Vancouver, British Columbia, October 13, 2016 – Equitas Resources Corp. (“Equitas” or the “Company”) (TSXV: EQT) (US: EQTRF) (Frankfurt: T6UN) reports on drilling results at Crente and provides a progress update for the 100%-owned Cajueiro Gold Project (“Cajueiro”) in Central Brazil.
Major highlights include:
- Two in-fill holes beneath the Garimpeiro pit at Crente further define the broad zone of near-surface Au mineralization intersected by historic drilling;
- A topographic survey has been completed over the current area of interest at Cajueiro;
- Engineering design and costing is in progress for the initial 600 tonne per day (tpd) Carbon-In-Leach (CIL) plant to process material from the upcoming bulk sampling program;
- The environmental permitting process is ongoing.
- The Company and Cartesian Royalty Holdings (CRH) have agreed to not pursue further negotiations on a proposed US$ 6 million equity and gold prepay facility.
Figure 1: Crente Target at Cajueiro Property
After conclusion of the 2016 Baldo drilling program, two additional holes (CJO_094 and CJO_095) totaling 252m were drilled below the old Garimpo pit at Crente, to provide in-fill in the near-surface environment, and to test an interpretation that suggested 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). Results are documented in Table 1 below:
Table 1: Mineralized intervals from CJO_094 and CJO_095 at Crente
The intervals achieved are typical of the Crente environment, hosted within a broad sericite-chlorite-quartz alteration package, emplaced along a 040o striking, -70o SE dipping shear, with later brittle deformation interpreted as the trigger for the mineralizing events. Gold mineralization is associated with quartz veining, massive veinlets of pyrite and disseminated pyrite within the altered rhyolitic package. Of note is that both intersections host a “core” of Au enrichment compared to the surrounding mineralized envelope.
Commenting on the results of the drilling, VP Exploration Everett Makela stated “Results of the drilling have not shown any conclusive evidence for a higher-grade structure separate from the current Crente model. Instead, the broad, near-surface intervals of mineralization encountered in this round of drilling lend further support for the potential of Crente to represent a significant portion of the open-pit component at the Cajueiro Project.”
Figure 2: Mineralization in CJO_095 @ 37.7m. Interval from 37.0m to 38.0m grades 8.20 g/t Au
Figure 3: Crente Vertical Longitudinal Section, with historic borehole length-weighted intervals, and intervals achieved in CJO_094 and CJO_095
A high-resolution Unmanned Aerial Vehicle (UAV) topographic survey covering a 1324 ha area encompassing the current Cajueiro resource and exploration areas, and the proposed processing site, was completed during late August by Geoscan Geotecnica. Final products were delivered in late September, including a Digital Terrain Model (DTM), 1m contour interval maps, and a geodesic point mark with 10mm precision to serve as first order control for subsequent site surveys.
CIL Plant Design
Design and costing for a 600 tpd CIL plant to process material from the upcoming Cajueiro bulk sampling program is in progress, under the direction of Equitas’ General Manager Sergio Aquino, in collaboration with Testwork Desenvolvimento de Processa Ltda, based in Nove Lima, Minas Gerais State Brazil.
President and CEO of Equitas, Chris Harris commented “These results support our building of a case for the Crente south area as one which could provide a long-life, wide thickness moderate grade backbone to support our proposed CIL plant operations at the Cajueiro Project.”
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 2016 exploration program to date has added information to a portion of the Inferred Resources at Baldo, and the Indicated Resource (sulphide) at Crente. A revised 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.
Termination of the CRH US$ 6 Million Funding Opportunity
Despite extensive negotiations over the last few months, the Company and CRH were ultimately unable to agree on mutually acceptable terms for the binding equity and gold prepayment facility, and in good faith both parties agreed to step away from the proposed deal. Equitas is in discussions with several other providers of long term financing to fund our business plan of exploration and development.
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 email@example.com.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
“Chris Harris” Chris Harris
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; building of the CIL plant; future bulk sampling program; environmental permitting approved; proposed processing site; references to Crente providing long-life support to the proposed CIL plant; are forward-looking statements that 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.