(MENAFN- ProactiveInvestors - Australia) Safety Medical Products (ASX: SFP) is progressing with its transition into a resources company after a due diligence on the Brazilian gold project it is acquiring highlighted the existence of quartz veining throughout the region.
This and the presence of historic artisanal mines along the same trend as the Silvina gold project indicates the area has the potential to host gold deposits.
The review also indicated the main continuous outcrop of mineralised quartz of up to 370 metres in length and 40 metres wide is part of a larger mineralised system.
Several phases of veining have been identified and the controls on gold mineralisation are not yet fully understood.
Safety plans to drill test the project when the acquisition is approved.
Transaction and project
SFP has reached a heads of agreement to acquire unlisted Australian company Kisara Gold, which holds the Silvina project in Bahia State, Brazil, for an initial sum of A$100,000 and a further A$39,900 on settlement.
Kisara will also be issued 360 million performance shares that will entitle the holder to acquire SFP shares on certain milestones being met.
Exploration work by previous operators at Silvina focussed on a the main outcrop with historical samples returning gold values of up to 4.55 grams per tonnes (gt) though the true width of the vein is not known.
A technical review of the project highlighted that work completed by previous operators covered only a small part of the project area while the due diligence team found that the properties viewed represented high quality early-stage exploration properties that may be considered drill ready
Mineração Caiçara, a wholly-owned subsidiary of Kisara has started work on clearing old grid lines and remapping of the main vein prospect.
Caiçara has also submitted relevant applications for the building of access trails and drill pads, as well as retaining Environmental Consultants, in preparation for first pass confirmatory drilling. The property will be drill ready once shareholders have approved the acquisition.
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