THE BOURSE WHISPERER: Crusader Resources has increased the Measured and Indicated Resources of the company’s Borborema gold project in Brazil.
The new estimate of 50.9 million tonnes at 1.14 grams per tonne gold for 1.87 million ounces of contained gold has resulted in a 61 per cent increase from an estimate the company announced in November 2011.
Crusader said preliminary pit optimisations it had received on the updated Resource indicate that 43Mt at 1.2g/t gold for 1.66 million ounces of gold are contained within an economic pit-shell.
The numbers on this pit shell returned the highest average discounted cash flow for the project with a projected life of 10.5 years at a throughput rate of four million tonnes per annum.
The starter pit shell has a three year life, a strip ratio of 3.0 and a grade of 1.30g/t.
The company has also selected two other pit shells as guides for progressive pits.
Pit optimisation results for Borborema gold project. Source: Company announcement
“Crusader is now a major step closer to becoming a significant gold producer with Borborema poised to deliver its maiden Ore Reserve,” Crusader Resources managing director Rob Smakman said in the company’s announcement to the Australian Securities Exchange.
“This latest resource upgrade is a significant milestone for the project and Crusader.
“The drilling undertaken since November 2011 has returned great results and the subsequent increases in grade and ounces during the conversion of Inferred Resources into the Measured and Indicated Resource categories is crucial to Borborema becoming a gold producer.”