Brazilian Gold Becomes the Operator of the Boa Vista Gold Project, Northern Brazil, Securing a 51% Interest
20 June 2011 - 11:00PM
Marketwired Canada
Brazilian Gold Corporation (TSX VENTURE:BGC) -
Highlights
-- Brazilian Gold has earned a 51% interest in the Boa Vista project and is
now the operator.
-- 2010-2011 exploration program to date identifies five targets for
follow-up exploration work.
-- VG1 gold in soil anomaly is approximately 2,000 metres in length, up to
350 metres in width and trends east-west.
-- First drill hole (VGDD001) discovers gold mineralization at VG1 and
intersects 1.43 grams/tonne over 102.3 metres.
-- VG1 alteration and mineralization is up to 135 metres in width and is
open along strike and to depth.
-- Less than 30% of the property explored to date.
-- Extensive geophysical survey to be completed in the next 12 months.
-- Phase Two drill program will initially focus on delineating near surface
gold mineralization at VG1.
Brazilian Gold Corporation ("Brazilian Gold" or the "Company") (TSX VENTURE:BGC)
is pleased to announce the completion of an option agreement that secures for
the Company a 51% interest in the Boa Vista project in the Tapajos region of
northern Brazil. On signing the agreement, Brazilian Gold committed to provide a
cash payment of US$600,00 and exploration expenditures of US$3 million within
two years of signing to earn a 51% interest in the project from Boa Vista Gold
Inc. These commitments have been fulfilled six months ahead of schedule. As a
result of earning a 51% interest in the project, Brazilian Gold will become
project operator and future exploration expenses will be shared on a pro rata
basis with the Company's joint venture partner.
Geochemical surveys completed in 2010 cover less than 30% of the Boa Vista
property and reconnaissance mapping, prospecting and sampling of the numerous
garimpeiro workings will be completed in the next 12 months to get a better
understanding of the potential on the remainder of the property.
2011 Exploration Update on the Boa Vista Project
The Boa Vista project consists of three exploration concessions for a total area
of approximately 12,536 hectares. The 2010 exploration program was successful in
outlining a large gold in soil anomaly (3.5 kilometres in diameter) that
included a number of historic garimpos (Almir, Jair, PlanAlto and Ze de Leite)
as well as a new gold discovery at VG1. The VG1 anomaly is 2 kilometres in
length, up to 350 metres in width and trends east-west. The eastern half of this
anomaly, which includes the original discovery outcrops and the highest gold in
soil values, was the focus of an extensive trenching program (News Release 5/11,
March 1, 2011).
A Phase One Drill Program (14 holes in 1,749 metres) was completed in Q1 2011
and consisted of relatively shallow exploratory holes that tested beneath the
above mentioned garimpos as well as a fence of drill holes (5 holes in 709
metres) across the VG1 anomaly. To view a plan map of the drill holes and a
cross-section (VG1 anomaly) associated with this press release, please visit the
following link:
http://www.braziliangold.ca/email/20110620-1/Boa-Vista-Targets-And-Boreholes.jpg
Drill results for the first hole (VGDD001) at VG1 assayed 1.43 grams/tonne over
102.3 metres and was previously reported in News Release 6/11 (March 7, 2011).
The remaining holes from the Phase One program, except for one hole at Jair, are
reported below (Table 1).
Table 1: Boa Vista Phase One drill results.
----------------------------------------------------------------------------
Au
Prospect Hole Id From To Interval g/t(i) Comment
----------------------------------------------------------------------------
Almir ALDD001 18.98 33.08 14.10 0.20
----------------------------------------------------------------------------
Almir ALDD001 99.75 100.54 0.79 2.25
----------------------------------------------------------------------------
Almir ALDD002 40.12 41.04 0.92 3.48
----------------------------------------------------------------------------
Almir ALDD003 No significant assays
----------------------------------------------------------------------------
Jair BVDD001 No significant assays
----------------------------------------------------------------------------
Jair BVDD002 No significant assays
----------------------------------------------------------------------------
Jair BVDD003 Assays Pending
----------------------------------------------------------------------------
PlanAlto PLDD001(i) No significant assays
----------------------------------------------------------------------------
VG1 VGDD001(i) 0.00 102.30 102.30 1.43 Previously reported
----------------------------------------------------------------------------
VG1 includes 0.00 29.60 29.60 3.09 Previously reported
----------------------------------------------------------------------------
VG1 includes 58.45 72.03 13.58 2.80 Previously reported
----------------------------------------------------------------------------
VG1 VGDD001b(i) 0.00 56.4 56.4 0.54 Re-drill of VGDD001
----------------------------------------------------------------------------
VG1 VGDD002(i) No significant assays
----------------------------------------------------------------------------
VG1 VGDD003(i) 24.25 96.08 71.83 0.22
----------------------------------------------------------------------------
VG1 includes 82.08 86.08 4.00 1.62
----------------------------------------------------------------------------
VG1 VGDD004 7.84 137.84 130.02 0.48
----------------------------------------------------------------------------
VG1 includes 66.60 87.02 20.42 1.29
----------------------------------------------------------------------------
VG1 includes 67.54 72.08 4.54 4.25
----------------------------------------------------------------------------
VG1 VGDD005(i) 0.00 14.84 14.84 0.83
----------------------------------------------------------------------------
Ze de Leite ZLDD001(i) 145.76 148.96 3.2 0.10 Ends in mineralization
----------------------------------------------------------------------------
(i) Golden Tapajos Mineracao Ltda. inserted external quality control
samples in these sample shipments, however there was insufficient sample
material for analysis and therefore these results cannot be verified by
Brazilian Gold. The results are included for reference only and the reader
should not rely on these assays.
