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Borborema Gold
The 100% owned Borborema Gold Project is located in the Seridó area of the Borborema province in north eastern Brazil. The project consists of three mining leases covering a total area of 29 km² plus freehold title to the property over the main prospect area. The Borborema Gold Project is enhanced by good on-site facilities and excellent infrastructure, such as buildings, grid power, water, sealed roads and close proximity to major cities.
Maiden Ore Reserve and Total Mineral Resource
The project’s Maiden Ore Reserve was announced in November 2012.
87% of Measured and Indicated Resources from the July 2012 JORC Resource estimate were converted into Proven and Probable Ore Reserves of 1.61Moz of mineable gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut-offs for oxide & fresh). The Mineral Resource remains open in all directions.
The Ore Reserve is based upon the Mineral Resource estimate for Borborema released in July 2012.
Borborema’s estimated Proven and Probable Ore Reserves will form an integral part of the Bankable Feasibility Study (BFS) due for completion in the first quarter of 2013. The BFS will detail costs and benefits of a 4Mtpa gold mine with projected average production of 150,000 oz pa (years 2-10).
A positive Pre-Feasibility Study was completed in September 2011. It examined a smaller 3Mtpa operation, producing an average of 130,000 oz pa. The BFS was launched as a result of the PFS confirming a robustly economic project.
Read more about the Pre-Feasibility Study results – Click Here
Read the full Maiden Ore Reserve ASX announcement – Click Here
As part of the ongoing BFS, Crusader has conducted preliminary pit optimisations, using the July 2012 Mineral Resource estimate. The 43Mt @ 1.2 g/t Au for 1.66 Moz Au are contained within an economic pit-shell, constrained using parameters detailed in Table 3 below.
Crusader is considering 3 pit shells in terms of scheduling with the starter pit shell estimated as having a three year life, strip ratio of 3.0 and a grade of 1.30g/t.
Two other pit shells have been selected as guides for progressive pits. The results for all 3 pit-shells, including the contained tonnages and grades are presented below;
The pit shell detailed in Table 2 returned the highest average discounted cash flow for the project with a projected life of 10.5 years at a throughput rate of 4 Mtpa. The summary results are presented below;
The pit optimisations of the Borborema Gold Project were completed by consultants working on the BFS. The optimisations were completed on the July 2012 block model containing all Mineral Resources categories using Whittle software. The main optimisation inputs are below, as provided by Crusader and the study team and are preliminary parameters only.
Regional Exploration
An additional >4,500km2 of tenements within the Seridó belt, which hosts Borborema, have been acquired by the company and regional exploration is underway.
More detailed information relating to regional exploration around Borborema is contained in this ASX release from 31 August 2012. – Click Here to view
Disclaimer
The information provided on this site is of a general nature only. Although it has been prepared in good faith with all due care there can be no guarantee that it will continue to be accurate in the future.
No one should act or rely upon the information but should undertake their own independent due diligence or seek appropriate professional advice. To the extent permitted by law Crusader Resources Limited (“Crusader”) excludes all liability from any statement in, or omission from, this report. Nothing in this report should be construed as either an offer to sell or a solicitation of an offer to buy or sell Crusader securities in any jurisdiction.
Competent Person Statement
The information in this report that relates to:
(a) Exploration Results is based on information compiled or reviewed by Mr Robert Smakman who is a full time employee of the company;
(b) Borborema gold Mineral Resources is based on information compiled by Mr Lauritz Barnes and Mr Brett Gossage and independent consultants to the company;
(c) Borborema gold Ore Reserves is based on information complied by Mr Linton Kirk, independent consultant to the company;
(d) Posse Fe Mineral Resources is based on and accurately reflects, information compiled by Mr Bernardo Viana who is a full time employee of Coffey Mining Pty Ltd,
and who are all Members of the Australian Institute of Mining and Metallurgy (Rob Smakman and Linton Kirk being Fellows), and who all have sufficient experience that is relevant to the type of mineralisation and type of deposit under consideration, and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Each of Mr Smakman, Mr Viana, Mr Lauritz Barnes and Mr Brett Gossage consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
