Vancouver, British Columbia, November 29, 2016 - Equitas Resources Corp. (“Equitas” or the “Company”) (TSXV: EQT) (US: EQTRF) (Frankfurt: T6UN) is pleased to provide an update and outline exploration plans for the Nova Canaa Project in Mato Grosso State, Brazil.
Major highlights include:
- Nova Canaa is situated in the Juruena Gold Belt which has past production of 7-10 Moz Au, primarily from alluvial mining;
- high grade vein-hosted gold mineralization is evident at Nova Canaa, with a channel sample from the Bodao structure in the Galopeira zone returning 92.19 g/t Au over 2m in an underground adit;
- Estimated small scale historic production of 225,000oz Au;
- Exploration plans include detailed geological mapping and sampling, Induced Polarization and magnetics surveys to target further diamond drilling.
Nova Canaa is one of 12 gold projects that Equitas controls in northern Brazil. Along with the Crepori project (see press release dated November 15th 2016), it is one of the high priority gold targets that the Company has recently identified as a focus for further work. Efforts thus far have largely focused on the advanced Cajueiro Project. The NI 43-101 Technical Report on Resources (Gustavson, 2016) for Cajueiro documents an Indicated Mineral Resource of 8.636 million tonnes containing 214,100 ounces of gold at 0.771 g/t (sulphide bedrock domain); an Inferred Mineral Resource of 9.526 million tonnes containing 203,500 ounces of gold at 0.664 g/t (sulphide bedrock domain), and an Inferred Mineral Resource of 1.374 million tonnes containing 78,400 ounces of gold at 1.775 g/t (oxide saprolite domain).
The Nova Canaa property consists of two licenses encompassing 9,694 ha, located in the Juruena Gold Belt of northern Mato Grosso State. Previous production from garimpeiro mining between 1975 and 1992 on the property is estimated at approximately 225,000 oz Au. A series of NW trending shear zones in granite host gold mineralization in quartz veins, and thus far two main target areas have been identified, Galopeira and Medeiro.
At Galopeira, previous small scale workings have exposed two NW trending mineralized shears, Bodao and Goiana. The Bodao vein averages 1-2m in width and has so far been traced over approximately 200m. A 2m channel sample across the Badao vein from the underground workings approximately 20m below surface, returned a value of 92.2 g/t Au over 2m.
The Medeiro Zone consists of a 150m wide system of shear zones, exposed along a 350m strike length which is open at both ends. Individual shear structures range from 1.5m to 9.8m in width. A total of 95 wide-spread surface grab samples previously collected within a 1 km radius returned twenty encouraging results ranging between 1.38 g/t Au and 69.5g/t Au. Eighteen previously completed HQ diamond drill holes totaling 2,993m at Galopeira, returned three high grade vein-hosted intersections including 2m at 7.2g/t Au, 2.9m at 14.2g/t Au, and 1.5m at 17.2g/t Au. Samples were sent either to the ALS laboratory in Lima, Peru for fire assay with a 30g fusion and Atomic Absorption (AA) finish, or to the SGS laboratory in Belo Horizonte, Brazil for fire assay with a 50g fusion and AA finish.
The Company considers Nova Canaa to be a priority target for discovery of a high grade vein-hosted gold deposit. A systematic exploration program consisting of mapping and sampling, Induced Polarization and magnetics surveys is planned to identify targets for further diamond drilling.
Commenting on the project, VP Exploration Everett Makela stated “Results to date underscore the potential for a significant new high-grade gold discovery at Nova Canaa, which is an integral part of the current initiative to unlock the value of our core assets, which also include the Cajuiero and Crepori projects”
NI 43-101 Disclosure
Everett Makela, P. Geo., VP Exploration and a Director of Equitas Resources Corp., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
“Alan Carter” Alan Carter
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The reader is cautioned that references to mineral resources that are not mineral reserves do not have demonstrated economic viability and assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward- looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.