Colossus Minerals reports results of further diamond drilling on the Serra Pelada gold-platinum-palladium project, Brazil.
Four geotechnical diamond drill holes in Colossus’ Phase II drilling program, were cored for a total of 1,203 metres. SPGT-003 and SPGT-004 were focused on the Central Mineralised Zone (”CMZ”), which overprints metasediments occupying the hinge and inner limbs of a northwest-facing, southwest-plunging, [...]
Colossus Minerals Inc. is an exploration and development company focused on gold and platinum group metals in Brazil. Led by a skilled management team, the company is managing and developing the well-sought after Serra Pelada project, a Colossus-COOMIGASP joint venture.
Though platinum prices have near doubled to 1350/oz this week from a low of 732/oz last October, for the miners in South Africa, it is still an uphill task. The SA government's talks to takeover ownership of mines could potentially scare off investors. How will the platinum producers operate in a constrained environment?
Platinum is on track for the best quarter in over a year, as demand for the metal as an alternative to gold has nudged prices up 23 per cent. Platinum’s premium to gold stood at $213.15 an ounce yesterday, compared with $1,041.83 a year ago.
Platinum is known as "high-octane gold", for its stronger price moves and prospects for a higher upside. Platinum is essential to the economies of many industrialized nations, globally, demand for platinum is the sum of; investment demand, industrial demand, and jewellery demand.
Platinum showed extreme volatility in 2008, rising to an all-time high of $2,290 an ounce in March on the back of a power shortage in major producer South Africa, before falling to a five-year low of $732.50 in October.
Platinum rebounded early in ’09, and came back into the four digits, the metal’s highest value in over 12 weeks. In 2008 the metal went on a wild ride, hitting a peak of $2,290 per ounce, and then came crashing down to a three digit value. Despite the metal starting the year on a good note, RBC capital markets has cut its platinum price forecast for the next two years.
Platinum has been on a steady downgrade, falling since trading at a record $2,301.50 an ounce in March. A poor economic outlook eroding demand for jewelry and cars is responsible for the metal's flop.
Platinum started the week off on a good note, prices rose more than 3 percent as the greenback weakened and a renewed optimism on platinum’s future market returned to analysts.
Platinum prices slipped on Monday as the U.S. dollar resumed its rebound against the euro and the pound. Platinum is often used by investors as a hedge against a weakening dollar, so the dollar's recovery has made the metals less attractive.
Thursday, June 24, 2010