August 9, 2012
Brazilian Gold Corporation (TSXV: BGC) is pleased to report the results of the first NI43-101 compliant mineral resource estimate for the VG1 gold deposit (Boa Vista project) located in the Tapajós region of northern Brazil.
Brazilian Gold and their joint venture partners, Octa Mineração Ltda. and D’Gold Mineral Ltda., reported the VG1 discovery in the first quarter of 2011 and have completed two phases of diamond drilling (15 holes in 3,007 m) since that time.
The inferred mineral resource for the VG1 gold deposit is 8.47 Mt grading 1.23 g/t gold at a 0.5 g/t cut-off for 336,000 contained ounces. 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 the BGC website and SEDAR.
The VG1 deposit is road accessible and is located approximately 170 km southwest of the town of Novo Progresso, which is located on the recently paved BR-163 highway.
Highlights
• Maiden resource estimate on the VG1 gold deposit completed shortly (16 months) after discovery was reported in March 2011 (News Release 5/11 and 6/11).
• Resource estimate is based on shallow (<150 m depth) and limited drilling (15 holes in 3,007 m) and trenching (14 trenches in 2,229 m) of the eastern 600 m of an overall 2,000 m long gold-in-soil anomaly.
• Mineralization forms a coherent deposit that is not significantly affected by changes in the cut-off grade near the declared resource grade of 0.5 g/t gold.
• Deposit is open at depth and along strike with a high potential to expand the existing resource.
• Mineralization starts at surface, is up to 85 m in thickness and may be amenable to open pit extraction with a relatively low strip ratio.
• Gold grade appears to be increasing with depth and to the east based on limited drilling completed to date.
• Coarse gold visible in some drill cores and trench samples and in screened metallic analysis of selected trench samples indicates the overall grade of the deposit could be higher when larger samples are mined and processed.
