TIDMCAS
RNS Number : 3904W
Crusader Resources
01 August 2018
1 August 2018
Quarterly Activities Report
June 2018
Highlights
-- AIM London dual listing successfully completed
-- Capital raise of A$6.5m (US$5.0m) across both ASX and AIM
-- Cost reduction exercise complete
-- Commencement of metallurgical test work program for Borborema Gold Project
-- Juruena drilling identifies potential new project close to existing resources
Operational Updates
During the quarter, Crusader Resources Limited ("Crusader" or
the "Company") successfully achieved admission to trading on the
AIM Market of the London Stock Exchange ("AIM") which resulted in a
dual listing with the Australian ASX. This was completed primarily
to achieve broader exposure to the institutional and retail
investor base within the UK and North America.
Concurrent with the listing, the Company raised A$6.5m (US$5.0m)
across the Australian and London markets to be used primarily for
the Borborema bankable feasibility study ("Borborema BFS"), the
Company's pre-development stage project in Brazil ("Borborema").
The Company's unaudited cash balance as at 30 June 2018 was
A$1.358m.
Subsequent to admission to AIM, the Crusader management team has
undertaken significant measures to improve overall cost
efficiencies including a number of cutbacks at the Juruena Gold
Project, a proactive scale back of the Company's Brazilian office
in Belo Horizonte to essential personnel, as well as moving the
Australian corporate branch to a smaller office in Perth.
The Company is currently focussed on progressing a number of key
initiatives in connection with the Borborema BFS. These include
metallurgical technical optimisation of the processing outcome
through ongoing metallurgical testing conducted by the ALS
Laboratories in Perth, finalisation of the installation licence
application from the Rio Grande do Norte State Governmental
Department (IDEMA) in Brazil and defining the mandate and seeking
expressions of interest from globally recognised engineering
contractors.
Metallurgical Testing
As part of the metallurgical optimisation work, on 9 May 2018
the Company announced its review and recommissioning of test work
to support the processing flowsheet and finalise additional
processing cost saving opportunities.
Post the quarter period end, the Company announced that it had
engaged Ausenco do Brasil Engenharia Ltda ("Ausenco") to assist in
completing and reviewing the final documentation required to submit
the application for the installation licence for Borborema. These
two workstreams are being completed in parallel and are considered
to be on the critical path for delivery of the Borborema BFS.
Metallurgical test work is focused on a detailed metallurgical
sampling program comprising eight large diameter PQ diamond holes
for 1,200m (6 tonnes) which have been forwarded to the ALS
Laboratories in Perth.
The drill core utilised for the test work reflected the
following assays:
-- 16m @ 5.17 g/t Au (downhole width- true width 6.72m) from 158m in MET-12-3G
-- 22m @ 3.82 g/t Au (downhole width- true width 12.54m) from 57m in MET-12-4F
-- 7m @ 6.84 g/t Au (downhole width- true width 3.99m) from 171m in MET-12-5F
-- 37m @ 2.09 g/t Au (downhole width- true width 24.42m) from 52m in MET-12-2F
A full table of the results was included in the Company's ASX
announcement of 28 January 2015. Initial composite formation, head
assays and investigation into the distribution of mica in the
Borborema ore body have now been completed with 40 composites
samples ranging in Au grade from 0.17 g/t - 7.95 g/t. This is in
line with expectations and provides a comprehensive and reliable
representation of the Borborema ore body.
In parallel, test work on dry stacking of tailings at Borborema
is being progressed. Dry stacking of tailings delivers significant
recycling of mine site water as well as removing the need for the
construction of a tailings dam saving significant initial and
sustaining capital.
Preliminary work on filtration of tailings has been completed
with various manufacturers and prices estimated. A filter cake of
tailings from Borborema ore achieved 18% moisture and confirmed
that low moisture content in the filter cake is possible. The
current program has been designed to finalise the filtration
specifications needed to complete the costing of the dry stacked
tailings facility at Borborema.
