VANCOUVER, British Columbia--(BUSINESS WIRE)--Brazilian Gold Corporation (TSXV: BGC, “Brazilian Gold” or the “Company”) is pleased to announce it has started the Phase Two drill program (2,500 m) at the Boa Vista Gold Project (“Project”). The program will target the VG1 anomaly, which is a gold in soil anomaly that trends west-northwest and is over 2 kilometres long. Previous trenching across the eastern half of this anomaly returned wide zones (up to 100 m) of alteration and gold mineralization (News Release 5/11, March 1, 2011). The Phase One drill program included one drill fence comprised of four drill holes across the anomaly. The drill holes intersected similar alteration and mineralization at depth with drill hole VG1DD-001-11 intersecting 1.4 g/t gold over its entire length of 102.3 metres as one of the best holes (News Release 6/11, March 7, 2011), The Phase Two drill program will test the eastern portion of the VG1 anomaly with a number of drill fences spaced 100 m apart and with 2 angle holes per drill fence.
The Company is also pleased to report that it has reached an agreement (the “Amendment”) with its joint venture partners, Octa Mineração Ltda and D’Gold Mineral, Ltda., to amend their Shareholders Agreement dated January 21st, 2010, governing the relationship as shareholders of Boa Vista Gold Inc. (“Boa Vista”), which holds title to the Project via Golden Tapajós Mineração Ltda.
The key amendments to the Shareholders Agreement include the following:
- The Company can earn up to an additional 20% interest to earn an aggregate 71% interest in Boa Vista (the “Second Option”).
- The Second Option payment has been reduced from US$1,000,000 to US$600,000 payable in two installments of US$400,000 within 5 business days of execution of the Amendment, and US$200,000 by August 15th, 2012.
- The Second Option period has been increased from two years to three years, expiring on November 15th, 2014.
- Exploration expenditures required to earn the Second Option have been increased from US$3,000,000 to US$3,400,000.
- Brazilian Gold will earn its interest in increments of 5% for each US$1,000,000 paid in or incurred. Brazilian Gold can stop exploration expenditures at any time and retain its earned interest to date.
Other than the above amendments, the original Shareholders Agreement remains in full force. Brazilian Gold currently owns a 51% interest and is the operator of the Project.
About Brazilian Gold Corporation
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 (3,750 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.
The São Jorge project contains an indicated mineral resource of 11.365 Mt grading 1.0 g/t gold (379,000 ounces of gold) and an inferred mineral resource of 20.673 Mt grading 0.8 g/t gold (558,000 ounces of gold) at a 0.3 g/t gold cut-off (Coffey Mining, June 21, 2011). The Company will complete over 12,000 m of drilling on this project in 2011, which along with the existing 22,446 m of historic drilling will be used in an updated resource estimate.
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.