Brazilian Gold Options Santa Julia Gold Project in the Tapajos Region of Northern Brazil
February 01 2011 - 8:00AM
Marketwired
Brazilian Gold Corporation (TSX VENTURE: BGC) (the "Company") is
pleased to announce they have signed an option agreement through
their wholly owned subsidiary, Regent Brazil Holdings Ltd.
("Regent"), to acquire 100% of the Santa Julia gold project located
approximately 43 kilometres north of the town of Novo Progresso,
which is situated along the Santarem - Cuiaba (BR-163) highway in
Para state, northern Brazil.
Highlights of the acquisition are:
-- Underexplored area in the Tapajos Mineral Province (unofficial gold
production of 30 million ounces),
-- Large land package (39,025 Ha) with highly prospective geology,
-- Low cost option agreement with staged payments over four years,
-- Good infrastructure including road access, nearby hydro-electric
transmission lines and services companies,
-- Synergies with the Company's adjacent advanced stage Sao Jorge project,
and
-- Several grams/tonne gold returned from grab samples of quartz+sulphide
stockwork exposed in garimpeiro (artisanal) pit.
The Santa Julia agreement consists of two prospecting licenses
and an exploration license for a total area of approximately 9,690
hectares. The Company applied for three additional concessions over
open ground that are contiguous with and will form part of the
Santa Julia project. One of the concessions is located to the north
and two of them are located to the southeast of the Santa Julia
acquisition for a total area of 29,335 hectares. The northeast
boundary of the project including the three claims mentioned above
is approximately 8 kilometres southeast of the Sao Jorge property,
the Company's most advanced stage project.
The Sao Jorge Gold Project is host to an NI43-101 compliant
indicated resource of 8,334,000 tonnes grading 1.3 grams/tonne gold
(343,000 ounces) and an inferred resource of 12,576,000 tonnes
grading 1.1 grams/ tonne gold (458,000 ounces) using a 0.5
gram/tonne gold cutoff (Coffey Mining, September 14, 2010). The
Company currently has two drills on the property and is looking to
expand the existing resource that is open down dip by targeting the
area between 200 to 300 metres below surface. Results from the
first drill hole that targeted this area returned 86 metres grading
1.37 grams/tonne gold (NR01/11, January 18 2011). Geophysical
surveys are planned to start in February followed by drilling,
which will test the strike potential of the deposit to the
southeast and northwest.
The Santa Julia acquisition fits with the Company's strategy of
identifying high quality projects that are road accessible (ranch
land), close to electrical transmission lines and adjacent to the
Company's advanced stage Sao Jorge project. The Company now has
four exploration projects (Pista Manual, Surubim, Rio Novo and
Santa Julia) within a 100 kilometre radius of Sao Jorge, which will
allow for lower cost exploration and development, and may provide
synergies whereby product from more than one project are trucked to
a central processing facility.
The Santa Julia project is underlain by Iriri Group
volcano-sedimentary rocks and coeval intrusive rocks that have a
northwest trend similar to the overall structure at Sao Jorge. The
Belo garimpo, one of a number of garimpeiro (artisanal) pits found
on the property, exposes quartz+sulphide stockwork hosted in felsic
volcanic rocks. Five selected grab samples from the pit ranged from
0.24 to 57.5 grams/tonne gold.
----------------------------------------------------------------------------
Sample No. Type Au g/t Ag g/t Comment
----------------------------------------------------------------------------
Ber-001 Grab 0.24 0.7 Clay altered felsic volcanic rock, 2% pyrite
----------------------------------------------------------------------------
Ber-002 Grab 14.56 13.7 Quartz + sulphide (pyrite) + iron oxide vein
----------------------------------------------------------------------------
Ber-003 Grab 57.53 64.5 Quartz + sulphide (pyrite) + iron oxide vein
----------------------------------------------------------------------------
Ber-004 Grab 12.12 32.0 Quartz + sulphide (pyrite) + iron oxide vein
----------------------------------------------------------------------------
Ber-005 Grab 12.70 33.8 Quartz + sulphide (pyrite) + iron oxide vein
----------------------------------------------------------------------------
The Company plans an initial exploration program consisting of
prospecting, mapping, soil sampling and geophysics to identify
targets for follow-up diamond drilling.
Santa Julia Agreement Terms
The terms of the agreement are outlined in the table below and
are subject to a 1.5% net smelter return ("NSR"). Regent has the
option to purchase 1% of the NSR at any time for total
consideration of US$1 million leaving the vendor a 0.5% NSR.
--------------------------------------------------------------
Payment
--------------------------------------------------------------
Signing R$100,000
--------------------------------------------------------------
180 days after title transferred to Regent R$200,000
--------------------------------------------------------------
1 year after title transferred to Regent R$200,000
--------------------------------------------------------------
2 years after title transferred to Regent R$600,000
--------------------------------------------------------------
3 years after title transferred to Regent R$700,000
--------------------------------------------------------------
4 years after title transferred to Regent R$1,000,000
--------------------------------------------------------------
Total R$2,800,000
--------------------------------------------------------------
Laboratory Procedures
Grab samples were collected by a Company geologist and
dispatched to Acme Analytical Laboratories Ltd.'s sample
preparation facility in Itaituba, Brazil, where the sample is
crushed, split and pulverized to -200 mesh. The pulp is shipped to
Santiago, Chile for gold fire assay and another pulp is shipped to
Vancouver, Canada for multi-element induced coupled plasma
analysis. Acme Analytical Laboratories Ltd. is an internationally
certified ISO 9001 laboratory. Brazilian Gold's Quality Assurance -
Quality Control Program involving the insertion of appropriate
blanks, standards and duplicates was employed with acceptable
results.
Garnet Dawson, M.Sc., P.Geo. (British Columbia), Vice President,
Exploration for the Company and a Qualified Person, as defined by
National Instrument 43-101, has reviewed and approved the technical
disclosure contained in this News Release.
About Brazilian Gold Corporation
Brazilian Gold Corporation is a Canadian based public company
with a focus on acquisition, exploration and development of mineral
properties in the Tapajos region of Northern Brazil. For more
information on the Company, please visit its website at
http://www.braziliangold.ca.
Neither Toronto Stock Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Toronto Stock Venture Exchange) accepts responsibility for the
adequacy or the accuracy of this news release.
Contacts: Brazilian Gold Corporation Ian Stalker CEO and
Director +1 604 602-8188 Brazilian Gold Corporation Joanne Yan
President and Director +1 604 602-8188 +1 604 677-6243 (FAX)
Brazilian Gold Corporation Tom Hart Investor Relations +1 403
701-4278 www.braziliangold.ca
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