A Glance At Cervantes Primrose Gold Project

Summary

• Cervantes Corporation is an advanced gold explorer with a project area covering the majority of one of WA’s historical Gold fields in WA, having gold, nickel, and prospective for cobalt.
• Cervantes recently released an Exploration target of between ~ 170-520kt at between 2.2-4.5g/t that could turn the company into a producer in a very short period.
• Focus lies in carrying out exploration on Project area, to provide greater certainty of the size and grade of deposits for future mining and processing.
• Cervantes continues to receive enquiries from parties interested in Cervantes’ assets and structure by way of either exploration, toll treatment, possible JV’s and/ or sale of assets and capital injections.

Junior exploration companies are the life blood of major discoveries of resources, which drive the Australian and West Australian economies. Cervantes Corporation Limited (ASX:CVS) is an emerging gold explorer and aspiring gold miner that has an advanced Gold Project within 4.5 hours from Perth, on a major Highway close to a Mill. The Field contains some 37 historical high grade gold producing mines.

The company is now advancing the exploration to bring a number of areas within the Primrose project area to resource status to commence mining activity.

Primrose Gold Project

Located in the globally significant exploration and mining jurisdiction of Western Australia, the Primrose Gold Project covers in excess of 8 km of the highly gold mineralised Primrose Shear in Murchison District, Eastern Goldfields. More than 37 gold mines operated in this field from 1911 till 1982, wherein ~ 79,915 ounces of gold was mined at an average grade of 28g/t. High-grade gold production resulted in a battery being built by the State Government for old miners- a tourist attraction today.

Cervantes controls mining leases and prospecting licences that cover majority of this historic gold field. Moreover, a large database of drilling, surface geochemistry, geological, and geophysical data has been assembled to allow the field to be better understood.

The Company is continuing discussions with a local Mining Company and Mill, regarding the potential exploitation of the Primrose shear.

Primrose Opportunity

The Payne’s Find Mining Centre, within the project area, reportedly produced 2,204kg from 89,850 tonnes at an average grade of 24.5g/t. In addition to gold, this felsic volcanic area has potential for volcanogenic massive sulphide mineralisation, similar to the Golden Grove deposits located to the west in the Yalgoo Greenstone Belt. Besides, elevated nickel and cobalt results have also been identified in the Payne’s Find area.

The Primrose Gold Project also covers tracts of the Primrose Shear which have had little or no modern exploration work carried out on them. While the Company continues to meet all required expenditures and commitments on the project area, a recent significant development should be noted pertaining to the Project-

Gold Exploration Target Defined at Primrose

The Company recently announced an independent exploration target tonnage at its Blue Heaven Prospect in Primrose Project, in the range of ~ 170k to 520k and grade range of 2.2 to 4.5g/t. Moreover, first pass ore block modelling, and notional pit design has been completed on verified data.

The exploration was majorly driven by an independent audit of drill hole database constructed by previous explorer, Paynes Find Gold Limited, updated by Cervantes drilling and exploration programs. Independent consultant geologist Mr Philip Jones, estimated this target post existing exploration data was audited and validated.

According to the Exploration Target Estimate-

• There is potential for mineralisation down dip and along strike of the identified target area.
• Modelling has highlighted areas requiring additional drilling and validation
• There is scope to increase exploration target given a line of convergence on the Primrose Shear to the west from which the auriferous quartz lodes may have emanated. This line of convergence is likely to be deeper than anything tested previously.

For more insight on the gold exploration target, READ HERE: Cervantes Advances Exciting Primrose Gold Project In W.A.

Cervantes will pursue funding options to raise the necessary capital, if necessary, and contingent on early gold production, to advance the Primrose Gold Project.

Cervantes’ Recently Sold Projects

Albury Heath Project

On 8 May 2020, settlement of the Albury Heath Project sale to Big Bell Gold Operations Pty Ltd, a wholly owned subsidiary of Westgold Resources Limited took place. The Company received 330,313 Westgold Resources Limited fully paid ordinary shares to the value of $700,000 as part consideration for the Albury Heath project.

Cervantes notified that it has initiated several positive actions owing to this transaction, that may allow the Primrose Project to move towards an upgrade of its operations, and hopefully towards a relatively early cash flow.

The Abbotts Gold Project

The Company had been approached several times for a joint venture on its ABBOTTS Meekatharra project, a strategically located exploration licence short distance from the Meekatharra township. In April 2020, the Board agreed to accept cash for the Exploration Licence of $30,000 plus a 1% net Smelter Royalty from Ora Gold Ltd (ASX:OAU), to concentrate on its Primrose Project, as outlined above.

The transaction-

• Provided short term cash for ongoing commitments
• Avoided large rate and expenditure costs of ~ $3,800 and ~ $20,000 respectively due in May 2020

The Board continues discussions on other options and assets available to the Company.