Cleveland hits encouraging drill results
THE DRILL SERGEANT: Recent drilling carried out by Perth-based South America-focused Cleveland Mining Company at its O Capitão gold project has discovered gold‐bearing mineralisation located less than 10 kilometres from the company’s Premier gold project in Brazil.
The drilling delineated a 250 metre strike‐length of multiple, stacked, mineralised zones with variable down‐hole widths ranging from 0.4m to 16.50m per zone.
Highlights include:
– 11 metres at 1.01 grams per tonne gold from 51 metres to 62 metres;
– 4.4m at 3.55 g/t gold from 91m to 95.40m;
– 7.57m at 1.99 g/t gold from 79.8m to 87.37m;
– 16.5m at 1.16 g/t gold from 46.4m to 62.9m; and
– 7.57m at 1.99 g/t gold from 79.8m to 87.37m.
Cleveland carried out the drilling to evaluate mineralisation potential north of the Garimpo Pit and to follow‐up mineralised intercepts from a previous drilling program at the Donna Maria Garimpo, where gold‐bearing mineralisation was intercepted in four of six holes drilled.
Cleveland Mining’s Joint Venture partner in the Premier, Guarinhos and Baú projects Edifica Participações Ltda, has exercised a purchase option for 50% of O Capitão.
Edifica will pay Cleveland approximately one million dollars, which represents 50% of all costs incurred on the project to date with the final figure still to be determined, to exercise the option.
The South American company will also contribute equally to all costs going forward.
Cleveland said the new joint venture will provide it with the option to process ore from both Premier and O Capitão at the same facility should mining proceed at O Capitão.
“Since Cleveland acquired O Capitão 18 months ago, we have identified high‐grade extensions of the old Garimpeiro pit, resolved a formerly disputed ownership status, and have now discovered shallow and potentially significant gold‐bearing mineralisation,” Cleveland Mining Company managing director David Mendelawitz said in the company’s ASX announcement.
“I am delighted that we can expand our Joint Venture with Edifica to include O Capitão.
“Our understanding of mining and exploration fits perfectly with their ability to source projects, to understand the local operating environment, and provide connections and local credibility within Brazil.
“To have O Capitão as part of the Premier Joint Venture, not only allows us to share the exploration and development risks, but also means that we can gain the economies of scale from a centralised plant, thus reducing the barriers to turning mineralisation at O Capitão into an economic resource.”
Cleveland has already begun the process of transferring the O Capitão tenements into the Joint Venture entity.
Soon after this has been completed the company intends lodging an application to transfer the exploration lease into a mining lease.