Crusader Resources Limited: Spectacular Juruena Results Continue with 3.6m @ 554 g/t Au

Brazil-focused, resource development company Crusader Resources Ltd. (ASX:CAS) (OTCMKTS:CHLXF) ("Crusader" or "the Company") is pleased to announce additional high-grade gold results from the resource-infill and expansion drilling program at the Querosene and Dona Maria prospects at its 100% owned high-grade Juruena Gold Project. Crusader is currently completing a Scoping Study on the Juruena Project due to be completed prior to the end of 2016.

Highlights

- Spectacular high-grade gold intercept from hole QD-44 at Juruena's Querosene prospect:

-- 3.6m @ 554 g/t Au from 147m in QD-44 including:
--- 1m @ 1,992 g/t Au from 148m

- Other high-grade results from Juruena drilling (Dona Maria prospect) include;

-- 4.8m @ 11.89 g/t Au from 101m in hole MD-10; and

-- 4.0m @ 27.10 g/t Au from 84m in hole MD-14

- Re-assaying (using screen fire method) of the previously announced result of 10m @ 101 g/t Au intercept (see ASX release of 5 September 2016) in hole MD-09 enhanced to 10m @ 112 g/t Au

- Scoping Study on track for completion in 2016

- Drilling campaign confirms the high-grade nature of the Juruena deposits, including 460Kt @ 12.1 g/t Au for 178,800oz Au

- Recent high-grade results (in-fill and expansion) demonstrate ability to grow current resource base and increase confidence level to an Indicated Resource.

The Juruena Project is considered to be the initial development project in a recognised mining district with the potential to host multiple projects of a significantly larger scale.

The Juruena Project (~400 km2 of contiguous tenements) is located in Central Brazil on the southern fringe of the Amazon Basin. Situated on the western end of the prospective Juruena-Alta Floresta gold belt (estimated to have produced ~7Moz Au), Juruena has been explored extensively by artisanal miners since the 1980's, producing an estimated 500koz of gold.

Crusader's immediate focus at Juruena is on a cluster of workings all located within a high-grade soil anomaly approximately 8km long by 4km wide.

Crusader's geological team have successfully targeted highgrade resources on four prospects. 7,800m of diamond drilling has now been competed in 2016, with results expected to continue to flow over the coming weeks as drill core is prepared and transported for assaying in Belo Horizonte, Brazil.

Juruena currently contains six confirmed zones of mineralisation in a district scale gold system, linked by a structural corridor hosting multiple gold prospects.

The current JORC compliant mineral resource estimates are anticipated to increase with the addition of recent drilling to be re-estimated in November 2016.

Commenting on the latest results, Crusader Resources' Managing Director Rob Smakman said:

"We are very pleased to again receive extraordinary results- this time from the Querosene prospect. This high-grade zone reflects the gold we logged in the core and its location in the central zone should extend and confirm the original resource estimate.

"Our second prospect, Dona Maria, has also returned some excellent results, significantly from both north and south of the exciting central zone- potentially extending it. We are now almost complete on the results from both Dona Maria and Querosene and these will be used to update the respective resource estimates in the coming quarter.

"Samples from both the new prospects- Tomate and Mauro, will soon be dispatched to the lab and we are really eager to see what these may reveal."

Querosene Prospect

The Querosene prospect is located on the eastern end of the Juruena Project area and was the first prospect targeted in the Crusader 2015 and 2016 drilling campaigns, due to consistent high-grade drilling results from previous explorers.

The high-grade result from QD-44 reported today was targeted to intercept mineralisation in the northern part of the main zone, close to where the main zone 'kinks' to the NW. QD-44 (along with holes QD-45 and QD-46- results still pending) were collared on the eastern side of the mineralisation and drilled shallowly toward the west, due to accessissues.

As mineralisation also dips steeply to the west, the drillhole intercepts the mineralisation at a shallow angle and therefore the downhole intercept length is not 'true width'. True width is estimated at 1.55m. The full intercept is presented in Table 2 (in the link below).

The remaining holes in the campaign should be reported shortly and once complete, will be included in a resource update on the Querosene prospect.

Metallurgy

As previously reported (ASX release 1 July 2015), results for metallurgical testing on samples from the Querosene prospect indicate recoveries of > 90% for both gold and silver using standard leaching. Results also indicate the gold and silver are free milling and well distributed within the ore.

