Since I wrote about them last, outlining new CEO Alan Carter’s extensive background as a nuclear warhead of resource knowledge, Equitas Resources (EQT.V) has had some spectacular grab samples off their Brazilian Crepori gold project.
Mining nerd-out time:
Several high-grade assays were achieved from samples of sulphide mineralized quartz veining. Of 10 initial samples, five returned values in excess of 8 g/t gold with values of up to 39.26 g/t Au at Picarreira and a spectacular 1,022.98 g/t Au at Boiadeiro. There has been no diamond drilling conducted previously on the property.
That’s some solid drilling. The Boiadeiro sample is clearly a case of a drill pounding right into the heart of a vein and not to be taken as indicative of 10x Bre-X findings, but the assays most definitely show there’s ground for more work.
The Crepori project is one of 12 gold projects that Equitas controls in northern Brazil.
No, I’m not high. They have 12 Brazilian gold projects. A dozen. Uma duzia.
If you’ve been paying attention to Equitas this last year, you know its efforts have largely focused on the advancement of the Cajuiero project, which has an indicated resource of 214,000 ounces Au at a grade of 0.77 g/t and an inferred resource of 282,000 ounces Au at a grade of 0.80 g/t and is – oh yeah – producing in small amounts. Whilst the company continues to expand and advance the Cajueiro project, Carter’s landing on the roster brought about a renewed thinking that additional efforts should be directed toward advancing some of the other high-grade targets in the company portfolio, of which Crepori is one of the most promising.
Let’s go to the tale of the tape:
Crepori consists of two licences, encompassing 8,323 hectares, located in the Tapajos gold belt, approximately 105 kilometres south-southwest of Eldorado Gold’s Tocantinzinho project, which is expected to enter production in 2019 and will produce 170,000 ounces of gold per year
Two days after they announced they’d be looking at widening scope, Equitas announced a $500,000 financing through a non-brokered private placement at a price of $0.045 per unit. Then Carter announced channel samples off the Nova Canaa property in Brazil, which were also impressive, as they hit a 2 metre section of 92.19 G/T Au.
The advanced Cajueiro project is what investors associate with Equitas, and while the NI 43-101 technical report (Gustavson, 2016) for Cajueiro documents an indicated mineral resource of 8,636,000 tonnes containing 214,100 ounces of gold at 0.771 g/t (sulphide bedrock domain), an inferred mineral resource of 9,526,000 tonnes containing 203,500 ounces of gold at 0.664 g/t (sulphide bedrock domain) and an inferred mineral resource of 1,374,000 tonnes containing 78,400 ounces of gold at 1.775 g/t (oxide saprolite domain), the other two properties make clear Carter is sensible in giving them another look.
I’ve little doubt, and am adding shares at this price to my portfolio.
FULL DISCLOSURE: Equitas Resources was an Equity.Guru marketing client earlier in 2016. Though our contract with the company has expired, we are continuing to focus on the opportunity, believing there to be solid upside going forward. The author has acquired stock in the company on the open market.