Drilling: Juruena Gold Project
On 8 June 2018 Crusader announced an update on the recent
drilling campaign at five previously un-drilled prospects within
the Juruena Gold project area.
This initial exploration program is focused on several new
targets identified in line with the main trend in the Juruena
Project region, using smaller drilling rigs suitable for operation
during the wet season.
The program represented approximately 250m of diamond drilling
across 5 holes with an average depth of 50m. A full table of
significant intercepts was included in the announcement dated 8
June 2018, with better results received including:
-- 0.7m @ 12.22 g/t Au from 29m in JRND-071 at the Daniel target
-- 1.57m @ 3.17 g/t Au from 37m in JRND-072 at the Izau III target
-- 3.03m @ 0.60 g/t Au from 23.5m in JRND-073 at the Panelas target
The drilling campaign was the first pass exploration conducted
over new prospects within the Juruena project area aimed at
evaluating the mineral potential at tenements 866.578/2006 and
866.247/2011.
These represent new targets generated by the Crusader
exploration team with successful exploration representing exciting
potential to expand the pipeline of prospects which could become
significant satellite targets.
Juruena Gold Project
Crusader's Juruena Project represents 23 tenements over 770km(2)
and has returned some of the highest gold results across the belt,
with diamond drilling delivering several extremely high grade
intercepts, including two in excess of 1,000 g/t. (See ASX
announcement dated 22 December 2016 for details of all relevant
intercepts). The current indicated resource at Juruena has an
average grade >18 g/t (see Table 1 in the Appendix below) with
the 2018 programme focused on developing a larger scale
resource.
Alta Floresta Belt
Crusader has a significant position of over 770km(2) of the Alta
Floresta Belt, which is located in the northern area of the Mato
Grosso State in the mid-western region of Brazil. Alta Floresta is
a belt of placer and intrusion-related gold deposits striking for
600km in the northern border of the Paleoproterozoic Juruena
Orogenic Belt. This area has also recently attracted the attention
of some of the big miners - during the latter half of 2017,
approximately 2.65 million hectares of copper and gold exploration
permit applications were filed with the Brazilian Mining
Department, covering virtually all the remaining mineral rights in
the district. Companies now active in this region include Vale,
Anglo American and Votorantim which underpins the prospectivity of
the belt and its capacity to host world-class sized deposits.
Marcus Engelbrecht, Managing Director of Crusader said: "This
was an important and transformational quarter for the company. With
the dual listing secured, the Company now has increased exposure to
a broadened investor market. Together with continued progress at
Borborema, where we expect to deliver an optimised BFS, and with
Juruena looking like a highly attractive high grade gold project,
Crusader is well placed to gain momentum into the second half of
the year."
For further information, please contact:
Mr. Paul Stephen Investor Relations
Executive Director Office (Aus): +61 8
9320 7500
Office (Aus): +61 8 Email: admin@crusaderresources.com
9320 7500
Email: paul@crusaderresources.com
Smith & Williamson Corporate Camarco
Finance Limited
Nominated Adviser Financial PR
Azhic Basirov / Katy Gordon Poole / Nick
Birkin / Ben Jeynes Hennis / Monique Perks
+44(0)20 3757 4997 /
+44(0)207 131 4000 +44(0)20 3781 8330
Hannam & Partners
Joint Broker
Neil Passmore / Andrew
Chubb / Ernie Bell
+44 (0)20 7907 8500
Appendix
Table 1: Juruena Gold Project Mineral Resource estimate (JORC
2012)
Prospect Resource Lower cut-off Tonnes Grade (Au Contained
Name (Mineral Category (g/t Au) (t) g/t) gold (oz)
Resources
Category)
---------------- ----------- -------------- ---------- ---------- -----------
Dona Maria Indicated 2.5 67,800 13.7 29,800
---------------- ----------- -------------- ---------- ---------- -----------
Inferred 2.5 148,500 12.2 58,200
---------------------------- -------------- ---------- ---------- -----------
