Brazilian Gold Corporation (TSXV: BGC) is pleased to report assay results for an additional 10 holes from the 2011 drill program on the São Jorge project in the Tapajós region of northern Brazil. The drill program (37 holes in 14,418 m) was completed the second week of December. Assay results from the first 13 holes were previously reported on January 18th, June 30th and October 24th 2011; assay results from final 13 holes are pending. Results from this drill program along with historic drill holes (108 holes in 22,446 m) will be used in an updated NI43-101 resource estimate.
Highlights
* Significant gold intersections include:
• SJD-096-11: 1.77 g/t over 4 m (42 to 46 m) and 4.37 g/t over 4 m (106 to 110 m);
• SJD-097-11: 1.24 g/t over 54 m (187 to 241 m);
• SJD-101-11: 1.79 g/t over 16 m (38 to 54 m) and 1.84 g/t over 8 m (74 to 82 m);
• SJD-102-11: 1.21 g/t over 14 m (130 to 144 m);
• SJD-103-11: 2.28 g/t over 11 m (130 to 144 m).
* Drill program continues to intersect wide zones of alteration and gold mineralization down dip and along strike of historic drilling.
* An induced polarization (IP) resistivity high with or without a coincident chargeability high is identified along strike of the Sao Jorge deposit to the southeast for 1.5 km suggesting potential to identify additional gold mineralization.
Ian Stalker, CEO of Brazilian Gold commented "As the year has progressed, so has the intensity of our work program in order to complete an updated NI43-101 compliant resource for our São Jorge project early in 2012. This latest set of results coming from the eastern part of the ore body continues to confirm additional intersections at similar thickness and grade as the previously reported resource (Coffey Mining, June 27 2011).
This volume of new information from our São Jorge project gives us a much better understanding of the deposit geology and equally important will be used in upgrading the confidence level and the potential size of the next resource estimate. Significantly, the work undertaken in the last three months has identified an IP anomaly along strike of the São Jorge deposit to the southeast for 1.5 km suggesting potential to identify additional gold mineralization. It is an area for potential further resource growth and we will be working on defining the target in more detail early in 2012."
The São Jorge project is well situated with respect to infrastructure. It is located approximately 70 km north of the town of Novo Progresso on Highway BR163 that connects the city of Cuiaba in Mato Grosso state with the port city of Santarem on the Amazon River. The highway is currently being asphalted with approximately 30 km remaining to be completed between São Jorge and Novo Progresso. As well as having tarred road access, the project is connected to the electric power grid and a skilled work force is available in Novo Progresso, which has a population of approximately 60,000 people.
The São Jorge deposit is 1,300 m long by up to 200 m wide and has been intersected in drill holes to 350 m depth; the deposit strikes northwest and has a sub-vertical dip. Alteration and mineralization appears to be spatially associated with a number of d iscontinuous shear and fracture zones within granitic host rocks. Alteration minerals include chlorite, epidote, sericite, silica and sulphides that occur as disseminations, fracture controlled or pervasive alteration. The predominant sulphide is pyrite with minor amounts of chalcopyrite. Gold mineralization is commonly associated with silica+sericite+sulphide alteration and higher gold values are generally associated with higher pyrite content and the presence of chalcopyrite.
Drill holes reported in this news release are angle holes that have been drilled on north-south sections spaced 50 m apart. The drill holes were infill holes that targeted the eastern part of the deposit up to 250 m below surface. All drill holes in this news release except for drill hole SJD-098b-11 and SJD-105-11 intersected significant intervals of alteration and gold mineralization.
Table 1: Drill results from the São Jorge deposit.
Hole ID& nbsp; Section From(m) To(m) Interval(m)* Au g/t Comment
SJD-093-11 187.00 266.00 79.00 0.29
SJD-093-11 284.00 331.00 47.00 0.61
SJD-096-11 42.00 46.00 4.00 1.77 &n bsp;
SJD-096-11 106.00 110.00 4.00 4.37
SJD-097-11 187.00 241.00 54.00 1.24 Partial results
SJD-098b-11 No significant assays
SJD-099-11 216.00 226.00 10.00 0.59
SJD-100-11 207.00 213.00 6.00 1.12
SJD-100-11 250.00 266.00 16.00 0.51
SJD-101-11 38.00 54.00 16.00 1.79 &nb sp;
SJD-101-11 74.00 82.00 8.00 1.84
SJD-101-11 150.00 166.00 16.00 0.79
SJD-101-11 289.00 307.00 18.00 0.50 ;
SJD-102-11 130.00 144.00 14.00 1.21
SJD-103-11 24.00 30.00 6.00 0.49
SJD-103-11 147.00 158.00 11.00 2.28
SJD-104-11 &n bsp; Abandoned hole
SJD-105-11 No significant assays
SJD-107-11 331.00 339.00 8.00 0.50
*True thickness is approximately 50% of drill interval.
Results from the 2011 drill program (37 holes in 14,418 m) along with the historic drilling (108 holes in 22,446 m) will be used in a new resource estimate scheduled for completion by the end of the first quarter of 2012; the estimate was delayed from the previously reported end of year release so that all the assay results from the 2011 drill program could be included. The objective of this program is to identify additional resources that are amenable to open pit extraction thereby increasing the potential mine life and production rate as documented in the recently completed independent NI43-101 Preliminary Economic Assessment (PEA) on the São Jorge deposit (Coffey Mining, June 21st, 2011). The PEA indicates robust economics with an internal rate of return (IRR) of 22.9% and a net present value (NP V) at a 5% discount rate of $99.1 million using a gold price of US$1,300 per ounce. The PEA is based on an mineral resource estimate containing 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. Due to wide spaced drilling in certain parts of the deposit, approximately 50% of this resource was not included in the mine plan. In addition, none of the down dip or infill drilling completed by Brazilian Gold in the 2011 drill program was incorporated in the resource estimate.
Brazilian Gold is currently reviewing the results of its extensive exploration program (drilling, soil geochemistry and IP) completed in 2011. Resistivity and chargeability anomalies, some of which are similar in orientation and amplitude, as those observed over the São Jorge deposit have been outlined in a recently completed 120-line k ilometre survey. Gold in soil anomalies are coincident with many of the IP anomalies. Targets identified from this work are currently being evaluated and prioritized for drill testing early in 2012.
Monday 19 December 2011
Brazilian Gold Corp BGC, TSX:V
Brazilian Gold Corporation the fast-track developer of a number of large scale adjacent open pit gold projects in Northern Brazil, takes time to remind the market of its strong cash in back position and the fact that the São Jorge project is Brazilian Gold’s most advance stage development. The deposit is host to an NI43-101 compliant indicated mineral resource of 11.365 Mt grading 1.0 g/t gold (379,000 ounces of contained gold) and an inferred mineral resource of 20.673 Mt grading 0.8 g/t gold (558,000 ounces of contained gold) at a 0.3 g/t cut-off (Coffey Mining, July 15, 2011).
Whilst concerns about the fall in gold prices may concern some investors, BGC is set to be a low cost, low risk producer where in the case of Brazil it operates in a positive low royalty tax environment and is the only gold development company in Northern Brazil with access to power and with highway access to the development site.
Whilst concerns about the fall in gold prices may concern some investors, BGC is set to be a low cost, low risk producer where in the case of Brazil it operates in a positive low royalty tax environment and is the only gold development company in Northern Brazil with access to power and with highway access to the development site.
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