C O M PA N Y P R O F I L E
Colt Resources is on course to revive Portugal’s gold and tungsten mining With exploration in advanced stages at two flagship projects the company can look to generate important cash flow in the next few years to drive further activity in the country and across the world Written by: Tom Wadlow Produced by: James Pepper 3
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C Managers inspect the Boa Fé site
“I want to have both of our mines producing so we can then generate cash flow and invest in our other projects. We want to spread our activities through Europe and the Middle East, and other locations all over the world” – Luis Martins, Business Development Manager 4
August 2014
olt Resources has already invested €60 million in its plan to begin gold and tungsten mining at two sites in Portugal which once under construction will deliver hundreds of jobs for local people, thus helping to boost the country’s economic recovery. The exploration expert expects to spend another €100-130 million to get both projects off the ground which will ultimately require 150 permanent staff when production is underway. Once the flagship exploration projects at Boa Fé and Tabuaço are in production, the incoming cash flow will allow Colt to upscale activity at other Portuguese gold and tungsten sites, as well as abroad. Business Development Manager Luis Martins said: “I want to have both of our mines producing so we can then generate cash flow and invest in our other projects. We want to spread our activities through Europe and the Middle East, and other locations all over the world.” This includes a venture in Pakistan currently being explored by Colt Middle East, where copper mining could also bring in money to boost funds for the projects in Portugal. Founded in Canada in 2007, Colt quickly moved to the Iberian nation on receipt of data from previous operators and the Portuguese government, with whom it shares a highly constructive relationship and vision to turn around economic fortunes.
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Drill hole with Scheelite by UV light Tabuaço project
Boa Fé and Tabuaço The open-pit gold resources at Boa Fé, 95 kilometres east of Lisbon, and underground tungsten supplies at Tabuaço, in the north, represent the springboard for Colt Resources to emerge as a key mining player both in Portugal and elsewhere. Boa Fé hosts several gold deposits such as Banhos, Casas Novas, Chaminé, Ligeiro and Braços, and according to preliminary economic assessments contains reported
Visible gold
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www.t eix eir aduar t e.p t ger al@t eix eir aduarte.p t
“Teixeira Duarte – Engenharia e Construções, S.A.” is a Portuguese company that started operating in 1921 in the fields of Geotechnical and Foundation Engineering, which gradually extended to other fields of engineering, such as Buildings, Infrastructures, Metalworks, as well as underground, mining, railway and maritime works. Always maintaining the imprint of a true Engineering Company, with recognized expertise in the design, innovation, construction and management of major projects and developments, it has been operating in the field of underground and mining works since 1981, mainly through its subsidiary EPOS, S.A., which, with its acknowledged experience, still has the most advanced technology and equipment for the performance of this type of works, remaining continuously active for more than 30 years in major mining projects, in the fields of prospecting and survey, infrastructure construction and exploration. True to its performance values, Teixeira Duarte has achieved a steady and sustained growth that has allowed it to build a strong business capacity, detaining means and resources, namely human, which have enabled it to undergo multiple internationalization processes and broaden its areas of expertise. Having achieved a turnover of more than EUR 1,500 million in 2013,
Teixeira Duarte Group currently has around 12,500 employees operating in 16 countries, in 4 continents, working in 7 different sectors, notably in Construction, Concessions and Services, Real Estate, Hotel Services, Distribution, Energy and Automotive Industry. Teixeira Duarte has been listed on the stock exchange market since 1998, but it maintains a stable shareholder structure, mostly dominated by the Teixeira Duarte family, which, along with its history and the operational capacity of its teams and resources, gives it the confidence and responsibility to be able to continue to fulfill its mission: Execute, contributing towards the construction of a better world.
Christensen CS14 C drilling rig – Indicative graph of the drilling capacity in meters, at diameters BQ, NQ, HQ and PQ
Gold prospecting for COLT RESOURCES in Escoural, South of Portugal
SUPPLIER PROFILE
TEIXEIRA DUARTE
Employees: Teixeira Duarte Group currently has more than 12,000 employees operating in 14 countries on 4 continents and doing business in seven different sectors. Established: 1921 Industry: Teixeira Duarte is now leading one of the largest Portuguese Economic Groups. Services: We are doing business in seven different sectors such as Construction, Concessions and Services, Real Estate, Hotel Services, Distribution, Energy, Automobile. Today, Teixeira Duarte takes responsibility for the image created by a company with great value and pioneer in the building, where their teams and structures are interconnected to one end result of recognized ability in design, innovation, building and managing large projects and ventures. Since large-scale infrastructure such as bridges, dams, hospitals, roads and other public works, the large buildings that mark our history, to speak at Teixeira Duarte is now talking a great know-how and constant presence in our day- to-day. Ongoing Projects: The development of the company will surely be enhanced by the synergy of different sectors and countries that Teixeira Duarte has established itself allows the confidence and responsibility to continue performing its mission: Execute, contributing towards the construction of a better world. Website: www.teixeiraduarte.pt
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MINING
Since 2007 Colt has carried out extensive outcrop sampling work
indicated resources of 340,310oz and inferred resources of 84,200oz of gold. It has an estimated 11 kilometres of gold mineralisation. Initial metallurgical test work has demonstrated that the gold at Boa FÊ is readily recoverable using a combination of conventional methods such as gravity, flotation and cyanide technologies, with Colt looking to start production by the end of 2015. The Tabuaço Experimental Mining Licence (EML) in North-Eastern Portugal covers a total area of 45.13 square kilometres. Since 2007 Colt has carried out extensive outcrop sampling work, and then embarked on an exploration and evaluation diamond drilling program which to date involved in excess of 100 drill w w w. c o l t r e s o u r c e s . c o m
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SUPPLIER PROFILE
I C T E
www.icte.pt
ICTE, founded in 1992, provides specialized consulting and services in the areas of Earth Science and Space, such as geophysical investigations.
