Crusader Resources' historical Borborema data a “gold mine” of new information

Crusader Resources (ASX: CAS) obtained an option to acquire 100% of the Borborema gold project, in Rio Grande do Norte state in north-east Brazil in December 2009.

As part of the due diligence work underway, Crusader has started digitising several volumes of exploration reports from diamond and RC drilling, soil sampling and trenching work completed in the 1980’s and 1990’s by the Brazilian mining company, Mineração Xapetuba Ltda.

212 historical drill-holes have been added to Crusader’s Borborema database covering the open pit and >3.5km of strike.

This work formed the basis for the open pit mine then operated by Xapetuba and supported Brazil’s first ever gold heap leach gold project.

Crusader’s Managing Director, Rob Smakman, said today, “the 1980’s exploration work appears to be of a high standard, with results indicating significant unexploited exploration potential. These results will help define the mineralisation model and assist in developing a JORC compliant mineral resource estimate.”

Xapetuba’s drilling was mostly shallow (<40m) and included 10 diamond drill holes and 202 RC holes for a total of 4,590m. All samples (4808) were assayed by independent laboratories in Brazil.

Some of the best intercepts include; 4m @ 16.52 g/t gold from 0m in RC hole MP111/P-149, 5m @ 9.92 g/t gold from 8m in RC hole MP111/P-101, 6m @ 6.59 g/t gold from 0m in RC hole MP111/P-143.

The drilling results cover the now mined open pit (approximately 90 holes within the pit) as well as along strike extensions of the Morro Pelado mineralised shear zone over more than 3.5 kms.

After initial reviews of the exploration data Crusader has divided the Borborema gold project into three distinct prospects, Buji to the SW, Maxixe to the NE and the central area of Morro Pelado.

Due diligence work is continuing on site, including assessment of the historical data, drill-hole logging (geological and geotechnical), core cutting, sampling and assaying. Results from this work are expected to flow during March. Crusader has a six month option (expiring in June 2010) in which to evaluate the project.

A composite metallurgical sample has also been collected and is currently being processed at the laboratory in Belo Horizonte. Crusader is investigating the metallurgical recovery properties of the ore.

Coffey Mining has been engaged to complete a JORC compliant resource estimate on the project expected in the second quarter of 2010, after all of the holes have been sampled and assays are received.

Crusader has been granted two new exploration areas around Borborema. The two tenements cover 1649 Ha and extend the project footprint in the direction of strike to the northeast and to the north. The total area of the project is now 4,556Ha.

The area was first discovered by garimpeiros (prospectors) in 1942, after which it was exploited until 1977. Details of production from this era are incomplete; however production of approximately 200,000 ounces was reported to the Brazilian Mines Department (DNPM).

The project was intermittently explored and mined between 1984 and 2006, with production estimated at 100,000 ounces. During this period, Mineração Xapetuba Ltda. (MXL) created a 350m long x 90m wide x 25m deep open pit in order to trial Brazil’s first ever heap leach.

Historical drilling results being reported herein are part of the work performed by MXL during this period.

Selected significant drill intercepts from within the now mined-out pit area (included to illustrate the width and tenor of then mined mineralisation) included: 16m @ 18.01 g/t from 13m in RC hole MP/P-27, 16m @9.68 g/t from 0m in RC hole MP P-58, 12m @ 8.39 g/t from 3m in RC hole MP/P 59.

In addition to the drilling reported above, over 10km of trenching was completed during the same era, covering a similar strike length of the Morro Pelado shear, however the trenches also cover the parallel Sao Francisco shear. The trenching information is currently being digitised.

During 2006 and 2007, Caraiba Mineração Ltda. (Caraiba) performed preliminary metallurgical testwork, regional mapping, diamond drilling and estimated total resources within the area of detailed drilling of 10.1 million tonnes averaging 1.30g/t gold for a total of 420,000 ounces of gold.

Although the estimate is not consistent with the JORC Code, the quality of the work is considered to be comparable with the work needed for qualification as a mineral resource under the JORC Code. A full audit of the technical work will be carried out during the duediligence period.

Crusader Resources shares rose 5% TO 31 cents in trading today.