Brazilian Gold Corporation
TSX VENTURE : BGC

Brazilian Gold Corporation

March 07, 2011 09:00 ET

Brazilian Gold and Golden Tapajos Intersect 13.6 Metres Grading 2.8 Grams/Tonne Gold at Boa Vista Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Brazilian Gold Corporation (TSX VENTURE:BGC) ("Brazilian Gold" or the "Company") and Golden Tapajós Mineração Ltda. ("Golden Tapajós") are pleased to announce assay results from the first hole (VGDD001) of the recently completed Phase One (1,188 metres) diamond drill program on the Boa Vista Gold Project. The top part of drill hole VGDD001 was re-drilled (VGDD001b) to 57.10 metres depth because of poor recoveries (56%) in the top 29.6 metres of this hole; the collar is located 3 metres south of VGD001. Drill hole VGDD001 intersected 1.43 grams/tonne gold over 102.3 metres from the collar to the end of the hole and terminated in mineralization (Table 1). Higher grade intervals include 3.09 grams/tonne over 29.6 metres starting at surface and 2.8 grams/tonne over 13.6 metres starting at 58.4 metres depth. In drill hole VGDD001b, a similar interval (0-29.75 metres) as in VGDD001 graded 0.68 grams/tonne gold. The higher grades in VGD001 are likely attributed to poor recoveries and to the nugget effect as a result of coarse gold; the reader is cautioned that the results for this interval may not be representative and they strongly bias the average grade of the entire hole. The hole was a vertical hole and collared in the center of the VG1 anomaly that was previously described in News Release 5/11 (March 1st, 2011). The true thickness of the mineralization is uncertain, however a better understanding of the geometry of this zone is expected when assays from drill hole VGDD002 to VGDD005 are received from the lab.

Table 1: Assay results from drill hole VGDD-001*  
Hole No. From (m ) To (m ) Interval (m ) Grade (g/t )
VGDD001 0.00   102.3   102.30   1.434  
  Including 0.00   29.60   29.60   3.090  
  Including 58.45   72.03   13.58   2.795  
VGDD001b 0.00   57.10   57.10   0.491  
  0.00   29.75   29.75   0.675  
* Samples for the interval from 0 to 29.60 metres in VGDD001 were analyzed by Nomos Análises Minerais Ltda. for metallic screen gold fire assays. All other samples were submitted to Acme Analytical Laboratories Ltd. for gold fire assays on samples pulverized to -150 mesh. Due to the coarse nature of the gold at VG1, Golden Tapajós has requested the laboratory to complete metallic screen assays on all samples. Internal quality control samples were inserted by the laboratory with acceptable results. External quality control samples were not inserted in the sample shipments and therefore these results cannot be verified by Brazilian Gold. The results are included for reference only and the reader should not rely on these assays.

Drill hole VGD001 intersected silica+sericite+pyrite altered granite with some inclusions of altered volcanic rock. Higher grade gold intervals are associated with increased silica and sulphide alteration.

The Company is extremely encouraged by the results from the first drill hole at VG1, which was collared within the large surface anomaly (>900 metres long by 135 metres wide) identified in the trenching program. Additional drill holes will be required to test for higher grades zones within this large alteration system at VG1. The VG1 target is one of more than 6 targets on the Boa Vista property that are prospective for both bulk mineable and high grade gold mineralization. Once all results from the Phase One (1,188 metre) drill program are received, Golden Tapajós and Brazilian Gold will design a Phase Two drill program to further test VG1 as well as the other targets on the property.

Correction

In the previous News Release (NR 5/11, March 1, 2011), the Company reported under the highlights "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." The statement should have read "VG1 rocks contain coarse visible gold and the Company has requested the laboratory to complete metallic screen assays for samples grading greater than 0.1 grams/tonne gold."

Laboratory Procedures

Tapajós Gold sampled the core at 1.5 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 -150 mesh. The pulp is shipped to Santiago, Chile 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. 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; once all results from the Phase One drill program are received, in conjunction with its JV partner, Brazilian Gold will 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 financial 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