Dona Maria - Subtotal 216,300 12.7 88,000
--------------------------------------------- ---------- ---------- -----------
Querosene Indicated 2.5 31,200 28.4 28,500
---------------- ----------- -------------- ---------- ---------- -----------
Inferred 2.5 188,700 14.7 89,300
---------------------------- -------------- ---------- ---------- -----------
Querosene - Subtotal 219,900 16.7 117,800
--------------------------------------------- ---------- ---------- -----------
Total Indicated 99,000 18.3 58,300
--------------------------------------------- ---------- ---------- -----------
Total Inferred 337,200 13.6 147,500
--------------------------------------------- ---------- ---------- -----------
Total high grade ounces 436,200 14.7 205,800
--------------------------------------------- ---------- ---------- -----------
Crentes Inferred 1.0 846,450 2.0 55,100
---------------- ----------- -------------- ---------- ---------- -----------
Total combined Inferred
Mineral Resource 1,282,650 6.3 260,900
--------------------------------------------- ---------- ---------- -----------
Note: Appropriate rounding applied. Table includes updated
mineral resource estimates for Querosene and Dona Maria, Crentes
remains the same as per the 2015 resource estimate. For further
information, please see the section below: Summary of Resource
Estimate and Reporting Criteria.
Table 2: Borborema Gold Project Ore Reserve (JORC 2012 code)
Borborema Gold Project - Ore Reserve
-----------------------------------------------------------
Category Tonnes (Mt) Grade (Au Gold to
g/t) Mill (koz)
------------------- ------------ ---------- ------------
Proven Oxide 0.65 0.80 17
---------- ------- ------------ ---------- ------------
Fresh 7.26 1.25 292
------------------ ------------ ---------- ------------
Probable Oxide 1.68 0.70 38
---------- ------- ------------ ---------- ------------
Fresh 32.82 1.20 1,260
------------------ ------------ ---------- ------------
1,610 (1.61
Total 42.41 1.18 Moz)
------------------- ------------ ---------- ------------
Ore Reserve estimate for the Borborema Gold Project. Reported at
a 0.4 g/t cut-off for oxide and 0.5 g/t cut-off for fresh material.
The cut-off grades have been based on the latest throughput costs,
gold price of US$1,210/oz. Note, appropriate rounding has been
applied, subtotals may not equal total figures.
Table 3: Borborema Gold Project Mineral Resource (JORC 2012
code)
Borborema Gold Project
Mineral Resource by Multiple Indicator Kriging
(MIK)
------------------------------------------------------------------
Category Cut-off Tonnes (Mt) Grade (Au Contained
grade g/t) gold (Moz)
---------------- -------- ------------ ---------- ------------
Measured 0.40 9.8 1.09 0.34
---------------- -------- ------------ ---------- ------------
0.50 8.2 1.22 0.32
---------------- -------- ------------ ---------- ------------
0.60 6.8 1.35 0.30
---------------- -------- ------------ ---------- ------------
Indicated 0.40 53.1 0.99 1.70
---------------- -------- ------------ ---------- ------------
0.50 42.8 1.12 1.55
---------------- -------- ------------ ---------- ------------
0.60 34.8 1.26 1.41
---------------- -------- ------------ ---------- ------------
Total Measured
and Indicated 0.40 62.9 1.01 2.04
---------------- -------- ------------ ---------- ------------
0.50 51.0 1.14 1.87
---------------- -------- ------------ ---------- ------------
0.60 41.7 1.27 1.70
---------------- -------- ------------ ---------- ------------
Inferred 0.40 23.2 0.87 0.65
---------------- -------- ------------ ---------- ------------
0.50 17.6 1.00 0.57
---------------- -------- ------------ ---------- ------------
0.60 13.6 1.14 0.49
---------------- -------- ------------ ---------- ------------
Total Mineral
Resources 0.40 86.1 0.97 2.69
---------------- -------- ------------ ---------- ------------
0.50 68.6 1.10 2.43
---------------- -------- ------------ ---------- ------------
0.60 55.2 1.24 2.20
---------------- -------- ------------ ---------- ------------
Mineral Resource estimate for the Borborema Gold Project,
reported at various cut-offs. Parent Block 25mE x 25mN x 5mRL.
