TIDMCAS
RNS Number : 2234Y
Crusader Resources
20 August 2018
20 August 2018
Crusader Resources
("Company" or "Crusader")
Borborema Gold Project Bankable Feasibility Study
Metallurgical Testing
Crusader Resources Limited (ASX:CAS, AIM:CAS) is pleased to
provide the following update on Bankable Feasibility Study (BFS)
metallurgical test work at the Company's Borborema Gold
Project.
Highlights
-- Orway Mineral Consultants (OMC) is evaluating comminution
flowsheet options. Evaluations suggest the Borborema ore is
amenable to single stage SAG milling which will reduce upfront
capital expenditure compared to the previous three stage crush /
ball mill option.
-- Recommissioned test work on the Borborema resource has confirmed the validity of a simple crush-grind-cyanidation processing circuit to provide high gold extractions in excess of 90%.
-- As expected heap leach and flotation options have been
further evaluated and have been shown not to be optimal.
-- Recent test work has identified 80% material tests passing
106um as the optimum grind size when operating costs and revenue
benefits are analysed.
-- Mineralogical evaluations are continuing to assess the gold
deportment and mineralogical associations. Notably the role of mica
present in the ore and gold liberation characterisation as a
function of mica content and grinding energy input.
As part of the BFS the Company is undertaking an ongoing
technical and financial optimisation of the 2.0Mtpa Borborema Gold
Project. This optimisation work includes detailed metallurgical
test work utilising samples originating from eight large diameter
(PQ) diamond drill holes which have provided approximately 6 tonnes
of sample from 1,200m of core. The holes are deemed representative
of the larger ore body, both along strike and down dip, and reflect
the various lithologies present at Borborema. Finalisation of the
metallurgical test work and subsequent processing plant flowsheet
design is a critical path item for the completion of the BFS for
the Borborema Gold Project.
An opportunity has been identified in minimising the usage of
grinding media via optimisation of the grinding circuit. Work is
ongoing, with OMC embarking on assessment of operating cost
criteria for the comminution circuit options. Options under
evaluation are:
o Single stage SAG (lowest capex option) recently shown suited
to achieving the nominal 106um grind
o A SAG/ball mill flowsheet (SAB)
o A multiple stage crush / ball mill flowsheet, as previously
proposed in the PFS
o A hybrid coarse fed ball mill / SAG which includes primary
crushing, and open circuit secondary crushing feeding a high ball
charge SAG mill
Work completed indicates the optimal grind size of 80% material
passing 106um and a leach residence time of 24 hours. The 106um
grind size provides a positive impact on the project's NPV over
both finer and coarser grinds and residence time considerations.
Final grind size selection is expected to be confirmed post the
completion of the OMC operating cost criteria determinations.
Ongoing metallurgical testing is focusing on variability testing
where some 40 composites along strike and down dip will be
subjected to a matrix of gravity-leaching test work encompassing
variables of grind size, cyanidation conditions and residence time.
Short range variability testing will also be undertaken to populate
a geo-metallurgical model to forecast process recovery. Bulk test
work will generate the key design parameters needed to take the BFS
forward by providing the basis for capital and operating cost
estimation as well as revenue estimates. This data will also
ultimately support detailed design of the facility as the project
is taken forward to production
Crusader confirms that the optimisation work undertaken to date
and disclosed in this announcement does not materially change any
of the material assumptions and technical parameters underpinning
the Company's previously announced mineral resource and ore reserve
estimates. Following completion of the Company's optimisation work
and BFS, if there are any material changes to these material
assumptions or technical parameters, the Company will release all
information required under the Listing Rules, the AIM Rules and the
JORC Code 2012.
Marcus Engelbrecht, CEO of Crusader said: "The metallurgical
test work on the Borborema Gold Project BFS is progressing well and
is delivering some key positives with regard to optimising
work-streams. In particular the results from the OMC review
regarding the SAG mill option, as well as the conclusions reached
on grind size will have a real and positive impact on capital and
operating costs and project economics."
Borborema Gold Project
Crusader's key asset is the Borborema Gold Project in the Seridó
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 29km(2) including freehold title over the main
prospect area. Previously mined as a heap leach in the 1980's,
Crusader has completed more than 95,000m of drilling on an orebody
which is tabular and mineable as an open pit. Free milling ore with
expected gold recoveries of 93%, the project is favoured by its
location which has a dry climate and excellent infrastructure
(roads, power, water and nearby sophisticated population centres).
The Company benefits from a favourable taxation regime, significant
existing infrastructure and on--site facilities and the critically
important Environmental Licence (LP) which Crusader received in
2017 (refer ASX release of 28 April 2017).
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: 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 2: 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 @ 1.18g/t (0.4 & 0.5g/t cut-offs for oxide
& fresh). The measured, indicated and inferred Mineral Resource
Estimate of 2.43Moz @ 1.10g/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
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.
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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