Chile
Press Release

Standout intersection bolsters potential of the Cerro Bayo project

Bnamericas Published: Thursday, May 28, 2020

PRESS RELEASE 

Equus Mining Limited (ASX: EQE) is pleased to announce further drilling results from its flagship Cerro Bayo Project, located in southern Chile.

DROUGHTMASTER PROSPECT DRILLING HIGHLIGHTS

► New assays received from a recently completed 9-hole (totaling 2,044m) maiden diamond drilling program at the greenfields Droughtmaster Prospect, located only 12km from the Cerro Bayo gold-silver processing facility.

► Hole CBD020 intersected high-grade gold-silver mineralization at the Percheron Vein target, including a standout intersection of:

► 3.81m at 20.4 g/t gold and 55.5 g/t silver from 109m, including

1.06m at 62.58 g/t gold and 129.3 g/t silver from 112m

► Mineralisation was intersected at shallow depth (<100m) and remains open at depth and along strike with a potential large deeper mineralised zone to be tested with further drilling.

► Reconnaissance mapping and drilling exploration programs have confirmed the Company’s geological model for Droughtmaster, including:

► Widespread high-grade epithermal gold-silver veining centred within a district scale, approximately 4.5km-long NW trending fault corridor, which extends 2.5km to the northwest towards the Equus controlled historic Marcela Mine (Remaining Measured and Indicated Resources of 21.8Koz gold at 2.53g/t gold and 2.74 Moz silver at 318 g/t silver1).

► It is interpreted that drill intercepts to date relate to the upper portions of a wide, large-scale epithermal system and good potential exists for discovery of high-grade mineralization in deeper favourable levels along this fault trend.

► Results from CBD020 build on previous highly encouraging results targeting the Percheron Vein with the most recent intersection located approximately 30m above in elevation and 50m along-strike from Hole CBD0162 with results including:

► 0.64m @ 1.44 g/t gold, 240.0 g/t silver from 68.10m

► 0.62m @ 17.28 g/t gold, 271.0 g/t silver from 73.5m

► 1.01m @ 5.32 g/t gold, 43.1 g/t silver from 96.57m

► Results are pending from hole CBD019, located approximately 250m along strike from CBD020, which intersected analogous hydrothermal brecciation at similar elevation to CBD020. Upon receipt of final results, further drilling will be designed to target potential extensions both down-dip and along-strike of these high‐grade results.

► Prior to drilling, the Company completed mapping and channel and rock-chip sampling throughout the prospect which reported high-grade surface channel geochemical results including 2.8m @ 4.48 g/t gold, 543 g/t silver3. The initial field work assisted in identifying the Breton, Belga, Splay 1-3 and Percheron vein trends which were partially tested in the maiden drill program.

► The Percheron-Marcela north-west trending fault corridor, together with the parallel Cerro Bayo-Cascada trend, represent two high priority, large scale greenfield targets. These targets host significant, previously mined resources emplaced at favorable levels within the epithermal system along limited portions of these trends.

TAITAO DRILLING UPDATE

► Equus Mining continues to progress its dual-track project strategy with approximately 1,500m of resource definition drilling at the Taitao Pit to be completed this week with first results due by the end of May. The Company is seeking to become a near-term gold-silver producer, targeting a JORC compliant resource at Taitao by Q3 2020.

► The resource is expected to be supported by high-grade ‘feeder’ ore both from the Marcela Mine (Remaining Measured and Indicated Resources of 21.8Koz gold at 2.53g/t gold and 2.74 Moz silver at 318g/t silver) and additional resources via greenfields discoveries from targets throughout the Cerro Bayo District with limited previous exploration.

Managing Director John Braham commenting on the results:

“These results from Droughtmaster highlight the potential of this exciting new greenfields prospect. The exploration team have done excellent work in identifying an approximately 4.5km-long trend which hosts deeper, high-grade mineralization, some of which was mined historically. Success from our maiden drill testing on the discovery of largely concealed high grade mineralization has increased both our understanding of the Percheron Vein in the context of the larger Cerro Bayo district system and enhanced confidence in unveiling further greenfield discoveries as we look forward to reporting the balance of assay results from Droughtmaster.

One of the unique things about the Cerro Bayo District is the near-surface, high-grade potential across a number of deposits and the flexibility that this can bring to a project. Following completion of the Taitao drilling this week and the subsequent JORC resource update, the Company will evaluate multiple re-start options for both open pittable and high grade underground resources.”


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