VG1 Prospect
A fence of shallow angle drill holes (VGDD003 to VGD005), as well as a vertical
hole (VGDD001), were completed across the eastern portion of the VG1 anomaly in
the vicinity of the original discovery outcrop; the angle holes were drilled at
-60 degrees towards azimuth 035 degrees. All drill holes intersected significant
intervals of gold mineralization within silica+sericite+pyrite altered granite
with some inclusions of altered volcanic rock. Higher grade gold intervals are
associated with increased silica and sulphide alteration. Drill hole VGD002 was
drilled north of the VG1 anomaly defined by trenching and returned no
significant assays. The Company is extremely encouraged by this initial fence of
drill results which indicates the VG1 anomaly is up to 130 m wide, extends from
surface to 100 metres depth and is open along strike and at depth. A program of
step out drilling along fences across the two kilometre strike length of the
anomaly is planned for the upcoming exploration program.
Jair Prospect
The Jair vein is exposed in a garimpeiro pit at the north end of the Jair gold
in soil anomaly. The anomaly is approximately 2.6 kilometres long by up to 350
metres wide and trends north-northwest. Two channel samples collected across the
Jair vein north and south of the shaft where garimpeiro workers are currently
mining and processing gold returned 35 grams/tonne gold over 0.65 metres and
103.5 grams/tonne over 0.50 metres, respectively (News Release 5/11, March 1,
2011). The extremely high grade Jair vein strikes north and dips steeply west.
It consists of quartz and calcite with minor pyrite, galena, and chalcopyrite.
Visible gold is commonly seen in weathered sulphide box work textures and as
free gold in quartz.
Two fences of shallow angle drill holes were collared west of the Jair pit; the
holes were drilled at -60 degrees towards azimuth 090 degrees to intersect the
steeply Jair vein below the pit. The most southern fence consisted of two drill
holes (BVDD001 to BVDD002). Drill hole BVDD001 was terminated at 43.05 metres
depth due to technical difficulties and before the projected intersection of the
Jair vein. Drill hole BVDD002 intersected the vein and associated alteration
from 65.55 to 70.50 metres depth, but returned only anomalous concentrations of
gold. The northern fence is approximately 90 metres north of the southern fence
and consisted of one drill hole (BVDD003). Drill hole BVDD003 intersected the
vein and associated alteration from 110.28 to 116.66 metres; assays are pending.
Only a small part (approximately 100 metres) of the overall strike length (2.6
kilometres) of the Jair gold in soil anomaly was tested in the Phase One drill
program.
Almir Prospect
The Almir target consists of a gold in soil anomaly that is 1 kilometer long by
up to 400 meters wide that is coincident with a number of garimpo pits that
expose quartz veins and stockworks. The soil anomaly trends northwest -
southeast (azimuth 120 degrees) similar to the long dimension of the largest
garimpeiro pit and similar to the strike of a southerly dipping (10-30 degrees)
quartz vein or siliceous layer exposed in the northern face of the pit. The
quartz vein is less than 2 metres thick and is underlain by a quartz stockwork
veinlets hosted in granitic rocks.
Three drill holes were collared south of the pit to intersect the projection of
the quartz vein and stockwork zone at depth. The most easterly hole (ALDD003)
was drilled at -60 degrees towards azimuth 030 degrees and intersected quartz
veins and strongly altered granite from 67.21 to 78.10 metres; the interval was
anomalous in gold up to 0.2 grams/tonne. Drill hole ALDD002 was a vertical hole
and collared 65 metres south and 28 metres west of ALDD003. The hole intersected
a mineralized vein that graded 3.48 grams/tonne gold over 0.92 metres starting
at 40.12 metres depth that appears to coincide with the vein exposed in the pit.
The most westerly hole (ALDD001) was drilled at -60 degrees towards azimuth 360
degrees and intersected 0.20 grams/tonne gold over 14.10 metres starting at
18.98 metres depth, and appears to have intersected the mineralization exposed
in the pit and intersected in the other drill holes.
PlanAlto Prospect
The PlanAlto prospect is a silicified breccia layer hosted in granitic and
felsic volcanic rocks. The layer is several metres thick, resistive to
weathering and forms a ridge that can be traced for over 1.8 kilometres; the
ridge trends north-south and the resistive siliceous layer appears to dip
shallowly to the west. Drainages either side of the ridge have been worked
extensively for their alluvial gold, however soil sampling completed across the
ridge did not identify significant gold in soil anomalies. A drill hole collared
on the western slope of the ridge and drilled at -60 degrees towards azimuth 90
degrees may have intersected the layer from surface down to 36.27 metres depth
within the weathered zone, however no significant gold values were intersected;
core recoveries were approximately 60% within this interval.
Ze de Leite Prospect
The Ze de Leite prospect is a northeast-southwest trending gold in soil anomaly
(greater than 1,000 by 200 metres) that is coincident with a garimpeiro pit and
induced polarization anomaly. Drill hole ZLDD001 was collared north of the
anomaly and drilled at -60 degrees towards azimuth 140 degrees to test the
anomaly at depth. The hole intersected granitic rocks with no significant
mineralization except for 0.1 grams/tonne over the last 3.2 metres of the hole,
which ended at 148.96 metres depth.
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 -150 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.
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. It is the largest holder of exploration concessions (3,546 km2) in the
underexplored Tapajos Mineral Province, which historically produced over 30
million ounces of gold largely from alluvial deposits. The Company has 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 (8.3Mt 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
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 Q2 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.
Brazilian Gold Corporation (TSXV:BGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Brazilian Gold Corporation (TSXV:BGC)
Historical Stock Chart
From Jul 2023 to Jul 2024
