On 7 January 2019, Cervantes Corporation Limited (ASX: CVS) announced the results of the drilling test of gold zones at Albury Heath. The drilling test at Albury Heath has come to an end where approximately seven holes were drilled each of 440 meters roughly to identify the extent of the two new golds zones discovered during the drilling process. The drilling aimed to test the downdip, updip and strike extent of high-grade zones.
From the hole AHP116, there was an earlier exploration of 27 meters. Another drilling of 2 meters led to the discovery of 67.2 g/t of gold. From the same hole, there was another drilling of 1 meter which led to the discovery of 129.3 g/t of gold.
From the hole AHP134, there was an earlier exploration of 32 meters. Another drilling of 5 meters led to the discovery of 63.1 g/t of gold. From the same hole, there was another drilling of 1 meter which led to the discovery of 202.8 g/t of gold.
The downhole drilling also comes across the Quartz lodes up to 26 meters approximately. There was also traces of saprolite during the drilling process. The final result of the reverse circulation drilling of the quality of the sample is still waiting.
Based on such a promising result of the gold exploration, the company is optimistic about the results of the RC drilling to come before its 18 January 2019. The company also has an open prospectus, where it is going to raise $700,000 by issuing 70,000,000 shares where per share cost will be $0.01. Further, for every two shares, the shareholders will be granted one option.
The company feels that the result of the RC drilling will complement the fundraising process as a result of an increase in the confidence of the investors. Further, the fund raised will be utilized in the RAB drilling of five new potential areas which is still not tested earlier. These funds will also help in the follow-up drilling of the current RC drilling process.
The company is also looking forward to pursuing an in-depth drilling program on the Primrose Project at Paynes to identify the existence of gold, nickel, and Cobalt.
The official listing of CVS on ASX was 6 November 2002, where the five years performance of the company is 79.06%. The last one-year performance of the company remains -22.22%.
Although the last one-year performance of the company was not well, however, the outcome of the drilling process which led to the discovery of very high-grade gold might have created a positive impact on the investors. As a result, today with the market open, the market price of the share is A$0.009 (AEST: 2:05, 7 January 2019) with the market capitalization of A$3.46 million.
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