by Greg Klein | May 9, 2016
Trenching has begun, with bulk sampling and 1,600 metres of drilling to follow as a new exploration program begins at Equitas Resources’ (TSXV:EQT) Cajueiro project in central Brazil. The company closed its acquisition of the alluvial gold producer late last month with the intention of improving recovery in the near term while expanding the operation.
Exploration will focus on the property’s Baldo area, site of the alluvial operation and a mineralized structural corridor of 820 metres in strike that’s “virtually untested by drilling,” the company states. Results from 34 grab samples of weathered saprolite taken from surface in 2012 ranged from 0.01 grams per tonne to 118.47 g/t gold. Twenty samples surpassed 0.5 g/t, while the 34-sample average hit 14.67 g/t.
Mini-bulk sampling during 2014 and 2015 returned grades as high as 5.77 g/t and 87.2 g/t. Four recent samples underwent processing through an H3 hammer mill with limited capacity. Even so, Equitas was impressed with results of 9.9 grams of gold in 5.63 tonnes, 17.6 grams in 12.7 tonnes, 33.71 grams in 49 tonnes and 28.82 grams in 22 tonnes.
Metallurgical tests on a 100-kilo saprolite sample brought assays including 8.9 g/t gold, 6 g/t silver, 0.01% lead and 0.012% zinc.
Overall results suggest Baldo’s saprolite varies in thickness between an interpreted range of two metres and 35 metres.
“The gold grades achieved from the surface sampling program, and initial bench-scale metallurgical testing at Baldo, have provided very positive encouragement for the potential to outline significant additional gold resource in this target area,” commented VP of exploration Everett Makela.
Equitas plans to finance incremental expansion of Cajueiro through the project’s revenue. Last week the company announced it had appointed a new advisory board and filed an updated 43-101 technical report with new resource estimate numbers.
In early April Equitas closed the final tranche of a $1.5-million private placement. Insiders took 10.4 million units of the 30-million-unit total.