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Today, on 26th April 2019, Crusader Resources Limited (ASX:CAS) announced that all the major permits required to commence construction of the Borborema Gold Project have now been granted by the Rio Grande do Norte State Government Environmental Department (IDEMA). The company submitted the application in November 2018, following the preparation of the projectâs processing plant design by Ausenco do Brasil Engenharia Ltda (âAusencoâ).
This is a very crucial step forward for the project and the company, as licencing is one of the most challenging and time-consuming hurdles in establishing a new mine in Brazil. The terms and conditions associated with the Installation Permit are standard in nature but covers an area of 490 ha, and permits an operation producing and processing up to 4.2 million tonnes per year. As announced on 28th April 2017 (updated on 30 July 2018), the company has already been granted the critical environmental licence, the Licença Previa or âLPâ from IDEMA. With the receipt of the LP and granting of the Installation Permit, the company has now received all the main permits required to commence construction of the Borborema Mine.
As for the feasibility study and development, while the submission was being processed, the company reviewed the study results to date and identified several areas for improvement in concept and design. This additional work is within the terms and conditions of the granted Installation Permit. Revised scopes of work have been provided to a shortlist of external engineering consultants in both Brazil and Australia for completion of the Bankable Feasibility Study (BFS) process design. The Crusader has appointed Corporate Mining Services Pte (CMS) to manage and coordinate the process. Corporate Mining Services Pte has extensive experience in managing feasibility studies and a track record of successfully commissioning both CIL and heap leach gold projects around the world. The processing routes, as well as design plans, are being reviewed to simplify operations and reduce both the initial construction capital and ongoing operational costs.
The company expects the feasibility study to be completed within six months after engaging the engineering consultant. Reviews were also undertaken of the current JORC resource model that contains an estimated 2.43 million oz gold at an average grade of 1.1 g/t gold to define a higher grade component in the upper 120 m of the mineralisation that will support an initial Stage 1 open pit operation. The resource comprises 51 Mt @ 1.14 g/t gold in Measured and Indicated categories and 17.6 Mt @ 1.00 g/t gold classified as Inferred. CAS is unaware of data or any new information that has affected the mineral resource since it was announced on 24th July 2017.
In another update, the Board of Directors proposed changing the companyâs name to Big River Gold Limited (ASX:BRV) as the name recognises and reflects the Brazilian state of Rio Grande do Norte in which Borborema is located. The proposed name change will be put to shareholders for approval at the upcoming Annual General Meeting.
The stock of Crusader Resources is on suspension for trading since October 2018 till any further announcement by ASX.
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