Cervantes Corporation Limited: Drilling Starts on the Primrose Project

Perth - With the authorisation of the submitted Programmes of Work, Cervantes (ASX:CVS) has mobilised two drilling rigs to its Primrose Project (see Figure 1 in link below) to start drill testing of identified targets.

HIGHLIGHTS

- Drill testing of historic gold mineralisation in the Pansy Pit has started

- The drilling aims to confirm, better define, and expand that gold mineralisation

- Regional aircore (AC) drilling will be taken on select lines across the interpreted position of the Primrose Shear, a structure which past exploration has shown to be linked to the district's gold mineralisation

Those targets, identified in the announcement made on 28 March, 2018, are situated in favorable locations along the Primrose Shear (see Figure 1 & 2 in link below), namely:

Blue Bell: north of the historically mined Paynes Find area, the Blue Bell target is located on a jog in the Primrose Shear with which surface (MMI) anomalous gold geochemistry has been detected.

Princess Mary: south of the historically mined Paynes Find area also sits on a jog on the Primrose Shear with associated elevated gold surface geochemistry.

Goodingnow: a largely untested length of the Primrose Shear.

Pansy South: the extension of the Primrose Shear to the south of the Pansy Pit has, again, elevated surface gold geochemistry but has never been tested. The area is structurally complex.

These four prospects will each be tested with a minimum of two lines of AC drilling at a planned spacing of 25m. Drilling will be "to refusal", ie, until hard bedrock is hit, ensuring the sample derived is truly in situ and not contamination from this extensively mined area. A total of 63 holes for a notional 756m will be drilled. Drilling will either be expanded or curtailed depending on final drill depths.

The Pansy Pit will be investigated with a nominal 22 Reverse circulation (RC) holes for a total of 730m to test mineralisation intersected by historic drilling (see Figure 3 in link below). That drilling intersected up to 8m at 7.08g/t gold (refer to the 28 March 2018 announcement). The potential quantity and grade of this target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The drilling programme will also serve to provide fresh material for metallurgical testing and geotechnical information to assist in evaluation. With fresh material and results from this exploration program, Cervantes expects to be in a stronger position to continue discussions with nearby mills regarding treatment of the ore.

Cervantes also now controls the base metal rights over the majority of the Primrose project area, the Company intends to pursue a report on the base metals in the near future. The Company has also noted a comment made by a well respected Geologist E de C Clark who worked for the Mine Department in 1920; "The goldfield contains epidiorite, hornblende schist, serpentine, and foliated quartz porphyries, in addition to hornblende-biotite gneiss forming the matrix of the ore body. The gold quartz veins are found mainly in the epidiorites and hornblende schists, and only rarely in the serpentine. The gold bearing gneiss is east of the greenstone belt, and are of two lithological types 1) biotite dominant with quartz parallel to the foliation planes 2) mica subordinate to the hornblende. He compares the geology as similar to Westonia (Edna May Mine) elsewhere in the State." (sourced: Mindat website "Paynes Find Goldfield (Goodingnow)"). The board seek an independent report on this and will advise in due course.

About the Primrose Project

The Primrose Project covers in excess of 8km of the highly gold mineralised Primrose Shear in the Murchison District of the Eastern Goldfields, Western Australia. Over 37 gold mines, of various sizes, operated in this field from 1911 till 1982. Some 63,000 ounces of gold was mined at an average grade of 25g/t during this period. It is generally accepted that significantly more gold than this was won from alluvial and unreported production.

Cervantes now controls 25 mining leases, prospecting licences, and an exploration licences that cover the majority of this historic gold field. A large database of drilling, surface geochemistry, geological, and geophysical data has been assembled to allow the field to be better understood than at any time in its history.

To view figures, please visit:
http://abnnewswire.net/lnk/4SRT0AOQ

About Cervantes Corporation Limited:

Cervantes Corporation Ltd. (ASX:CVS) is an emerging gold explorer and aspiring gold miner. It has built up a portfolio of gold properties in well-known and historically producing gold districts with a strategy to apply novel exploration and development thinking. Cervantes has identified opportunities in those districts that were overlooked by previous explorers. The company is committed to maximizing shareholder value through the development of those opportunities.



Contact:

Cervantes Corporation Ltd.
Collin Vost Executive Chairman
T: +61-8-6436-2300
E: cvost@cervantescorp.com.au