Posted in | Gold | Mining Business | Earnings

Brazilian Gold’S Outlines 503,000 Ounces Of Gold In The First Resource Estimate At The Jau Target (Surubim Group), Northern Brazil

Brazilian Gold Corporation  is pleased to report the results of the first NI43-101 compliant mineral resource estimate on the Jau target (Surubim group) in the Tapajos region of northern Brazil. Brazilian Gold discovered gold mineralization at the Jau target in the first quarter of 2011.

The inferred mineral resource for the Jau mineralization is 19.44 Mt grading 0.81 g/t gold (503,000 contained ounces) at a 0.3 g/t cut-off. The mineral resource estimate was completed by Giroux Consultants Ltd. of Vancouver, B.C., Canada, and is documented in an independent NI43-101 Technical Report that will be posted on our website and SEDAR. The Jau target is located approximately 65 km southwest of the Company's advance stage São Jorge project and is accessed by the Transgarimpeiro Highway.

Highlights

  • Initial independent NI43-101 compliant mineral resource estimate for the Company's new (2011) discovery at its 100% owned Jau target, Tapajós region, Brazil.
  • Declared inferred mineral resource of 19.44 Mt grading 0.81 g/t gold (503,000 ounces) at a 0.3 g/t cut-off.
  • At a higher cut-off grade of 0.8 g/t gold, the inferred mineral resource is 6.66 Mt grading 1.42 g/t gold (303,000 ounces).
  • Mineralization is open at depth and to the west with potential to expand the existing resource.
  • Small area of project explored to date with excellent potential for discovery of new gold mineralization.
  • Jau target shares exploration and development synergies with nearby targets (Patoa, Colonia and Tucunare) as well as the São Jorge project.
  • Builds on the Company's stated objective of identifying road accessible, near surface, bulk mineable deposits that could potentially be processed at a central processing facility or alternatively developed as a standalone operation.

Ian Stalker, CEO of Brazilian Gold, commented "We are delighted with the results of the first, independent NI43-101 mineral resource estimate on the Jau target completed only one-year after intersecting gold mineralization in our first holes on this target. This achievement highlights the quality of our work and diligence, and underlines the potential for large-scale gold mineralization across our extensive land package in Brazil.

The mineralization is open at depth and to the west, which will be the focus of future drill programs. The resources identified at Jau will further add to our overall gold inventory when resource estimates currently in progress on the São Jorge and VG1 (Boa Vista project) deposits are completed in Q3 2012."

A total of 20 drill holes containing 2,978 gold assays have been completed on the project. Gold assay were composited at 2.5 m lengths and interpolated into the block model using ordinary kriging. A three dimensional solid model of the mineralization was constructed to constrain the resource estimate. The block model is comprised of individual blocks measuring 20 m by 20 m by 5 m with the long dimensions of the block orientated east-west and north-south. The mineral resource estimate at various cut-off grades is shown in Table 1. At this time no economic studies have been completed on this property and as a result the economic cut-off is unknown. A gold cut-off of 0.3 g/t has been highlighted as a possible open pit cut-off.

Table 1: Jau inferred mineral resource* at various cut-off grades.

*According to National Instrument 43-101 and CIM (2005) an 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, workings and drill holes. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.

The 2011 drill program was designed to test an east-west trending chargeability and magnetic anomaly that was coincident with auriferous quartz-sulphide veins exposed in an historic garimpeiro pit. Twenty drill holes (5,950 m) were completed on ten sections (7900E to 8800E) space 100 m apart; the holes were drilled towards the north or south at -55 to -60°.

The drill holes intersected an east-west striking, steeply dipping mineralized zone hosted in felsic volcanic (ignimbrites) and granitoid rocks. The mineralized zone is up to 70 m thick and is comprised of quartz+calcite+sulphide veinlets with envelopes of sericite-silica-pyrite; sulphides include pyrite, sphalerite, galena and chalcopyrite. Drilling has delineated the zone over a strike length of 700 m and up to 250 m below surface; it is open at depth and to the west.

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.

Jim Cuttle, B.Sc., P.Geo. and Gary H. Giroux, M.A.Sc., P.Eng., are the Qualified Persons for the NI43-101 Report on the Resource Estimate of the Jau Target and have reviewed and approved the contents of this press 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.

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