Dona Maria Prospect

Dona Maria is located adjacent to the Crentes prospect, approximately 1 kilometre along the Juruena fault zone from Querosene (see Figure 2 in link below). Mineralisation at Dona Maria is perpendicular to the main Crentes trend (WNW) toward the NNW (see Figure 8 in link below). There is a broad, relatively shallow garimpo working over the mineralised trend and with the new intercepts, along with historical drilling, the central zone appears to show a coherent, high-grade core that is open at depth.

A total of 14 holes for 1,787m were completed at Dona Maria in the 2016 campaign, results released today are summarised in Table 4 and on drill plan in Figure 8 and include better results of;

- 4.8m @ 11.89 g/t Au from 101m in hole MD-10 including

-- 3m @ 18.47 g/t Au from 101m

- 4.0m @ 27.10 g/t Au from 84m in hole MD-14 including

-- 2m @ 50.13 g/t Au from 86m

Significantly, hole MD-10 is ~25m south of the central zone which has hosted the highest and broadest grade intercepts to date. Hole MD-14 is ~75m to the north of the central zone. The potential extension of this wide and high-grade zone should be significant for the planned update of the mineral resource estimate, due to be completed once all results are received and interpreted.

Re-assaying of Dona Maria hole MD-09

As part of Crusader's ongoing quality control program, the entire intercept reported in the previous announcement (ASX 5 September 2016), 10m @ 101 g/t Au from 125m in MD-09 was re-assayed using the 'screen fire assay' technique. This technique is generally considered more accurate than traditional fire assay for coarse gold samples as the whole sample (sample rejects are stored in the lab for this reason and averaged ~ 3.2kg per sample) is crushed and pulverised in the process. The sample is then screened at 150 mesh (106 microns) and then each fraction is weighed before being fused and assayed. The total gold from each fraction is then weighed and the total content of the sample is weight averaged.

Table 3 (in link below) includes previously published fire assay results along with the new results from the screen fire assays. The differences in the results are generally minor and statistically the same.

As previously announced (ASX release 19 October 2015), metallurgical testwork at the Dona Maria prospect recovered +90% gold in standard leaching tests, with a significant portion (25-30%) reporting to a gravity concentrate. Preliminary flotation testwork at both Dona Maria and Querosene has returned comparable results to leaching, indicating this may also be a viable process route.

Development Update

Crusader is currently completing a Scoping Study with a respected international engineering consultancy, Global Resource Engineering (GRE2), who are envisaging two mining operations with processing through a central CIL beneficiation plant to produce gold dore bars.

Both targets are open at depth and along strike and additional ounces are expected to be proven up with more drilling and as exploration work advances the geological understanding.

Both Querosene and Dona Maria are suitable for narrow vein mining (the current preferred option is the cut and fill method) and both deposits have similar metallurgical properties allowing them to be mined and treated concurrently.

The opportunity to commence operations via open pit mining on both Dona Maria and Querosene is under review.

Crusader and GRE are working together to complete trade-offs (such as contract vs owner operated, process route options etc.) during the Scoping Study process, which may have the result of further optimising the project economics.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/ENX507BZ


About Crusader Resources Limited:

Crusader Resources Ltd. (ASX:CAS) (Crusader) is a minerals company focussed on the identification, acquisition, development and operation of projects in Brazil. Crusader believes that Brazil is a vastly underexplored country with high potential for the discovery of world class mineral deposits. The company has already acquired a diverse portfolio of projects including gold, iron ore, tin, tungsten and uranium and continues to utilise its strong networks in Brazil to identify new opportunities.

Crusader is characterised by a tight corporate structure and features an experienced board of directors who are strongly focussed on the success of the company.



Contact:

Crusader Resources Ltd.
Mr. Rob Smakman Managing Director,
Brazil Office (Brazil): +55-31-2515-0740
Email: rob@crusaderdobrasil.com

Mr. Paul Stephen Executive Director,
Australia Office (Aus): +61-8-9320-7500
Email: paul@crusaderresources.com

Mr David Tasker
Professional Public Relations
Tel: +61-433-112-936
Email: David.tasker@ppr.com.au