MONTREAL, Sept. 23 /CNW Telbec/ -- Colt Resources Inc. ("Colt" or the "Company") is pleased to announce that the Company has been granted a concession on a western portion of the world famous Iberian Pyrite Belt. In addition, the Company has been granted a time related extension on their Penedono gold concession.

The Santa Margarida do Sado concession consists of 360.46 km2 of prospective ground situated on the western extension of the Iberian Pyrite Belt, where the favorable basement geology is concealed under Tertiary cover sediments of the Lower Sado Basin. The IPB extends for more than 250 km from southern Spain through southern Portugal and is the host for numerous volcanogenic massive sulphide deposits in both countries, including several giant deposits with (greater than)100 Mt total geologic resources, such as Rio Tinto and Tharsis in Spain, and Aljustrel and Neves-Corvo in Portugal.

The Santa Margarida do Sado concession is located in southern Portugal, 70 km to the south east of Lisbon and extends from near the Atlantic coast southeastward for approximately 45 km. Situated near the center of the concession is the town of Grandola.

Adjacent ground surrounding Colt's concession in currently held by Redcorp Ventures Ltd. and Metallica Mining AS. Previous neighboring companies included Lundin Mining Corp and Iberian Resources Ltd.

Three known VMS deposits are located in the immediate area of Colt's new concession: Lousal, Caveira and Lagoa Salgada. The Lousal mine (approximately 8 km to the south) was active until 1988 and produced a reported historical resource of around 6 Mt averaging 0.7% Cu, 0.8% Pb, 1.4% Zn, 1 g/t Au and 20 g/t Ag. Caveira (approximately 2 km to the south) is a smaller deposit whose surface gossan cap was exploited in Roman times for gold and silver; while its deep seated massive sulphides were exploited during the 20th century.

Approximately 6 km to the north east, is the Lagoa Salgada deposit, equally concealed under the Tertiary cover sediments of the Lower Sado Basin, and which was discovered in 1992 by the Portuguese Geological Survey IGM, based on drill testing a gravity anomaly. Currently being explored by Redcorp, this deposit has a reported drill indicated and inferred resource in the order of 4 Mt averaging 0.35% Cu, 4.63% Pb, 5.08% Zn, 1.24 g/t Au and 80 g/t Ag.

Respectively at 35 km and 75 km to the south east of COLT's concession are located the giant Aljustrel and Neves-Corvo VMS deposits, both in operation and each one comprising at least 5 massive sulphide lenses summing up to nearly 200 Mt of total original geologic resources. Neves-Corvo was first discovered in 1977, through drill testing of a major gravity anomaly.