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By Steven Ralston, CFA Yesterday, Colt Resources (GTP.V) was awarded Experimental Mining Licenses (EMLs) for its Tabuaço tungsten project and Santo António gold project. In addition, Colt was awarded two additional exploration concessions: Borba in eastern Portugal and Cercal in southern Portugal. The EML for Tabuaço was awarded well within management’s time frame guidance, and the granting of the EML for Santo António indicates that the development of the project by Colt’s JV partner, Contécnica, is on track. The Tabuaço EML encompasses 45.13 km² and permits Colt to further advance its tungsten project, initially by proceeding with the excavation of an access adit and a vertical shaft into the São Pedro das Águias deposit. We expect that at some point a joint venture will be announced with the partner providing the capital and further developing the project in order to earn a substantial stake in the concession. In this manner, Colt Resources can better focus on the development of the Boa Fé gold project in southern Portugal. Colt has conducted extensive outcrop rock sampling and diamond drilling (over 100 drill holes totaling more than 11,400 meters) at Tabuaço. The drilling results have been very positive in terms of grade and delineation of scheelite (tungsten) deposits in two distinct, sub-parallel skarn horizons at São Pedro das Águias. The latest NI 43-101-compliant resource report for the Tabuaço tungsten deposits estimate an Indicated Resource of 815,000 MTU WO₃ (tungsten trioxide) and an Inferred Resource of 720,000 MTU WO₃. The Santo António EML covers 35.34 km² of the former Penedono exploration concession. In September 2012, Colt Resources entered into a joint venture with Contécnica, a Brazilian company, to further develop this gold project. Contécnica can earn a 51% stake by investing at least €2.0 million in the project over three years. The Santo António EML contains a number of significant vein systems of high grade gold mineralization, including the now-closed Santo António underground gold mine. There are 13 clusters of mineralized quartz veins in the San Antonio area, along with other vein systems of gold mineralization (Ferronha, Dacotim, Turgueira and Marofa). Santo António was mined most recently in the 1950’s by Companhia das Minas de Ouro de Penedono, when approximately 11,000 ounces of gold was produced through the underground mining of four of the 13 veins. Today, there are about 100,000 cubic meters of tailings which may host recoverable gold. As operator of the JV, Contécnica plans on conducting trial mining (via open pit) at Turgueira in order to test the potential for significant long-term production. In addition, Contécnica intends to recovery gold from the tailings at Santo António and de-water the Santo António underground mine by excavating a new adit (a nearly horizontal shaft). Thereafter, metallurgical test work will be conducted on the ore found in the old mine galleries. Located approximately 150 kilometers due east of Lisbon, the Borba exploration license covers 636 km² in an area previously mined for copper and explored for gold. The area has been mined for copper, especially at Miguel Vacas between 1925 and 1991 when at least 1,650 tonnes of copper were produced. Since 1986, the region has been explored for gold, most recently by Rio Narcea and Kernow Resources. Prior drilling results confirm the presence of both gold and copper mineralization. The Cercal exploration license is located in southern Portugal, about 110 kilometers due south of Lisbon. Encompassing 455 km², Cercal is located within the Iberian Pyrite Belt (IPB), a world-class metallogenic province of volcanic massive sulphide (VMS) deposits. The area has been mined for iron, copper, zinc, lead, silver and especially manganese. Exploratory work was conducted by Serviço Fomento Mineiro (the mineral exploration department of Portugal’s INETI or Instituto Nacional de Engenharia Tecnologia e Inovacao) from 1973 to 1979 and thereafter by Elf-Acquitaine, Empresa Mineira da Serra do Cercal Lda. and Northern Lion Gold Corp. Colt’s management believes that the area covered by the exploration license has not been properly explored for gold and base metals. We reaffirm our Outperform rating and price target of $1.70, which is based on an estimated share value of attributable resources indicated by Colt’s NI 43-101 compliant mineral resource estimates and certain non-compliant historical resource estimates. We consider our valuation model to be conservative in that it also includes prospective developmental costs at Boa Fé and Tabuaço. For additional research on small-cap stocks, please visit scr.zacks.com. To become a subscriber to Zacks SCR and receive SCR blogs and research reports emailed directly to your inbox, please visit our Subscribe page.