The stock of Colt Resources Inc. is suitable for aggressive short-term accounts and for longer-term investors.

The company is a Canadian based junior exploration company engaged in acquiring, exploring, and developing mineral properties with an emphasis on tungsten, gold and base metals. It is focused on advanced stage exploration projects in Portugal. Colt's most advanced projects include the Tabuaco tungsten project and the Penedono gold project, located on the company's Armamar-Meda and Penedono concessions, respectively, in northern Portugal. The company also holds the Santa Margarida do Sado concession.

Chart Source: Bloomberg

Technical analysis

The technicals of Colt Resources Inc. indicate strong medium-term profit opportunities. The price is currently near the lower Bollinger Band, which is a buy signal.

Geology

The stock of Colt Resources Inc. is suitable for aggressive short-term accounts and for longer-term investors.

Technical, geological highlights of the exploration work conducted by Colt on their regional properties include the following:

1. Numão Au Prospect: New area of granite-hosted high grade gold mineralization discovered by Colt. Of 38 rock samples assayed, 18 samples returned >0.5 g/t Au; 4 samples returned >10 g/t Au; peak value of 38.29 g/t Au. Preliminary soil survey indicates wide significant gold-in-soil anomaly with a peak value of 297 ppb Au.
2. Almendra W Prospect: Widespread tungsten skarn mineralization occurs over an area 0.5 km wide by 2.9 km long; scheelite-rich skarn horizons are generally thin, 0.4% WO3; 5 assayed > 1.0% WO3; peak value of 1.80% WO3.
3. Muchões W Prospect: New area of tungsten mineralization discovered by Colt. Scheelite bearing skarn horizons found, in outcrop and float, over a 6 km strike length; locally, skarn horizons are > 5 m wide. Of 26 rock samples sent for analysis, 18 assayed >0.1% WO3, 7 samples > 0.50% WO3; and 4 samples > 1.00% WO3: ranging from 1.14% to 2.90% WO3.
4. Santa Comba area: Old surface mining works follow shear zones and greisen alteration in granite over an area 150 m wide by > 800 m long. All 16 rock samples collected show anomalous values for either Ag, Cu, As or Bi. Maximum values are as follows: >200 ppm Ag; 5309 ppm Cu; 17795 ppm As; and 347 ppm Bi.
5. Tomadias area: An old artisanal Sn-W mine zone, samples from rock dumps show anomalous values in Ag, As, Cu, Pb, Sn and Zn. Maximum values are as follows: >200 ppm Ag; 15770 ppm As, 3709 ppm Cu, 5736 ppm Pb, 4751 ppm Sn, and 1723 ppm Zn.

Of particular interest to Insch and to investors is the very substantial Tungsten deposits owned by Colt in Portugal.

The importance of these deposits was succinctly itemized for the European Commission in a Report of the Ad-hoc Working Group on Defining Critical Raw Materials.

Extract 1.

“Securing reliable and undistorted access to non-energy raw materials has become a critical challenge to many resource-dependent countries all over the world. Industrialized regions like the EU, US and Japan, have explicitly recognised the challenges which the availability of certain raw materials may pose for the functioning of their economies. Their assessments help their governments to take appropriate steps in mitigating supply restrictions and specific actions such as stockpiling.

Europe is in a particularly vulnerable position.”

Extract 2:

1. "Raw material supply is dominated by China which also has the largest reserves of tungsten ore worldwide. This equates to high risks of quantitative and price disruption.
2. Growing risks of "predatory" behaviour of China on the tungsten scrap market.
3. Substitution possibilities limited by cost of alternative materials/technologies, lesser performance, and less environmental friendly alternatives.
4. Worldwide loss of know-how if EU tungsten value chain is destroyed as it is the leader in the development of many tungsten products development for automotive, aerospace, medical, lighting applications.
5. Disappearance of EU tungsten industry would result in full dependence of several key industries on imports from abroad."

The above report is available here: (http://ec.europa.eu/enterprise/policies/raw-materials/files/docs/report-b_en.pdf)

This same report classified Tungsten as “critical” to Europe.

It should also be noted that the Colt properties in Portugal lie on the Reduced Intrusion-Related Gold Systems (RIRGS) identified by Craig J.R. Hart of the Centre for Exploration Targeting, University of Western Australia, Crawley, WA, Australia. (See Figure 2, Page 98. The report may be downloaded here.)

In light of these and other factors, Insch has very high expectations that the share price of Colt Resources Inc. (CNSX: GTP; OTCQX: COLTF), will show significant appreciation in the short to medium term.

This information is intended for professional clients only and has been prepared using information believed to be accurate at the time of publication. This communication is directed only at the classes of investor to whom it may lawfully be directed under applicable laws in their jurisdiction. Past performance should not be viewed as a guide to future performance. The value of investments and income derived from them can fall as well as rise and investors may not get back the amount originally invested.