Since recommending Colt Resources to readers in September at $.10, Colt's share price currently sits at $.25 for a gain of 150%. Investors are beginning to appreciate Colt's two prong high-grade tungsten and high-grade gold approach to success. Colt recently completed a small private placement and management is hosting a property tour this week with analysts and potential institutional investors. Even with the current share price of $.25, this is still a company with a tiny market cap under $10 million. The Coffin brothers continue to follow this story and should be impressed by the high-grade tungsten drill results announced today (January 20th). Reports from other tungsten juniors indicate the Chinese come calling once a nice hole is pulled and this high-grade hole may draw such interest. Since the average grade of producing tungsten mines is 0.5% WO3, anything higher is considered high grade and will grab investors attention. The press release is shown below:
Colt Resources drills 18.8 m of 0.73% WO3 at Tabuaco
2010-01-20 08:51 ET - News Release
Mr. Nikolas Perrault reports
COLT RESOURCES INC. REPORTS ON DIAMOND DRILLING RESULTS ON THE TABUACO TUNGSTEN PROJECT NORTHERN PORTUGAL
Colt Resources Inc. has provided the first assay results from the diamond drilling program on its 100-per-cent-owned Tabuaco tungsten project. The initial hole successfully confirmed significant historical tungsten results over a wide interval. The current drill program objective is to confirm and expand on the historical resource (non-NI 43-101-compliant).
Located on the 436.81-square-kilometre Armamar-Meda concession in northern Portugal, the Tabuaco tungsten project is situated about 100 km east of the coastal city of Porto. Past exploration in the Tabuaco area in the early 1980s led to the discovery of significant tungsten mineralization at Sao Pedro das Aguias.
Mineralization consists of fine- to coarse-grained disseminations of scheelite within thick (up to 19 metres) shallow-dipping skarn horizons in metasedimentary rocks adjacent to a major intrusive unit. Limited widely spaced drilling at the Sao Pedro das Aguias zone produced significant historic drill results including 19.35 m grading 1.18 per cent WO3. A non-NI 43-101-compliant historical resource of one million tonnes grading 0.87 per cent WO3 was calculated by the S95PE-BRGM joint venture in the early 1980s.
The goal of the current diamond drilling program by Colt Resources at Sao Pedro das Aguias is to verify historical drilling results and to confirm and expand the historical resource. Drilling is also planned to test lateral southeast and northwest extensions of the main skarn horizon, as well as newly discovered lower skarn horizons, located about 40 m below the main skarn horizon.
To date, Colt has completed two shallow drill holes, DHT-01B and DHT-02; a third hole is under way. Hole DHT-01B, total depth of 59.85 m, intersected two shallow skarn horizons at 7.10 m to 11.85 m and at 19.15 m to 21.25 m and then cut the main skarn horizon at 24.18 m to 37.95 m. The skarn horizons are well mineralized with generally coarse-grained scheelite mineralization (visible under ultraviolet light).
Average grade results from hole DHT-01B show two major intervals: an upper interval of 4.75 m grading 0.52 per cent WO3; and a lower interval, which includes the main skarn horizon, of 18.80 m grading 0.73 per cent WO3. The lower interval includes 13.77 m grading 0.84 per cent WO3, which includes zones of 3.00 m grading 1.14 per cent WO3 and 6.32 m grading 0.99 per cent WO3. These wide and high-grade results confirm and compare well with nearby historical drill hole results of 19.35 m grading 1.18 per cent WO3.
Hole Depth From To Interval % WO3*
No. (m) (m) (m) (m) (calc.)
DHT-01B 59.85 7.10 11.85 4.75 0.52
19.15 37.95 18.80 0.73
includes 19.15 21.25 2.10 1.01
includes 24.18 37.95 13.77 0.84
includes 24.18 27.18 3.00 1.14
includes 29.18 35.50 6.32 0.99
*calculated
Hole DHT-02, total depth of 90.30 m, located 100 m southeast of hole DHT-01B, intersected an early mixed skarn horizon at 52.60 m to 54.80 m and then the main skarn horizon at 54.80 m to 65.25 m. As in hole DHT-01B, skarn horizons contain coarse-grained scheelite mineralization (visible under ultraviolet light). This core has been sampled and shipped for analysis: results are pending.
Colt is extremely encouraged by the significant widths and grades encountered in hole DHT-01B and in the scheelite mineralization encountered in hole DHT-02 (results pending). Hole DHT-03, located approximately 100 m southeast of hole DHT-02, is currently being drilled.
Additional drilling is planned to test strike extensions of the main skarn horizon and newly discovered lower skarn horizons located about 40 m below the main skarn horizon. Mapping and local surface sampling in these poorly exposed areas returned very encouraging tungsten results extending over a strike length of over one km.
Colt believes that the combination of the following favourable factors may indicate the presence of a tungsten deposit with world-class potential.
Location:
Project is located in a mining friendly, stable state, member of the European Union.
Project area has an excellent, established infrastructure and road access.
Project is situated in close proximity (tilde), 100 km, to coastal port facilities.
Mineralization potential:
Original historical resource estimation was very preliminary, being based on six shallow drill holes and channel sampling. The areal extent of blocks used in the estimation was less than 300 m by 180 m. This covers less than half of the potential area of the exposed main skarn horizon at Sao Pedro das Aguias.
Extensions of the Sao Pedro das Aguias main skarn horizon over a strike length of nearly one km, as well as recently discovered skarn zones located about 40 m below the Sao Pedro das Aguias main skarn horizon, remain poorly explored and have never been drill tested.
The region surrounding the project area contains several encouraging tungsten occurrences and remains largely underexplored.
Elements suggesting mining potential at Sao Pedro das Aguias include the following:
Local relatively high tungsten grades in the order of 0.5 per cent WO3 and higher.
Skarn horizons are relatively thick, five to 20 m, and gently dipping, 5 degrees to 25 degrees.
Mineralization consists of fine- to coarse-grained disseminations of scheelite.
Mineralized skarn horizons are generally devoid of sulphides.
Colt will be giving priority to the Tabuaco tungsten project with the aim of fast tracking development.
Sample intervals are reported as metres (m) downhole and as such do not represent true width. The actual dip of the skarn-controlled mineralization is generally shallow.
All samples were analyzed at OMAC Laboratories Ltd., Galway, Ireland, an ISO 17025 accredited facility. Samples were analyzed using a metaborate fusion followed by ICP-MS. Assay results for tungsten are reported by the laboratory as W per cent. WO3 values are calculated using a conversion factor of 1.261.
Quality control
A set of standards, duplicates and blanks is employed by Colt in its sample stream as well as the laboratory's own standards and duplicates. Results to date are well within the accepted norm.
The technical portions of this news release have been prepared and approved by J.W. Murton, PEng, a qualified person as defined by National Instrument 43-101. Mr. Murton is a director of Colt.
Colt recently completed a small private placement and management is hosting a property tour this week with analysts and potential institutional investors. Even with the current share price of $.25, this is still a company with a tiny market cap under $10 million.
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