Brazilian Gold Completes Phase Two Drill Program and Continues to Intersect Quality Gold Mineralization on the Batistão Project, Northern Brazil

VANCOUVER, British Columbia--(BUSINESS WIRE)--Brazilian Gold Corporation (TSXV: BGC) is pleased to announce drill results from the Phase Two drill program on its wholly owned Batistão project located approximately 30 km southwest of the town of Peixoto de Azevedo in Brazil’s northern Mato Grosso state. This region was the focus of a gold rush in the 1980’s where 5 million ounces of unofficial production, mostly from shallow alluvial and laterite workings, is reported to have taken place. The region benefits from excellent infrastructure including paved road access, electrical power and the availability of a local skilled workforce.

Highlights

• BTD-005-12 intersected 11.8 m grading 0.92 g/t gold.
• BTD-007-12 intersected 33.4 m grading 0.7 g/t gold including 11.4 m grading 1.8 g/t gold.
• BTD-002-12 intersected 38.0 m grading 0.7 g/t gold including 17.6 m grading 0.9 g/t gold.
• BTD-003-12 intersected 43.0 m grading 1.1 g/t gold including 20.0 m grading 2.0 g/t gold.
• Drilling has tested 600 m of a 2,000 m long gold-in-soil anomaly on 100 m sections and has intersected a mineralized zone that is approximately 30 m in thickness.
• BGC drilling has extended the depth of mineralization from surface to a depth of 135 m.
• Historic drill hole BTC-021 collared 1,000 m west of BGC’s drilling intersected 0.76 g/t gold over its entire length (50 m) and ended in mineralization indicating the potential for the gold-in-soil anomaly to be mineralized at depth over its entire length of 2,000 m.
• Gold-in-soil anomaly is open to the west and east.

Table 1: Batistão 2012 Phase One and Two drill intersections.
Hole ID	Section	From (m)	To (m)	Interval*	Gold g/t
Phase One Program
BTD-001-12	4000E	125.15	180.00	54.85	0.41
includes		125.15	151.00	25.85	0.58
BTD-002-12	4200E	146.00	184.00	38.00	0.68
includes		146.00	163.64	17.64	0.86
BTD-003-12	3800E	69.00	112.00	43.00	1.10
includes		79.00	99.00	20.00	2.02
BTD-004-12	4000E	1.50	33.00	31.50	0.45
includes		4.50	14.00	9.50	0.92
Phase Two Program
BTD-005-12	4100E	16.00	19.44	3.44	1.01
BTD-005-12	4100E	44.32	62.32	18.00	0.38
BTD-005-12	4100E	89.70	101.51	11.81	0.92
BTD-006-12	4100E	0.00	6.90	6.90	0.41
BTD-006-12	4100E	52.16	54.16	2.00	1.05
BTD-006-12	4100E	84.00	140.00	54.00	0.28
BTD-007-12	3900E	0.00	33.37	33.37	0.73
including	3900E	0.00	11.37	11.37	1.80
BTD-008-12	3900E	0.00	9.62	9.62	0.36
BTD-008-12	3900E	46.50	70.50	24.00	0.41
BTD-009-12	3700E	108.26	112.97	4.71	1.68
BTD-010-12	3700E	127.00	131.00	4.00	0.88
BTD-011-12	3600E	no significant assays
*Interval refers to drill hole intercepts.

The Phase One and Two diamond drill programs (1,655 m in 11 holes) tested below and between historic reverse circulation (RC) drill holes that were drilled on 200 m sections. The drill holes (BTD-001-12 to BTD-011-12) were drilled to the north or south at -55° or -60° on sections spaced 100 m apart. The eleven holes intersected similar tenor and widths of mineralization as historic RC holes from surface to 135 m vertically below surface over a strike length of 600 m.

The Batistão target was previously explored by a major Australian mining company from 1992 to 1995. The gold mineralization was discovered during a regional stream sediment program and was delineated by soil sampling, geophysics, auger drilling (109 holes in 762 m) and RC drill holes (24 holes in 1,287 m). The program outlined a west to northwest trending gold-in-soil anomaly that is over 2,000 m in length. Short RC holes tested 500 m of this strike length to a depth of approximately 50 m; the mineralized zone is up to 30 m thick and is open in all directions. Gold mineralization is associated with sericite-silica-sulphide altered granitic rocks; sulphide minerals include pyrite (<5%) and minor chalcopyrite. The concession was allowed to expire because of depressed gold prices at the time. Two concessions covering the Batistão target (199 km²) were subsequently acquired by Brazilian Gold.

Ian Stalker, CEO of Brazilian Gold, commented “This latest set of results from Batistão confirms an exceptional shallow open pitable gold target. The anomaly remains open along strike and at depth, and the fact that we have only drilled 600 m of the 2 km target to a depth of 135 m highlights the potential. It is equally important to note that this project like all BGC projects in Brazil benefits from a rapidly developing infrastructure base.

NI43-101 compliant resources identified on this target will further enhance our global gold inventory—all available via simple cost effective surface mining techniques. As we push onwards with developing our São Jorge project, it’s important to note the success the company has had over the last 20 months delivering a 114% increase in its global resource inventory with an equally impressive 43% increase within the indicated category.

As 2012 comes to an end, we are well placed for further gold inventory gains and moving quickly with the development of our São Jorge project.”

Laboratory Procedures

Drill core in this program is sampled at 3 m 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 Cuiaba, 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 gold properties located in northern Brazil. The Company has title to one of the largest mineral exploration land packages (3,753 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.

Resource Inventory

Brazilian Gold has a resource inventory of 541,000 ounces of gold grading 1.18 g/t gold in the indicated category and 1,497,000 ounces of gold grading 0.79 g/t gold in the inferred category at a 0.3 g/t cut-off that is hosted in three deposits (Table 2).

Table 2: Brazilian Gold 2012 Global Resources at a 0.3 g/t cut-off.
Project	Deposit	Classification	Cut-off Grade (g/t)	Tonnage	Grade (g/t)	Ounces
São Jorge	São Jorge	Indicated	0.3	14,230,000	1.18	541,000
		Inferred	0.3	27,810,000	0.68	611,000
Surubim	Jau	Inferred	0.3	19,440,000	0.81	503,000
Boa Vista	VG1	Inferred	0.3	12,130,000	0.98	383,000
	All deposits	Indicated		14,230,000	1.18	541,000
	All deposits	Inferred		59,380,000	0.79	1,497,000

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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