Albury Heath Resource and Exploration Update
Perth, Mar 12, 2019 AEST (ABN Newswire) - Cervantes (
ASX:CVS) wishes to announce the updating of the Mineral Resource for its 100% owned Albury Heath Mine deposit and plans for further exploration work in the Albury Heath Project area (see Figure 1 in link below).
- Albury Heath Mine Inferred Resource increased to 35,500 ounces (uncut) and 23,740 ounces (with 17.95g/t gold top cut)
- Cervantes' drilling establishes mineralised lode continuity
- Gold grade variability makes it prudent to classify the resource as Inferred
- Aeromagnetic coverage of area completed
- Five regional targets identified as possible Albury Heath Mine look-alikes
- MMI geochemistry started to prioritise drilling targets
JORC (2012) RESOURCE
Experienced resource geologist Mr Philip Jones, MAusIMM, consultant with Al Maynard & Associates, has estimated an Inferred Resource for the Albury Heath Mine area (P51/2937, see Figure 1, Table 1 in link below)
Recent drilling by the company has shown that areas of bonanza grade gold, to 202.8g/t gold, or 6.5 ounces/t, exist in the mine area. Follow-up drilling showed that, while the lode zones are generally continuous, the gold grades tend to be erratic. Consequently, Cervantes has decided it is prudent to classify the entire resource as an Inferred Resource. Additional close spaced drilling will be needed to establish gold grade continuity.
BACKGROUND
Cervantes announced a Maiden Resource for the Albury Heath Gold Mine on 7 February 2017 soon after the Mining Lease's acquisition. That resource estimate was based on 110 drill holes for 6,326.5m drilled by previous explorers. Drilling chiefly consisted of Reverse Circulation (RC) drilling and there was one diamond drill hole (DDH).
Cervantes recognised a number of opportunities at Albury Heath Gold Mine:
1. Previous drilling through the old underground stoped areas was ineffective given the drilling equipment of the day. Specifically, the rock immediately before and after the drill bit hit an open stope was not properly sampled - an area with a likely high gold content.
2. Areas of high quartz lode development away from the historic mine were inadequately drilled.
3. Rock samples from the historic drilling was only assayed if it exhibited significant quartz content, leaving large drilled sections poorly assayed.
4. Gold is not necessarily restricted to quartz lodes, though it is mainly hosted by the lodes.
These opportunities were investigated with two drilling campaigns that completed 36 RC holes for 2,337m drilled (ASX announcements 16 May 2018, 28 June 2018, 4 December 2018, 7 January 2019). The stated aims of this drilling were met with the discovery of new bonanza grade zones at some distance from the old workings (see Figure 2 in link below for hole locations.)
Significant gold intercepts from the first campaign by Cervantes include (downhole widths only; true widths are unknown, see ASX announcement on 28 June 2018 for details):
1m @ 202.8 g/t from 33m in 5m @ 63.1 g/t from 32m in AHP134
1m @ 129.3 g/t from 27m in 2m @ 67.2 g/t from 27m in AHP116
2m @ 49.0 g/t from 87m in 8m @ 23.1 g/t from 87m in AHP135
1m @ 31.4 g/t from 4m in 2m @ 18.2 g/t from 4m in AHP127
1m @ 31.4 g/t from 36m in AHP128
1m @ 21.3 g/t from 82m in 3m @ 9.0 g/t from 81m in AHP130
1m @ 19 g/t from 45m in 4m @ 5.8 g/t from 45m in AHP129
2m @ 16.5 g/t from 19m in 4m @ 9.1 g/t from 19m in AHP119
Hole collars from the second campaign are listed in Table 2 and locations also shown in Figure 2(see link below). Significant gold assays from this campaign include:
1m @ 14.90 g/t from 34m in AHP142
in 2m @ 11.2 g/t from 34m in 5m @ 5.85 g/t from 33m in AHP142
2m @ 8.11 g/t from 34m in 5m @ 5.51 g/t from 31m in AHP141,
1m @ 9.65 g/t from 27m in 2m @ 6.4g/t from 27m in AHP144
with near-surface, saprolite-hosted gold mineralisation noted:
1m @ 5.08 g/t from 10m in AHP140
2m @ 3.13 g/t from 17m in AHP142
A fuller list of intercepts is shown in Table 3 (see link below), whilst interpretive sections are shown in Figures 3 and 4 (see link below) (location of sections indicated on Figure 2.)
EXPLORATION UPDATE
Interpretation of aeromagnetic data over Cervantes' tenements in the Albury Heath Project has identified a number of possible repetitions of the Albury Heath Mine structural setting. Five target areas have been outlined. All are associated with either the Mt Magnet-Tuckabianna fault belt on which the Albury Heath Mine is located, or the Gabanintha Fault, or the intersection of the two (see Figure 5 in link below). Both these faults are associated with major gold mineralisation in the district. Surprisingly, there has been only very limited exploration activity over these areas, previous workers having focussed on the area directly around the historic mine.
A fast geochemical reconnaissance programme, using Mobile Metallic Ion (MMI) sampling and assaying techniques will be used as a first pass to assess the five targets prior to drill testing if warranted.
Mr Collin Vost, Executive Chairman of Cervantes, remarked: "Albury Heath is delivering some excellent bonanza grade gold zones. While we need to do more work to demonstrate the consistency these zones, it is prudent that we classify the resource as Inferred. The upside is clearly there, however, and Cervantes will continue to derisk this project for the benefit of our shareholders."
To view the release with tables and figures, please visit:
http://abnnewswire.net/lnk/PHRUS7V9
About Cervantes Corporation Limited
Cervantes Corporation Limited (ASX:CVS) is an emerging gold explorer and aspiring gold miner. It has built up a portfolio of gold properties in well-known and historically producing gold districts with a strategy to apply novel exploration and development thinking. Cervantes has identified opportunities in those districts that were overlooked by previous explorers. The company is committed to maximizing shareholder value through the development of those opportunities.
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