VANCOUVER, British Columbia--(BUSINESS WIRE)--Brazilian Gold Corporation (TSXV: BGC, “Brazilian Gold” or the “Company”) is pleased to report assay results for an additional 8 holes from the 2011 drill program on the São Jorge project in the Tapajós region of northern Brazil. The drill program (37 holes in 14,418 m) was completed the second week of December; assay results from the first 24 holes were previously reported. An updated NI43-101 resource estimate is currently in progress and will incorporate results from the 2011 drill program along with historic drill holes (108 holes in 22,446 m).
Highlights
- SJD-108-11 intersected 1.03 g/t gold over 84 m that includes a higher grade interval of 1.96 g/t gold over 40 m,
- SJD-112-11 intersected 1.52 g/t gold over 14 m, and
- SJD-114-11 intersected 1.37 g/t gold over 14 m (See table below for a complete set of drill intersections).
- Results to date indicate the deposit is open down dip and along strike to the northwest and southeast.
- A resistivity high has been identified along strike of the São Jorge deposit to the southeast for 1.5 km that is in part coincident with a chargeability high. This response is similar to the signature observed over the known deposit suggesting potential to identify additional zones of gold mineralization to the southeast.
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Table 1: Drill results from the São Jorge deposit. |
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| Hole ID | Location | Section | From (m) | To (m) | Interval (m)* | Au g/t | ||||||||||||
| SJD-106-11 | SJ East | 7950E | 146.00 | 155.00 | 9.00 | 0.45 | ||||||||||||
| SJD-108-11 | SJ East | 7900E | 28.00 | 44.00 | 16.00 | 0.63 | ||||||||||||
| SJD-108-11 | SJ East | 7900E | 70.00 | 154.00 | 84.00 | 1.03 | ||||||||||||
| includes | SJ East | 7900E | 82.00 | 122.00 | 40.00 | 1.96 | ||||||||||||
| includes | 82.00 | 90.00 | 8.00 | 3.90 | ||||||||||||||
| includes | 102.00 | 122.00 | 20.00 | 2.20 | ||||||||||||||
| SJD-108-11 | SJ East | 7900E | 196.00 | 200.00 | 4.00 | 0.97 | ||||||||||||
| SJD-109-11 | SJ West | 7000E | 89.00 | 101.00 | 12.00 | 0.73 | ||||||||||||
| includes | SJ West | 7000E | 95.00 | 101.00 | 6.00 | 1.19 | ||||||||||||
| SJD-109-11 | SJ West | 7000E | 165.00 | 175.00 | 10.00 | 0.83 | ||||||||||||
| SJD-109-11 | SJ West | 7000E | 248.00 | 270.00 | 22.00 | 0.60 | ||||||||||||
| SJD-109-11 | SJ West | 7000E | 294.00 | 306.00 | 12.00 | 0.42 | ||||||||||||
| SJD-110-11 | SJ Central | 7600E | 226.00 | 234.00 | 8.00 | 0.42 | ||||||||||||
| SJD-110-11 | SJ Central | 7600E | 261.00 | 296.00 | 35.00 | 0.27 | ||||||||||||
| includes | SJ Central | 7600E | 280.00 | 290.00 | 10.00 | 0.60 | ||||||||||||
| SJD-110-11 | SJ Central | 7600E | 421.00 | 429.00 | 8.00 | 0.56 | ||||||||||||
| SJD-111-11 | SJ East | 7900E | 44.00 | 77.00 | 33.00 | 0.51 | ||||||||||||
| includes | SJ East | 7900E | 50.00 | 62.00 | 12.00 | 1.11 | ||||||||||||
| SJD-111-11 | SJ East | 7900E | 141.00 | 145.00 | 4.00 | 2.08 | ||||||||||||
| SJD-111-11 | SJ East | 7900E | 173.00 | 189.00 | 16.00 | 0.43 | ||||||||||||
| SJD-112-11 | SJ West | 7050E | 202.00 | 212.00 | 10.00 | 0.47 | ||||||||||||
| SJD-112-11 | SJ West | 7050E | 258.00 | 272.00 | 14.00 | 1.52 | ||||||||||||
| SJD-113-11 | SJ West | 6900E | 316.00 | 330.00 | 14.00 | 0.506 | ||||||||||||
| SJD-114-11 | SJ West | 6750E | 88.00 | 170.00 | 82.00 | 0.50 | ||||||||||||
| includes | SJ West | 6750E | 88.00 | 102.00 | 14.00 | 1.37 | ||||||||||||
| SJD-114-11 | SJ West | 6750E | 411.00 | 423.00 | 12.00 | 1.28 | ||||||||||||
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*True thickness is approximately 50% of drill interval. |
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Ian Stalker, CEO of Brazilian Gold, commented “The Company is delighted to note the higher grade intercepts in these latest drill holes that will add ‘quality’ ounces to our ‘new’ resource inventory. We anticipate receiving the assay results from the final 5 holes of the 2011 program by the end of January. The drilling (14,418 m in 37 holes) completed in 2011 along with the historic holes (108 holes in 22,446 m) will be used to complete an updated NI43-101 compliant resource for our São Jorge project early in 2012.
