Crusader Resources Limited to Focus on High-Grade Gold Development

Perth, Dec 23, 2015 AEST (ABN Newswire) - Crusader Resources Limited (ASX:CAS) is pleased to provide an update on progress at its 100% owned Juruena Gold Project.

- Licensing progressing on schedule

- Preliminary equipment quotations and Scoping Study advanced

- Discussions with Financing Partners underway


Licensing

Crusader is pleased to announce that the applications for trial mining licences ('Guia de Utilização') (GU), over the high-grade Juruena Gold Project, have been lodged with Brazilian authorities.

On grant of the GUs, Crusader will be permitted to conduct underground mining on both the Querosene and Dona Maria prospects up to a maximum throughput of 100,000 tonnes of ROM material, or 50,000 tonnes per prospect.

The project development strategy for Juruena is similar to the direction undertaken by the Crusader operational team in commissioning the Posse Iron Ore Mine, and has been the path to production for a number of other successful mining companies in Brazil.

In addition to the GU applications, Crusader's licensing team has commenced the application process for a full 'Concessão de Lavra' (Mining Concession / Mining Licence). In order to achieve the application for a full mining licence, Crusader has engaged several internationally recognised consulting groups to conduct both environmental and social impact assessments for the planned operations, which will comply with the Brazilian mining code and International Finance Corporation (IFC) performance standards.

The full mining licence will remove the tonnage restriction on operations and allow the project to expand to full capacity.


Scoping Study Advances

Denver based international engineering firm Global Resource Engineering (GRE) has progressed preliminary costings for the project. The preliminary costings are based on appropriately sized plant and equipment to mine and process within the tonnage restrictions of the GU licence, and leverage Crusader's existing in-country iron ore operations, to source locally manufactured equipment and contractors in the mining focused city of Belo Horizonte.

Preliminary costings support a modular processing facility, the design of which would be intentionally semi-mobile and on a minimalistic footprint to allow it to be relocated post the granting of the full mining licence.

In addition to the processing facility, GRE has completed preliminary costings on both owner operator and contract development for both the Querosene and Dona Maria ore bodies, allowing access to the current known Mineral Resources1. Tender documents for contract underground mine development will be issued in January 2016 in line with company's development schedule.

Crusader will recommence drilling early in 2016 in order to increase confidence levels and evaluate a number of close, high-value targets identified by the 3D resource models that have been built around the current inferred resources.


Project Funding

Crusader has commenced preliminary discussions with potential financing partners to provide a debt facility to develop the Juruena Gold Project. These discussions are ongoing with a final firm agreement likely to be linked to the completion of the Scoping Study and new resource statement scheduled for April 2016.

The weakening Brazilian currency continues to have a positive effect on the economics of gold production in Brazil in a similar dynamic to that being experienced by Australian gold producers. Crusader intends to fast-track the development of Juruena to take advantage of this favourable commodity environment.

To view the release including Figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CAS-747707.pdf


About Crusader Resources Limited

Crusader Resources Limited (ASX:CAS) is a minerals company focussed on the identification, acquisition, development and operation of projects in Brazil. Crusader believes that Brazil is a vastly underexplored country with high potential for the discovery of world class mineral deposits. The company has already acquired a diverse portfolio of projects including gold, iron ore, tin, tungsten and uranium and continues to utilise its strong networks in Brazil to identify new opportunities.

Crusader is characterised by a tight corporate structure and features an experienced board of directors who are strongly focussed on the success of the company.



Contact

Crusader Resources Limited
Mr. Rob Smakman, Managing Director, Brazil
Office (Brazil): +55 31 2515 0740
Email: rob@crusaderdobrasil.com

Mr. Paul Stephen, Executive Director, Australia
Office (Aus): +61 8 9320 7500
Email: paul@crusaderresources.com