Crusader Resources continues Brazil drilling success

THE DRILL SERGEANT: Crusader Resources has completed a round of Resource infill drilling at the company’s 100 per cent-owned Borborema gold project in Brazil.

The company said it has an updated Mineral Resource estimate on track for the September quarter as a pre-cursor to the completion of a Bankable Feasibility Study (BFS) later this year.

 

Selected drill results – May 2012. Source: Company announcement

 

The latest results have been received from diamond drilling in the Central and Southern zones of the project including:

–    34 metres at 2.77 grams per tonne gold from 287 metres;

–    20m at 2.87g/t gold from 194m;

–    17m at 2.55g/t gold from 304m and 15m at 3.61g/t gold from 327m (a combined interval of 38m at 2.60g/t Au from 304m);

–    34m at 1.58g/t gold from 279m;

–    27m at 1.33g/t gold from 279m;

–    23m at 1.48g/t gold from 258m;

–    15m at 3.60g/t gold from 307m; and

–    12m at 2.79g/t gold from 12m.

“The continuing excellent infill drilling results are really encouraging as we begin the next Mineral Resource update with its focus to convert the current Inferred Resources into Indicated Resources,” Crusader Resources managing director Rob Smakman said in the company’s announcement to the Australian Securities Exchange.

“3D modelling of the mineralisation is now underway, and the new Mineral Resource is expected to be completed in coming weeks.

“This will then be used for pit optimisations and a subsequent mine plan as a precursor to a Reserve statement early in the third quarter, and the completion of the BFS later in the year.”

The current JORC-compliant Mineral Resource estimate for the Borborema project stands at 68 million tonnes at 1.06g/t for 2.31 million ounces of gold, of which approximately half is classified as Inferred Resources and half as Indicated Resources.

A Pre-Feasibility Study conducted last year highlighted the robust economics of a three million tonnes per annum open-pit mine.

Crusader said the continuing increases in Mineral Resources results in the BFS assuming a greater run-of-mine production rate for a 4Mtpa plant.

With the current round of resource drilling now completed, the company said it is now focused on targets generated by the new resource model and soil sampling, with the aim of further expanding resources as well as discovering new sources of mineralisation near Borborema.