Cervantes Corporation Ltd (ASX:CVS) is encouraged by verification and composite resplit assays from reverse circulation (RC) drilling at its flagship Primrose Gold Project in the Yalgoo district of Western Australia that verify the original high-grade results.
The company completed various drilling programs at Primrose which targeted three areas within the project area – Blue Heaven, Pansy Pit and the MMI gold anomaly – during the December quarter.
Resampling was carried out to confirm the previously announced results and to define grades and intercept thicknesses of gold-anomalous samples that were originally composited at four-metre intervals.
Confirms original samples
Forty-three verification assays have been completed, the results of which confirm the original samples and provide focus in intercepts previously assayed with 4-metre composites.
One-metre resplit assays in the Pansy Pit include:
- 1-metre at 2.17 g/t from 12 metres;
- 1-metre at 10.17 g/t from 17 metres;
- 1-metre at 5.03 g/t from 6 metres;
- 1-metre at 4.45 g/t from 4 metres;
- 1-metre at 6.76 g/t from 6 metres; and
- 2 metres at 2.82 g/t from 0 metres.
The company believes the results indicate that the gold mineralisation in the Pansy Pit is coarse, giving rise to a nugget effect in the assaying data.
This is expected given the interpretation of this mineralisation as being late-stage quartz vein related.
Blue Heaven verification
The company has held discussions with the technical director and an independent geologist to plan a drilling program of 20-25 verification and infill RC holes over the Blue Heaven area, where an exploration target has been released.
This will test the highly prospective ground not previously explored and will also be a precursor to deeper holes to test the potential of deeper mineralisation.
Correlation between the original sample gold assay and the repeat gold assay, Pansy Pit, Primrose Gold Project.
Capital raising underway
Cervantes is undertaking a capital raising through a non-renounceable entitlement issue of up to 268,004,155 shares at $0.008 per share to raise up to $2.144 million before costs.
The board is pleased with the progress of the raising, considering the gold price had a sudden drop immediately after the raising was announced on January 15, 2021, which has in the short-term affected all gold companies.
Going forward, the company is in discussions with high-net-worth individuals with a view to providing support for the shortfall from this raising.