Brazilian Gold Starts Drill Program on Rio Novo Gold Project
February 28 2011 - 8:00AM
Marketwired
Brazilian Gold Corporation (TSX VENTURE: BGC) ("Brazilian Gold" or
the "Company") is pleased to announce they have started a diamond
drill program at their wholly owned, highly prospective Rio Novo
gold project ("Rio Novo" or "Project") located 91 kilometres south
of Morais de Almeida along the Transgarimpeiro highway in Para
state, northern Brazil. Please click this link
http://www.braziliangold.ca/projects/map.html for the Project
Location Map.
This Project is within a cluster of projects under the ownership
of the Company that management believes will have significant
synergies (logistics, management, etc.) with its Sao Jorge project.
At Sao Jorge, a +800,000 ounce NI43-101 compliant resource has been
defined and drilling is underway with the intention of adding to
this resource (see News Release 1/11, January 18, 2011). A
Preliminary Economic Assessment (PEA), under the management of the
highly respected independent engineering firm of Coffey Mining, has
recently commenced on the Sao Jorge project.
The drill program will test auriferous stockwork mineralization
and an associated chargeability anomaly outlined in a geophysical
survey that was completed in December, 2010. The Company has
contracted two diamond drill rigs and budgeted 2,500 metres for
this program.
The Rio Novo gold project consists of five exploration
concessions for a total area of 44,576 hectares. The Project covers
a number of garimpeiro workings and exploration targets including
the Jau target. The Jau target consists of quartz+sulphide
stockwork mineralization that is exposed in a garimpeiro pit. The
mineralization is greater than 50 metres wide and historic grab
samples (25 samples) of the quartz+sulphide veins returned several
grams to 10's of grams/tonne gold and intervening altered granite
commonly grades from less than 1 to 2 grams/tonne (Table 1). The
mineralization strikes east-west and dips steeply.
Table 1: Examples of selected grab samples from the Jau pit.
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Sample No. Gold grams/tonne(i) Comment
---------------------------------------------------------------------------
RNK-1 0.82 Altered granite
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RNK-6 12.81 Quartz-pyrite vein
---------------------------------------------------------------------------
RNK-13 1.26 Quartz-pyrite vein
---------------------------------------------------------------------------
RNK-18 107.10 Quartz-pyrite vein
---------------------------------------------------------------------------
RNK-24 0.06 Altered granite
---------------------------------------------------------------------------
(i) The reader is cautioned that the grab samples are historic in nature and
have not been verified by Brazilian Gold Corporation.
An induce polarization survey completed along strike of this
mineralization has identified a strong chargeability anomaly that
is 1,400 metres long by up to 400 metres wide and extends from
surface to greater than two hundred metres depth. The drill program
will test below the Jau pit and its associated chargeability
anomaly along strike. Assay results from this drill program will be
released as they are received and once they have been verified by
the Company's geologists.
The Rio Novo project fits with the Company's strategy of
identifying high quality exploration projects that are road
accessible (ranch land), close to electrical transmission lines and
adjacent to the Company's development stage Sao Jorge project. The
Company has five exploration projects (Pista Manual, Surubim, Rio
Novo, Ouro Mil 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.
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 northern Brazil. The Company has a portfolio of ten
grass-roots to development stage gold projects (8 projects in the
Tapajos and 2 projects in the nearby Alta Floresta Gold Province)
with drill programs (4 drill rigs) currently underway on the Sao
Jorge and Rio Novo projects. The Company has also recently
completed a Phase One drill program (13 holes in 1,188 m) on the
Boa Vista project in January 2011; the assay results are pending
and a review underway in conjunction with our JV partner to further
define targets for a second phase drilling campaign.
The Sao Jorge development project hosts an NI 43-101 indicated
resource of 343,000 ounces (8.3Mt grading 1.3 g/t gold) and an
inferred resource of 458,000 ounces (12.6 Mt grading 1.1 g/t gold)
using a 0.5 gram/tonne cut-off (Coffey Mining, Sept. 14, 2010). The
Company has commissioned Coffey to complete a Scoping Study or
Preliminary Economic Assessment (PEA) that will look at various
development and production scenarios to determine the economic
viability of the project. The study is expected to be completed in
April 2011 and will include an updated resource estimate
incorporating new drill holes completed by Brazilian Gold.
Dependent on project economics, the Company plans to embark on a
pre-feasibility/feasibility study soon thereafter.
Brazilian Gold owns a 75% interest in the Rea Uranium Project in
northeastern Alberta, which is currently being operated by AREVA,
who are earning up to a 50% interest by completing an additional
Cdn$2.84 million in expenditures by Dec. 31, 2013.
Some statements in this news release contain forward-looking
information, including without limitation statements as to planned
expenditures and exploration programs. These statements address
future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. Such factors include
without limitation the completion of planned expenditures, the
ability to complete exploration programs on schedule and the
success of exploration programs.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or the
accuracy of this news release.
Contacts: Brazilian Gold Corporation John (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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