Selective Mining Unit 5mE x 6.25mN x 2.5mRL. Note, appropriate
rounding has been applied, subtotals may not equal total
figures.
About Crusader
Crusader Resources Limited (ASX:CAS, AIM:CAS) is a minerals
exploration and development company listed on the Australian
Securities Exchange and the AIM Market of the London Stock
Exchange. Its major focus is Brazil; a country Crusader believes is
vastly underexplored and which offers high potential for the
discovery of world class mineral deposits.
Crusader has two key gold assets:
Borborema Gold Project
The Borborema Gold Project is in the Serido area of the
Borborema province in north-eastern Brazil. It is 100% owned by
Crusader and consists of three mining leases covering a total area
of 29 km(2) including freehold title over the main prospect
area.
The Borborema Gold Project benefits from a favourable taxation
regime, existing on-site facilities and excellent infrastructure
such as buildings, grid power, water, sealed roads and is close to
major cities and regional centres. The project's Ore Reserve
includes Proven and Probable Ore Reserves of 1.61Moz of mineable
gold from 42.4Mt @ 1.18 g/t (0.4 & 0.5 g/t cut-offs for oxide
& fresh). The measured, indicated and inferred Mineral Resource
Estimate of 2.43Moz @ 1.10 g/t gold, remains open in all
directions.
Juruena Gold Project
The Juruena Gold Project is located in the highly prospective
Juruena-Alta Floresta Gold Belt, which stretches east-west for
>400km and has historically produced more than 7Moz of gold from
40 known gold deposits. Historically there is a database of more
than 30,000 meters of drilling and extensive geological data.
Competent Person Statements
Juruena mineral resource estimate
The information in this announcement that relates to the Mineral
Resource estimate for the Juruena Project was first reported in
accordance with ASX Listing Rule 5.8 on 22 December 2016. Crusader
confirms that it is not aware of any new information or data that
materially affects the information included in the announcement of
22 December 2016 and that all material assumptions and technical
parameters under pinning the Mineral Resource estimate continue to
apply and have not materially changed.
Exploration results
The information in this announcement relating to exploration
results for the Juruena Project and Novo Astro Project is based on
and fairly represents information and supporting information
compiled by Mr Robert Smakman. Mr Smakman is the former Managing
Director of the Company and now acts as an independent consultant.
Mr Smakman is a Fellow of the Australasian Institute of Mining and
Metallurgy. Mr Smakman has consented to the form and context in
which the exploration results and supporting information are
presented in this announcement.
Borborema mineral resource estimate
The information in this announcement that relates to the mineral
resource estimate for the Borborema Project was first reported in
accordance with ASX Listing Rule 5.8 on 24 July 2017. Crusader
confirms that it is not aware of any new information or data that
materially affects the information included in the announcement of
24 July 2017 and that all material assumptions and technical
parameters underpinning the Mineral Resource estimate continue to
apply and have not materially changed.
Borborema ore reserve estimate
The information in this announcement that relates to the Ore
Reserve estimate for the Borborema Gold Project was first reported
in accordance with ASX Listing Rule 5.9 on 6 March 2018, 29 March
2018 and 11 April 2018. Crusader confirms that it is not aware of
any new information or data that materially affects the information
included in these previous announcements and that all material
assumptions and technical parameters underpinning the Ore Reserve
estimate continue to apply and have not materially changed.
Exploration results
The information in this announcement that relates to exploration
results for the Borborema Gold Project was first reported in
accordance with ASX Listing Rule 5.7 on 28 January 2015. Crusader
confirms that it is not aware of any new information or data that
materially affects the information included in the announcement of
28 January 2015.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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