Brazilian Gold Corporation
TSX VENTURE : BGC

Brazilian Gold Corporation

June 30, 2011 09:00 ET

Brazilian Gold Continues to Intersect Gold Mineralization Down Dip of the Sao Jorge Deposit in Its Phase One Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2011) - Brazilian Gold Corporation (TSX VENTURE:BGC) -

Highlights

  1. Phase One Drill Program intersects mineralization down dip of historic drilling.
  • Phase One Drill Program (5,000 metres) is 80% complete with nine holes completed to date with assays pending for an three holes.
  • Program has intersected mineralization down dip of the historic drilling to +300 metres below surface in the central portion of the São Jorge deposit, a strike length of 700 metres.
  • Significant intersections include 1.37 grams/tonne over 86 metres (SJD-085-11, previously reported), 1.71 grams/tonne over 12.0 metres (SJD-086-11), and 1.44 grams/tonne over 18.0 metres (SJD-088-11).
  1. Phase Two Drill Program (7,000 metres) soon to commence.
  • Phase Two Drill Program (7,000 metres) will infill along strike northwest and southeast of the central portion of the São Jorge deposit in areas with wide spaced drilling and will also test new targets identified from the soil sampling and induced polarization surveys that are currently in progress.
  1. Six new targets identified outside of the São Jorge deposit area.
  • Reconnaissance prospecting and sampling program on the large, highly prospective São Jorge property in May and June has identified 6 new targets for more detailed follow-up exploration work; assay results are pending.
  1. Preliminary Economic Assessment by Coffey Mining on schedule for completion by the end of Q2 2011.
  1. A National Instrument 43-101 compliant resource estimate is scheduled to be completed by Q1 2012 incorporating the results of the Phase One and Phase Two Drill Programs.

Brazilian Gold Corporation ("Brazilian Gold" or the "Company") is pleased to announce assay results from an additional five holes from the Phase One Drill Program (5,000 metres) at the São Jorge project. The São Jorge deposit hosts an NI43-101 indicated resource of 343,000 ounces (8.3Mt grading 1.3 g/t gold) and an inferred resource of 458,000 ounces (12.6 Mt grading 1.1 g/t gold) using a 0.5 gram/tonne cut-off (Coffey Mining, Sept. 14, 2010). The deposit is approximately 1,450 metres long, up to 100 metres wide and has been delineated from surface to 200 metres depth; the deposit is open along strike and at depth. The five holes reported herein were drilled down dip of existing drilling between 200 to 300 metres below surface and all five holes intersected significant intervals of alteration and mineralization (Table 1).

Table 1: Selected drill results from the Phase One Drill Program at São Jorge.
Hole Id Section From To Interval Au g/t Comments
SJD-083-11 7250E 346.00 378.00 32.00 0.58
includes 7250E 362.00 368.00 6.00 1.20
SJD-084-11 7350E 290.00 378.00 88.00 0.37
includes 7350E 292.00 308.00 16.00 0.78
SJD-085-11 7150E 363.00 449.00 86.00 1.37 Previously Reported
SJD-086-11 7300E 240.00 412.00 172.00 0.33
includes 7300E 256.00 268.00 12.00 1.71
includes 7300E 298.00 316.00 18.00 0.60
SJD-087-11 7200E 264.00 274.00 10.00 0.40
SJD-087-11 7200E 354.00 412.00 58.00 0.35
includes 7200E 370.00 392.00 22.00 0.48
SJD-088-11 7400E 310.00 384.00 74.00 0.55
includes 7400E 312.00 330.00 18.00 1.44
SJD-089-11 7450E Assays Pending
SJD-090-11 7100E Assays Pending
SJD-091-11 7500E Assays Pending
SJD-092-11 7600E In Progress
SJD-093-11 7700E In Progress

The current drill program tested below the central portion of the São Jorge deposit on 50 metres sections representing approximately 700 metres of the overall strike length (1,450 metres) of the deposit. The drill holes were drilled to the north or south at -55° to -60° to intersect the deposit between 200 to 300 metres below surface; approximately 4,000 metres of the Phase One program has been completed to date. The Phase Two drill program (7,000 metres) will infill along strike of the central portion of the deposit where drilling is widely spaced and will also test new targets identified by the soil geochemistry and induced polarization surveys currently in progress. To view a plan map of the drill holes and cross-sections associated with this press release, please visit the following link:

http://www.braziliangold.ca/email/20110630-1/Sao-Jorge-Historic-And-BGC-Drillholes.jpg

Commenting on these latest set of results from São Jorge, Ian Stalker, CEO of the Company, said, "These latest drill results continue to expand the limits of the São Jorge deposit and these results along with results from the Phase Two Drill program will be incorporated into a new NI43-101 compliant resource estimate schedule to be completed by Q1 2012."

Laboratory Procedures

Drill core is sampled at 2 metre 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 Itaituba, 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.

Garnet Dawson, M.Sc., P.Geo. (British Columbia), Vice President, Exploration for the Company and a Qualified Person, as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this News Release.

About Brazilian Gold Corporation

Brazilian Gold Corporation is a Canadian based public company with a focus on acquisition, exploration and development of mineral properties in northern Brazil. It is the largest holder of exploration concessions (3,546 km2) in the underexplored Tapajós Mineral Province, which historically produced over 30 million ounces of gold largely from alluvial deposits. The Company has a portfolio of ten grass-roots to development stage gold projects (8 projects in the Tapajós and 2 projects in the nearby Alta Floresta Gold Province) with drill programs (4 drill rigs) currently underway on the São Jorge, Rio Novo and Surubim projects.

The São Jorge development project hosts an NI43-101 indicated resource of 343,000 ounces (8.3 Mt grading 1.3 g/t gold) and an inferred resource of 458,000 ounces (12.6 Mt grading 1.1 g/t gold) using a 0.5 gram/tonne cut-off (Coffey Mining, Sept. 14, 2010). The Company has commissioned Coffey to complete a Preliminary Economic Assessment (PEA) or Scoping Study that will look at various development and production scenarios to determine the financial viability of the project. The study is expected to be completed in Q2 2011 and dependent on project economics, the Company plans to embark on a pre-feasibility/feasibility study soon thereafter.

Brazilian Gold owns a 75% interest in the Rea Uranium Project in northeastern Alberta, which is currently being operated by AREVA, who are earning up to a 50% interest by completing an additional Cdn$2.84 million in expenditures by Dec. 31, 2013.

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.

Contact Information

  • Brazilian Gold Corporation
    Ian (John) Stalker
    CEO and Director
    +1 604 602-8188

    Brazilian Gold Corporation
    Joanne Yan
    President and Director
    +1 604 602-8188
    www.braziliangold.ca

    Investor Relations
    Tom Hart
    +1 403 701-4278