Brazilian Gold Corporation (TSXV: BGC) reports an amended
NI43-101 mineral resource estimate for the São Jorge gold deposit
that was previously announced on September 19, 2012 (Tables 1 to
3). The amended independent resource estimate was completed by
Coffey Mining (Coffey)* of Toronto, Ontario and will be documented
in an Amended NI43-101 Technical Report that will be posted on
SEDAR and our website within 45 days of this News Release.
Coffey confirms that work associated with the Preliminary
Economic Assessment (PEA) on the São Jorge project, which is
currently in progress, has identified a grade variance between the
published resource and the block model. Coffey’s undertaken
standard procedure includes internal verification of the block
model data when it is imported into the mine design software.
Coffey has completed a thorough and detailed investigation and has
confirmed that the data in the block model is correct. Further
“independent verification” was completed by a Coffey office outside
of Toronto, not associated with the São Jorge study, and proficient
in the commercial software used for the resource estimate. This
work has confirmed the variance and the resulting positive grade
revisions to the São Jorge resource estimate.
Highlights
- Indicated and inferred gold grades at a
0.3 g/t cut-off have increased significantly as compared to the
numbers reported on September 19, 2012 – by 31% (1.18 to 1.54 g/t)
and 68% (0.68 to 1.14 g/t), respectively.
- Indicated and inferred gold grades at a
0.5 g/t cut-off now equates to 1.97 g/t and 1.52 g/t,
respectively.
- Indicated and inferred gold ounces at a
0.3 g/t cut-off have increased significantly as compared to the
numbers reported on September 19, 2012 – by 32% (541,000 to 715,000
ounces) and 69% (611,000 to 1,035,000 ounces), respectively.
- Indicated and inferred gold ounces at a
0.5 g/t cut-off now equates to 666,000 ounces and 918,000 ounces,
respectively.
- The amended resource estimate will form
the basis of an updated Preliminary Economic Assessment (PEA) that
is currently in progress and is due for completion early in
2013.
- Significant increases in the resource
grade and tonnage suggests more ounces will be contained within the
modeled pit shell resulting in a longer mine life and/or higher
production rate at a higher average grade than the previous PEA
(July 2011).
- Improving infrastructure, a larger and
higher grade resource and the depreciation of the Brazilian Real
should result in substantially improved project economics as
compared to the previous more than acceptable PEA results.
- The wholly owned São Jorge property
(585 km2) is well situated with respect to infrastructure that
includes hydro-electric power, a paved highway 3 km due east of the
deposit, and a skilled workforce in the nearby town of Novo
Progresso located 70 km to the south.
Table 1: São Jorge Resource Estimate reported at various cut-off
grades – Oxide Zone.
Lower Cutoff Grade
(g/t Au)
Million Tonnes Average Grade
(g/t Au)
Contained Gold
(K oz)
Indicated Resource
0.3 1.78 1.42 81 0.4
1.49 1.63 78 0.5 1.25 1.86 75 Inferred Resource**
0.3
1.97 1.10 70 0.4 1.57 1.30 65 0.5 1.30 1.47 62
Table 2: São Jorge Resource Estimate reported at various cut-off
grades – Sulphide Zone.
Lower Cutoff Grade
(g/t Au)
Million Tonnes Average Grade
(g/t Au)
Contained Gold
(K oz)
Indicated Resource
0.3 12.64 1.56 634
0.4 10.67 1.78 612 0.5 9.24 1.99 591 Inferred Resource**
0.3
26.23 1.14 965 0.4 20.86 1.35 905 0.5 17.48
1.52 856
Table 3: São Jorge Resource Estimate reported at various cut-off
grades – Total (oxide and sulphide).
Lower Cutoff Grade
(g/t Au)
Million Tonnes Average Grade
(g/t Au)
Contained Gold
(K oz)
Indicated Resource
0.3 14.42 1.54 715
0.4 12.15 1.77 690 0.5 10.49 1.97 666 Inferred Resource**
0.3 28.19 1.14 1,035 0.4 22.43 1.35 971
0.5 18.78 1.52 918
**According to National Instrument 43-101 and CIM (2010) an
‘Inferred Mineral Resource’ is that part of a Mineral Resource for
which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed,
but not verified geological and grade continuity. The estimate is
based on limited information and sampling gathered through
appropriate techniques from locations such as outcrops, trenches,
workings and drill holes. Due to the uncertainty that may be
attached to Inferred Mineral Resources, it cannot be assumed that
all or any part of an Inferred Mineral Resource will be upgraded to
an Indicated or Measured Mineral Resource as a result of continued
exploration. Confidence in the estimate is insufficient to allow
the meaningful application of technical and economic parameters or
to enable an evaluation of economic viability worthy of public
disclosure.
Ian Stalker, CEO of Brazilian Gold, commented “The incorrect
resource estimate reported on September 19th has been amended by
the appropriate Qualified Person within the Coffey Mining
organization. We are pleased that the amended estimate has resulted
in a substantial increase in the overall grade and total ounces for
the São Jorge deposit.
