Equitas through Alta Floresta Gold indirectly owns a 100% interest in six gold properties with four production licenses, and over 184,410 hectares of landholdings in Mato Grosso and Para states of central Brazil. The flagship Cajueiro gold project (the “Cajueiro Project”) encompasses 39,053 hectares and is located 95 kilometers north of the city of Alta Floresta, which will be the location of the Company’s operations base in Brazil.
The exploration program is the first phase of an extensive 2016 work schedule at Cajueiro and is focused on defining additional gold resource in the near-surface saprolite oxide domain along a highly prospective mineralized structural corridor. The program has been designed to increase resources at Cajuiero and provide further information to support open pit development.
The Baldo zone currently hosts an Inferred Resource of 309,000 tonnes grading 3.029 g/t Au (Gustavson, 2016)in the oxidized saprolite. Previous exploration results reveal strong potential for resource upgrade in this target domain.
The 2016 exploration program has been designed to follow on previously reported sampling results which include grades of 5.77 g/t Au (RR1BDO, Figure 2) and 87.2 g/t Au (RCF1BDO, Figure 2) achieved from two 1-tonne composite surface samples of oxidized saprolite along the targeted corridor. The single drill hole completed to date on this structure targeted the extreme southwestern end, and intersected a core interval in the sulphide bedrock grading 1.48 g/t Au over 29.85m (DDH-055, Figure 2). In general the oxidized saprolite component of the mineralization contains significant enrichment in gold grades compared to the bedrock sulphide domain.
Surface sampling spread across the Baldo zone has returned significant gold values. Thirty four grab samples of saprolite returned values ranging between 0.01 g/t Au to 118.47 g/t Au, with 20 samples returning values > 0.5 g/t Au, and an average for the thirty four samples of 14.67 g/t Au. Additionally, a 100 kg sample of saprolite taken from the southern Baldo target area for metallurgical testing yielded a head grade of 8.9 g/t Au (Met Test, Figure 2).
Results to date at Baldo underscore the potential for delineation of significant high-value material amenable to open-pit mining methods. The oxidized saprolite can be extracted without the necessity for drilling and blasting, potentially resulting in very low-cost mining operations.
Chris Harris, President and CEO of Equitas, states “we are very pleased to have agreed to this innovative financing with Peter Yu and the CRH team. Upon closing, the funding provided should secure the near- and medium-term growth plans of Equitas, and help us towards our goal to become a profitable, cash-flow generating, self sustaining mid-tier gold producer in Brazil, with a potentially significant development portfolio. We look forward to working together with Cartesian on building the value of Equitas for its shareholders”.
“CRH and Equitas share a similar philosophy in developing highly scalable gold assets with near-term production and low all-in sustaining costs,” said Peter Yu, Founder and Managing Partner of Cartesian Capital Group. “We are excited to be partners with Chris Harris and the team at Equitas in this unique opportunity in Brazil, and look forward to helping grow the business with a focus on efficient and profitable gold production.”
Major highlights include:
- Initial assay results identify eight intersections of 1.16 g/t Au or greater;
- Two high-grade intervals of 24.26 g/t Au over 2m, and 18.86 g/t Au over 2m;
- A broader separate near-surface interval of 12m @ 1.42 g/t Au;
- The exploration program is being extended with diamond drilling, auger drilling and trenching to further delineate and expand on the intersections achieved to date;
- To date 733 of 757 trench assays have been received, and all drill core results are still outstanding.