The Morgans senior analyst at consulting, James Wilson, said the weaker Australian dollar has driven the price of gold and become miners that produce precious metal more attractive to investors. The Crusader Resources, which has two gold projects, a tin and iron in Brazil, has had good results from drilling and advanced with the development of assets.
The Australian miner has the Juruena gold project in Mato Grosso and Borborema, in Rio Grande do Norte. Crusader also develops, together with BBX Minerals, indium-tin design Golden Beauty. In Minas Gerais, the Crusader develops iron ore mine Posse.
"The Crusader is going well. We visited the Juruena site recently in Brazil and we believe has significant potential for small-scale operation in the short term. The survey continued to intercept high grade zones in Kerosene [target Juruena] and the initial mineral resource estimate is being done, "Wilson said.
The mining company has in the country, two subsidiaries, the Crusader's Brazil Mining and Crusader Mining Northeast, which together have 61 mining rights for gold, iron and phosphate in the states of Minas Gerais, Goiás, Paraíba, Rio Grande do Norte and Santa Catarina. The only mining concession of the Crusader is for iron ore in Possession of operation.
Wilson said the weakened Australian dollar is stronger leverage for domestic gold producers. In the second quarter, the metal was quoted at around US $ 1,040 per ounce, "which is great, considering that the overall operating costs averaged US $ 665 per ounce during this period compared to US $ 709 in the last quarter of 2014" said analyst of Australian consulting.
According to Wilson, the investments are targeting predominantly for Australian miners that produce or are still in the exploration phase, as the Crusader. "We look forward to the Crusader connect with a large fund partner to capitalize. The company continues to operate an iron ore asset with positive cash where operating costs continue to fall due to improvements. A new agreement with Vale could expand the area of Possession ".
In late June, the Crusader signed an agreement with the owner of a mining right to mine ore in the neighboring area to the iron ore operation Posse, in Minas Gerais. Permission to use the site was a prerequisite for the mining company to get access to all deposits of hematite and itabirite operation.
"The company is also moving forward with the development of Borborema project, where plans for a more affordable operation, between 1.5 million and 2 million tons per year, may be released by the end of this year," said Wilson. The information is of The Gold Report.
CAS Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
