Colossus Minerals Provides Development Update

Colossus Minerals Provides Development Update 
TORONTO, ONTARIO -- (Marketwire) -- 11/12/12 -- Colossus Minerals
Inc. (the "Company" or "Colossus") (TSX:CSI)(OTCQX:COLUF) is pleased
to provide a status of development at its 75% owned Serra Pelada
Gold-Platinum-Palladium Project. The Serra Pelada Project is a joint
venture between Colossus and Cooperativa de Mineracao dos Garimpeiros
de Serra Pelada ("COOMIGASP") located in the State of Para, Brazil. 
The Company is hosting a site tour for investors and analysts today
where new members of the site's management team will be introduced.
The Company is pleased to report that critical milestones remain on
schedule and an experienced team of professionals, both in the
underground operations and overseeing surface construction, remains
in place despite the management changes announced last week.  

--  Secondary development to access the bulk sample is well underway with
    just over 100 metres left to reach a new and deeper part of the Central
    Mineralized Zone providing a larger horizontal and vertical panel from
    which to extract a more representative sample.
--  The bulk sample will consist of approximately 1,500 tonnes of material,
    a portion of which is to be collected and sent for testing to Metsolve
    in Canada.
--  Ground conditions and water inflow remain very manageable. 
--  Plant construction progressing and remains on track for completion in
    the first half of 2013.

