Colossus Minerals Provides Development Update and Announces the Addition of J. Alberto Arias to the Board of Directors

Colossus Minerals Provides Development Update and Announces the Addition of J. 
Alberto Arias to the Board of Directors 
TORONTO, ONTARIO -- (Marketwire) -- 03/28/13 -- Colossus Minerals
Inc. (the "Company" or "Colossus") (TSX:CSI)(OTCQX:COLUF) is pleased
to provide a development update for its 75% owned Serra Pelada
gold-platinum-palladium Mine. The Serra Pelada Mine 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, after market close on March 27, 2013, filed its Annual
Audited Financial Statements and Annual Management's Discussion &
Analysis ("MD&A"). For additional information regarding development
progress discussed below, please refer to the above documents which
can be found on the Company's website or on SEDAR ( 

--  J. Alberto Arias, Founder, General Partner and Portfolio Manager of
    Arias Resource Capital Management LP, who's shareholdings in Colossus
    recently exceeded 10% of the common shares has been appointed to the
    board of directors effective March 28, 2013.
--  The Company remains on track to start initial production early in the
    second half of 2013 at a rate of 250 tonnes per day ("tpd"). The
    Company's ramp-up plans for reaching 1,000 tpd by the end of Q1 2014 are
    still on track.
--  The Company continues with cautious and systematic development through
    the mineralized zone gathering valuable geotechnical information ahead
    of initial production. Rock quality has remained within expected
--  Process plant construction remains on schedule for commissioning to
    begin early in the second half of 2013; the total project is currently
    70% complete. More than 97% of engineering & procurement is complete,
    80% of concrete has been poured, half the structural steel for the
    project has been delivered to site and structural steel erection
    commenced in late February.
--  Other critical infrastructure construction also remains on schedule. The
    power line and power house are on track to be commissioned early in the
    second quarter of 2013 while the tailings dam is expected to be ready in
    conjunction with mill commissioning.
--  The Company exercised its option under the Vale Option Agreement on Area

Claudio Mancuso, Chief Executive Officer commented, "I am delighted
to welcome Alberto Arias to the board of directors. Alberto's mining
experience in Latin America complements our Board's skills and we all
look forward to working with him as we continue to advance Serra
Pelada to production. On the operations side, we are making steady
progress and we are now within five months of commissioning the
process plant. Underground development and infrastructure
construction are progressing towards our initial production target of
early in the second half of 2013." 
Underground Development 
The Company continues its systematic and cautious approach of
developing through the mineralized zone. The development is being
carried out under geotechnical supervision and the Company has
focused on detailed mapping of the different ground conditions
encountered and the ground support methods utilized. This
geotechnical data is being incorporated into the Company's mine plan. 
The Company has evaluated many different ground control techniques as
it has progressed through the mineralized zone including new
equipment and ground support tools and methods. The Company's focus
in this evaluation was to determine the safest and most cost
effective ground control practice to be applied across the varying
rock packages and ground conditions that are present at Serra Pelada. 
In conjunction with continued development through the mineralized
zone, the Company has begun constructing additional underground
infrastructure necessary to achieve 250 tpd of production early in
the second half of 2013. Construction includes widening of the
artisanal shaft which will be used as a ventilation raise and the
development of a drift to tie the underground infrastructure to this
ventilation raise. The ventilation project should be completed by the
end of May and will allow the Company to start using multiple sets of
equipment underground. Development of this drift towards the
ventilation raise is entirely in the red siltstone and development
rates have been as expected. 
Process Plant 
The various phases of the process plant construction, along with
respective percentages complete are presented in the table below. 

                                                       Feb 7 Update   Mar 27
Total Project                                                   60%      70%
Engineering                                                     95%      97%
Procurement                                                     95%      97%
Ball mill refurbishment                                         95%     100%
Earthworks                                                      95%     100%
Civil construction                                              55%      90%
Structural steel fabrication                                    25%      55%
Structural, mechanical, piping & electrical                                 
 installation                                      Contract awarded      30%

The Company has achieved a significant milestone this month
substantially completing all concrete placement and commencing the
structural, mechanical erection in various areas of the project
including the transfer tower and conveyors, reagents building, mill
feed bin and thickener. Please click on the link at the end of this
release to see updated pictures of construction progress. 
Surface construction activities continue to focus on the power house
and tailings dam. Power house construction continues to progress with
the structure now covered and construction of the mezzanine underway.
Construction of the power house is 85% complete, generators are
expected to be installed in the coming weeks and the power house is
expected to be operational by mid-April. Connection to the grid is
anticipated shortly thereafter. Tailings dam construction is
approximately 10% complete and is slightly ahead of schedule.
Earthworks are well underway and the completion of the tailings dam
is on track to be completed in conjunction with mill commissioning. 
On March 18, 2013, the Company exercised its option under the Vale
Option Agreement. Vale S.A. will have 45 days from receipt of the
notice of exercise from the Company to request additional documents
supporting the exploration investments made to date in satisfaction
of the Vale Option Agreement. The assignment of the mining rights on
Area B to Serra Pelada - Companhia de Desenvolvimento Mineral is
expected to occur within 30 days after Vale is satisfied the required
exploration investments have been made in accordance with the Vale
Option Agreement. For additional information regarding the Vale
Option Agreement, please refer to the Annual Information Form dated
March 27, 2013 which can be found on the Company's website or on
The Company's Board of Directors welcomes Mr. Arias to the Board. Mr.
Arias has over 20 years of experience in international mining finance
including being the Managing Director of Goldman Sachs - Metals &
Mining Research from 1998 to 2006, covering the sector globally. Mr.
Arias is originally from Peru, and has a family history, which spans
three-generations, of founding and managing mining companies. Mr.
Arias has engineering degrees in mining and metallurgy and an MBA
(B.Sc. from the Colorado School of Mines and three Masters degrees
from Columbia University), mining industry operational experience,
and holds a patent for a gold mineral processing technology 
About Arias: 
Arias Resource Capital Management ("ARCM"), a private equity firm
focused solely on the metals and mining sector globally, with a
primary focus in Latin America. ARCM manages approximately US$750
million for prominent foundations, endowments, banks, insurance
companies, pension funds and family offices in the US and Latin
About Colossus: 
Colossus is a development-stage mining company focused on bringing
its 75% owned Serra Pelada gold-platinum-palladium Mine into
production. The Serra Pelada Mine is a joint venture between Colossus
and COOMIGASP located in the State of Para, Brazil. Serra Pelada,
located in the mineral prolific Carajas region in the State of Para,
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. Colossus
Minerals Common 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. 
To view the updated pictures of the construction progress, please
visit the following link:
Colossus Minerals Inc.
Ann Wilkinson
VP, Investor Relations
(416) 643-7655
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