by Greg Klein | August 29, 2016
New gold assays bolster Equitas Resources’ (TSXV:EQT) plan to incrementally expand its Cajueiro project in central Brazil. On August 29 the company reported 33 near-surface intervals from saprolite and bedrock on the project’s Baldo zone, ranging from 0.95 grams per tonne to 4.07 g/t gold.
The results will also help the company gain a full mining licence, part of a plan to expand recovery from what had been a small alluvial operation by installing a carbon-in-leach plant. Additionally, three other near-surface areas have been identified for further trenching and drilling, including Zona Dois with 300 metres of strike.
Highlights from 37 holes totalling 1,756 metres show:
- 1.46 g/t gold over 13.5 metres, starting at 14.2 metres in downhole depth
- 1.21 g/t over 10 metres, starting at 10 metres
- 1.19 g/t over 8.2 metres, starting at 1 metre
- 3.67 g/t over 2.5 metres, starting at 9 metres
- 1.95 g/t over 4.5 metres, starting at 10.5 metres
- 1.13 g/t over 7 metres, starting at 48 metres
- 1.19 g/t over 5.8 metres, starting at 6.2 metres
- 2 g/t over 3 metres, starting at 27 metres
True widths weren’t available. The mineralized intervals have also been sent for screen fire assay to test for coarse gold, Equitas stated.
Two additional holes were drilled at Cajueiro’s highly prospective Crente zone. Sunk below a former garimpeiro pit, they tested a new interpretation suggesting a steeply dipping mineralized trend intersected by an historic result of 2.37 g/t over 31 metres. Equitas expects those results by mid-September.
The latest assays follow trenching results announced in July that featured 24.26 g/t over two metres, 18.86 g/t over two metres and 1.4 g/t over 12 metres. Further trenching and drilling will feed a resource update for the 39,053-hectare project. Using a 0.25 g/t cutoff, four zones of sulphides currently total:
- indicated: 8.64 million tonnes averaging 0.771 g/t for 214,100 ounces gold
- inferred: 9.53 million tonnes averaging 0.664 g/t for 203,500 ounces
Four zones of oxides total:
- inferred: 1.37 million tonnes averaging 1.775 g/t for 78,400 ounces
Near-surface oxides remain the company’s focus.
Plans to expand Cajueiro incrementally originally called for installation of a gravity plant, to be followed by a CIL plant. But metallurgical results announced earlier this month convinced the company to skip the first stage and go straight to CIL processing.
In late July the company closed an over-subscribed private placement of $861,000. Equitas has also been working towards completion of a US$6-million private equity financing that would include US$5 million in revolving loans and a US$1-million warrant exercise.