Updated NI 43-101 Resource Estimate for Colts 100% Tabuaço Tungsten Project, Northern Portugal

Trading Symbols:

MONTREAL, Oct. 3, 2012 /PRNewswire/ - Colt Resources Inc. ("Colt" or the "Company") (TSXV: GTP) (FRA: P01) (OTCQX: COLTF) is pleased to announce an updated resource estimate for its 100% owned Tabuaço (São Pedro das Águias) tungsten project, located in the Company's wholly owned Armamar‐Meda concession in northern Portugal. Drilling has increased both the level of confidence and the size of the resource as is reflected by the inclusion of additional material from the recently announced Aveleira zone discovery. The estimated contained WO3 in the Indicated Mineral Resource category has almost doubled to 815,000 MTU's.

Table 1 - Tabuaco/Aveleira Tungsten Project Resource Highlights (0.3% WO3 Cut-off Grade)

November 2011
Resource Estimate
October 2012
Resource Estimate
Resource Category Tonnage
(% WO3)
(MTU WO3)*
(% WO3)
(MTU WO3)*
Indicated Mineral
760 0.58 440,000 1,495 0.55 815,000
Inferred Mineral
1,330 0.57 760,000 1,230 0.59 720,000

* The term "MTU" is an abbreviation for one "Metric Tonne Unit" and is equal to 10Kg of material.

"We are very pleased with this updated estimate which has been focused only on a portion of a larger zone of mineralization at Tabuaço which remains open. The inclusion for the first time of inferred resources from the nearby discovery at Aveleira clearly demonstrates the potential to continue to grow this significant tungsten deposit. This announcement coincides with our decision to proceed with a Preliminary Economic Analysis (PEA) while continuing to test the upside potential through our ongoing drilling program. Colt remains committed to identifying an industry partner to jointly develop this project and discussions are currently underway to accomplish this objective. Results continue to corroborate the high grade nature of the mineralization confirming Tabuaço to be one of the highest grade, undeveloped tungsten deposits in Europe", said Nikolas Perrault, Colt Resources President and CEO.

The objectives of Colt's exploration activities since announcing the initial NI43-101 resource estimate in November 2011 have been 1) to increase the level of confidence in the known deposit area; and 2) to test the potential to expand the deposit. The infill drilling program has succeeded in increasing confidence as is demonstrated by the expansion by 95% of the Indicated Mineral Resources. The deposit expansion program has successfully indentified the presence of mineralization 700m away at Aveleira. A portion of this mineralization has been estimated and is included in the Inferred Mineral Resources at this time. Colt's next phase of in-fill drilling will be designed to upgrade this zone. Colt will also continue to test the area between the two deposits. Initial drill results indicate the presence of mineralized skarns in the gap between them (Press Release: September 18, 2012).

Since the Company's initial resource estimate report was published (Press Release: November 7, 2011), approximately 4,500m of drilling has been completed representing 46 drill holes designed to increase the drilling density at Tabuaço, to test mineralization at Aveleira and to test for mineralization between Tabuaço and Aveleira. To date, Colt has drilled 77 drillholes on the property for a total of approximately 8,000m. The model used for this estimate is now based on 62 assayed drillholes (31 previously).

Resource Estimate Highlights

  • Indicated Mineral Resources have almost doubled in tonnage as a result of the new drilling, overall the Mineral Resources have increased by a third; grade remains similar.
  • Indicated resources total 1,495,000 tonnes with an average grade of 0.55% WO3.
  • Inferred resources total 1,230,000 tonnes with an average grade of 0.59% WO3.
  • The Aveleira model in particular remains open in several directions and the gap in between Tabuaço (São Pedro das Águias) and Aveleira is now considered to have good Exploration Potential

SRK (ES) has supervised drilling, sampling and assay quality control procedures. The drilling database and surface mapping have formed the basis of the geological and grade models. Geological understanding at the deposit has improved with recent drilling allowing several mineralised skarn domains to be modelled and estimated at SPA and a two-layer model to be developed for Aveleira. All geological modelling was undertaken in Gemcom mining software ("GEMS") by Colt engineers and geologists with review by SRK (UK). In addition, SRK (UK) has reviewed grade modelling and resource reporting.

Table 2 summarises the Mineral Resource, stated at a 0.3% WO3 cut-off grade, within the defined mineralisation models. The Mineral Resource Statement is reported in accordance with the CIM Guidelines and Definitions. Classification of the Mineral Resource is based on quality control data, geological continuity and an assessment of block grade estimation quality. The estimate is considered to have reasonable prospects for eventual economic extraction, as it is constrained by a cut-off grade derived from reasonable underground mining and processing costs and recoveries.

Classification Tonnage Grade Contained Metal Contained Metal Contained Metal
kt WO3% t WO3 lb WO3 MTU WO3
Indicated Mineral Resources 1,495 0.55 8,150 18,000,000 815,000
Inferred Mineral Resources 1,230 0.59 7,200 16,000,000 720,000

Table 2 - Tabuaço/Aveleira Mineral Resource Estimation

In summary, the processes and parameters used to derive the Mineral Resource Statement are as follows:

  • A cut off grade of 0.3% WO3 has been used to constrain the Mineral Resource estimate;
  • This cut-off grade is based on a WO3 price of US$300/mtu, an underground mining cost of US$30/t and a processing cost of US$22/t, (costs supplied by SRK (Denver), and agreed by Colt);
  • This resource model has been wireframed using GEMS. Grade interpolation was undertaken using Ordinary Kriging at SPA and Inverse distance weighting at Aveleira, with block model dimensions of 12.5m in the X direction, 12.5m in the Y direction and 2.5m in the Z direction. This is reasonable given the drill spacing across the project area. Variography and grade estimation were undertaken in GEMS. Search ellipsoids were derived based on drillhole spacing and a three search pass strategy;
  • Data quality, geological continuity and block grade estimation quality were all assessed to determine the classification of the Mineral Resource.

