Brigadier Gold Limited

Brigadier Gold Limited

August 24, 2010 16:45 ET

Brigadier Gold (TSX-V: BRG) Announces Argentina Property Transaction and Private Placement of $2.0 Million

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2010) - Brigadier Gold Limited (TSX VENTURE:BRG) announced today that it had signed a letter of intent to acquire an option in a gold property known as the INCAMAYO project consisting of 3,495 hectares located in Salta province in North western Argentina. The Option is held by 1534185 Alberta Inc. Brigadier will acquire all the issued and outstanding shares of 1534185 Alberta Inc. in exchange for the treasury issuance of 3 million common shares, and the payment of $100,000 cash to the current shareholders of the company subject to regulatory approval and successful completion of a private placement described below. 

The Option

The Option is issued to 1534185 Alberta Inc. by Salta Exploraciones SA of Argentina and SESA Holdings LLC in Nevada and calls for the issuance of an additional 500,000 treasury shares of Brigadier and $1,000,000 over a 36 month period. The Option calls for the expenditure of an aggregate of $2 million over the next three years on the property and upon completion of those requirements Brigadier would acquire a 70% interest in the Property.

The Property 

INCAMAYO is a "high sulphidation Au-Cu" prospect that forms the south easterly part of the Argentine epithermal precious metal-tin systems. Mineralization appears structurally controlled in vein and stockwork systems trending northeast. It is located at approximately 3500 metres elevation in the Salta Province of north western Argentina and can be easily accessed by road. Past trenching, sampling and drilling have identified significant Au and Cu mineralization associated with an alteration zone that extends for several kilometres. The alteration zone is quite evident from satellite imagery.

The best intersection from a total nine shallow RC holes is 150 metres grading 0.68% Cu, 6.0 gpt Ag and 0.61 gpt Au (includes 57 metres of 1.01% Cu, 10.1 gpt Ag and 1.06 gpt Au). Results of up to 9.55 gpt Au, 6.98% Cu, and 75.8 gpt Ag were obtained from separate intersections. Best result from trenches is 72 metres grading 1.40 gpt Au (includes 18 metres of 5 gpt Au). Up to 876.6 gpt Au over 2 metres was obtained from trenching. Surface grab samples yielded up to 14.06 gpt Au and 157 gpt Ag in separate samples. Surface oxidation and leaching is apparent. The prospect is hosted in hydrothermally altered metasedimentary rocks.

Historic work includes a single diamond drill hole for 303 metres, 9 RC holes totalling 2413 metres, 21 trenched for an aggregate of 5067 metres, and surface grab sampling and mapping. No geophysical methods have been applied to the prospect. The work was concentrated over a 2 kilometre area of the 8 kilometre striking alteration zone. Highlights from the historic work include the following.

  Width (m) Au (gpt) Ag (gpt) Cu (%)
Hole RC-7 150 0.61 6.0 0.68
includes 57 1.06 10.1 1.01
and includes 2 9.15 72.1 6.02
Hole RC-1 9 2.3    
Hole RC-6 2 1.12   1.4
Trench 72 1.40    
includes 18 5    
Grab AF9660   14.06 45.87  
Grab AF9657   3.26 157.00  

To view a map that accompanies this release, please click the following link:

The Private Placement 

Concurrent with and conditional upon completing the proposed purchase of the Option, Brigadier proposes to raise $2.0 million by way of a private placement to fund the first portion of the exploration program for the Option and general corporate purposes. The private placement will consist of the issuance of units (each, a "Unit" and collectively, the "Units") at a price of $0.15 per Unit, where each Unit consists of one common share, and one-half of a common share purchase warrant, with each whole warrant entitling the holder to purchase one common share over a one-year period at a price of $0.25 per common share. In the event that the common shares close at a price in excess of $0.70 for 20 consecutive trading days, Brigadier may reduce the exercise period to 30 days after giving notice of same.

William Dynes, P.Eng., a qualified person under National Instrument 43-101 has reviewed and approved the contents of this news release.

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Brigadier, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Brigadier's expectations are disclosed under the heading "Risk Factors" and elsewhere in Brigadier's documents filed from time-to-time with regulatory authorities.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Brigadier Gold Limited
    Herb Kokotow
    President & CEO
    (416) 410-7956
    (905) 707-1520 (FAX)