Caerus Mineral Resources plc has extended its copper-gold portfolio by signing a heads of terms agreement to acquire for £300,000 Cyprus Gold Mines Ltd (CGML).
CGML, currently known as P. Von-de-Tsianos Gold Mines Ltd (PVTGM), is a Cypriot-registered exploration and mining company with three advanced copper-gold exploration properties.
Caerus said that each property had a mining history and “excellent potential” for discovery of further high-grade, copper-gold volcanogenic massive sulphide (VMS) and epithermal gold deposits.
The Anglisides, Pano Lefkara and Layia licences show prominent evidence of unmined resources as well as copper-gold bearing oxide and waste stockpiles on the surface.
Caerus will also inherit CGML’s preliminary feasibility studies for gold recovery from surface waste without the use of cyanide for feasibility studies.
The assets are at an advanced stage, with exploration licence Anglisides submitted for conversion to a mining licence.
ANGLISIDES
The licence was mined in 1936 at average grades of 5.98% Cu, 24.5g/t Au and 86.4g/t Ag.
Recent PVTGM exploration, focusing on gold mineralisation in surface gossan, returned grades of 4.4g/t Au for channel samples, 3.9g/t Au for pits and 2.10g/t Au for short drill holes.
Waste dump sampling showed peak grades of 50.1g/t Au, 44.1gt Ag, 9.4% Zn and 0.35% Cu.
PANO LEFKARA
Pano Lefkara comprises a full suite of mineralisation styles characteristic of a Cyprus-type VMS setting.
The licence holds high-grade surface gold gossan, Cu – Au sulphide and substantial package widths of Cu-bearing stockwork mineralisation.
Peak channel samples returned grades of 3.47g/t Au over 41 metres and 1.1g/t Au over 25 metres.
Caerus said that VMS-type mineralisation was of particular interest. Limited drill intercepts include 3.13% Cu and 4.1g/t au over 7.6 metres; and stockwork intercepts including 0.69% Cu and 1.82g/t Au over 27.4 metres; and 0.34% Cu and 1.5g/t Au over 18.3 metres.
LAYLA
The Laya licence is a gold prospect last mined during the 1940s. It has a potential low-cost easily accessible source of additional gold-bearing gossans to supplement production from surrounding licences in the Troulli and Kalavasos Project areas.
Average gold grade from grab and pit samples are of 3.8g/t Au.
APPROACH
CGML’s issued shares and its licence assets are valued at £300,000 payable upon completion.
“We continue to maintain our policy of only acquiring licences of merit, preferably with a mining history and clear evidence of mineable surface materials and scope for further hard rock resource expansion,” said Caerus chief executive Martyn Churchouse.
“We, therefore, approach resource development safe in the knowledge that host rocks are conducive to epithermal gold and VMS Cu-Au deposition and that we have additional mineralised surface material likely to meet the entry requirements defined within the Jubilee Metals Group option agreement in the coming months”.
Caerus is copper-gold development and exploration company focused on Cyprus with a portfolio comprising brownfield sites, where historic mining has taken place, and greenfield licences where there has been no systematic exploration.