Quarterly Activities Report
Perth, July 31, 2015 AEST (ABN Newswire) - Crusader Resources Limited (
ASX:CAS) announce the Quarterly Activities Report with the following highlights:
* Juruena District continues to deliver high-grade gold results with the following announced over the quarter;
- 12m @ 35.13 g/t Au from 99m in MR-10,
o including 4m@ 75.07 g/t Au from 99m
- 3.38m @ 47.97g/t Au from 183.62m in MD-01
- 2m @ 32.97 g/t Au from 82m in QR-20
- 1m @ 34.26 g/t Au from 84m in QR-21
- 16m @ 3.11 g/t Au from 32m in CR-08
* A total of 7,750m of RC and 1,864m of diamond core drilled to date at Juruena
* Querosene Prospect metallurgical results indicate recoveries >90%
* Maiden Resource estimate underway at Querosene
* Posse Iron Ore Mine increases in profitability
* Posse operating costs continued to trend downwards averaging $12.67/t over the quarter, compared to $14.60/t for the previous quarter
* Sales revenue for June quarter of $2.2M; Gross profit was $280k (unaudited)
* Posse Iron Ore Mine expands - Neighbour access agreement signed
* Share placement completed to raise approximately $3.3M
* Crusader Directors increase shareholding in the Company
* Corporate overheads significantly reduced
Juruena Gold Project - Mato Grosso State, Brazil (100% Crusader)
The Juruena project (> 400km2 of contiguous tenements, 100% Crusader owned) is located in Central Brazil on the southern fringe of the Amazon basin. Situated on the western end of the prospective Juruena-Alta Floresta Gold Belt (estimated to have produced ~7Moz), Juruena has been worked extensively by artisanal miners (garimpeiros) since the 1980s.
Diamond and RC drilling at Crusader's Juruena Gold Project continued to deliver with spectacular results from a series of prospects on the Juruena Belt, highlighting the opportunity to develop a new multi-project district. Crusader controls approximately 447km2 of the Alta Floresta Gold Belt.
Reported results are from four different prospects, Querosene, Crentes, Dona Maria and Capixaba (see Figure 1). An outstanding result from RC hole MR-10 drilled at Dona Maria was the standout, with assays returning 12m @ 35.13 g/t Au from 99m. This intersection was a series of 4m composite samples from an area which historically has returned some other outstanding results (like 6.62m @ 20.61 g/t Au from 112.5m and 4.66m @ 64.3 g/t Au from 124.7m in J-07).
These four prospects represent a small fraction of the potential target area and are located in close proximity to each other. Each prospect represents a unique mineralised system, with differing amounts of historical work. Crusader's systematic approach to the targeting of these prospects will help with an overall understanding of the geological setting in the region, which appears to be a district scale gold mineralised system, linked by a structural corridor hosting multiple gold prospects. Intense and localised phyllic alteration along various structures appears to define the gold zones.
Crusader is beginning to understand the enormous scale of the project- defined by a 'giant' high-grade gold in soil anomaly, the footprint of which is estimated at 8km x 4km.
Favourable metallurgical results have also been received from a composite sample collected from the Querosene prospect, considered Crusader´s most advanced prospect.
Drilling to Date
A total of 7,750m of RC and 1,864m of diamond core were completed by Crusader, with hole numbers and metres drilled summarised below:
Capixaba - 16 RC holes for 1,615m
Querosene - 30 RC holes for 3,430m and 8 diamond holes for 1,315m
Crentes - 17 RC holes for 1,699m and 1 diamond hole for 182m
Dona Maria - 10 RC holes for 1,065m and 2 diamond holes for 367m
A full table of results is included at the end of this report in link.
