Colt Resources Inc. Reports on Diamond Drilling Results on the Tabuaço
Tungsten Project Northern Portugal

    
    Trading Symbols: GTP - (CNSX)
                     P01 - (FRANKFURT)
    

MONTREAL , Jan. 20 /CNW Telbec/ - Colt Resources Inc. ("Colt" or the "Company") is pleased to announce the first assay results from the diamond drilling program on its 100% owned Tabuaço Tungsten Project. The initial hole successfully confirmed significant historical tungsten results over a wide interval. The current drill program objective is to confirm and expand on the historical resource (non NI 43-101 compliant).

Located on the 436.81 km2 Armamar-Meda Concession in northern Portugal , the Tabuaço Tungsten Project is situated some 100 km east of the coastal city of Porto . Past exploration in the Tabuaço Area in the early 1980's, led to the discovery of significant tungsten mineralization at Sao Pedro das Aguias.

Mineralization consists of fine to coarse grained disseminations of scheelite within thick (up to 19 m) shallow dipping skarn horizons in metasedimentary rocks adjacent to a major intrusive unit. Limited widely spaced drilling at the Sao Pedro das Aguias Zone produced significant historic drill results including 19.35 m grading 1.18% WO3. A non NI 43-101 compliant historical resource of 1 million tonnes grading 0.87% WO3 was calculated by the S95PE-BRGM joint venture in the early 1980's.

The goal of the current diamond drilling program by Colt Resources at Sao Pedro das Aguias is to verify historical drilling results and to confirm and expand the historical resource. Drilling is also planned to test lateral southeast and northwest extensions of the main skarn horizon, as well as newly discovered lower skarn horizons, located some 40 m below the main skarn horizon.

To date, Colt has completed two shallow drill holes, DHT-01B and DHT-02: a third hole is underway. Hole DHT-01B, total depth of 59.85 m, intersected two shallow skarn horizons at 7.10 m - 11.85 m and at 19.15 m - 21.25 m and then cut the main skarn horizon at 24.18 m - 37.95 m. The skarn horizons are well mineralized with generally coarse-grained scheelite mineralization (visible under ultraviolet light).

Average grade results from hole DHT-01B show two major intervals: an upper interval of 4.75 m grading 0.52% WO3; and a lower interval, which includes the main skarn horizon, of 18.80 m grading 0.73% WO3. The lower interval includes 13.77 m grading 0.84% WO3, which includes zones of 3.00 m grading 1.14% WO3 and 6.32 m grading 0.99% WO3. These wide and high grade results confirm and compare well with nearby historical drill hole results of 19.35 m grading 1.18% WO3.

    
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    HOLE                 DEPTH       FROM       TO    INTERVAL      % WO3*
    No.                     (m)       (m)       (m)         (m)      (calc.)
    -------------------------------------------------------------------------
    DHT-01B              59.85      7.10     11.85        4.75         0.52
    -------------------------------------------------------------------------
                                   19.15     37.95       18.80         0.73
    -------------------------------------------------------------------------
                      includes     19.15     21.25        2.10         1.01
    -------------------------------------------------------------------------
                      includes     24.18     37.95       13.77         0.84
    -------------------------------------------------------------------------
                      includes     24.18     27.18        3.00         1.14
    -------------------------------------------------------------------------
                      includes     29.18     35.50        6.32         0.99
    -------------------------------------------------------------------------
    *calculated
    

Hole DHT-02, total depth of 90.30 m, located 100 m southeast of Hole DHT-01B, intersected an early mixed skarn horizon at 52.60 m - 54.80 m and then the main skarn horizon at 54.80 m - 65.25 m. As in hole DHT-01B, skarn horizons contain coarse-grained scheelite mineralization (visible under ultraviolet light). This core has been sampled and shipped for analysis: results are pending.

Colt is extremely encouraged by the significant widths and grades encountered in hole DHT-01B and in the scheelite mineralization encountered in hole DHT-02 (results pending). Hole DHT-03, located approximately 100 m south east of Hole DHT-02, is currently being drilled.

Additional drilling is planned to test strike extensions of the main skarn horizon and newly discovered lower skarn horizons located some 40 m below the main skarn horizon. Mapping and local surface sampling in these poorly exposed areas returned very encouraging tungsten results extending over a strike length of over 1 km.

Colt believes that the combination of the following favourable factors may indicate the presence of a tungsten deposit with world class potential;

Location:

    
    - Project is located in a mining friendly, stable state, member of the
      European Union.
    - Project area has an excellent, established infrastructure and road
      access.
    - Project is situated in close proximity, (tilde) 100 km, to coastal port
      facilities.
    

Mineralization potential:

    
    - Original historical resource estimation was very preliminary, being
      based on 6 shallow drill holes and channel sampling. The areal extent
      of blocks used in the estimation was less than 300 m by 180 m. This
      covers less than half of the potential area of the exposed main skarn
      horizon at Sao Pedro das Aguias.
    - Extensions of the Sao Pedro das Aguias main skarn horizon over a strike
      length of nearly 1 km, as well as recently discovered skarn zones
      located some 40 m below the Sao Pedro das Aguias main skarn horizon
      remain poorly explored and have never been drill tested.
    - The region surrounding the project area contains several encouraging
      tungsten occurrences and remains largely under-explored.
    

Elements suggesting mining potential at Sao Pedro das Aguias include the following;

    
    - Local relatively high tungsten grades in the order of 0.5% WO3 and
      higher.
    - Skarn horizons are relatively thick, 5 to 20 m, and gently dipping,
      5 degrees to 25 degrees.
    - Mineralization consists of fine to coarse grained disseminations of
      scheelite.
    - Mineralized skarn horizons are generally devoid of sulphides.
    

Colt will be giving priority to the Tabuaço Tungsten Project with the aim of fast tracking development.

Sample intervals are reported as metres (m) downhole and as such do not represent true width. The actual dip of the skarn controlled mineralization is generally shallow.

All samples were analyzed at OMAC Laboratories Ltd, Galway, Ireland , an ISO 17025 accredited facility. Samples were analyzed using a metaborate fusion followed by ICP - MS. Assay results for tungsten are reported by the laboratory as W%. WO3 values are calculated using a conversion factor of 1.261.

Quality Control - A set of standards, duplicates and blanks is employed by Colt in their sample stream as well as the laboratory's own standards and duplicates. Results to date are well within the accepted norm.

The technical portions of this news release have been prepared and approved by J.W. Murton, P. Eng., a qualified person as defined by National Instrument 43-101. Mr. J.W. Murton is a director of Colt.

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes", "anticipates", "plans", "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in those forward-looking statements. The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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For further information: Nikolas Perrault, President & CEO, Colt Resources Inc., [phone], Fax: [phone], [email protected]; Aurelio Useche, CFO Colt Resources Inc., [phone], Fax: [phone], [email protected]