Colt Resources releases drill results for Monfurado gold deposit
By Steven Ralston, CFA
Yesterday, Colt Resources (TSXV:GTP.V) (V.GTP) announced the assay results for a drilling campaign at the Monfurado deposit located within the Montemor exploration concession in Portugal. The drilling program was composed of 12 diamond drill holes totaling 1,305.8 meters. All 12 bore holes intersected intervals of gold mineralization. Noteworthy assay results at the Monfurado deposit include MOMF-12-007 intersecting 1.46 g/t gold over 10.15 meters and MOMF-12-011 intersecting 1.59 g/t gold over 4.86 meters.
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The assay results confirm a near surface gold deposit previously identified by trenching and drilling. Importantly, the drilling program has advanced the understanding of the Monfurado deposit in several ways.
1 – The assay results have been utilized to better understand the nature of the deposit and to contribute to the preparation of an informative cross section diagram of gently-dipping, structure-controlled zone of gold mineralization between two lithostratigraphic units.
2 – The assay results are expected to support a part of the upcoming NI 43-101 compliant mineral resource estimate scheduled to be published during the first quarter of 2013.
3 – The Monfurado deposit has not yet been incorporated in our valuation model of Colt Resources. A prior non-compliant resource estimate of the Monfurado deposit calculated by an international consulting group under the auspices of Rio Tinto/ Riofinex and Portuglobal/MRI was relatively modest. We look forward to a NI 43-101 compliant resource estimate to confirm and potentially expand the historical 10,400 ounce inferred resource estimation.
4 – The gold mineralization at Monfurado remains open both down dip and along strike.
We reaffirm our Outperform rating and price target of $1.70, which is based on an estimated share value of attributable resources.
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