Early cash flow: In addition to the potential as outlined of an agreement with local mills, the project area has substantial alluvial areas, which have previously been successfully worked by lo-cals.
Subject to a short program of verifying tonnes this could easily provide sufficient early cash flow to fund a substantial portion, if not all of the exploration budgets.
CERVANTES PROJECTS
Paynes Find Gold Ltd - 2010 Prospectus
Paynes Find
HISTORY OF PAYNE'S FIND GOLD AREA
Gold was first discovered at Payne’s Find in 1911. The Payne’s Find Mining Centre, within the project area, was reported by the GSWA as having produced 2,204kg from 89,850 tonnes at an average grade of 24.5g/t.
In 1987, Falcon Australia Ltd commissioned geologists KH Morgan & Associates to con-duct a review of the Pansy prospect (now within M59/662). From an assessment of 22 percussion drill holes (PO01–PO22), identified 18,500 tonnes at a grade of 4.5g/t gold for blocks remaining in the underground workings at the Pansy prospect. Recommended work in-cluded a more detailed investigation of PC1 costean, where a 3m channel sample returned 18.3g/t Au.
This prospect is contained within the current project area and is at the southern end of the Primrose Fault as displayed in the map below as Drilling stage 1, which is estimated to be some 4 -5 klm long and travels from North to south of the entire Project area, and is a high value target in our future exploration.
The board of Cervantes considered a range of factors in accessing the attractiveness of the Paynes Find Gold Project, including but not limited to;
Sovereign Risk : This project is located in one of the most supportive and friendly mining States and Countries in the World
Easy Access: This project is only 4.5 hours drive North of Perth on bitumen roads
Safety: The project is near an airstrip and supported by the local Royal Flying Doctor Service, Volunteer Fire Brigade, First Aid Post and weather station, run by locals who are passionate about the district and very supportive of the development of the Project.
Accommodation and employee facilities: The local Roadhouse immediately adjoins the project area providing accommodation, meals and store facilities. The owner has adjoining permits, is very experienced in the area and has worked in the underground mines, as did his grandfather. Some of those underground mines and their workers made Australia one the world’s great mining countries. One of some 37 underground mine entrances is shown in a photo attached.
Access to equipment and other services: The roadhouse owner also owns most of the earth mov-ing equipment necessary for the basic operations and thereby eliminating most Mobilization costs.
A Head Start: This is not a Greenfields project with large risk factors. It is a well known Gold Field discovered in 1911 with numerous mines worked by old miners using basic equipment and only chasing 25g/t plus workings. Old and recent Drilling programs have verified substantial gold existence at shallow depth and some high grade intercepts, which could allow an early JORC re-source.
Processing Facilities: Whilst the eventual resources may very well support a standalone plant, 2 mills exist in the district owned by Chinese who are seeking ore for the mills. Should discussions down the line prove successful this would eliminate major CAPEX Costs.
Early cash flow: In addition to the potential as outlined of an agreement with local mills, the project area has substantial alluvial areas, which have previously been successfully worked by lo-cals. Subject to a short program of verifying tonnes this could easily provide sufficient early cash flow to fund a substantial portion, if not all of the exploration budgets.
Costs to access and transport staff, consultants and equipment: The costs of running explora-tion programs for remote areas, especially in other countries can be excessive and especially for flying in and out staff and mobilizing and demobilizing equipment. None of these costs exist for this projec
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