Jun 1 2012
Brazilian Gold Corporation is pleased to announce the completion of the Phase One drill program (678 m in 4 holes) 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. The region benefits from excellent infrastructure including road access, electrical power and a skilled workforce.
Highlights
- BTD-003-12 intersected 43 m grading 1.10 g/t including 20 m grading 2.02 g/t gold.
- BTD-002-12 intersected 38 m grading 0.68 g/t including 17.64 m grading 0.86 g/t gold.
- Drilling has tested 500 m of a 2,000 m long gold-in-soil anomaly and has intersected a mineralized zone that is up to 30 m in width.
- BGC drilling has extended the depth of mineralization down to at least 135 m from surface; mineralization is open in all directions.
The Phase One diamond drill program (678 m in 4 holes) is designed to test below historic RC drill results. The drill holes (BTD-001-12 to BTD-004-12) were drilled to the north or south at -55° on sections spaced 200 m apart. The four holes intersected similar tenor and widths of mineralization as historic holes from surface to 135 m vertically below surface.
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 short RC drill holes (24 holes in 1,287 m). The program outlined a west to northwest trending gold-in-soil anomaly over 2,000 m in length. Short RC holes tested 500 m of this strike length to a depth of approximately 50 m; mineralization 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 the depressed gold price at the time. Two concessions covering the Batistão target (199 km2) were subsequently acquired by Brazilian Gold.
Ian Stalker, CEO of Brazilian Gold, commented, "We are delighted that the Phase One drill program has successfully confirmed and extended the mineralized zone at Batistão, which remains open in all directions. Given that only a small portion of the property has been explored to date, the potential to find additional zones of mineralization on this property is high.
"The Batistão project is one of five core projects on our extensive land holdings in the underexplored Tapajós and Alta Floresta regions of Brazil. These projects have been drilled by the Company in 2011 and 2012 and have delivered positive results. The Company is currently evaluating and prioritizing these targets for follow up exploration programs for the remainder of 2012."
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 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.
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.