Crusader Resources (ASX: CAS) is a minerals exploration company focussed on the identification, acquisition and development of projects in Brazil.
Crusader’s key asset is the 2.3 million ounce Borborema Gold Project in north eastern Brazil, targeting production at a rate of 130-180 ounces from 2014.
Crusader Resources signs Option Agreement over Borborema Gold Project in Brazil
Minerals exploration company Crusader Resources has penned an option agreement to purchase 100% of the Borborema Gold Project in Brazil for a total of $2.4 million.
The Borborema Gold Project has been previously estimated, at a 1g/t gold cutoff, to hold a resource of 5.3 million tonnes grading an average of 1.9 g/t gold for 325,000 ounces of gold.
Following the announcement, shares in Crusader jumped 8.8%, or 2.5c, to 31c.
Recent Garimpiero and previous open pit mining is estimated to have produced 300,000 ounces of gold.
The company says the project has a strong exploration upside, with detailed drilling over only 1.2 kilometres of a six kilometre long shear zone.
The acquisition involves a six month option period during which Crusader will undertake due diligence covering all technical, legal and environmental issues.
The Project has excellent infrastructure with grid power, on site water storage, established buildings and bitumen road access.
The Project consists of three granted mining leases covering a total area of 29kms² plus freehold title to the property over the main prospect area covering 7.5kms².
Existing exploration data will be reviewed immediately aimed at establishing a JORC compliant mineral resource.
There is also excellent potential to build on any resource that may be estimated from exploration along the six kilometre long shear zone and in structures parallel to the identified mineralisation.
A signing fee of R$300,000 (Brazilian Reals) will be paid to the vendors subject to preliminary legal and environmental due diligence, scheduled over the coming seven days.
Better drilling intersections from historic exploration include 6m @ 13.74 g/t gold from 119.6m in hole 275-02, 6m @ 11.98 g/t gold from 84.5m in hole 525-01, 16m @ 3.92 g/t gold from 77.4m in hole 1000-02 and 4.75m @ 8.72 g/t gold from 116.8m in hole 821-02.
Crusader managing director Rob Smakman said the deal was a very exciting opportunity which was attractively priced in an environment of record gold prices.
"The previous exploration and resource study was completed to a high standard by a major Brazilian mining company," Mr Smakman said.
" We believe it to be very robust with the ability to quickly convert this to a JORC compliant resource in a short timeframe.
"The project also has excellent exploration potential."
The Project is further benefited by good on-site facilities and excellent access to infrastructure, including power, water, roads and cities.”
