Equitas Resources Corp. Reports Drilling Results from the Baldo Zone at the Cajueiro Project
Vancouver, British Columbia, August 29, 2016 – Equitas Resources Corp. (“Equitas” or the “Company”) (TSXV: EQT) (US: EQTRF) (Frankfurt: T6UN) announces numerous mineralized intercepts from the recent drilling program at the Baldo Zone (“Baldo”) of its 100%-owned Cajueiro Gold Project (“Cajueiro”) in Central Brazil.
Major Highlights Include:
- Assay results identify 33 intersections of gold mineralization in saprolite and bedrock, ranging from 0.95 g/t Au to 4.07 g/t Au;
- Combined with results from the previously announced trenching program, a 300m strike-length of gold mineralization (“Zona Dois” target) has been identified as first priority for detailed trenching and drilling;
- Mineralized samples are being sent for Screen Fire Assay to check for the presence of coarse gold;
- Plans are being made for exploration of three other significant target areas at Baldo where previous work has detected highly anomalous gold grades in saprolite, up to 118.47 g/t Au;
- A structural re-interpretation at Crente Zone (“Crente”) has been drill-tested, results are expected shortly;
- An updated NI 43-101 Report on resources will be issued once all results from the 2016 exploration program have been received and incorporated into the model.
“The Cajueiro drilling and trenching programme has achieved all our strategic objectives: (i) commencing the conversion to a full mining licence at Baldo, (ii) identifying a base of material to be processed through our proposed initial CIL plant, and (iii) highlighting further structures to be investigated and trenched over the coming 6 months to continue to build our resource” said Chris Harris (President & CEO, Equitas).
Figure 1: Baldo Target at Cajueiro Property
Baldo Exploration Program
The recently completed exploration program was designed as a follow-up to encouraging historic surface sampling and drill results northwest of the current Inferred Resources footprint at Baldo, along a previously interpreted structure (Chapleau mapping, 2012) extending northeast from the old Baldo garimpeiro (artisanal mining) pit. These results include 24.83m grading 1.73 g/t Au (bedrock sulphide in BH CJO_055), and two circa 1 tonne composite samples of saprolite oxide grading 5.77 g/t Au (RR1BDO) and 87.20 g/t Au (RCF1BDO).
This exploration program was also designed to provide the necessary data coverage required to deliver an exploration report to Departmento Nacional de Producao Brazil (DNPM), part of the process of converting our bulk sampling license (in Portuguese – “GUIA” or Guia de Utilizacion) 850224/2009 (9558.59 ha) into a full mining license.
Thirty-seven HQ diamond drill holes totaling 1756m were completed by Layne Do Brasil Sondagens Ltda. Borehole trajectories were recorded with Maxi-Bor. All core was logged and processed at site. All core was sawn, and half-core samples were submitted to SGS GEOSOL in Vespasiano, Minas Gerais State, Brazil for fire assay. A total of 1579 core samples were submitted for gold assay.
Assays from the program identified 33 separate intervals of mineralization ranging between 0.95 g/t Au and 4.07 g/t Au. Mineralized intervals from the drilling and trenching program are being sent for Screen Fire Assay to test for the presence of coarse gold. The Fire Assay results from the drilling are tabulated below:
Table 1: Borehole Intervals Greater than 0.94 g/t Gold
Figure 2: Plan View of Mineralized Drill and Trench Intersections
Zona Dois Target at Baldo
Results of the trenching and drilling program indicate that the gold mineralization occurring along a 300m NNE between boreholes CJO_0093 and CJO_0073 is host to better gold enrichment than elsewhere in the current exploration area. This apparent enrichment is coincident with an increase in observed structural complexity. In particular our current structural observations indicate that an E-W fabric may be a controller of the higher gold grades. Zona Dois is first priority for advanced evaluation including focused trenching and drilling.
Historic mapping and sampling at Baldo has identified three priority areas for further exploration. Assay values from surface sampling have yielded results of up to 118.47 g/t Au. Only one drill hole to date has tested the very edge of one of these areas of interest. A program of focused mapping, trenching and auger drilling is being developed to efficiently evaluate the potential for discovery of additional saprolite oxide resource in these areas. Geophysical methods including Induce Polarization (IP) and magnetics are being considered as a means to identify prospective bedrock structural signatures.
Figure 3: Current Exploration, Inferred Resources Footprints and Priority Exploration Target Areas
Crente Drilling and Modeling Initiatives
After conclusion of the Baldo drilling, two additional holes (CJO_094 and CJO_095) totaling 252m were drilled below the old garimpeiro pit at Crente, to test a new structural interpretation that suggests a significant steeply dipping mineralized trend intersected by historic borehole CJO_019-10 (31m @ 2.37 g/t Au, including 9.4m @ 4.15 g/t Au) remains untested. Results are expected in mid-September.
An engineering firm is being engaged to review the economic potential of the near-surface environment at Crente. Results from the recent drilling will be a critical part of a decision on whether to pursue advanced exploration for previously unrecognized deeper mineralized structures.
Figure 4: Crente Vertical Longitudinal Section, with Historic Borehole Length-Weighted Intervals, and Pierce Points of CJO_094 and CJO_095 (assays pending)
Quality Assurance\Quality Control (QA\QC) and Analytical Method
All sample batches include 5% QA\QC samples consisting of blanks, standards and duplicates or twins, submitted to SGS GEOSOL in Vespasiano, Minas Gerais State, Brazil. Analysis is performed by fire assay with 50g fusion and Atomic Absorption Spectroscopy.
The Cajueiro Project is located in Central Brazil within Mato Grosso and Para states. The project encompasses 39,053 hectares and is located 95 kilometers north of the city of Alta Floresta.
The NI 43-101 Technical Report on Resources (Gustavson, 2016) for Cajueiro documents an Indicated Mineral Resource of 8.636 million tonnes containing 214,100 ounces of gold at 0.771 g/t (sulphide bedrock domain); an Inferred Mineral Resource of 9.526 million tonnes containing 203,500 ounces of gold at 0.664 g/t (sulphide bedrock domain), and an Inferred Mineral Resource of 1.374 million tonnes containing 78,400 ounces of gold at 1.775 g/t (oxide saprolite domain).
The current exploration program has added information to a portion of the Inferred Resources at Baldo, and the Indicated Resources (sulphide) at Crente. An updated NI 43-101 Resource Estimate will be completed after all of the results from the 2016 exploration program have been received and incorporated into the model.
NI 43-101 Disclosure
Everett Makela, P. Geo., VP Exploration for Equitas Resources Corp., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
For more information on Equitas Resources Corp., please contact Sean Kingsley, Corporate Communications at 604-681-1568 or firstname.lastname@example.org.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future planned exploration expenditures; implication that further exploration will delineate and expand on the intersections achieved to date; potential to further upgrading of the resource; a revised 43-101 report will be issued and that the full mining license will be issued are examples of forward-looking statements in this news release and that these statements involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The reader is cautioned that references to mineral resources that are not mineral reserves do not have demonstrated economic viability and assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward- looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.