Cervantes Corporation Limited (ASX:CVS) executive chairman Collin Vost has demonstrated his confidence in the company’s gold strategy by purchasing 1 million shares on-market.
The chairman now holds 55.07 million shares in an indirect interest.
As a result of these transactions in late March and early April, this indirect interest, a superannuation fund, has increased its substantial holding in Cervantes to 11.05% from 10.85%.
Cervantes recently updated the inferred mineral resource for its 100%-owned Albury Heath Mine deposit in Western Australia to 528,000 tonnes at 2.09 g/t gold for 35,500 ounces.
Recent drilling has shown that areas of bonanza grade gold, up to 202.8 g/t, or 6.5 ounces/tonne, exist in the mine area.
Follow-up drilling showed that, while the lode zones are generally continuous, the gold grades tend to be erratic.
Consequently, Cervantes has decided that it is prudent to classify the entire resource as an inferred resource.
Additional close spaced drilling will be needed to establish gold grade continuity.
The company has also identified five regional targets as possible Albury Heath Mine lookalikes.
Five target areas have been outlined and all are associated with the Mt Magnet-Tuckabianna fault belt on which the Albury Heath Mine is located, or the Gabanintha Fault, or the intersection of the two.
Both these faults are associated with major gold mineralisation in the district.
There has been only very limited exploration activity over these areas with previous workers having focused on the area directly around the historic mine.
A fast geochemical reconnaissance program, using Mobile Metallic Ion (MMI) sampling and assaying techniques will be used as a first pass to assess the five targets prior to drill testing if warranted.