Brazilian Gold Corporation (TSX VENTURE: BGC) ("Brazilian Gold" or
the "Company") is pleased to announce drill results from the first
two diamond drill holes of its Phase One (10 holes in approx. 3,000
m) drill program on its wholly owned Rio Novo Project situated
within the Tapajos Mineral Province (TMP) of northern Brazil. The
project is located approximately 50 kilometres southwest of the
Company's advance stage Sao Jorge gold deposit and is accessed by
the Transgarimpeiro Highway.
Highlights
-- Drill hole JAD-002-11 intersected 1.32 grams/tonne gold over 74.0 metres
with high grade intervals of 40.78 grams/tonne over 2.0 metres and 6.62
grams/tonne over 2.0 metres (Table 1).
-- Drill hole JAD-003-11 intersected 0.78 grams/tonne gold over 79.7 metres
with high grade intervals of 7.30 grams/tonne over 4.9 metres, 9.15
grams/tonne over 1.0 metre, and 13.3 grams/tonne over 1.0 metre (Table
1).
-- The two holes tested the western portion of a large (1,000 m by 200-300
m) east-west trending chargeability anomaly.
-- Drill holes JAD-001-11, JAD-005-11 and JAD-006-11 intersected larger
intervals with a higher frequency of quartz+sulphide veins than those
intersected in JAD-002-11 and JAD-003-11 suggesting the gold
mineralization could extend over a 400 metre strike length and be
increasing in grade and size to the east; assays are pending.
-- Alteration and mineralization intersected in the current drill program
is open in all directions.
-- A second, parallel chargeability anomaly occurs approximately 400 metres
to the north and has been partially tested by two drill holes in the
Phase One drill program.
Commenting on the results of the Phase One drill program Ian
Stalker, CEO of Brazilian Gold, said, "The Company is extremely
encouraged by this new gold discovery at Rio Novo and given the
size of the chargeability anomaly, the potential to find additional
near surface gold mineralization appears to be very high. Rio Novo
is strategically located near our flagship Sao Jorge project and
could provide additional feed to a central processing facility at
this project if it is not a standalone operation."
Drill hole JAD-002-11 intersected 1.32 grams/tonne gold over
74.0 metres with high grade intervals of 40.78 grams/tonne over 2.0
metres and 6.62 grams/tonne over 2.0 metres, and drill hole
JAD-003-11 intersected 0.78 grams/tonne gold over 79.70 metres with
high grade intervals of 7.30 grams/tonne over 4.90 metres, 9.15
grams/tonne over 1.0 metre, and 13.3 grams/tonne over 1.0 metre
(Table 1). These two holes tested the western portion of a large
east-west trending chargeability anomaly.
Table 1: Rio Novo drill intersections.
----------------------------------------------------------------------------
Hole ID Section From (m) To (m) Interval (m) Au g/t
----------------------------------------------------------------------------
JAD-002-11 8200E 248.0 322.0 73.0 1.32
----------------------------------------------------------------------------
includes 8200E 272.0 274.0 2.0 40.78
----------------------------------------------------------------------------
includes 8200E 320.0 322.0 2.0 6.62
----------------------------------------------------------------------------
----------------------------------------------------------------------------
JAD-003-11 8200E 89.5 169.2 79.70 0.78
----------------------------------------------------------------------------
includes 8200E 89.5 94.4 4.90 7.31
----------------------------------------------------------------------------
includes 8200E 160.0 161.0 1.0 9.15
----------------------------------------------------------------------------
includes 8200E 168.2 169.2 1.0 13.3
----------------------------------------------------------------------------
8200E 254.2 259.5 5.3 1.34
----------------------------------------------------------------------------
Note: True widths are not known at this time and the large composite
intervals in each drill hole are a result of a few narrow high grade veins
(less than 3 cm) within an overall interval that is anomalous in gold
compared to the rest of the hole.
The drill program is designed to test an east-west trending
chargeability anomaly that measures approximately 1,000 metres long
by 200 to 300 metres wide that is coincident with a garimpeiro pit
that exposed auriferous quartz+sulphide veins over a 50 metre
width. Nine drill holes (2,847 m) have been completed to date on
three sections (8200E, 8400E and 8600E) space 200 metres apart with
3 holes per section; a 10th hole is currently in progress on
Section 8800E located 200 metres east of previous drilling. The
drill holes have been drilled towards the north at -60 to -55
degrees to test the width of the anomaly. A second, parallel weaker
IP chargeability anomaly occurs approximately 400 metres north of
the above anomaly has been partially tested by two drill holes in
the Phase One drill program. To view a plan map and cross section
image please visit the following link:
http://media3.marketwire.com/docs/bgc516i.jpg
All drill holes completed to date in the Phase One drill program
have intersected sericite+pyrite+chalcopyrite altered felsic
volcanic rocks (ignimbrites) cut by quartz+calcite
+sphalerite+galena veins and veinlets that in some intervals form
stockwork zones. The deeper parts of some drill holes (JAD-002,
-003, -004) terminated in similarly altered quartz-feldspar granite
porphyry. Drill holes JAD-001-11, JAD-005-11 and JAD-006-11
intersected larger intervals with higher frequency of
quartz+sulphide veins than those intersected in JAD-002-11 and
JAD-003-11 suggesting the mineralization could extend over a 400
metre strike length and be increasing in grade and size to the
east; assays are pending. The gold mineralization appears to have
been deposited in an epithermal to porphyry style environment and
the Company is waiting for further drill results to understand the
grade, size and geometry of this mineralization.
The Rio Novo project consists of five exploration concessions
for a total area of 44,576 hectares. The Phase One drill program
and IP survey covers a small part (less than 5%) of this area and
additional known targets including mineralization exposed in
garimpeiro pits and regional geophysical targets on the property
will be followed up in 2011 with prospecting, mapping and
sampling.
Drill results from the remaining holes will be release as they
are received, verified and interpreted. The Company apologizes for
the long turnaround time taken to process and subsequently report
assay results as our laboratory, like many other laboratories in
the world today, is experiencing delays in keeping up with the
volume of samples currently being submitted for analysis.
Laboratory Procedures
Drill core is sampled at 2 metre or smaller intervals using a
diamond saw. One half of the sample is archived and the other half
is 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 or Vancouver, Canada for gold fire assay. 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 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, Rio Novo and Pista Manual projects.
The Sao Jorge development project hosts an NI43-101 indicated
resource of 343,000 ounces (8.3 Mt 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 Preliminary Economic
Assessment (PEA) or Scoping Study that will look at various
development and production scenarios to determine the financial
viability of the project. The study is expected to be completed in
May 2011 and 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 Ian (John) Stalker CEO and
Director +1 604 602-8188 +1 604 677-6243 (FAX) 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
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