We intend to mine our São Jorge deposit by a traditional open pit approach with indications from our Preliminary Economic Assessment (PEA) of a stripping ratio of approximately 4 to 1 waste to ore.
It is positive to note that the deposit as currently known is open along strike and at depth, but equally important is the new geophysical targets identified along strike of São Jorge to the southeast. These targets are currently being refined and will be drill tested throughout the year. The target has a similar footprint of the existing deposit, i.e. 1.4 km in potential strike length.”
The São Jorge project is well situated with respect to infrastructure. It is located approximately 70 km north of the town of Novo Progresso on Highway BR163 that connects the city of Cuiaba in Mato Grosso state with the port city of Santarem on the Amazon River. The highway is currently being asphalted with approximately 30 km remaining to be completed between São Jorge and Novo Progresso. As well as having tarred road access, the project is connected to the electric power grid and a skilled work force is available in Novo Progresso, which has a population of approximately 60,000 people.
The São Jorge deposit is 1,300 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. Alteration and mineralization appears to be spatially associated with a number of discontinuous shear and fracture zones within granitic host rocks. Alteration minerals include chlorite, epidote, sericite, silica and sulphides that occur as disseminations, fracture controlled or 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.
Drill holes reported in this news release are angle holes that have been drilled on north-south sections spaced 50 m apart. The drill holes were infill holes that targeted the eastern, central and western part of the deposit up to 300 m below surface. All drill holes in this news release intersected significant intervals of alteration and/or gold mineralization.
Results from the 2011 drill program (37 holes in 14,418 m) along with the historic drilling (108 holes in 22,446 m) will be used in a new resource estimate scheduled for completion by the end of the first quarter of 2012. The objective of this program is to identify additional resources that are amenable to open pit extraction thereby increasing the potential mine life and production rate as documented in the recently completed independent NI43-101 Preliminary Economic Assessment (PEA) on the São Jorge deposit (Coffey Mining, June 21st, 2011). The PEA indicates robust economics with an internal rate of return (IRR) of 22.9% and a net present value (NPV) at a 5% discount rate of $99.1 million using a gold price of US$1,300 per ounce. The PEA is based on an mineral resource estimate containing 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. Due to wide spaced drilling in certain parts of the deposit, approximately 50% of this resource was not included in the mine plan. In addition, none of the down dip or infill drilling completed by Brazilian Gold in the 2011 drill program was incorporated in the resource estimate.
Brazilian Gold is currently reviewing the results of its extensive exploration program (drilling, soil geochemistry and IP) completed in 2011. Resistivity and chargeability anomalies, some of which are similar in orientation and amplitude, as those observed over the São Jorge deposit have been outlined in a recently completed 120-line kilometre survey. Gold in soil anomalies are coincident with many of the IP anomalies. Targets identified from this work are currently being evaluated and prioritized for drill testing early in 2012.
Laboratory Procedures
Drill core is sampled at 3 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.
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 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).
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.