The amended resource numbers along with recently completed
metallurgy, power studies, environmental assessments, as well as
the depreciation of the Brazilian Real will be incorporated in an
updated PEA, which should result in substantially better economics
than the previous more than acceptable PEA results. The significant
increase in the grade and tonnage of the indicated and inferred
resource suggests that many more ounces will fall within the pit
shell as compared to the 2011 PEA and may provide for a longer mine
life and/or higher production rate at a higher overall average head
grade. Clearly these revised results, now create a solid foundation
for Brazilian Gold to move ahead with great confidence and take São
Jorge into mine development, where Brazilian Gold can swiftly
become a mid-tier gold mining company.
The amended São Jorge resource statement along with resources
outlined on the Surubim (Jau deposit) and Boa Vista (VG1 deposit)
projects in 2012 now totals 715,000 ounces (14.42 Mt grading 1.54
g/t gold) in the indicated category and 1,921,000 ounces (59.76 Mt
grading 1.0 g/t gold) in the inferred category at a 0.3 g/t gold
cut-off. This global resource statement does not include results
from a recently completed drill program on the Batistão project,
which will be the subject of a NI43-101 resource estimate early in
2013.”
The São Jorge deposit is approximately 1,400 m long by up to 200
m wide and has been intersected in drill holes to 350 m depth; the
deposit strikes northwest and has a sub-vertical dip. The deposit
is hosted in quartz monzogranite and mineralization appears to be
spatially associated with a number of discontinuous shear and
fracture zones. Alteration minerals included chlorite, epidote,
sericite, silica and sulphides that occur along fractures or where
the fracture density is high as pervasive alteration. The
predominant sulphide is pyrite with minor amounts of chalcopyrite.
Gold mineralization is commonly associated with
silica-sericite-sulphide alteration and higher gold values are
generally associated with higher pyrite content and the presence of
chalcopyrite.
Porfirio Cabaleiro, B.Sc., (Mining Engineer), MAIG and Hebert
Oliveira, B.Sc. (Geology), MAIG, are the Qualified Persons for the
NI43-101 Report on the Resource Estimate of the São Jorge gold
deposit and have reviewed and approved the contents of this press
release as far as it relates to their work.
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 Coffey Mining
Coffey Mining is a specialist professional services consultancy
with expertise in geosciences, international development and
project management. Operating for more than 50 years, they are well
known in our markets for deep technical skills and market-leading
solutions to complex tasks.
Featuring some of the best industry specialists, professionally
accredited in all mining jurisdictions globally, the Coffey team is
supported by a network of offices throughout the Americas,
Africa, Asia Pacific, Europe and the Middle East.
Coffey Mining is proud of its independence and is recognized by
all major international financial institutions, resource funds and
securities exchanges. This accreditation ensures that all tasks are
performed and completed to accepted international audit
standards.
About Brazilian Gold Corporation
Brazilian Gold has a resource inventory of 715,000 ounces of
gold grading 1.54 g/t gold in the indicated category and 1,921,000
ounces of gold grading 1.00 g/t gold in the inferred category at a
0.3 g/t cut-off that is hosted in three deposits (Table 4).
Table 4: Brazilian Gold 2012 global resource at a 0.3 g/t gold
cut-off.
Project Deposit Classification
Cut-off Grade (g/t) Tonnage
Grade (g/t) Ounces São Jorge São
Jorge Indicated 0.3 14,420,000 1.54 715,000
Inferred 0.3 28,190,000 1.14 1,035,000
Surubim Jau Inferred 0.3
19,440,000 0.81 503,000
Boa Vista VG1 Inferred 0.3 12,130,000 0.98
383,000
All deposits Indicated 14,420,000
1.54 715,000 All deposits
Inferred 59,760,000 1.00
1,921,000
At a 0.5 g/t cut-off, the resource inventory is 666,000 ounces
grading 1.97 g/t gold in the indicated category and 1,663,000
ounces grading 1.32 g/t gold in the inferred category (Table
5).
Table 5: Brazilian Gold 2012 global resource at a 0.5 g/t gold
cut-off.
Project Deposit Classification
Cut-off Grade (g/t) Tonnage
Grade (g/t) Ounces São Jorge São
Jorge Indicated 0.5 10,490,000 1.97 666,000
Inferred 0.5 18,780,000 1.52 918,000
Surubim Jau Inferred 0.5
11,960,000 1.06 409,000
Boa Vista VG1 Inferred 0.5 8,470,000 1.23
336,000
All deposits Indicated 10,490,00
1.97 666,000 All deposits
Inferred 39,210,000 1.32
1,663,000
Brazilian Gold is a Canadian-based public company with a focus
on the acquisition, exploration and development of mineral
properties in northern Brazil. The Company has title to one of the
largest land packages (3,753 km2) in the Tapajós and adjacent Alta
Floresta gold provinces. The land package contains green fields to
more advance stage projects including the Company’s flagship São
Jorge project. Rapid improvements to regional infrastructure
continue to provide underlying support to Brazilian Gold’s
activities in northern Brazil.
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.
To view this press release as a webpage, please click on the
following
link:http://www.fscwire.com/pr/braziliangolddec072012.htm
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