Cervantes Corporation Limited (ASX:CVS) Resource Drilling Campaign at Albury Heath Completed
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www.cervantescorp.com.auCompany Overview
Resource Drilling Campaign at Albury Heath Completed
Perth, May 14, 2018 AEST (ABN Newswire) - Cervantes Corporation Limited (
ASX:CVS) (the Company) wishes to advise that its inaugural drilling campaign at the Albury Heath Project has been completed.
HIGHLIGHTS
- Cervantes has successfully concluded its inaugural drilling campaign at Albury Heath
- The drilling aimed to confirm, better define, and expand the Inferred Gold Resource
- 29 Reverse Circulation (RC) drill holes for 1,882m completed, two more holes than planned
- Gold assaying awaited
The Albury Heath tenement package (P51/2937, P51/2997 - 3001) is located approximately 23 kilometres South East of the mining town of Meekatharra in Western Australia (see Figure 1 in link below).
The Albury Heath Mine is an historic underground operation in P51/2937. Gold mineralisation is hosted by a series of sheeted quartz vein sets, only the highest grade of which was mined previously during two phases of activity. From 1948 to 1957, 1,429 tonnes of ore was extracted at a grade of 42.2g/t gold. A second phase in 1976 extracted 410 tonnes at a recovered grade of 20g/t gold. The project was strategically acquired by the company for its near term production potential.
Continental Resource Management (CRM) estimated a Maiden JORC Resource of Indicated and Inferred Resources of 390,000t at 2.15g/t Au, for a total of 27,000oz of contained gold above a cut-off grade of 0.5g/t Au (Table 1, ASX announcement 7 February 2017).
CRM identified several sampling issues of in-ground voids (historic stopes) that may have an impact on their resource estimate. In addition, possible untested extensions of the mineralisation have been recognised that may lead to additional resource potential.
Collar locations and geometries for completed holes are shown in Table 2 (see link below), while locations are shown in Figure 2 (see link below). The drilling programme assessed the potential gold resource upside by testing:
1) Down dip potential. The mineralisation is open and shows no signs of abating at depth,
2) Up dip potential. Near surface mineralisation has been inadequately sampled in past drilling. Increasing this area of the resource will bolster the economics of open pit mining, and
3) Sampling of the potentially mineralised footwall to historic underground stopes. These were inadequately sampled by past drilling. That drilling indicated that the stopes have an envelope of mineralisation on the hanging wall and also, where tested, on the footwall.
While the results and conclusions from this drilling are yet to be finalised, in-field observations indicate that, at a geological level, the programme's aims were met.
Going Forward
Drill samples are in the process of being prepared for submission for gold assaying. Sample preparation and assaying will likely take in excess of six weeks.
Cervantes will report on the results once they are to hand. Once all relevant information with regard to this drilling campaign is finalised, a JORC Table 1 will be issued.
Geological logging will be incorporated into the model for Albury Heath to better understand both the controls on gold mineralisation and the potential for further expansion of the gold resource.
It is planned, on the basis of assay results, to undertake initial metallurgical testing of the composited material from the mineralised zones defined by this drilling. That work will provide an analysis of gold particle sizing and liberation characteristics to enable an economic model to be constructed.
In addition, re-modeling of the resource estimate may be warranted. There is no guarantee that the current drilling will either increase resource tonnages or gold grade. Any update in the modeled resource may be used to undertake pit design and pit optimisation modeling to further assess the project's economic viability.
Cervantes expects to be in a stronger position to continue discussions with nearby mills regarding toll treatment of the ore from Albury Heath.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/T24Z376M
About 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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