Cervantes Corporation Limited: Field Inspection of the Primrose Project Brings Better Insight

Perth, Australia - A field inspection by two Directors of Cervantes Corporation Ltd. (ASX:CVS) (Cervantes) of the Company's Primrose Project, centred on the Paynes Find Goldfield, was undertaken recently. The visit was prompted by discussions with Mr Doug Taylor, whose family are third generation miners in this historic and productive gold field. It was a prelude to finalising the exploration targets for the next drilling campaign that will be undertaken on the Company's properties.

- Structural observations support Cervantes' model for a large tonnage gold target

- Planning for the next drilling campaign is underway to test the gold mineralisation model

Cervantes controls in excess of 8km strike length of the Primrose Shear.

The aim of the field inspection was to better understand the results of drilling by the previous explorer, Paynes Find Gold Ltd (PNE), and how they fitted into the understanding of gold mineralisation so well known by the Taylor family.

Historic gold lode geometry

The historic workings in the project area were based on outcropping or subcropping, late stage, quartz-vein related gold mineralisation. This style of gold, while generally of a high grade, is discontinuous and size limited. Drilling by PGL focused on drilling beneath the large number of historic workings, some of which extended up to one hundred metres in depth and several hundred metres in strike extent.

What was not apparent to PNE, however, was that the old workings had not exploited sheets of quartz lodes, but shoots of south plunging gold mineralisation within those lode systems. The probability of hitting this relatively narrow mineralisation with a single drill hole is extremely low, an outcome that is reflected in PGL's inability to define gold mineralisation of sufficient aerial extent as to define an attractive mining proposition.

A second observation that became apparent during the field inspection was that the "lines of lodes" that were exploited were steeply dipping to the west, but became shallower dipping going east. The ramifications of this observation is that there is a line of convergence on the Primrose Shear to the west from which the auriferous quartz lodes emanate. That line of convergence is likely to be deeper than anything tested by PNE who, in any case, collared all their drill holes too far east to test anything but the shallowest parts of the Shear.

These observations support Cervantes views that a structural interpretation previously undertaken by consultants has never been tested by adequate drilling. Cervantes intends to test the deeper parts of the west dipping Primrose Shear in a number of locations. Drill targets are now being worked up based on the recently announced AC sampling results, geophysical interpretations highlighting kinks in the Primrose Shear, and the understanding gained from discussions with the Taylors during the recent field visit. Programmes of Work are being submitted for this drilling.

Additional drilling is being planned to test the elevated nickel-cobalt and gold areas in the southern permits, RAB results for which were previously reported (ASX release, 12 June 2018). This area is interpreted to be an analogue of the Emily May Nickel deposit, west of Norseman.

A second round of deeper drilling is also being considered for the Pansy Pit. Previous drilling returned significant gold intercepts that indicated gold mineralisation was not necessarily restricted to major quartz veining (ASX release 8 August 2018.) These results demonstrate that there exists substantial gold mineralisation in the host rocks, giving the area a higher potential than previously thought.

Planning is well underway for a drilling program to test regional targets on the Albury Heath Project. These have been interpreted from aeromagnetic data and may be repetitions of the gold mineralisation seen at the Albury Heath Mine. Additional drilling at that historic mine will follow up spectacular gold intercepts of up to 6 ounces per tonne, as announced to the ASX on 28 June 2018.

The Directors look forward to this exciting program.

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 licence 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.

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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.

Source:

Cervantes Corporation Ltd.

Contact:

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