Caerus Mineral Resources signs agreement to acquire Cyprus Gold Mines Ltd

LONDON, UK: Caerus Mineral Resources (LSE: CMRS) has signed an agreement on Heads of Terms for the acquisition of Cyprus Gold Mines Ltd (CGML), known currently as P.Von-de-Tsianos Gold Mines Ltd (PVTGM), a news release said.

CGML is a private, Cypriot-registered, exploration and mining company that holds three advanced copper – gold exploration properties, each with 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 not only prominent evidence of unmined resources, but also copper-gold bearing oxide and waste stockpiles on-surface.

Preliminary feasibility studies conducted by CGML for gold recovery from surface waste without the use of cyanide, will be inherited by the Company and fast-tracked to feasibility.

The CGML assets are at an advanced stage, with one Exploration Licence, Anglisides, having been submitted for conversion to a Mining Licence.

Highlights

Anglisides Licence

·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 drillholes

·Waste dump sampling peak grades of 50.1g/t Au, 44.1gt Ag, 9.4% Zn and 0.35% Cu

·External consultant review commissioned by Caerus concluded:

o Cu sulphide mineralisation beneath the gossans is underexplored

o Future evaluation should target VMS-type Cu – Au sulphide mineralisation already known to extend over a substantial strike length at grades of >1% Cu and 2g/t Au

Pano Lefkara Licence

·Comprises a full suite of mineralisation styles characteristic of a Cyprus-type VMS setting

·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

·VMS-type mineralisation is of particular interest to Caerus. 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.

·External consultant review highlights the potential for extensions to sulphide mineralisation in both directions from the partially defined VMS body.

Layia Licence

·A gold prospect last mined in the 1940’s

·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 of 3.8g/t Au

Consideration: 

The transaction between the Company and CGML values the acquisition of CGML’s issued shares and its licence assets at GBP 300,000, payable upon Completion. The Board considers that the valuation of CGML is fair and reasonable in so far as the Company’s shareholders are concerned based on a comprehensive internal review supported by a technical and commercial analysis of the CGML assets conducted by a qualified and independent Third Party. The Company also believes that the transaction has synergies with its existing development plan and conveys significant strategic benefits.

Martyn Churchouse, Chief Executive Officer of Caerus Mineral Resources, commented; “This acquisition represents another important addition to our Cypriot portfolio, providing further optionality to our exciting suite of assets. 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. 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 Mineral Resources PLC share price

29.25 GBX−0.25 (0.85%)today

25 Jun, 4:29 pm GMT+1 ·Disclaimer

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