Crusader increases Borborema gold project

THE DRILL SERGEANT: Brazil-focused gold exploration play Crusader Resources has increased the JORC compliant Mineral Resource estimate for its Borborema gold project in north east Brazil.

The estimate has been increased to 44.65 million tonnes at 1.30 grams per tonne for 1.86 million ounces of gold using a 0.5 g/t cut off.

The new figures are a substantial change from the company’s November 2010 Mineral Resource estimate of 15.39 million tonnes at 1.70g/t for 0.84 million ounces.

The new Mineral Resource has been estimated to approximately 215m metres below surface, a depth Crusader considers potentially realistic for open pit mining.

The company said in its announcement the new Mineral Resource remains open in all directions and is limited only by drilling.

“The Borborema project is showing all the hallmarks of a company-making gold deposit,” Crusader Resources managing director Rob Smakman said.

“The new estimate of 44.64 million tonnes at 1.30 grams per tonne includes the slightly lower grade northern and southern zones.

“The overall grade reduction is more than compensated for by the increase in ounces and tonnes.

“With recoveries estimated at 95%, existing comprehensive infrastructure and the potential to continue growing the resource, we will focus on continuing to fast track the project in the coming months.”

The new resource includes results from 13,667 metres of drilling, consisting 144 RC and 34 diamond holes, undertaken by Crusader between September 2010 and March 2011 as well as 10,528m from 75 historical diamond holes.

The more recent drilling, carried out since March this year, has targeted the areas where Inferred Resources have been defined with the aim of converting a portion of these into the Indicated Resource category.

Crusader is currently planning for an expanded drilling program, the results from which it will incorporate in a further resource update timed to coincide with the presentation of a prefeasibility report.

“Due to timing constraints, it is expected that further drill rigs will be mobilised to complete the program,” the company said.

“This new program will target the higher grade areas in the central zone of the project as well as several new exploration target areas.”