Brazilian Gold Corporation
TSX VENTURE : BGC

Brazilian Gold Corporation

March 01, 2011 09:00 ET

Brazilian Gold and Golden Tapajós Report Preliminary Trench and Channel Sampling Results from the Boa Vista Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) - Brazilian Gold Corporation (TSX VENTURE:BGC) ("Brazilian Gold" or the "Company") and Golden Tapajós Mineração Ltda. ("Golden Tapajós") are pleased to announce channel sampling (Jair) and preliminary trench (VG1) results from the Boa Vista Gold Project. The trenching program is part of the late 2010 exploration program that included soil geochemistry, geophysics and diamond drilling. The road accessible Project is located in southern Pará state near the border with Mato Grosso and consists of two exploration concessions covering an area of approximately 12,536 hectares.

Highlights of the exploration program to date are:

  • Surface exploration has identified a large gold in soil anomaly that is 3.5 kilometres in diameter and includes the Jair, VG1, Almir, ZL and Airstrip targets.
  • Project has excellent potential for the discovery of bulk mineable gold deposits (VG1, Plan Alto and Almir) and high grade gold deposits (Jair).
  • Channel sampling of the Jair vein returned values of 35 grams/tonne over 0.65 meters and 103.4 grams/tonne gold over 0.5 metres.
  • VG1 oxide gold zone identified in surface trenches is 900 metres long by up to 135 metres wide and is open along strike.
  • VG1 oxide gold zone grades up to 0.77 grams/tonne gold over 77 metres including 1.87 grams/tonne over 20 metres in Trench 6 and 3.60 grams/tonne gold over 11.0 metres including 4.9 grams/tonne over 8.9 metres in Trench 5.
  • VG1 rocks contain coarse visible gold and these preliminary assays (-150 mesh) may increase once the lab has completed the analysis of the +150 mesh fraction.
  • Diamond drill program (13 holes in 1,188 m) completed at Jair, VG1, Plan Alto, Almir and ZL targets; assays pending.

Jair Channel Sampling Program

The Jair vein is exposed in a garimpeiro pit at the north end of the Jair gold in soil anomaly. The anomaly is approximately 2.6 kilometres long by up to 350 metres wide and trends north-northwest. Two channel samples were collected across the Jair vein north (JRX2) and south (JRX1) of a shaft where garimpeiro workers are currently mining and processing gold. The shaft is located in the bottom of the Jair pit and it provides access to drifts along the vein approximately 15 metres below the pit bottom. The garimpeiros commonly recover 500 to 600 grams of gold in a 12 hour shift from this vein using primitive processing methods.

The horizontal channel samples were collected along the pit face and across the Jair vein and adjacent wall rock (Table 1).

Table 1: Channel Samples across Jair vein.
Channel From To Interval Au g/t* Comment
JRX1 0.00 2.00 2.00 0.46 Wall rock
  2.00 2.50 0.50 103.35 Vein
  2.50 4.30 1.80 0.15 Wall rock
           
JRX2 0.00 1.85 1.85 0.40 Wall rock
  1.85 2.50 0.65 35.00 Vein
  2.50 4.50 2.00 1.07 Wall rock
* Samples analyzed by Nomos Análises Minerais Ltda. Quality control samples were not inserted in this sample shipment and therefore these results cannot be verified. The results are included for reference only and the reader should not rely on these assays.

Channel sample JRX1 returned 103.35 grams/tonne across the Jair vein (0.50 metres, true width) and the adjacent altered wall rock returned 0.46 grams/tonne (2 metres) and 0.15 grams/tonne (1.8 metres). Channel sample JRX2 returned 35 grams/tonne across the Jair vein (0.65 metres, true width) and the adjacent wall rock returned 0.40 grams/tonne (1.85 metres) and 1.07 (2.00 metres).

The extremely high grade Jair vein strikes north and dips steeply west. It consists of quartz and calcite with minor pyrite, galena, and chalcopyrite. Visible gold is commonly seen in weathered sulphide box work textures and as free gold in quartz. The vein has been traced on surface for approximately 200 metres and three drill holes (293.3 metres) were recently completed to test the vein at depth; assays are pending.

