TIDMCAS
RNS Number : 6465M
Crusader Resources
01 May 2018
1 May 2018
Quarterly Activities Report
March 2018
Highlights
-- Successful listing on the AIM Market of the London Stock Exchange.
-- Successful placement undertaken.
-- Borborema Optimisation Study completed with outstanding results.
-- Borborema Ore Reserve updated.
-- Drilling Underway at Juruena Gold Project - Alta Floresta Gold Belt.
-- Agreement reached for conversion of the Company's outstanding loan with the Copulos Group.
Dual listing on AIM
During the quarter Crusader Resources Limited ("Crusader" or the
"Company") completed its dual listing on the AIM Market of the
London Stock Exchange. Crusader's ordinary shares commenced trading
on the AIM market (in the form of depositary interests) on 16 April
2018.
The Company's ordinary shares will continue to be traded on the
ASX, with shareholders able to transfer their shares between
exchanges if required.
During the quarter Crusader also received binding commitments
for a placement to raise approximately $6.43 million (before
expenses). Shareholder approval is being sought at the Annual
General Meeting for Stephen Copulos, Andrew Vickerman and Marcus
Engelbrecht (or their respective nominees) for an aggregate of
approximately $416,486 worth of securities on the same terms and
conditions as the unrelated investors in the placement. Notice of
the Annual General Meeting is expected to be posted to shareholders
shortly.
The placement also provides for the issue of one free-attaching
warrant for every two shares subscribed for under the placement.
Each warrant will be exercisable at the issue price of $0.055 each
(or the equivalent in pence), at any time within 24 months
following their issue. The Company is seeking shareholder approval
at the Annual General Meeting for the issue of these attaching
warrants.
The funds raised by the placement will be used for the
completion of the BFS at Crusader's Borborema Project in Brazil,
the repayment of debt and the advancement of the high grade and
substantially underexplored Juruena Gold Project.
Smith & Williamson Corporate Finance Limited is acting as
the Company's nominated adviser. The Placing was joint lead managed
by advisory group Hannam & Partners (UK), and Patersons
Securities Limited (Australia) with ANZ Corporate Advisory acting
as joint financial adviser.
Operational updates
Updated Optimisation Study: Borborema Gold Project
During the quarter Crusader announced an update to its ongoing
technical and financial optimisation of its 100% owned Borborema
Gold Project located in the state of Rio Grande do Norte in North
Eastern Brazil which delivered outstanding results, including the
following highlights:
-- Net present value of US$117.8M, discounted at 8%.
-- Internal rate of return of 31%, based on a gold price of US$1300/oz.
-- Gold production over ten years of 701koz with expected annual average production of 70koz.
-- Cash cost of production estimated at US$724/oz with all in sustaining cost of US$908/oz.
-- Pre-production capital expenditure for a planned 2Mtpa
capacity CIL plant and associated infrastructure projected to be
US$93.4M.
The optimisation update is based on processing 2Mtpa of an
initial 20Mt of ore for an initial 10 year period. The initial
development exploits the upper lens of the Borborema deposit,
approximately half of the current ore reserve of 42Mt @ 1.18g/t.
The initial 20Mt of ore optimises the project at current gold
prices, minimises waste movement, capital expenditure and
operational risks and does not prevent the future development of
the deeper reserves.
Refer to the Company's ASX announcements of 8 February 2018 and
11 April 2018 for further information.
Updated Ore Reserve: Borborema Gold Project
During the quarter Crusader announced an update to its Ore
Reserve estimate for the Borborema Gold Project in compliance with
the JORC Code (2012 Edition) and using economic inputs as at 31
December 2017. The update fully supports the previously reported
Ore Reserve estimate, and was prepared in connection with the
admission to AIM.
