Colt Resources Inc. Announces NI 43-101 Technical Report on Exploration of the Montemor Gold Project in Southern Portugal

MONTREAL, March 7 /CNW/ -- 

 

Trading Symbols:           GTP - (TSX-V)
                           P01 - (FRANKFURT)
                           COLTF - (OTCQX)

MONTREAL, March 7 /CNW Telbec/ - Colt Resources Inc. ('Colt' or the
'Company') (TSXV: GTP) (FSE: P01) (OTCQX: COLTF) is pleased to announce today that the NI 43-101 Technical Report on
Exploration of the Montemor Gold Project prepared by SRK Consulting
(U.S.), Inc. ('SRK') in collaboration with SRK Exploration Services
('SRK ES') has been filed on SEDAR. The full text of the report will
also be available on the Company's website, www.coltresources.com

Property Description and Location

The Montemor Project is located in the Alentejo Region of Portugal,
approximately 100km east of the city of Lisbon, near the town of
Santiago do Escoural. The project is centered at the UTM coordinates of
569,419E, 4,270,860N, within the WGS84 Zone 29N system. The Project is
accessed via highway (A6 motorway) and secondary paved roads from
Lisbon. The current license area (Boa Fé experimental mining license,
or Boa Fé license area) encompasses 46.8km(2), with an additional 732.611 km(2) of exploration concession (Montemor exploration concession) staked
surrounding the Boa Fé license area.  Both licenses are currently in
the approval process by the Portuguese mining authorities.

Conclusions and Recommendations of the Report:

Conclusions

The Montemor exploration concession is a prospective area containing
historical resource estimates that range from >150koz to 550koz Au, as
defined over the period 1991-2008, comprising five separate
deposits. Through a combination of resource expansion on the existing
experimental license area, and regional exploration along the defined
shear zone in the Montemor exploration area currently under
application, SRK is of the opinion that the potential exists to expand
this historical resource to a range of 8-12Mt, grading an average of
2.5-3.0 g/t Au grade above a potentially economic cut-off, contained in
a series of small open pit and underground deposits.

Exploration on the Boa Fé experimental license area of Montemor is
extensive, but only at shallow depths (60-80m), and has not had modern
geophysical methods applied to it. The much larger exploration
concession currently under application appears to hold significant
potential, given the postulated extension of the currently defined Boa
Fé shear zone in the experimental mining license area. Therefore, the
potential to extend both the strike length and down-dip extension of
known mineralized zones, as well as the discovery of new host
structures and potential mineralized zones beneath cover exists.

Initial metallurgical testwork has demonstrated that gold is readily
recoverable from Montemor mineralized material using a combination of
gravity, flotation and cyanidation technologies. A likely processing
strategy would be onsite gold recovery into gravity and flotation
concentrates that could be transported offsite for regrinding and
cyanidation to recover the gold as a final doré product.  SRK
recommends additional process amenability testwork, which would include
assessment of alternative processing technologies to alleviate the
issues of arsenic recovery and disposal.

Recommendations

SRK recommends that Colt conducts a regional exploration program on the
larger exploration concession area to identify continuations of known
structure and mineralization and to locate and prove up previously
unknown buried targets within the Project area. This work will
initially involve an historical data compilation and review, detailed
regional structural studies and preliminary target generation and
ranking. This will then be followed by the design of an appropriate
field program for each regional target identified. These programs will
involve multi-element geochemistry, detailed ground geophysics and
detailed structural analysis to identify and rank five to six quality
targets for drilling by the third quarter of 2011.

SRK also recommends that Colt conduct a comprehensive resource expansion
program across the known mineralized targets on award of the
experimental mining license, targeting extension of mineralization both
along strike and at depth. The work will involve detailed 3D structural
interpretation, as well as targeted infill and step-out drilling
programs to confirm existing results and expand known mineralized
zones. Additional verification drilling and modeling of historical
drilling and updating of resource estimates would also form part of
this work and an NI 43-101 compliant resource report would be produced.

Additional metallurgical studies should be conducted to more fully
define ore processing parameters once the resource is more fully
defined.  Emphasis should be placed on the off-site processing
strategies for recovery of gold from the gravity and sulfide flotation
concentrates. This work should fully consider the disposal strategies
for the residues from off-site processing, with particular emphasis on
the safe handling of the arsenic contained in these residues.

'We are very pleased with this initial review of the vast amount of
historical data obtained with the acquisition of this project. Colt's
team looks forward to working closely with SRK Exploration Services in
the design and execution of an extensive exploration strategy aimed at
unlocking the exceptional potential we feel exists on the Boa Fe shear
zone. It seems that historical work has only focused on a small portion
of what appears to be a significant regional system.' commented Nikolas
Perrault, President and CEO of Colt.

The technical portions of this news release have been prepared and
approved by Jeffrey Volk, Eric Olin and Anthony Gareth O'Donovan of SRK
Consulting (U.S.) Inc., all qualified persons as defined by National
Instrument 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 second largest
lease holder of mineral concessions.

In addition to the Tabuaço tungsten project located on the Company's
100% owned Armamar-Meda concession in northern Portugal, Colt holds
gold and base metal properties in Portugal.

Colt is presently 51% owner and operator of the advanced stage Montemor
gold project located in southern Portugal for which it is currently in
the process of obtaining an Experimental Mining License with the
Direcção-Geral de Energia e Geologia, a division of the Portuguese
Ministry of Economy and Innovation. Colt is on a clear path to 100%
ownership of this project (see: August 10, 2010 press release and October 13, 2010 press release).

At the Penedono gold project, located on the Company's Penedono
concession in northern Portugal, a trench and drill program is
currently underway to test near surface gold mineralization at the
Turgueira prospect (see: October 28, 2010 press release).

The Company also holds a large base metals concession, Santa Margarida
do Sado, in southern Portugal, located in the Iberian Pyrite Belt
('IPB') a 60 km wide by 250 km long mineralized belt that extends from
the southwest coast of Portugal to Spain. This world class massive
sulphide environment has been explored for many years and a number of
important mines have been discovered and exploited for copper, lead,
zinc, locally including silver and gold. The IPB is host to 5
supergiant volcanogenic massive sulphide deposits. Two of these occur
in Portugal, namely Neves Corvo and Aljustrel, and are located 75 and
35 km southeast, respectively, of Santa Margarida. Colt filed a NI
43-101 Technical Report on the Santa Margarida do Sado property on
February 14, 2011 (see: February 16, 2011 press release). The Company is currently implementing the recommended follow-up
exploration program.

Portugal is a mining friendly member country of the European Union (EU)
with easy access, excellent infrastructure and available labour force.
Colt maintains excellent government relationships at both state and
municipal levels. The company is currently reviewing potential EU
financial incentive programs.

SRK Consulting (U.S.) Inc. has been awarded a broad mandate to provide
overall technical assistance to Colt in Portugal and will be producing
several NI 43-101 compliant reports as projects progress (see: January 18, 2011 press release).

Jeffrey Volk, MSc, CPG, FAusIMM, of SRK Consulting (U.S.) Inc., is the
independent qualified person, as defined in NI 43-101, for Colt's
projects in Portugal.

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 annual
information form dated February 14, 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.

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