected from the hydrological model and the bore field water level has resumed its anticipated rate of drawdown. Prior to this observation, in the third quarter, the Company decided to build contingency into its dewatering program by drilling the second of the two new wells referenced above. Establishment of this well is already underway and it is expected to be operational by mid December 2013. The Company has concluded that certain wells are not salvageable. Total capacity, upon completion of the two new wells and the refurbishment program, is expected to increase total flow to the range of 1300 - 1400 m3 per hour. The Company's hydrology consultants continue to monitor recharge rates and water table drawdown and the Company believes that the targeted dewatering capacity has sufficient contingency to remove the volume of water necessary to allow sustainable mining in 2014. Infrastructure development in the red and grey siltstone has not been impacted however and continues to progress according to plan. The resources of the Company are focused on mine infrastructure development and additional dewatering in order to achieve the Company's plans of delivering ore to the process plant during the second quarter 2014.
Expansion of the ventilation system has progressed with completion of Phase I, which included installation of vent fans and ductwork in the mine, to draw air through the vent raise and increase air flow to 45m3/s. This three-fold increase in air volume to the underground operations was achieved by the end of the third quarter. At this time, there is sufficient ventilation to complete all infrastructure up to the point that production mining starts. In order to achieve the planned rates of production, the ventilation system requires further expansion to 140m3/s. This will provide sufficient air to support four crews and sets of equipment. The Phase II expansion work includes widening and concrete lining the artisanal shaft which will be used as a ventilation raise as well as to provide secondary access and egress. Development of the drift to tie the ramp to this ventilation raise at depth is advanced by approximately 75%. The Phase II ventilation system upgrade is approximately 60% complete. The additional three-fold increase in air volume is expected to occur in the first quarter of 2014, with completion of the shaft expansion and installation of associated surface vent fans.
The Company continues to make progress in its mine planning activities and has laid out the month by month development for the remainder of 2013 and 2014 below. Specifically, the Company's anticipated production schedule for the advancement of development at the Serra Pelada Mine is as follows:
The various phases of the construction, along with respective percentages complete are presented in the table below.
The Company has continued its comprehensive internal evaluation of a number of different mining methods. Preliminary results from the geotechnical evaluation indicate that a more cost effective alternative to underhand-cut-and-fill may be achievable in certain sections of the mineralized area. The Company is evaluating alternatives such as conventional-cut-and-fill and other methods. This evaluation has led to procurement of new equipment and ground support tools which are now on site and being used to assist management in determining whether an alternative mining method will be viable.
Roscoe Postle Associates Inc. ("RPA") has been engaged to prepare an initial National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant resource estimate for the Serra Pelada Mine which the Company expects to complete in the second quarter of 2014.