Querosene Prospect
Drilling Results
Better intercepts included:
2m @ 9.6m g/t Au from 48m, including 1m @ 16.21 g/t Au from 49m in QR-28 and 0.5m @ 7.02 g/t Au from 110.7m in QD-05
Results from Querosene indicate that the higher grade mineralisation is concentrated in the central and southern portion of the shear zone, extending further south than previously expected. The easternmost vein which extends the furthest to the south remains open and several of the new results from holes oriented specifically at this area have extended the mineralisation another 100m to the south. The entire mineralised system remains open at depth (see Figures 2 & 3 in link below).
Crusader is currently preparing a maiden JORC compliant mineral resource estimate at Querosene.
Metallurgical Sampling
Results from preliminary testwork on samples from the Querosene prospect have been received and indicate recoveries > 90% for both gold and silver using standard leaching. Crusader sent a 50kg composite sample of RC chips to a certified metallurgical laboratory in Belo Horizonte (Testwork Desenvolvimento Processo Ltda.) for preliminary metallurgical and comminution testwork.
The sample tested had a head grade of 7.41 g/t of Au and 11.84 g/t of Ag. The testwork included;
Physical characterisation of the ore
Size distribution and leaching by fraction
Gravity concentration and leaching
Leaching curves with/without oxygen and or carbon
Results indicate that;
A work index of 19.1KWh/t and a specific gravity of 2.40 g/cm3 (physical characterisation and assay work was completed by SGS Geosol laboratory)
The size distribution work indicates that the gold and silver is very fine and well distributed within the ore, with >40% of the gold in the fraction finer than 45µm
Gold recovered through gravity was low at <20%, supporting the size distribution results that gold is fine.
Intensive leaching after gravity did not significantly increase the overall gold recovery, with gold recoveries of 90.6% for 106µm grind and 91.3% for 75µm recorded (88.7% and 89.4% for Ag recorded respectively) 24 hour leach tests at two grind sizes (106 and 75µm) were performed on samples with and without oxygen.
Gold recovery results varied from 86.3% to 91.2% with best results achieved using the finer grind of 75µm and oxygen. Silver recoveries varied from 83.7% to 90.4% with the best recoveries also achieved with the addition of oxygen and using the 75µm grind. Cyanide consumption averaged 343 g/t which is considered low Leaching tests were also performed on the different size fractions with carbon in the leach tank, again achieving gold recovery results between 90.6% and 91.2% (88.6% - 90.7% silver).
Results are very encouraging and indicate that the ore is not refractory and should liberate well in a CIP/CIL beneficiation plant. Additional tests are planned to assess potential to improve recovery from the Querosene ore. Results will be reported once received.
Crentes Prospect
Mineralisation at Crentes occurs within the regional Juruena fault structure and frequently comprises multiple mineralised horizons over a cumulative width of over 20m. Better intercepts include: 4m @ 5.19 g/t Au from 12m and 12m @ 1.62 g/t Au in CR-05.
The Crentes garimpo pit is approximately 400m long (oriented WNW) and up to 40m wide. The mineralised trend is associated with a strong and well-defined aeromagnetic low. It appears to be broader and has a different mineralisation signature compared to other Juruena prospects. The near-surface portion of the drilled mineralisation is oxidised and this could lead to different approach to development.
The prospect often returns anomalous values for copper, silver, molybdenum, bismuth and tungsten, and there may be multiple mineralised horizons.
Dona Maria Prospect
Results received from Dona Maria, a mineralised splay off the main Crentes structure, include 12m @ 35.13 g/t Au from 99m in MR-10, including 4m @ 75.07 g/t Au from 99m, and 3.38m @ 47.97g/t Au from 183.62m in MD-01, including 1.87m @ 84.50 g/t Au from 183.62m.
Interpretation of results to date, including historical drilling, indicates a thickening of the mineralisation, with local extremely high grades in the area of the junction between the Crentes and Dona Maria structure. The intersection in MD-01 is located at the southern extremity of the Dona Maria structure close to this junction, and may relate to the Crentes structure. All assay results have now been received and a detailed interpretation of the available data is in progress in preparation for the Crentes/Dona Maria ore resource estimate.
