Brazilian Gold Corporation (TSX VENTURE:BGC) has announced they have started a diamond drill program at their wholly owned, highly prospective Rio Novo gold project located 91 kilometres south of Morais de Almeida along the Transgarimpeiro highway in Pará state, northern Brazil.
This Project is within a cluster of projects under the ownership of the Company that management believes will have significant synergies (logistics, management, etc.) with its São Jorge project. At São Jorge, a +800,000 ounce NI43-101 compliant resource has been defined and drilling is underway with the intention of adding to this resource (see News Release 1/11, January 18, 2011). A Preliminary Economic Assessment (PEA), under the management of the highly respected independent engineering firm of Coffey Mining, has recently commenced on the São Jorge project.
The drill program will test auriferous stockwork mineralization and an associated chargeability anomaly outlined in a geophysical survey that was completed in December, 2010. The Company has contracted two diamond drill rigs and budgeted 2,500 metres for this program.
The Rio Novo gold project consists of five exploration concessions for a total area of 44,576 hectares. The Project covers a number of garimpeiro workings and exploration targets including the Jau target. The Jau target consists of quartz+sulphide stockwork mineralization that is exposed in a garimpeiro pit. The mineralization is greater than 50 metres wide and historic grab samples (25 samples) of the quartz+sulphide veins returned several grams to 10's of grams/tonne gold and intervening altered granite commonly grades from <1 to 2 grams/tonne. The mineralization strikes east-west and dips steeply.
An induce polarization survey completed along strike of this mineralization has identified a strong chargeability anomaly that is 1,400 metres long by up to 400 metres wide and extends from surface to greater than two hundred metres depth. The drill program will test below the Jau pit and its associated chargeability anomaly along strike. Assay results from this drill program will be released as they are received and once they have been verified by the Company's geologists.
The Rio Novo project fits with the Company's strategy of identifying high quality exploration projects that are road accessible (ranch land), close to electrical transmission lines and adjacent to the Company's development stage São Jorge project. The Company has five exploration projects (Pista Manual, Surubim, Rio Novo, Ouro Mil and Santa Julia) within a 100 kilometre radius of São Jorge, which will allow for lower cost exploration and development, and may provide synergies whereby product from more than one project are trucked to a central processing facility.
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