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Equitas Resources signs definitive agreement on Brazil gold operation

by Greg Klein | March 7, 2016

Equitas Resources signs definitive agreement on Brazil gold operation

Due diligence done, Equitas Resources TSXV:EQT moves forward on its acquisition of a Brazilian gold producer with a definitive agreement announced March 7. Pending regulatory approval, Equitas will take over Alta Floresta Gold Ltd, which holds a 60% stake in six gold properties, one of them a small mine.

An alluvial operation at the Cajueiro project’s Baldo zone currently produces about 100 ounces of gold a month. Equitas hopes to improve recovery by installing a small gravity plant. Further plans would call for a carbon-in-leach plant, then expanded production through open pit mining.

Cajueiro has a 2013 resource estimate for four zones:

Crente zone, 0.5 grams per tonne cutoff

  • indicated: 4.53 million tonnes averaging 1.2 g/t for 168,000 gold-equivalent ounces
  • inferred: 3.02 million tonnes averaging 1 g/t for 100,300 ounces

Crente zone, 0.3 g/t cutoff

  • indicated: 7.4 million tonnes averaging 0.9 g/t for 203,000 ounces
  • inferred: 5.26 million tonnes averaging 0.8 g/t for 127,400 ounces

Baldo zone, 0.3 g/t cutoff

  • inferred: 1.41 million tonnes averaging 1.3 g/t for 61,100 ounces

Matrincha zone, 0.3 g/t cutoff

  • inferred: 1.56 million tonnes averaging 1.1 g/t for 52,900 ounces

Marines zone, 0.3 g/t cutoff

  • inferred: 1.17 million tonnes averaging 0.7 g/t for 27,200 ounces

Last week Equitas offered a private placement of up to $1 million. The company also holds the 23,386-hectare Garland project in Labrador, 30 kilometres from Voisey’s Bay, where initial drilling has found highly anomalous nickel-copper-cobalt mineralization.

Read more about the Alta Floresta Gold acquisition.

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