Henrique Simoes de Almeida
Bloomberg News
Lisbon, Portugal
mobile: +351 917-654-444
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email: halmeida5@bloomberg.net
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Colt Seeks ’Rapid Payback’ From Portuguese Gold Mining Project
2013-03-27 10:32:54.149 GMT
By Henrique Almeida
March 27 (Bloomberg) -- Colt Resources Inc., a gold
explorer, is confident the high-grade deposits found near the
surface of its flagship Boa Fe Montemor mining project in
Portugal will soon help turn it into a profitable operation.
“People chase projects deep in the jungle but here we have
a potentially world-class mining district unfolding right in
Portugal,” Chief Executive Officer Nikolas Perrault, 45, said
in an interview. “Because of the high-grade nature of the open
pits, we’re looking at a potentially very rapid payback.”
Colt, based in Montreal, took over the Boa Fe Montemor
mining project in 2011 after previous owner Tamaya Resources
Ltd. filed for bankruptcy. It has since invested close to $10
million to confirm and validate extensive historical work
carried out by previous operators and to advance the project
toward a mine development phase. Colt plans to bring the mine
into production in 2015, according to Perrault.
“The Boa Fe Montemor project is just the tip of the
iceberg and we believe the area has the potential to develop
into a world-class mining district,” Perrault said yesterday.
“Our high confidence in the Boa Fe mining project and high gold
prices is what is allowing us to move toward mine development.”
Colt plans to develop the Boa Fe Montemor project on its
own and finance the mine’s exploration from cash flow as opposed
to issuing new shares.
“Our idea is obviously to minimize dilution,” said
Perrault, who has a stake of about 3.26 percent in Colt.
Tungsten Project
The company owns nine mining concessions in Portugal and is
in talks with several potential partners for its tungsten
project in the north of the country, he said.
Tungsten is a metal used to harden steel in ballistic
missiles and in drill bits and is also mined in countries
including Russia, Bolivia and Peru.
“We’ve advanced the tungsten project to the point where
it’s now ready for a joint-venture strategy,” Perrault said.
“We have very active discussions ongoing with several groups
right now for the next phases of development of our tungsten
project,” he said without providing details.
Colt will provide more details about Boa Fe Montemor when
it issues a preliminary economic analysis about the mining
project next month, Perrault said.