by Greg Klein | July 6, 2016
With intervals showing high-grade, near-surface gold, Equitas Resources TSXV:EQT released trenching results from its Cajueiro project in central Brazil on July 6. Highlights included two metres of 24.26 grams per tonne and another two metres of 18.86 g/t, as well as a 12-metre intercept of 1.4 g/t.
Results come from the project’s Baldo zone, an alluvial operation since June 2015 that produces about a kilogram of gold a month. Having acquired the project in April as part of a 184,410-hectare land package, Equitas hopes to increase production incrementally by improving recovery, now only about 30% to 35%, and expanding the resource.
This campaign consisted of nine trenches totalling 1,680 metres and 31 diamond drill holes totalling 1,585 metres. Some 733 assays have been received so far out of a total of 757 trench samples. Still to come are the drill core assays.
Results change the interpretation of prospective altered and mineralized structures, Equitas stated. The high-grade intercepts “appear to represent a corresponding increase in structural complexity that adds an exciting new element to the Baldo environment,” said VP of exploration Everett Makela. “I would also emphasize that a majority of the assay results have yet to be received, so there is considerable new information still to come from this exploration program.”
Trenching focused on Baldo’s near-surface saprolite, described as “the oxidized equivalent of hydrothermally altered bedrock structures hosting gold mineralization with associated pyrite and quartz veining.” Eight standout results show:
- 1.16 g/t gold over 2 metres, starting at 47 metres
- 1.4 g/t over 12 metres, starting at 60 metres
- 1.26 g/t over 5 metres, starting at 23 metres
- 2.12 g/t over 4 metres, starting at 167 metres
- 24.26 g/t over 2 metres, starting at 197 metres
- 5.54 g/t over 2 metres, starting at 146 metres
- 18.86 g/t over 2 metres, starting at 173 metres
- 1.57 g/t over 7 metres, starting at 31 metres
Equitas now has further diamond drilling, auger drilling and trench sampling targeting the high-grade areas and anticipates an updated structural interpretation prior to a campaign of resource definition. The company has also sent a 100-kilogram composite sample of saprolite for bench-scale metallurgical tests. Meanwhile, previous mapping and sampling have revealed three additional targets similar to the current focus area.
Last month Equitas announced private equity financing of up to US$6 million, through $5 million in revolving loans and a $1-million private placement. The company closed a $1.5-million private placement in April.
Equitas appointed a new advisory board in early May.