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  • Cleveland Mining Company Starts Drilling For Gold In Brazil 0 comments
    Mar 25, 2013 9:31 PM

    Cleveland Mining Company (ASX: CDG) has started drilling programs at its Premier Gold Project in Brazil to test the extents of the known mineralised structure and infilling areas of the current resource.

    These include resource definition drilling and near‐surface strike‐extension drilling as well as a strategic down‐dip extension diamond drilling program.

    Cleveland managing director David Mendelawitz said that the recent capital raising had paved the way for the company to start testing the near‐mine potential of the Premier tenements, aiming to rapidly expand the resource base.

    "We are very excited about lifting the resource base to extend Premier's mine‐life and potentially increase our production targets over time," he said.

    "With over 5 million ounces defined by our immediate neighbours within the same rocks and structures, and with new discoveries currently being made in the area, we are confident that there is much more gold to be discovered."

    At Premier North, the company has completed 160 metres of the planned 600 metre program with the first hole located 3.5 kilometres north of the historic Premier pit.

    The program aims to define the down‐dip extension of the structure hosting the Premier mineralisation.

    Drilling at Premier North will be refined on a hole-by-hole basis.

    Cleveland is progressing diamond drilling at the Premier Gold Mine with initial assay results pending.

    This is designed to infill the current resource and define the near‐surface eastern and western extensions of the mineralised structure.

    Interpretation and exploration of the Premier South soil anomaly, which is about 1 kilometre south of the Premier pit is also underway.

    Cleveland had last month raised $5.5 million through a placement of shares to institutional and sophisticated investors. Another $1.5 million is being offered to existing shareholders under a fully underwritten share purchase plan.

    Proceeds from this $7 million capital raising will be used for the Premier drilling program as well as the sampling programs and drilling at the Mara Rosa Gold Project, also in Brazil.

    Premier Gold Mine

    Premier Gold Mine is held as a 50:50 Joint Venture with Edifica Participacões.

    It is located in an area that is very close to the town of Crixás with a population of 20,000 people, and includes gold mining infrastructure that supports operations at the Serra Grande Gold Mine.

    Premier is a high potential brownfields gold project that is part of the Crixás Hub of 15 concessions that cover about 150 square kilometres, and contains an Inferred resource of 1.95 million tonnes at 1.42 grams per tonne gold for 89,000 ounces of gold. This resource was defined from historical data and a limited drilling programme that evaluated a very small portion of the total project area.

    Debt free gold production has commenced at the mine and the company has outlined multi-million ounce potential for development in surrounding project areas within the Crixás Hub.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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