University of Lisbon, Portugal T: +351 217 500 811 E: fasantos@fc.ul.pt
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holes, totalling more than 11,400 metres. Martins outlined the importance of impending bankable feasibility studies to the progress of both projects. “We are looking to conclude this by early next year,” he said. “We are developing a resource estimation update and are pretty sure there is huge potential, the bank feasibility study will prove this and encourage investment. The strategy is to start production as soon as possible and generate some cash flow.” “We are open to many avenues of construction and production and for example have had conversations with potential German and Chinese partners about mining at Tabuaço.” Investing in Portugal Several factors combine to explain Colt’s decision to develop the gold and tungsten mining sectors in Portugal. The country has a mining legacy stretching 2,000 years back to Roman times and Martins points to a continuing enthusiasm and acknowledgement of the industry’s importance to the nation’s economic recovery. “In 2012 the government published a new strategy about mineral resources that gives clear political support to the mining sector,” he said. “We have a great relationship with them, and also have a beautiful infrastructure, a very good motorway network and our properties are nearby along with ports and prime rail connections.”
Workers on site
Country Properties Portugal
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C O LT R E S O U R C E S
Drilling works are well underway
‘The country has a mining legacy stretching 2,000 years back to Roman times and Martins points to a continuing enthusiasm and acknowledgement of the industry’s importance to the nation’s economic recovery’
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Colt has also been able to draw vital investment from a number of Portuguese sources, part of a batch of investors including a Canadian pension fund and several institutions and individuals from Germany, Switzerland, China and Hong Kong. Construction company Teixeira Duarte is a key partner. “They are a big construction group working not only here but in Brazil and Angola,” Martins added. “They have a mining division which is developing several works for Portugal’s main copper mine Neves-Corvo and can help us to develop our projects. All our investors share our view and strategy and feel that they will see a good reward on their investment.” So far investment into the two projects has exceeded €60 million with Martins predicting another €100-130 million be needed before both sites become operational, making
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Colt is working closely with the government
the banking feasibility studies of utmost importance in order to secure the remaining funds and deliver new jobs for locals. Colt’s current 25 staff and 50 sub-contracted exploration workers benefit from the years of expertise in the company through internal training. It also has fruitful relations with several Portuguese universities such as the University if Lisbon and University of Évora and Aveiro located near Boa Fé and Tabuaço. “This is about building local partnerships in an academic and vocational point of view as well,” Martins said. “We are already conceptualising the hiring of more people for the construction and production with our subcontractors.” Into the Middle East Away from Boa Fé and Tabuaço Colt has several other promising exploration works
Staff are key to success
Key Personnel
Luis Martins Business Development Manager Luis Martins is a geologist with 30 years of experience in the exploration and mining sector.
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Exploration work
“This is about building local partnerships in an academic and vocational point of view as well” – Luis Martins
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August 2014
progressing both in Portugal and in Pakistan. In Portugal, the company is exploring for gold at Santo António, Montemor, Cercal and Cedovim, while finding reserves of gold and copper in a joint venture with junior British company Star Mining at Borba in the east. It has also established Colt Middle East, for which it owns a majority share of 38 percent. This is a unit dedicated to exploring copper potential in Pakistan near the world-renowned supply at Reko Diq, one of the biggest porphyry copper deposits in the world. Colt Middle East has entered an agreement with Australian-based company Lake Resources, and is working closely with local communities and the government of Balochistan to develop
MINING
C O LT R E S O U R C E S
Company Information INDUSTRY
Mining - mineral exploration HEADQUARTERS
Canada FOUNDED
2007 EMPLOYEES
75
what it hopes will become a world class asset in the Chagai Hills copper and gold district. REVENUE Martins said: “If successful this could Not disclosed completely change the dimension of the company and could provide important PRODUCTS/ SERVICES funding for our projects in Portugal. “There are political and social issues but still Gold and Tungsten we are working with the local communities mining to obtain the social license and I think the people will take care of us and we will return a safe and secure investment.” With promising signs to be seen both in Portugal https://twitter.com/ColtResources and in Pakistan, Martins believes the company can look further afield in the future. “We can bring https://www.linkedin.com/company/548157 benefits to our shareholders and the people in the areas we look to operate in,” he concluded. w w w. c o l t r e s o u r c e s . c o m
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Shannon House, Coldharbour Lane, Aylesford, Kent, ME20 7NS Tel. 01622 798200 / Fax. 01622 717301 info@coltresources.com www.coltresources.com