VG1 Trenching Program

The trenching program was designed to test the VG1 gold in soil anomaly that is part of a larger gold in soil anomaly that is approximately 3.5 kilometres in diameter. The VG1 prospect was first discovered by Golden Tapajós in May 2010 when coarse visible gold was identified in rock samples. In a relatively short time since then, soil geochemistry and geophysics (magnetic and induced polarization) has outlined an anomaly that is 2 kilometres in length, up to 350 metres in width and trends east-west. The trenching program targeted the eastern half of this anomaly that included the original discovery area and the highest gold in soil values. Nine, north-south to northeast-southwest trending trenches (5, 6, 7, 8, 9, 10, 11, 12 and 15) were dug to a depth of 6 metres using an excavator; the trenches are 1.5 metres wide, 100 to 500 metres long and spaced 100 to 200 metres apart. Not all trenches crossed the entire width of the anomaly.

The bottom of the trench walls were channel sampled at 1 or 2 metre intervals within the lower part of the laterite or within the upper part of the saprolite horizon. Trench mapping identified a number of quartz+sulphide stockwork zones hosted within granitic and felsic volcanic rocks. These zones commonly formed resistive zones where the excavator could only remove 1 to 2 metres of the overlying laterite. Channel sample assays of the -150 mesh fraction have been received for 1,258 of the 1,653 samples collected; 395 assays are pending for samples in Trench 8, 11 and 15. Due to the coarse nature of the gold, samples that returned greater than 0.1 gram/tonne gold from the -150 mesh fraction will be screened for the +150 mesh fraction and the final analysis will include the weighted average of these two fractions; the final analysis is expected to return a higher gold grade than these preliminary assays.

The trenching program identified a 900 metre long by up to 135 metre wide zone of low grade surface gold mineralization that trends east-west similar to the soil anomaly; the mineralization is open along strike to the east and west. Trench 6 returned 0.41 grams/tonne over 179 metres including higher grade intervals of 1.87 grams/tonne over 20 metres (Table 2).

Table 2: Selected assay composites from the VG1 target.
Trench Starting Sample Ending Sample Interval Au g/t
5 T5W-01 T5W-08 8 0.17
5 T5W-37 T5W-47 11 3.60
  Includes T5W-37 T5W-44 8 4.90
6 T6S-71 T6N-108 179 0.41
  Includes T6-N32 T6-N108 77 0.77
  Includes T6-N45 T6-N53 9 0.93
  Includes T6-N61 T6-N80 20 1.87
  Includes T6S-57 T6S-71 15 0.68
  Includes T6S-66 T6S-71 6 1.22
7 T7W-89 T7W-119 31 0.23
  Includes T7W-92 T7W-97 6 0.36
8 T8-28 T8-82 51 0.15
  Includes T8-68 T8-71 4 0.43
9 T9-N-01 T9-N-05 10 0.45
10 T10-025 T10-073 77 0.29
  Includes T10-025 T10-030 6 1.57
  Includes T10-050 T10-052 6 0.72
11 T11-007 T11-008 4 1.26
12 T12-84 T12-203 110 0.30

A diamond drill program (609 metres in 5 holes) was recently completed to test the grade of this mineralization at depth and to help understand the geometry of the mineralization. The program consisted of a fence of three diamond drill holes (AZ035/-60°) across the anomaly and two vertical holes in the center of the anomaly. Samples from these holes have been have been submitted to the laboratory and assays are expected shortly.

Laboratory Procedures

Trenches were channeled sampled at one or two metre intervals using a hammer and chisel. Samples are dispatched to Acme Analytical Laboratories Ltd.'s sample preparation facility in Itaituba, Brazil, where the sample is crushed, split and pulverized to -150 mesh. The pulp is shipped to Santiago, Chile for gold fire assay. Acme Analytical Laboratories Ltd. is an internationally certified ISO 9001 laboratory. Tapajós Gold's Quality Assurance – Quality Control Program involving the insertion of appropriate blanks, standards and duplicates was employed with acceptable results.

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. 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 and Rio Novo projects. The Company completed a Phase One drill program (13 holes in 1,188 m) on the Boa Vista project in January 2011; the assay results are pending and a review underway in conjunction with our JV partner to further define targets for a second phase drilling campaign.

The São Jorge development project 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 Company has commissioned Coffey to complete a Scoping Study or Preliminary Economic Assessment (PEA) that will look at various development and production scenarios to determine the economic viability of the project. The study is expected to be completed in April 2011 and will include an updated resource estimate incorporating new drill holes completed by Brazilian Gold. 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
    or
    Brazilian Gold Corporation
    Joanne Yan
    President and Director
    +1 604 602-8188
    +1 604 677-6243 (FAX)
    or
    Brazilian Gold Corporation
    Tom Hart
    Investor Relations
    +1 403 701-4278
    www.braziliangold.ca