Table 3 - Tabuaço/Aveleira Grade-Tonnage Curve (figures have been rounded).

October 2012, Grade-Tonnage Curve
Cut-off Grade
(% WO3 )
(% WO3)
(t WO3)
(lb WO3)
Indicated Resources
0.00 2,365,000 0.41 9,650 22,000,000 965,000
0.05 2,240,000 0.43 9,650 22,000,000 965,000
0.10 2,150,000 0.44 9,500 22,000,000 950,000
0.15 2,020,000 0.47 9,400 20,500,000 940,000
0.20 1,855,000 0.49 9,100 20,000,000 910,000
0.25 1,710,000 0.51 8,800 19,500,000 880,000
0.30 1,495,000 0.55 8,150 18,000,000 815,000
0.35 1,300,000 0.58 7,600 16,500,000 760,000
0.40 1,095,000 0.62 6,750 15,000,000 675,000
0.45 945,000 0.66 6,200 13,500,000 620,000
0.50 790,000 0.68 5,400 12,000,000 540,000
Inferred Resources
0.00 3,950,000 0.27 10,800 24,000,000 1,080,000
0.05 3,550,000 0.30 10,800 24,000,000 1,080,000
0.10 2,990,000 0.34 10,300 22,500,000 1,030,000
0.15 2,280,000 0.42 9,500 21,000,000 950,000
0.20 1,880,000 0.46 8,700 19,000,000 870,000
0.25 1,550,000 0.52 8,000 17,500,000 800,000
0.30 1,230,000 0.59 7,200 16,000,000 720,000
0.35 1,010,000 0.63 6,400 14,000,000 640,000
0.40 810,000 0.72 5,800 13,000,000 580,000
0.45 700,000 0.74 5,200 11,500,000 520,000
0.50 630,000 0.78 4,900 10,780,000 490,000

Table 3 shows the sensitivity of resource tonnages to cut-off grade.

All samples used for this estimate were sent by courier to OMAC Laboratories Ltd, Galway, Ireland or to ALS Laboratory Group, Seville, Spain. Samples were analyzed for W and Sn using a metaborate fusion followed by XRF analysis. Assay results for tungsten were reported by the laboratory as W%. WO3 values were calculated using a conversion factor of 1.2611.

A set of standards, duplicates and blanks is inserted by Colt into the sample stream on a regular basis in addition to the laboratory's own internal QA/QC standards and duplicates. QA/QC results to date are well within the accepted norm.

Tabuaço/Aveleira Next Steps

  • Drilling, during the remainder of 2012 and during 2013, will be expanded, to test the area between Aveleira and Tabuaço where initial results have indicated the presence of tungsten mineralization. Colt will also continue to test other prospects in the region within Colt's 100% controlled exploration concession.
  • Environmental impact studies will continue so as to optimize the mining and processing facilities and minimize their environmental impact.
  • Geotechnical drilling will be performed to test ground conditions along potential underground access routes.
  • Bulk samples will be collected so as to allow more detailed metallurgical testwork to improve recoveries and assist in designing optimal processing methods.
  • A Preliminary Economic Assessment and Tabuaço/Aveleira is scheduled to be prepared during the first quarter of 2013.

SRK (ES), with input from SRK (UK) for specific sections, will be the authors of a NI 43-101 compliant Technical Report on the Mineral Resource Estimate for the Tabuaço Project, to be filed within 45 days of this news release. SRK (ES) and SRK (UK) are independent of Colt Resources as defined by NI 43-101.

About Colt Resources Inc.

Colt Resources Inc. is a Canadian junior exploration company engaged in acquiring, exploring, and developing mineral properties with an emphasis on gold and tungsten. It is currently focused on advanced stage exploration projects in Portugal, where it is the largest lease holder of mineral concessions.

SRK (ES) Managing Director - Gareth O'Donovan CEng MSc BA (Hons) FIMMM FGS, is an independent Qualified Person, as defined in NI 43‐101, for Colt's projects in Portugal. Mr. O'Donovan has reviewed the content of this press release, and consents to the information provided and the form and context in which it appears.

SRK (UK) Director - Martin Pittuck CEng MIMMM, is an independent qualified person, as defined in NI43‐101, for the Tabuaço Mineral Resource estimate. Mr. Pittuck has reviewed the content of this press release, and consents to the information provided and the form and context in which it appears.

The Company's shares trade on the TSX‐V, symbol: GTP; the Frankfurt Stock Exchange, symbol: P01; and, the OTCQX, symbol: COLTF.

FORWARD-LOOKING STATEMENTS: Certain of the information contained in this news release may contain "forward-looking information". Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of Colt Resources Inc. (the "Company"), or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Company's revised annual information form dated April 20, 2011 available on SEDAR at www.sedar.com and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does the Company undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


PDF available at: http://stream1.newswire.ca/media/2012/10/03/20121003_C3969_DOC_EN_18817.pdf