A Flip Through Cervantes’ Operational And Financial Performance

  • Sep 13, 2019 AEST
  • Team Kalkine
A Flip Through Cervantes’ Operational And Financial Performance

Australia’s leading base metals and gold explorer, Cervantes Corporation Limited (ASX: CVS) is engaged in testing for mineral resources in areas that have never been tested before. Cervantes works with a strategy to implement novel development and exploration thinking in gold districts that were neglected by previous explorers. The company has already identified opportunities and created a portfolio of gold properties in historically producing and prominent gold districts.

Cervantes has advanced swiftly on operational as well as the financial front. Let us first take a look at the company’s progress on the operational front below:

Cervantes’ Operational Performance

Cervantes holds three significant gold projects in Western Australia (WA), including Albury Heath Gold Project, Abbotts Project and Primrose Project. Let us discuss each one of them in some detail below:

Abbotts Project

The company’s Abbotts project is situated within the Abbotts Greenstone Belt, which is gifted with several historic gold workings, but yet to offer the top-grade gold deposits observed in neighbouring belts. The project consists of tenement E51/1721 that encloses an area of around 52.3 sq. km. E51/1721 is situated at approximately 22km to the north-NW of Meekatharra in the Murchison Province of WA.

Recently, Cervantes conducted a mobile ion surface geochemical sampling across the southern part of tenement E51/1721. The survey was performed on 5 traverses that were at a distance of 100 metres.

The survey identified minimum five zones of gold, nickel and copper anomalism. Out of which, four were closely linked with shears or faults striking onto the company’s ground from the south.

The company is further planning to undertake geological mapping and field checking at the project to prioritise possible drilling targets.

Albury Heath Gold Project

Centred on the iconic Albury Heath Gold Mine, the Albury Heath Gold Project comprises tenements P51/2937 and P51/2997 - 3001, located at around 21km south-SE of Meekatharra in the Murchison Province of WA. The company wholly owns six prospecting licences enclosing the Albury Heath mine and its tenements. These comprise a total area of 10.8km2 that cover the southerly and northerly extent of the major controlling structure.

Recently, the company conducted a mobile ion surface geochemical sampling across 6 regional zones detected at the project from aeromagnetic interpretation. The survey was performed on 13 traverses distanced around 200 metres apart.

The survey defined significant gold anomalies to the south-east of the mine in P51/3000, north-east of the mine in P51/3001 and to the south-south-west of the mine in P51/2999. A mine orientation line, that was collected on the local grid, showed no anomalous base metal assays, contradictory to the anomalous values seen elsewhere. The company also observed significant nickel and copper anomalies to the south-east of the mine in P51/3000, south-south-west of the mine in P51/2999 and to the north-east of the mine in P51/3001.

The company is further planning to undertake geological mapping and field checking at the project with a view to reconnaissance drill holes to prioritise possible drilling targets.

Primrose Project

The Primrose project, that comprises of tenements P59/1941, P59/2159 to 2160, encloses more than 8km of the Primrose Shear located in the Murchison District of the Eastern Goldfields, WA. Primrose Shear is highly mineralised in gold and had modest or no modern exploration work done on them. The company controls twenty-three prospecting licences and mining leases that cover the most of this historic gold field.

Cervantes recently conducted a mobile ion surface geochemical sampling at the Primrose project in five areas highlighted and detected from the aeromagnetic interpretation of the area. Each area was sampled along two, 200 metres spaced lines with samples gathered at 50 metres intervals, except for one where samples were amassed along three lines.

The survey identified a new gold zone in an old field and recognised the copper zone as potential drilling target. The survey also highlighted the high appearance of lanthanum that might become a guide to REE target.

The company is planning to undertake further field mapping for detecting secondary targets for copper and lanthanum (and associated REE).

Cervantes’ Financial Performance

Cervantes released its financial results for the half-year ended 31st December 2018 on 15th March 2019. The company marked a turnaround from a loss of ~AUD 255k reported in half-year ended 31st December 2017 to a huge profit of ~AUD 154k attained in the first half of 2019. The revenue of the company rose substantially by ~7016 per cent to ~AUD 407k relative to the prior corresponding period (pcp). The Basic Earnings per Share (EPS) attributable to the ordinary equity holders of the company improved massively to 0.062 cents per share from negative 0.078 cents per share in pcp.

The company had cash and cash equivalents amounting to AUD 114k at the end of June 2019 quarter.

It can be seen that Cervantes has delivered exceptional performance on an operational as well as financial front. Cervantes is also actively holding discussions with interested parties to pursue capital investment for the continuation of exploration and assessment activities of its resources’ projects, acquisition of assets if required and for general working capital.

CVS stock settled the day’s trade at AUD 0.004 on 13 September 2019.


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