Crusader's Brazil foray 'company maker'

The resource estimate for the Borborema gold project was dramatically upgraded yesterday, helping to lift Crusader's share price by 19 per cent.

The company, whose Brazilian foray has been led by Melbourne geologist Rob Smakman, had been hoping to see their resource figure at Borborema climb above 1 million ounces. But yesterday's upgrade came to 1.86 million ounces of inferred and indicated gold, prompting Mr Smakman to declare the project in north-eastern Brazil a "company maker".

The estimate could improve further in coming months, with exploration continuing and the results from a further 10,000 metres of drilling yet to be considered.

Crusader has been acquiring territory around Borborema,raising its acreage from nine square kilometres to more than 1200 in the space of six months.

After changing hands at $1 prior to the upgrade, Crusader shares rose to $1.30 yesterday before closing at $1.19 on a day when numerous ASX gold stocks suffered falls.

Crusader believes a major open cut expansion is required to tap into the best of the gold deposit.

Mine construction is expected to cost more than $100million if approved, and a definitive feasibility study could be completed as early as the first quarter of next year.

The author attended a briefing at Borborema and travel costs were covered by Crusader Resources.