CRUSADER RESOURCES LIMITED Crusader Resources Ltd. (Crusader) has signed a key access agreement with the surrounding tenement holder to its operating Posse Iron Ore Mine. The agreement allows Crusader to mine into the neighbouring area, a pre‐requisite to access all of the hematite and itabirite ore within Crusader´s Posse lease.
Commenting from Brazil after signing the agreement, Crusader´s Managing Director, Rob Smakman said, "We are really pleased to have signed this agreement as it allows us to extend the mining at Posse to depth in areas where we know there is rich and high quality ore. The strong operational and management team we have assembled in Brazil has built relationships with various groups in the region and we are confident of our ability to continue expanding and growing the Posse mine."
"Posse is a remarkable asset for Crusader, as at last quarter the project has contributed net operating cashflow to Crusader of $9.6M off revenues of $28.4M. The project was purchased for $2.3M with an additional $3.1M in total capital development costs, representing a fantastic return for all stakeholders. Most importantly for the project, we are seeing a steady recovery in the demand for quality product from the domestic pig iron producers, opening the possibility of expanding Posse operations to meet the increased demand."
The current agreement refers to the area between the northern boundary of Crusader´s tenement and the Federal Highway BR381 (see Figure 1 below). It is expected that this agreement will extend the mine life within the Posse tenement, within an updated pit boundary. This quality ore can be blended to create products specific to individual customer needs and increases the overall quality of Posse products.
There are no costs associated with this agreement.
In addition to this agreement, Crusader believes there are a number of quality opportunities now available to selectively grow its iron ore business. Many of these opportunities are only available due to the current negative international pricing environment and general investor sentiment for iron ore investment.
Having positive cash flow and operational experience puts Crusader in a strong position to consider new opportunities compatible with the existing operations and management team.
ASX RELEASE 29 Jun 2015Office (Brazil): +55 31 2515 0740 Office (Aus): +61 8 9320 7500
Email: rob@crusaderdobrasil.com Email: paul@crusaderresources.com
About Crusader
Crusader Resources Limited (ASX:CAS) is a minerals exploration and mining company listed on the Australian Securities Exchange. Its major focus is Brazil; a country Crusader believes is vastly underexplored and which offers high potential for the discovery of world class mineral deposits. Crusader has three key assets:
Posse Iron Ore
The Posse Iron Ore Mine is located 30km from Belo Horizonte, a city acknowledged as the mining capital of Brazil and the capital of Minas Gerais state. The project had an indicated and inferred Mineral Resource estimate of 36Mt @ 43.5% Fe when mining began in March 2013. Posse is currently selling DSO into the domestic market. With an experienced mining workforce amongst a population of over 2.5 million people, the infrastructure and access to the domestic steel market around the Posse Project is excellent. Drilling and expansion studies were completed in 2014.
Borborema Gold
The Borborema Gold Project is in the Seridó area of the Borborema province in north‐eastern Brazil. It is 100% owned by Crusader and consists of three mining leases covering a total area of 29 km² including freehold title over the main prospect area. The Borborema Gold Project benefits from a favourable taxation regime, existing on‐site facilities and excellent infrastructure such as buildings, grid power, water, sealed roads and is close to major cities and regional centres. The project's Maiden Ore Reserve was announced in November 2012. Proven and Probable Ore Reserves of 1.61Moz of mineable gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut‐offs for oxide & fresh). The measured, indicated and inferred Mineral Resource Estimate of 2.43Moz @ 1.10g/t gold, remains open in all directions. A Pre‐Feasibility Study (PFS), completed in September 2011, into the economic and technical merits of the Borborema Gold Project, revealed a robust investment case based on an open cut mine development of 3Mtpa. Feasibility Study work is ongoing.
Juruena Gold
The Juruena Gold Project represents an exciting exploration opportunity, with multiple high‐grade targets, within giant gold in‐soil anomalies. The project is located in the highly prospective Juruena‐Alta Floresta Gold Belt, which stretches east‐west for >400km and has historically produced more than 7Moz of gold from 40 known gold deposits.
The Juruena Project has been worked extensively by artisanal miners (garimpeiros) since the 1980s, producing ~500koz in that time. Historically there is a database of more than 30,000 meters of drilling and extensive geological data. Crusader acquired the project in mid‐2014 and is completing a drilling program capable of defining a maiden resource.
Competent Person Statement
The information in this report that relates to Juruena Gold Project exploration results, Posse Iron Ore Project exploration results and Borborema Gold Project exploration results released after 1 December 2013, is based on information compiled or reviewed by Mr Robert Smakman who is a full time employee of the company and is a Fellow of the Australasian Institute of Mining and Metallurgy, and has sufficient experience that is relevant to the type of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Smakman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to:
a) Borborema Gold Project and Posse Iron Ore Project Exploration Results released prior to 1 December 2013 is based on information compiled or reviewed by Mr Robert Smakman who is a full time employee of the company;
b) Borborema Gold Mineral Resources is based on information compiled by Mr Lauritz Barnes and
Mr Brett Gossage, independent consultants to the company;
c) Borborema Gold Ore Reserves is based on information compiled by Mr Linton Kirk, independent consultant to the company;
d) Posse Fe Mineral Resources is based on and accurately reflects, information compiled by
Mr Bernardo Viana who is a full time employee of Coffey Mining Pty Ltd,
and who are all Members of the Australasian Institute of Mining and Metallurgy (Rob Smakman and Linton Kirk being Fellows), and who all have sufficient experience that is relevant to the type of mineralisation and type of deposit under consideration, and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Each of Mr Smakman, Mr Lauritz Barnes, Mr Kirk, Mr Viana and Mr Brett Gossage consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
This information was prepared and disclosed under the JORC Code 2004. It has not been updated since to comply with JORC Code 2012 on the
basis that the information has not materially changed since it was last reported.
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