Brazilian Gold
Massive 43% Increase in Indicated Resources at the Flagship São Jorge Gold Deposit , Northern Brazil
Brazilian Gold is pleased to report the updated NI43-101 compliant mineral resource for the São Jorge gold deposit that includes 14,230,000 t grading 1.18 g/t gold (541,000 oz) in the indicated category and 27,810,000 t grading 0.68 g/t gold (611,000 oz) in the inferred category at a 0.3 g/t cut-off. The estimate incorporates an additional 14,393 m (38 holes) of diamond drilling completed by Brazilian Gold in 2011 as compared to the previous estimate that was based on 22,762 m (110 holes) of diamond drilling completed by the previous operators.
BGC now has a total Indicated Resource of 541,000 Ounces Grading 1.2 g/t Gold and Inferred Resource of 1,497,000 Ounces Grading 0.8 g/t gold at a 0.3 g/t cut-off on Three Projects in Brazil
Highlights
- Indicated ounces have increased by 43% (partly reflecting an 18% increase in indicated grade) when compared to the previous resource estimate in the 2011 Preliminary Economic Assessment (PEA) by Coffey both of which were reported at a 0.3 g/t gold cut-off.
- At a 0.5 g/t gold cut-off grade, the indicated gold grade increases to 1.40 g/t gold (Table 1) with a total of 465,000 contained ounces.
- Inferred ounces have increased 9.5% (partly reflecting a 35% increase in tonnage) when compared to the 2011 PEA.
- Selective mining of internal waste in the deposit and diverting this tonnage to a surface stockpile may result in an increase in the head grade delivered to the process plant.
- Potential robust operating margin suggested by the insitu metal value of US$67/tonne (indicated resource grade of 1.18 g/t and gold price of $1,765/oz) and the 2011 PEA operating cost of US$16.36/tonne; (note mineral resources that are not mineral reserves do not have demonstrated economic viability).
- An untested 1.5 km long resistivity +/- chargeability anomaly southeast of the São Jorge deposit is similar to the geophysical signature over the deposit suggesting potential to find additional zon es of gold mineralization to the southeast; potential to find new gold deposits on the largely unexplored São Jorge property is considered excellent.
To view IP map, please visit the following link:
http://www.braziliangold.ca/email/20120919-1/Sao-Jorge-IP-Interpretation.jpg
- Strong mineral inventory growth on our three most advance stage projects—São Jorge, Surubim (Jau) and Boa Vista (VG1);
Please find attached full story of this news release.
Brazilian Gold Corporation
595 Howe Street, Suite 308
Vancouver, BC V6C 2T5
Tel: 604 602-8188
www.braziliangold.ca
TSX.V Symbol: BGC