Table 1. Borborema Gold Project Mineral Resource (JORC 2012
code)
Borborema Gold Project
Mineral Resources by Multiple Indicator Kriging (MIK)
Category Cut-off grade Tonnes Grade Contained
(Mt) (Au g/t) Gold
(Moz)
-------------- ------- ---------- ----------
Measured 0.40 9.8 1.09 0.34
-------------- ------- ---------- ----------
0.50 8.2 1.22 0.32
-------------- ------- ---------- ----------
0.60 6.8 1.35 0.30
-------------- ------- ---------- ----------
Indicated 0.40 53.1 0.99 1.70
-------------- ------- ---------- ----------
0.50 42.8 1.12 1.55
-------------- ------- ---------- ----------
0.60 34.8 1.26 1.41
-------------- ------- ---------- ----------
Total Measured
+ Indicated 0.40 62.9 1.01 2.04
-------------- ------- ---------- ----------
0.50 51.0 1.14 1.87
-------------- ------- ---------- ----------
0.60 41.7 1.27 1.70
-------------- ------- ---------- ----------
Inferred 0.40 23.2 0.87 0.65
-------------- ------- ---------- ----------
0.50 17.6 1.00 0.57
-------------- ------- ---------- ----------
0.60 13.6 1.14 0.49
-------------- ------- ---------- ----------
Total Mineral
Resource 0.40 86.1 0.97 2.69
-------------- ------- ---------- ----------
0.50 68.6 1.10 2.43
-------------- ------- ---------- ----------
0.60 55.2 1.24 2.20
-------------- ------- ---------- ----------
Mineral Resource table, reported at various cut-offs. Parent
Block 25mE x 25mN x 5mRL. Selective Mining Unit 5mE x 6.25mN x
2.5mRL. Note, appropriate rounding has been applied, subtotals may
not equal total figures
Table 2. Borborema Gold Project Ore Reserve (JORC 2012 code)
Borborema Gold Project - Ore Reserve
Category Tonnes (Mt) Grade (Au Gold to Mill
g/t) (koz)
------------ ---------- -------------
Proven Oxide 0.65 0.80 17
------- ------------ ---------- -------------
Fresh 7.26 1.25 292
------------------ ------------ ---------- -------------
Probable Oxide 1.68 0.70 38
------- ------------ ---------- -------------
Fresh 32.82 1.20 1,260
------------------ ------------ ---------- -------------
1,610 (1.61
Total 42.41 1.18 Moz)
------------ ---------- -------------
Ore Reserve estimate for the Borborema Gold Project.
Reported at a 0.4 g/t cut-off for oxide and 0.5g/t cut-off for
fresh material. The cut-off grades have been based on the latest
costs, gold price of US$1301/oz. Note, appropriate rounding has
been applied, subtotals may not equal total figures.
Refer to the Company's ASX announcements of 6 March 2018, 29
March 2018 and 11 April 2018 for further information.
Commencement of 2018 exploration over Juruena and Novo Astro
Gold Projects
During the quarter, Crusader announced the commencement of an
initial exploration program over its highly prospective and high
grade Juruena and Novo Astro Gold Projects situated within the Alta
Floresta belt in western Brazil.
Refer to the Company's ASX announcement of 16 January 2018 for
further information.
Agreement reached for conversion of the Company's loan with the
Copulos Group.
On 30 March 2017, the Company executed a Convertible Loan
Agreement with The Copulos Group. The limit of the facility was
A$1,500,000. During the quarter, the Copulos Group agreed to
convert all of funds loaned, plus accrued interest and
establishment fees, to shares in Crusader, at a deemed conversion
price of A$0.055 per share, with 1 free attaching warrant for every
2 shares issued. This conversion price is equal to the placement
price of the Company's recent capital raising conducted in
conjunction with the admission to AIM.
The conversion of the Copulos Group Loan is subject to the
receipt of shareholder approval, which will be sought at the
Company's Annual General Meeting to be held in May 2018.