Capixaba Prospect
A 16 hole RC drilling program, testing a number of parallel, narrow shear-hosted mineralised horizons, was completed at the Capixaba prospect. Capixaba is located a few kilometres to the south of Querosene and close to the Crusader camp. The prospect has a series of mineralised quartz veins which have been exploited in a variety of shallow garimpo workings. The area is centred over a complex intersection of magnetic anomalies with a NW-SE trend and broad soil anomaly trending NE. Better results include:
3m @ 4.30 g/t Au from 32m in CXR-04
- 2m @ 8.28 g/t Au from 62m in CXR-09
- 4m @ 8.26 g/t Au from 60m in CXR-13
Borborema Gold Project Development & Seridó Exploration - Rio Grande do Norte, Brazil (100% Crusader)
Work continued on evaluation of development options for the Borborema Gold Project targeting the shallower deposit. This would reduce the size of the plant required and significantly lower capital costs. In addition, the resource is being re-modelled assuming a more selective approach to mining which could significantly increase the resource grade.
Environmental licensing and approvals from the Mines Department were all progressed during the quarter.
Crusader Iron
Posse Iron Ore Mine - Minas Gerais, Brazil (100% Crusader)
Posse sales revenue for the quarter was $2.2M and Gross profit was $280k (unaudited). Demand for products increased over the quarter and the Company expects sales volumes to strengthen further over the coming periods.
Posse operating costs continued to trend downwards with costs averaging $12.67/t over the quarter, compared to $14.60/t for the previous quarter.
During the quarter Crusader signed a key access agreement with the surrounding tenement holder to its operating Posse Iron Ore Mine. The agreement allows Crusader to mine into the neighbouring area, a pre-requisite to access all of the hematite and itabirite ore within Crusader´s Posse lease.
The current agreement refers to the area between the northern boundary of Crusader´s tenement and the Federal Highway BR381 (see Figure 7 below). It is expected that this agreement will extend the mine life within the Posse tenement, within an updated pit boundary. This quality ore can be blended to create products specific to individual customer needs and increases the overall quality of Posse products.
In addition to this agreement, Crusader believes there are a number of quality opportunities now available to selectively grow its iron ore business. Many of these opportunities are only available due to the current negative international pricing environment and general investor sentiment for iron ore investment.
Having positive cash flow and operational experience puts Crusader in a strong position to consider new opportunities compatible with the existing operations and management team.
Corporate
During the quarter the Company completed a share placement to sophisticated investors and a share purchase plan to issue 23,039,975 shares raising approximately $3.9 million.
The funds will be used to accelerate exploration activities at Crusader's Juruena Gold Project in Brazil and for general working capital purposes.
Overhead Cost reduction
During the period Crusader completed a substantial reorganisation program focused on reducing production and overall Company costs. Key roles in the Iron Ore Division have been redefined and the number reduced. Project Manager, Wayne Foote, will complete his contract at the end of July and COO, Michael Schmulian will retire in the first week of August. Both Mr Schmulian and Mr Foote have been exceptional contributors to Crusader Resources and will remain available on contract basis in the future.
In addition, the Company has signed service agreements with four other ASX listed companies to co-share office and administration costs and this will significantly reduce Crusader's Perth office costs.
To view all tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CAS-728496.pdf
About Crusader Resources Limited
Crusader Resources Limited (ASX:CAS) is a minerals company focussed on the identification, acquisition, development and operation of projects in Brazil. Crusader believes that Brazil is a vastly underexplored country with high potential for the discovery of world class mineral deposits. The company has already acquired a diverse portfolio of projects including gold, iron ore, tin, tungsten and uranium and continues to utilise its strong networks in Brazil to identify new opportunities.
Crusader is characterised by a tight corporate structure and features an experienced board of directors who are strongly focussed on the success of the company.
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