Caerus Mineral Resources PLC (LON:CMRS) announced better-than-expected results from preliminary drilling on the PR Ploutonic Resources Ltd licences in Cyprus, ahead of a shareholder vote on its proposed acquisition of PRL later this month
Percussion drilling was taken as part of the due diligence process validating historic work completed on licences in the PRL portfolio which are subject to the proposed deal.
Visible gold was recovered during the panning of randomly selected samples of drill chips collected during the drilling of the 'gossan' and oxide zone on the Troulli licence.
The 'gossan' and oxide zone, originally thought to be about 10 metres thick, has now been recorded to a depth from surface of up to 25 metres. “This adds significantly to the potential tonnage of higher grade, gold-bearing material for future processing,” the company said.
“This is an excellent result for the company that far exceeds expectations,” said chief executive Martyn Churchouse.
“Finding visible gold in percussion drill chips would have been positive news in itself but establishing the oxide zone to be significantly thicker than anticipated, together with the potential discovery of the extension to the Troulli VMS copper-gold deposit more than validates the proposed acquisition,” he said.
The drilling has been completed over the gold-bearing 'gossan' and oxide located close to the former Troulli open pit that previously exploited a Volcanogenic Massive Sulphide (VMS) copper deposit up until 1974.
One drill hole extended through the oxide zone and immediately intersected the sulphides with copper mineralisation: cuprite and chalcocite at a depth of 24 metres below surface.
The potential discovery of the extension of the Troulli VMS copper-gold deposit provides scope to combine the remnant VMS copper mineralisation in the former open pit with any subsequent tonnage that is delineated to build a meaningful high-grade resource for future treatment, it said.
“We will soon return to the Troulli and Kokkinapetra licences and undertake more detailed work to define the extent of the gold-bearing oxides and the underlying VMS copper-gold mineralisation with a view to generating JORC (2012) mineral resource estimates as quickly as possible," added Churchouse.
No drilling was undertaken on the dump and ore stockpile inventory on the Troulli licence. Additional drilling will be undertaken once the drill rig completes the scheduled evaluation drilling that is due to start later this week on the company's N. Mathiatis licences.
The PRL acquisition is subject to shareholder approval on April 28.