The Copulos Group is committed to the long term development of
the Company and its asset portfolio in Brazil and through this
conversion will grow its position as a major shareholder in the
Company. The Copulos Group's shareholding in the Company will be
subject to a lock-in agreement for 12 months following the
conversion date pursuant to the AIM Rules.
For further information, please contact:
Mr. Paul Stephen Investor Relations
Executive Director Office (Aus): +61 8 9320
7500
Office (Aus): +61 8 9320 Email: admin@crusaderresources.com
7500
Email: paul@crusaderresources.com
Smith & Williamson Corporate Camarco
Finance Limited
Nominated Adviser Financial PR
Azhic Basirov/Katy Birkin/Ben Gordon Poole / Nick Hennis
Jeynes
+44(0)20 3757 4997 / +44(0)20
+44(0)207 131 4000 3781 8330
About Crusader
Crusader Resources Limited (ASX:CAS, AIM: CAS) is a minerals
exploration and development company listed on the Australian
Securities Exchange and the AIM market of the London Stock
Exchange. Its major focus is Brazil; a country Crusader believes is
vastly underexplored and which offers high potential for the
discovery of world class mineral deposits.
Crusader has two key Gold Assets:
Borborema Gold Project
The Borborema Gold Project is in the Serido area of the
Borborema province in north-eastern Brazil. It is 100% owned by
Crusader and consists of three mining leases covering a total area
of 29 km(2) including freehold title over the main prospect
area.
The Borborema Gold Project benefits from a favourable taxation
regime, existing on-site facilities and excellent infrastructure
such as buildings, grid power, water, sealed roads and is close to
major cities and regional centres. The project's Ore Reserve
includes Proven and Probable Ore Reserves of 1.61Moz of mineable
gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut-offs for oxide
& fresh). The measured, indicated and inferred Mineral Resource
Estimate of 2.43Moz @ 1.10g/t gold, remains open in all
directions.
Juruena Gold Project
The Juruena Gold Project is located in the highly prospective
Juruena-Alta Floresta Gold Belt, which stretches east-west for
>400km and has historically produced more than 7Moz of gold from
40 known gold deposits.
The Juruena Project has been worked extensively by artisanal
miners (garimpeiros) since the 1980s, producing 500koz in that
time. Historically there is a database of more than 30,000 meters
of drilling and extensive geological data.
Competent Person Statements
Borborema mineral resource estimate
The information in this announcement that relates to the mineral
resource estimate for the Borborema Project was first reported in
accordance with ASX Listing Rule 5.8 on 24 July 2017. Crusader
confirms that it is not aware of any new information or data that
materially affects the information included in the announcement of
24 July 2017 and that all material assumptions and technical
parameters underpinning the Mineral Resource estimate continue to
apply and have not materially changed.
Borborema ore reserve estimate
The information in this announcement that relates to the Ore
Reserve estimate for the Borborema Project was first reported in
accordance with ASX Listing Rule 5.9 on 6 March 2018, 29 March 2018
and 11 April 2018. Crusader confirms that it is not aware of any
new information or data that materially affects the information
included in these previous announcements and that all material
assumptions and technical parameters underpinning the Ore Reserve
estimate continue to apply and have not materially changed.
Juruena mineral resource estimate
The information in this announcement that relates to the Mineral
Resource estimate for the Juruena Project was first reported in
accordance with ASX Listing Rule 5.8 on 22 December 2016. Crusader
confirms that it is not aware of any new information or data that
materially affects the information included in the announcement of
22 December 2016 and that all material assumptions and technical
parameters underpinning the Mineral Resource estimate continue to
apply and have not materially changed.
Exploration results
The information in this presentation relating to exploration
results for the Borborema Project, Juruena Project and Novo Astro
Project is based on and fairly represents information and
supporting information compiled by Mr Robert Smakman. Mr Smakman is
the former Managing Director of the Company. Mr Smakman is a Fellow
of the Australasian Institute of Mining and Metallurgy. Mr Smakman
has consented to the form and context in which the exploration
results and supporting information are presented in this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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