Issue link: http://resourceworld.uberflip.com/i/661612
38 www.resourceworld.com A P R I L / M A Y 2 0 1 6 MININg equitas resources acquiring Brazilian gold project equitas Resources Corp. [EQT-TSXV; EQTRF-OTC; T6UN-FSE] has signed a definitive agreement to acquire a 100% interest in Alta Floresta Gold Ltd. Alta Floresta Gold is a private company which holds a 60% equity interest in Alta Floresta Mineracao Ltd. Alta Floresta holds six gold properties, and four production licences, over 184,410 hectares in Mato Grosso and Para states, Brazil. Alta Floresta is focused on production activities and defining additional gold resources at the Cajueiro Project. "In Alta Floresta Gold, we have identi- fied an excellent opportunity that will allow us to leverage its current, small scale, low-cost, gold production into a much larger operation in the near future," said Kyler Hardy, President of Equitas." By incorporating the highly skilled senior management team of Alta Floresta Gold into Equitas, we gain an experienced South American operating team." At the Cajueiro Project, 48 drill holes (11,292 metres) have tested four zones: Marines, Baldo, Matrincha, and Crente. At the Crente Zone, there is an indicated and an inferred resource, while inferred resources were calculated for the Marines, Baldo and Matrincha zones. All of these zones have near surface oxide potential expansion. Exploration over the last five years has identified five further anomalies within the property. An NI 43-101 resource estimate was pre- pared by Gustavson Associates of Boulder, Colorado. Indicated resources are 7.4 mil- lion tonnes grading 0.9 g/t gold, for 203,000 oz gold. Inferred resources are 5.261 million tonnes of 0.3 g/t gold, for 127,400 oz. Alta Floresta started processing alluvial gold mineralization in the Baldo Zone in June 2015 with modest gold production to date. Equitas intends to embark on a three- phase development plan at Cajueiro. First, upon regulatory approval, the company plans to install a small gravity plant to process the saprolite mineralization at the Baldo Zone. Once receiving permits and signing supply agreements, the second phase envi- sions construction of a carbon-in-leach plant between the Baldo and Crente zones which are less than 1 km apart. Initial met- allurgical test work indicates over 85% gold recovery can be achieved through gravity separation and cyanide leaching. The third phase would be to increase production under a full production licence. The company expects that this could be funded through operating cash flow. Equitas is arranging a $1 million pri- vate placement. The company will continue exploring its polymetallic (nickel-copper-PGM-cobalt) Garland Project near Vale's producing Voisey's Bay Mine, Labrador, where last fall's drilling at the Cominco showing returned disseminated pyrrhotite-chalco- pyrite-pyrite mineralization over 69 metres from surface. n 2316 _ DDC _ ResourceWorldMagazine _4.485x6.4_Colour _160329 PRINT www.ddcorp.ca It's where you'll find Dominion Diamond, Canada's largest independent diamond producer and third largest in the world by volume. Look North.