Cervantes Corporation Limited (ASX:CVS) has exited a minerals sands project and is continuing to pursue “fast wins” in the gold sector as it focuses on projects with the potential for cheap, near-term production.
The South Perth-based company holds a number of gold projects in its West Australian portfolio.
Cervantes revealed last week it had intercepted shallow high-grade gold mineralisation within the historical Pansy Pit at Primrose Gold Project south of Meekatharra.
The company said the gold mineralisation remaining in Pansy Pit may be amenable to low-cost extraction, given its position in the oxide zone and shallow depth.
It believes the area could be suited to a heap leach operation.
Highlighted assays include: 2 metres grading 6.32 g/t gold from 11 metres; 1 metre grading 5.83 g/t from 11 metres; 1 metre grading 6.31 g/t from 13 metres; and 2 metres grading 9.14 g/t from 15 metres.
The company also revealed last week it had renegotiated an interest-free 12-month loan with Baraka Energy & Resources Ltd (ASX:BKP) to two years and tipped it would repay the amount early due to recent exploration success at its Albury Heath project in the Meekatharra area of WA’s Mid West-Murchison region.
In exchange for the $900,000 loan’s term, Cervantes waived its fees and rights to the companies’ iron sands venture which Baraka plans to offer up to prospective buyers.
Managing director and exploration projects head Marcus Flis told Proactive Investors Australia’s video channel Stocktube the Western Australian company had been accumulating a portfolio of gold projects on Australia’s west coast.
Flis said: “The focus of that accumulation has been looking at near-term and cheap gold production.
“We’ve gone to a number of different areas in the eastern Goldfields and in the Yilgarn of WA, looking for projects that fit the criteria of both fast wins, easily got ounces and hopefully near-term production projects that will give our shareholders in investing in Cervantes.
“It is a nascent company, it’s up and coming, so there’s a real hunger there for instant success or at least near-term success to prove our credentials on the market.”
The company reported bonanza-grade gold intersections from its wholly-owned Albury Heath project in Western Australia in June and reported further success at the Meekatharra project last month.
The Murchison region project features Domain gold mineralisation and associated with the Meekatharra Structural Zone, a northeast trending shear about 50 kilometres wide.
Also known as the Albury Heath Gold Mine prospecting licence, the project has potential to be fast-tracked for leach or toll treating.
Highlight assays from the project include: 7 metres grading 18.8 g/t gold from 77 metres, including 4 metres at 52.3 g/t from 86 metres; 2 metres grading 7 g/t from 9 metres, including 1 metre at 13.3 g/t from 10 metres; 2 metres grading 3.2 g/t from 29 metres; and 1 metre grading 14.1 g/t from 58 metres.
Flip or build
Flis told Stocktube Cervantes’ corporate strategy was to examine opportunities and evaluate projects that could be developed in their own right with the company as a miner but it was aware it could reduce risk by outsourcing projects.
He said: “If necessary we can monetise some of those projects and sell them off and move to other areas.
“Right now there’s no one in particular process that we’re following, we’re looking at what will maximise value for investors the most and if that means turning over projects quickly then that’s what we’ll do.
“But if we see great potential in a project we will develop that as far as we can with the aim of either monetising it at a later stage or preferably going into production if the numbers stack up.
“We’re not committed to any one particular outcome in terms of mining, we’re committed to seeing value increase, and that’s the underlying driver for the company.”