BGC Brazilian Gold Corporation

VANCOUVER, Oct 7 /CNW/ -- VANCOUVER, Oct 7 /CNW/ - Brazilian Gold Corporation ("Brazilian Gold" or "Company") is pleased to announce they have received final approval from the stock exchange for the Option Agreement ("Agreement") to acquire a 100% interest in the São Jorge Gold Project ("Project") from Talon Metals Corp. ("Talon"). As previously announced on June 15, 2010 (BGC News Release 7/10), the terms of the Agreement require Brazilian Gold to pay Talon a total of C$2,250,000 in cash and C$2,250,000 in shares in staged payments over a 1.5 year period and granting Talon a 1% net smelter royalty. The Project is located approximately 238 kilometers southeast of Itaituba and occurs within the eastern part of the Tapajos Mineral Province (TMP), which was the focus of a gold rush from the 1970's through the 1990's, where unofficial gold production primarily from alluvial deposits is estimated to be 30 million ounces. Brazilian Gold commissioned Coffey Mining to complete a review and update of the NI43-101 Technical Report they completed for Talon in 2008. The report documents an 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 cut-off grade; the report can be retrieved from the Company's website or from SEDAR. The deposit is open down dip and along strike to the southeast. Brazilian Gold plans an extensive exploration program that will focus on expanding the existing resource at the São Jorge deposit as well as exploring for potential new deposits on the surrounding, largely unexplored property. The Phase 1 diamond drilling program will consist of 5,000 metres and is expected to start sometime in the fourth quarter of 2010. Concurrent with this program, the Company will complete reconnaissance mapping, geochemistry and geophysics (induce polarization) over the rest of the property. Targets identified from this work will be drilled in 2011. 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 Tapajós region of Northern Brazil. The Company has approximately Cdn$8.5 million in cash, which will be used to explore their five gold projects (Boa Vista, São Jorge, Jamanxim, Peixoto and Ouro Mil) in Brazil. Brazilian Gold also 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$2.84M in expenditures by Dec. 31, 2011. 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 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. p align="justify"Brazilian Gold Corporationbr/Alvin Jackson, Chairman and Chief Executive Officerbr/Tel: +1 604 602-8188/p p align="justify"Investor Relationsbr/Tom Hartbr/Tel: +1 403 701-4278/p

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