- Equus Mining (EQE) updated the market today on its maiden mineral resource estimate from the gold-silver Cerro Bayo project in Southern Chile
- The explorer announced a promising inferred estimate of 302,000 gold equivalent ounces at 2.5g/t gold equivalent
- The result is based on an 1180 hole historical and confirmatory drill campaign at the Taito open pit area
- A company spokesperson said there is significant potential for additional resources beneath and along strike at the pit, with follow up drilling expected 2021
- Equus is currently in a three-year binding option agreement with Mandalay Resources and has not yet claimed full ownership of Cerro Bayo
- However, EQE’s Managing Director has indicated the findings have helped cement a pathway towards executing the option
- Equus Mining shares are down 6.67 per cent on the back of the announcement trading at 1.4 cents each
Equus Mining (EQE) updated the market today on its maiden mineral resource estimate from the gold-silver Cerro Bayo project in Southern Chile.
The Cerro Bayo Project lies 10 kilometres west of Chile Chico and covers an area of 295 square kilometres.
The explorer announced a promising inferred estimate of 302,000 gold equivalent ounces at 2.5g/t gold equivalent.
The result is based on an 1180 hole historical and confirmatory drill campaign at the Taito open pit area.
Around 64 per cent of the near-surface mineral resource occurs within the outer limit of the pit at an average grade of 2.1g/t gold equivalent (reported at a 0.8g/t gold equivalent cut off).
A higher grade reporting cut off of 2.0g/t gold equivalent was applied to mineral resources below the pit shell resulting in an average grade of 3.7g/t gold equivalent.
A company spokesperson said there is significant potential for additional resources beneath and along strike at the pit, with follow up drilling expected 2021.
Equus is currently in a three-year binding option agreement with Mandalay Resources and has not yet claimed full ownership of Cerro Bayo.
However, EQE’s Managing Director has indicated the findings have helped cement a pathway towards executing the option.
“The Taitao maiden mineral resource estimate provides a valuable milestone for the company and helps cement an important pathway towards execution of the option to acquire the Cerro Bayo Project and transition towards becoming a gold-silver producer,” he explained.
Should Equus exercise this option, it will be required to issue 19 per cent of share capital to Mandalay.
Equus Mining shares are down 6.67 per cent on the back of the announcement trading at 1.4 cents each at 1:29 AEDT.