Following the return of former chairperson Stephen Copulos and the resignation of UK-based chairperson Andrew Vickerman and MD Marcus Engelbrecht, Crusader Resources on Thursday detailed its future strategy, which includes a withdrawal from the Aim and a planned return to trading on the ASX.
The company said that it would focus on bringing the Borborema gold project, in Brazil, into production and that it would dispose of all noncore exploration projects.
The Borborema resource model currently contains an estimated 2.43-million ounces of gold at an average grade of 1.1 g/t gold. Crusader is reviewing the resource model with the view of defining a higher-grade component in the upper 120 m of the mineralisation that will support an initial Stage 1 openpit operation targeting a throughput of about two-million tons a year.
The resource comprises 51-million tonnes at 1.14 g/t gold in measured and indicated categories and 17.6-million tonnes at 1 g/t gold classified as inferred.
Crusader said it planned to establish an operation targeting a ten-year mine life using a carbon-in-leach plant before considering a Stage 2 upgrade.
The miner also reported that it had appointed Corporate Mining Services to manage and coordinate the completion of a revised bankable feasibility study for Borborema. This is expected by the end of the third quarter, with project financing to be sourced in the fourth quarter and project construction starting in 2020.
Crusader would also sell or enter into joint ventures for all the exploration projects other than Borborema. The company said that its Juruena project, in particular, had potential, but that it did not have the financial means to progress it.
“The company has been approached by several parties interested in the Juruena gold project and the aim is to raise additional cash and remove future expenditure commitments by entering into an arrangement over this and other projects as soon as possible,” it stated.
On its withdrawal from Aim and the UK, Crusader said that the cancellation of its listing on the London exchange and the closure of its UK office would be completed by Friday.
It is also Crusader’s intention to return to trading on the ASX “as soon as possible”, having been suspended since October last year.
In terms of getting its financials under control, Crusader said that the delisting and closure of its UK office would save it about $300 000 a year. Its new directors have accepted reduced remuneration with total directors’ fees falling from $1.05-million to $170 000, thereby saving $880 000 a year. Exploration expenditure will be reduced and the sale of noncore assets would realise additional cash.
The firm would also reduce office and personnel costs in Australia and Brazil.
Meanwhile, Crusader reported that the previously announced rights issue of A$4.2-million was under way. A$3.5-million of the issue is underwritten by a company related to Copulos.