Equus Mining Limited ('Equus' or 'Company') (ASX: EQE) is pleased to announce further wide vein-breccia hosted high-grade gold and silver drill results from the recently defined large scale, east dipping fault structure, interpreted to extend peripheral to the 1.4km long historic Taitao Pit.
These new results are located approximately 65m to the north of the previously announced high grade results of 4.14m @ 17.9 g/t AuEq1 (11.0 g/t Au, 520.0 g/t Ag) 2 and 350m north of the operating Cerro Bayo processing plant. These results report to a new mineralized zone located outside the existing underground resource component of the maiden December 2020 Taitao Inferred Mineral Resource estimate of 302koz AuEq3 and will likely extend the potential of the MRE to the east and at depth.
Damien Koerber, Chief Operating Officer, Equus Mining Commented: 'These further high-grade results continue to demonstrate the exciting potential of the large, newly defined structure to host wide, cohesive zones of very high-grade gold and silver mineralisation, as part of a newly interpreted, potential high-grade extension to the JORC Inferred resource at Taitao of 302koz gold equivalent. The underexplored nature and potential large scale of this new exploration target continues to drive the focus of current drilling below and to the east of the Taitao Pit, and the 2020 Inferred Mineral Resource, along an approximate +500m long portion adjacent to the operational 0.5Mta flotation plant'.
CERRO BAYO STOCKPILE PROCESSING OPERATIONS
Operations have been impacted by inflationary pressures, particularly the 60% increase in diesel cost during H1-2022. During the June 2022 quarter additional operating costs were also incurred with the installation of a hired screening plant and the performance of multiple test campaigns. Combined with slightly lower feed grades this resulted in negative cash flows from operations for the quarter. To attain the required cut-off grade to maintain a viable operation, Equus has implemented changes to the mining methodology and introduced pre-processing of feed material. The pre-processing reduction of dilution was evaluated for different size fractions and for various feed sources. By the end of June 2022, operating parameters had been defined to optimise the screening plant's performance. The increase in the required cut-off grade and the pre-processing screen necessitated a mining methodology change. A bulk benching configuration with higher efficiency was established by the end of the quarter, which increases total material movement and maximises feed development in the field. Importantly, the changes made during the quarter are expected to allow production to continue at full mill capacity, and optimisations in power, recoveries and mining method over the coming months are expected to further improve project economics. Routine site audits were recently conducted by several regulatory bodies, principally Health & Safety, Mining and Environment. Compliance with all legal and material permit conditions was observed.
Partial results (approximately 40%) have been received from a further 9 holes (CBD096-CBD0104) completed to date along a broadly east-west section below the central eastern margin of the Taitao Pit (Figure 1 and for which hole details provided in JORC Code, Table 1 below). This drilling was focused on testing extensions of epithermal vein-hydrothermal breccia hosted in the 10-40m wide, low-angle (30-45-degree) easterly dipping fault (titled the Appaloosa Fault complex), both along strike and down dip, centered approximately 50m north of the previously reported hole CBD082 (4.14m @ 17.9 g/t AuEq1 (11.0 g/t Au, 520.0 g/t Ag)2. The westernmost surface expression of the Appaloosa vein-breccia complex is interpreted to broadly correspond to the Taitao Pit (Figure 2).
The intercepts in holes CBD102 to CBD104 represent the interpreted northern extension to the high-grade vein-breccia intersected in the previously reported hole CBD082 of 4.14m @ 17.9 g/t AuEq1 (11.0 g/t Au, 520.0 g/t Ag), located approximately 65m to the south (refer to Figure 1). Importantly, the high-grade gold-silver mineralization in these holes is comprised of brecciated, massive to crudely banded chalcedonic veining and vein clasts (Photo 1- CBD102), in which the origin of the vein clasts is interpreted to be from a potentially deeper source. This coupled with the overall increasing grade distribution from the multiple intercepts at differing elevations between holes CBD096 to CBD104 strongly suggests a vector of potentially increasing grade with depth (i.e. down dip to the east and for which it remains open)
Furthermore, the chalcedonic texture of veining intersected in the above holes (the deepest of which to date is at approximately 280m RL) is commonly characteristic of lower temperature and hence upper levels of low-sulphidation type epithermal systems. The Pegaso II target structure, defined approximately 450-500m east of current drilling along the Appaloosa Fault (see Figure 2), is interpreted to represent the higher level, north-west extension of the nearest historic mine, Delia NW, and possibly represents a sub-vertical splay, emanating at depth, off the east dipping Appaloosa Fault complex. Vein hosted mineralization mined from Delia NW was emplaced throughout an approximate 150m vertical interval between lower elevations of approximately 50m to 200m RL, as compared to the 300m RL intercepts in holes CBD102 to CBD104. Veining at Delia NW is characterized texturally by higher temperature saccharoidal quartz than that observed from veining intersected in the holes CBD096 to CBD104. The above comparative distribution of vein textures also suggests potential for increases in grade with depth exist down dip along the Appaloosa Fault. Based on the above, the company believes that highly prospective, deeper drill targets are provided by both the along strike and down dip extension of the large-scale Appaloosa Fault and particularly at the intersection of it with the Pegaso II and other subsidiary fault splays (See Figure 2). Current drilling is focused along a +500m long portion of the host fault complex broadly extending from hole CBD104 to approximately 200m south of the operational plant infrastructure. Drilling is designed to test the down dip extension of the Appaloosa Fault structure at depth, east of the Taitao Pit, and below the underground resource component of the 2020 Inferred Mineral Resource3. The drilling will also be targeting the interpreted potential down dip extension of high-grade mineralisation intersected in historical shallow drilling conducted on the eastern margin of the Taitao Pit between 1995-2007, and a series of exploration and minor development tunnels (See Figure 2). Results from this drilling included:5 6
Contact:
John Braham
Managing Director
T: +61 400 852 245
E: jbraham@equusmining.com
COMPETENT PERSON'S STATEMENT:
The information in this report that relates to Exploration Results for the Cerro Bayo Project is based on information compiled by Damien Koerber. Mr Koerber is a fulltime employee to the Company. Mr Koerber is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities which he is undertaking 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 Koerber has a beneficial interest as shareholder of Equus Mining Limited and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
EQUUS MINING LIMITED 