VANCOUVER, British Columbia--(BUSINESS WIRE)--Brazilian Gold Corporation (TSXV: BGC) is pleased to report results for initial testwork on the acid generation potential of mine waste rock and old mine tailings from the São Jorge project. The study was conducted by Global Resource Engineering Ltd. of Centennial, Colorado and all samples were analyzed by SGS Lakefield Geosol Laboratórios Ltda., Vaspasiano, Minas Gerais, Brazil. This study is part of an overall Environmental Impact Assessment (EIA) program at São Jorge in preparation of a pre-feasibility study and potential near term mining activity.
Highlights
- Acid Base Accounting (ABA) shows that neither sample is potentially acid generating.
- Synthetic Precipitation Leach Procedure (SPLP) tests, which measure the potential to generate pollutants under the effect of percolating rainfall, show that the samples are benign.
- Permitting time for Environmental Approval of a mining operation at São Jorge is anticipated to be 9 months.
- Mitigation efforts to control acid rock generation are not expected, thus helping to maintain low capital and operating costs at São Jorge.
- Low power costs of $0.06 per kWh in the first three years of production.
The waste rock sample, comprising sulphide-bearing drill core on the margins of the mineralized zone, was taken from two drill holes at vertical depths of approximately 180m and 300m. The tailings sample was taken from a series of pits excavated into the tailings from previous informal mining operations, located to the south-west of the São Jorge open pit.
The samples were subjected to Acid Base Accounting (ABA), Synthetic Precipitation Leach Procedure (SPLP), Whole Rock and Mineral Trace Metals analyses. The ABA results show that neither sample is potentially acid generating, as evidenced by a strong neutralization potential (NP) and high NP:AP (acid potential) ratios of 60.3 and 12.6 for the waste and tailings sample, respectively.
Results of the SPLP tests, which demonstrate the potential to generate pollutants under the effect of percolating rainfall, show that the samples are benign. Trace mercury levels identified in the whole rock analyses of the tailings sample (believed to be from prior mercury amalgamation by garimpo miners) did not create detectable concentrations of soluble mercury.
The whole rock analyses showed that potentially dangerous metals such as arsenic and cadmium were not present in concentrations in excess of crustal averages.
Despite the small sample set, these results are highly encouraging. As mentioned above, these samples appear to be the most likely to generate acid of all the materials at the São Jorge project, yet the lab results indicate that these samples are non-acid generating. It is therefore unlikely that any mitigating measures against acid rock generation will need to be taken if future samples have similar characteristics. Further testwork is planned as part of a future pre-feasibility study to confirm these results on a larger sample from various parts of the mineralized system.
São Jorge Power Supply
Power supply to the São Jorge project is available through the regional electrical utility company CELPA (Centrais Elétricas do Pará). Preliminary discussions with CELPA indicate they could supply power to the project at a contract cost of $0.0907 per kWh based on a demand of 9,000 kW for a milling operation as contemplated in the São Jorge Preliminary Economic Assessment (PEA) of 2 Mtpa (Coffey Mining, June 2011).
Power will be supplied from the substation located in the town of Novo Progresso located approximately 70 km south of the project. Power line connects the project and Novo Progresso, however it will require upgrading to 138 kV capacity along with a local substation at the plant site at an estimated cost of $7.59 million based on costing in the PEA. Capital costs associated with upgrading of the power line and installation of the substation are recoverable from the cost of power over the first three years of production resulting in a power cost of $0.058 per kWh, which is exceptionally low by world standards.
Potential savings may be achieved by purchasing power on the spot market as a result of several new hydroelectric power plants coming on stream and an abundance of power in Pará state.
Ian Stalker, CEO of Brazilian Gold, commented “These results are highly encouraging and indicate that it is unlikely that any measures against acid rock generation will need to be taken. It adds to our knowledge on our EIA and confirms that operating costs related to mitigation actions to be undertaken as part of any future mining activity at our São Jorge project will be low. It keeps us on track to maintain an overall low operating cost per ounce produced. Further testwork is planned as part of a future pre-feasibility study to confirm these results on a larger sample from various parts of the mineralized system.
Preliminary discussions with CELPA indicate the anticipated power costs for the project will be low by world standards and will further enhance the positive project economics outlined in last year’s Preliminary Economic Assessment (Coffey Mining, June 2011).”
Larry Breckenridge, P.E., Principal Environmental Engineer for Global Resource Engineering Ltd., Centennial, Colorado, was commissioned by Brazilian Gold Corporation to complete the studies reported in this News Release. Mr. Breckenridge is a Qualified Person as defined by National Instrument 43-101 and has 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. Rapid improvements to regional infrastructure continue to provide underlying support to Brazilian Gold’s activities in northern Brazil.
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.
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