Summary of inferred resources at Albury Heath above a lower cut-off of 0.3 g/t gold. No top cut applied.
Recent drilling by Cervantes has shown that areas of bonanza grade gold, up to 202.8 g/t gold, or 6.5 ounces/tonnes, 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 it is prudent to classify the entire resource as an inferred resource. Additional close spaced drilling will be needed to establish gold grade continuity.
Cervantes executive chairman Collin Vost said: “Albury Heath is delivering some excellent bonanza grade gold zones.
“While we need to do more work to demonstrate the consistency these zones, it is prudent that we classify the resource as Inferred.
“The upside is clearly there, however, and Cervantes will continue to derisk this project for the benefit of our shareholders.”
Interpretation of aeromagnetic data over Cervantes’ tenements in the Albury Heath Project has identified a number of possible repetitions of the Albury Heath Mine structural setting.
Five target areas have been outlined. All are associated with either the Mt Magnet-Tuckabianna fault belt on which the Albury Heath Mine is located, or the Gabanintha Fault, or the intersection of the two.
Aeromagnetic image showing Cervantes’ tenement holdings, position of major interpreted faults and target zones for follow-up.
Both these faults are associated with major gold mineralisation in the district. Surprisingly, there has been only very limited exploration activity over these areas, previous workers having focussed 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.