Claudio Mancuso, President and Chief Executive Officer commented,
"While the development phase of any mine is challenging and we've
dealt with our share of personnel changes, we are pleased with the
progress we are making and continue to anticipate production early in
the second half of 2013."  
Construction and Development at the Serra Pelada Project 
The bulk sample location was modified as part of the Company's
periodic re-evaluation of mine design and, as previously announced
additional development was added to the plan to provide for an
improved quality sample. Access has been collared and the development
heading is well underway; the extraction of the bulk sample remains
on schedule for the fourth quarter of 2012. The bulk sample will
consist of approximately 30 metres of devel
opment through the
mineralized deposit to extract approximately 1,500 tonnes of
material. Ten to 15 representative samples of 300 kilograms each will
be collected and sent for testing to Metsolve in Canada. 
Secondary development continued with the excavation of a second
underground drill bay from which delineation drilling commenced. In
total over 1,500 metres of underground development has been
completed. Underground mine dewatering has been upgraded and
additional high volume pumps installed to facilitate the pumping of
water directly from one of the deeper sumps to surface. The first
underground electrical substation has been commissioned, resulting in
improved power delivery and reliability of the underground project
During the third quarter of 2012, an existing artisanal shaft was
purchased and is in the process of being converted to a ventilation
shaft. The underground connection to this shaft access is ready for
break through after the shaft is dewatered which is anticipated to be
completed by the end of November 2012. Surface fencing of the shaft
is complete and construction of a concrete collar around the
artisanal shaft has begun. 
During the third quarter of 2012, a comprehensive re-assessment of
equipment requirements was undertaken to optimize productivity and
minimize equipment rentals. As a consequence, the purchase of several
new pieces of equipment was planned. The Company is finalizing an
agreement with Caterpillar to purchase four machines to aid in civil
work and stockpile management. The Company also decided to change
from standard surface dump trucks to four purpose-built Atlas Copco
MT-431B trucks. This change is anticipated to reduce maintenance,
allow for tighter radius turns and increased gradient in the
development plan, and to increase per-load hauling capability. The
four trucks along with a Boltec MC Rockbolter and a Simba 1254 Fan
Drill are anticipated to be purchased from Atlas Copco. Two of the
trucks are expected to arrive at site during the fourth quarter of
2012 and the other two are expected to arrive with the bolter and
drill in the second quarter of 2013.  
Construction continued on additional camp accommodations and
infrastructure. The infirmary has been completed and is operational;
the main office is complete and operational and the new 41-unit camp
has also been completed. Construction of the power generation
building continued and is expected to be completed early in the first
quarter of 2013. The previously announced financial problems with
Para State's electrical transmission company ("CELPA") have now been
resolved as CELPA was purchased by Equatorial Energia, Brazil's
second largest power distributor. Construction of the power line is
well underway with connection to site expected to occur in the first
quarter of 2013. 
Processing Plant 
DRA International is responsible for engineering and Merit
Consultants International Inc. is responsible for overseeing
construction of the processing plant. Construction of the processing
plant is expected to be completed in the first half of 2013. While a
significant amount of the site earthworks had been previously
completed, additional terracing and slope stabilization work is
required and this has delayed the start of civil construction, which
is expected to begin imminently. This minor delay caused by
additional terracing requirement is not expected to cause any
schedule delays as the Company has augmented the contractor's slope
stabilization work with the use of its own equipment and personnel.
Slope stabilization is expected to be completed in the next ten days
and civil construction will begin immediately thereafter. All of the
major plant equipment has been procured and the Gekko reactors and
Falcon concentrators are expected to arrive on site during the fourth
quarter of 2012. A steel purchase and erection contract has also been
awarded with the first structural steel delivery anticipated in
December. A contract to purchase all the necessary conveyor systems
has also been awarded with conveyors expected to arrive in the first
quarter of 2013. 
Visits from Regulatory Agencies 
Throughout September and October, site visits to Serra Pelada were
conducted by SEMA (Secretariat of Environment of the State of Para)
and DNPM (National Department of Mineral Production). The work of the
environmental and community relations departments was praised with a
number of significant strengths noted including a stated intention by
SEMA to use the environmental program conducted at Serra Pelada as a
benchmark for other companies. Equally important was the fact that
only minor weaknesses were identified and no written infractions were
issued. The weaknesses were addressed within 15 days and have already
been inspected during a follow-up visit. 
About Colossus: 
Colossus is a development-stage mining company focused on bringing
its Serra Pelada project into production. Serra Pelada, located in
the mineral prolific Carajas region in the State of Para, Brazil, is
host to one of the highest grade gold and platinum group metals
deposits in the world. Between 1980 and 1986 Serra Pelada was host to
the largest precious metals rush in Latin American history. Coverage
of this 
famous mining rush by 60 Minutes can be viewed by following
the link below. Colossus Minerals shares, warrants and notes trade on
the Toronto Stock Exchange (TSX) under the symbols CSI, CSI.WT.A and
CSI.NT respectively and in the United States its Common Shares trade
on the OTCQX under the symbol COLUF. The Company is headquartered in
Toronto, Canada.   
Forward-looking statements in this press release include statements
regarding the timing and nature of future exploration and development
programs that are dependent on projections that may change as
drilling continues, or if unexpected ground conditions are
encountered. The Company does not currently have any mineral
properties that are in production or that contain a reserve as
defined by National Instrument 43-101. In addition, areas of
exploration potential are identified which will require additional
drilling to determine whether or not they contain similar
mineralization to areas that have been explored in more detail.
Significant additional drilling is required at Serra Pelada to fully
understand system size. 
Except for statements of historical fact relating to Colossus,
certain statements in this press release relating but not limited to
the Company's exploration and development plans, activities and
intentions, constitute "forward-looking information" within the
meaning of the Securities Act (Ontario) or "forward-looking
statements" within the meaning of the United States Private
Litigation Reform Act of 1995. These forward-looking statements
represent management's best judgment based on current facts and
assumptions that management considers reasonable. Forward-looking
statements are frequently characterized by words such as "target",
"plan", "expect", "project", "intend", believe", "anticipate" and
other similar words, or statements that certain events or conditions
"appear to", "may" or "will" occur. Forward-looking statements are
based on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. The factors include but are not limited
to risks related to the joint venture operation, actual results of
exploration activities, the inherent risks involved in the
exploration and development of mineral properties, changes in project
parameters as plans continue to be refined, delays in obtaining
government approvals, the uncertainties of project cost overruns or
unanticipated costs and expenses, uncertainties relating to the
availability and costs of financing needed in the future, the
uncertainties inherent to conducting business in Brazil and the rest
of Latin America, the availability of equipment and supplies,
unexpected adverse climate conditions, the reliance on only a few key
members of management, as well as those factors discussed in the
section entitled "Risk Factors" in the Company's most recent Annual
Information Form filed with Canadian provincial securities regulatory
authorities and other regulatory filings which are posted on SEDAR at Unless required by law, Colossus undertakes no
obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking statements.
Colossus Minerals Inc.
Ann Wilkinson
VP, Investor Relations
(416) 643-7655
Press spacebar to pause and continue. Press esc to stop.