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Brazilian Gold Reports Phase I Partial Assay Results from São Jorge Project

Brazilian Gold Corporation (TSX VENTURE:BGC) has announced partial assay results for the first hole of the Phase One (5,000 m) diamond drill program on the São Jorge project.

Drill hole SJD-085-10 intersected 1.37 grams/tonne gold over 86 metres starting at 363 metres depth. The hole was collared on section 657250E and drilled towards AZ330° at -55°; the intersection is approximately 55 metres in true width and 90 metres below previous drilling midway along the strike of the deposit. The hole was suspended at 462 metres depth for Christmas holidays and drilling resumed the second week of January when the drillers returned from break.

Concurrent with the drill program, the Company has begun a program of infill sampling where intervals not previously sampled in historic drill holes are sampled. These un-sampled intervals fall between previously sampled mineralization and within the grade shell (0.3 g/t gold) of the resource estimate completed by Coffey Mining (Sept. 14, 2010), where they were given an arbitrary value of 0.01 grams/tonne gold. The sampling of these intervals is expected to have a positive effect on the overall grade and contained ounces for the deposit.

Assay results for drill hole SJD-030-05, the first hole of the infill sampling program returned 8 metres (5 m true width) grading 1.10 grams/tonne gold starting at 177 m depth and 53 metres (30 m true width) grading 1.06 grams/tonne starting at 235 metres depth; these intervals include assays from the historic sampling as well as new sampling by Brazilian Gold. Drill hole SJD-030-05 is located on section 657250E and drilled towards AZ360° at -55° for a total length of 292.4 metres.

Mr. Alvin Jackson, Chairman and CEO of Brazilian Gold, stated, "The Company is encouraged with these initial results and it shows that mineralization with similar grade and thickness was intersected 90 metres below previous drilling. There is considerable potential to increase the existing resource if the Phase One drill program encounters similar results along the entire strike length of the deposit."

The Company added a second drill rig to the project the beginning of January to reduce the time necessary to complete the Phase One program and its desire to aggressively advance the project so that an updated NI 43-101 resource estimate can be completed in 2011. A Phase Two drill program will test the strike potential northwest and southeast of the existing deposit once an induced polarization survey has been completed.

The Phase One drill program, as previously described in News Release 19/10 (Nov. 24th, 2010), is designed to test the down dip extension of the existing resource, which extends from surface to approximately 200 metres depth, to 300 metres below surface. The inclined holes will be collared from the south side of the deposit and drilled towards the north along sections spaced 50 metres apart and will range from approximately 300 to 500 metres in length.

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 -200 mesh. The pulp is shipped to Santiago, Chile for gold fire assay. Acme Analytical Laboratories Ltd. is an internationally certified ISO 9001 laboratory. Brazilian Gold's Quality Assurance – Quality Control Program involving the insertion of appropriate blanks, standards and duplicates was employed with acceptable results.

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.

Source: Brazilian Gold Corporation


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