Brazauro REsources Coporation

July 12, 2005 09:30 ET

Intercepts of 234 Meters and 226 Meters Grading Respectively 1.3 and 1.5 G/T Gold, amongst First Drill Results at Tocantinzinho Project.

HOUSTON--(CCNMatthews - Jul 12, 2005) -

Brazauro Resources Corporation (TSXV:BZO) has received assay results from the first three and one half holes of the ten-hole, approximately 3000-meter phase 3 drilling program at its Tocantinzinho Project, located in the gold-rich Tapajos region of Para State, Brazil.

All 3 1/2 holes intercepted mineralization, with the following intercepts:

-- Hole # TOC-05-22 assaying 226 meters @ 1.5 g/t gold, including 83.3 meters @ 2.3 g/t gold and 47.3 meters @ 2.2 g/t gold.

-- Hole # TOC-05-21 returned an intercept of 234 meters @ 1.3 g/t gold, including 23.2 meters @ 3.3 g/t gold, leaving it open at depth.

-- Hole # TOC-05-23, a relatively short hole to test only the eastern contact, ended in mineralization and was not pushed deeper. The hole intercepted 80.3 meters @ 0.7 g/t gold, including 28 meters @ 1.2 g/t gold.

-- Hole # TOC-05-24, to date results have been received only from the top 124 meters. Mineralization at a grade of 1.5 g/t gold was intercepted between 106 to 124 meters, representing the last of the received assay results. This intercept represents the start of continued alteration and sulfidation indicating strong potential for increased mineralization down the hole to at least 293 meters.

High-grade intercepts of 1.8 meters @ 26.8 g/t gold and 2.5 meters @ 28g/t gold, similar to those encountered in earlier drilling programs were encountered in Holes # TOC-05-21 and TOC-05-22.

Holes # TOC-05-21 to TOC-05-23 were drilled for a better definition of the width and continuity with depth. Early indications show that the true width of mineralization has been substantially increased to 160 meters from an earlier estimate of 110 meters. Hole # TOC-05-24 was drilled to test the extension to the southeast; the partial results mentioned above are promising.

meters) meters) (meters) (Gold) (meters)
TOC-05-21 80.0 314.0 234 1.3
Including ------------------------------------------------------
80.0 133.0 53 1.8
290.8 314.0 23.2 3.3
300.2 302.0 1.8 26.8 315.6
TOC-05-22 12.2 238.2 226 1.5
Including ------------------------------------------------------
50.0 97.3 47.3 2.2
118.0 238.2 120.2 1.8
154.9 238.2 83.3 2.3
69.55 72.0 2.5 28 280.4
TOC-05-23 70.0 150.3 80.3 0.7
Including ------------------------------------------------------
80 108 28 1.2 150.3
TOC-05-24 106.0 124.0 18 1.5 350.5
Intercepts calculated at a cut-off of 200 ppb Au.

The above confirms and improves the outstanding results reported earlier, all of which are available at All drill hole locations and mineral intercepts with the exception of Hole #TOC-04-20 (not located in the central area) can be viewed on the same web site.

The results continue to indicate an open-pit setting with the potential of underground mining of high-grade zones that have been encountered at depth. Mineralization is well disseminated and hosted in coarse-grained intensely fractured granite with densely distributed sheeted quartz-chlorite-sulfide stringers. These stringers are aligned along a NE/SW direction. In places, the granite is intruded by andesite- and aplite-dikes that are generally not mineralized and are often the barren gaps between the mineralized intercepts in these holes.

A minimum strike length of 625 meters of mineralization has been confirmed from TOC-04-7 in the NW to TOC-05-24 in the SE. Results indicate that it is still open-ended to the southeast of TOC-05-24. Moreover, mineralization is open ended to the NW and at several places to the ENE, as well as at depth.

An Airborne magnetic and radiometric survey has been completed over the Tocantinzinho and Mamoal properties, to generate other low-magnetic signature targets potentially associated with surface gold mineralization. Results of this survey are expected early August.

At Mamoal, follow-up grid sampling of the initial soil survey anomalies is continuing and, depending on results, drilling will commence this fall.

Sampling Procedures

The recovered NTW and BTW-size cores are split in half by a standard rock saw. One-half is sent to the laboratory in intervals generally of 2 meters length, depending on geologic parameters but not greater than 3.5-meter. The remaining half-core is stored on site. The samples were bagged in lots of ten (10) and flown from the project site to Itaituba, from where they were air freighted to the Lakefield Geosol Laboratorios Ltda. (LGL) sample prep facility at Parauapebas in Para State.

Based on initial analytical results, an "intermediate preparation" procedure was chosen over the usual "standard prep" procedure. Samples are dried at 105 degrees C, crushed to 2mm, homogenized, and then a 1.0 kg split is taken from approximately 2-3kg of material (as opposed to a 250g split for the standard procedure). This material is pulverized to -150 mesh and a 50g split is then taken from this portion for the fire assay.

At Parauapebas, one "blank" (pure pulverized quartz) is inserted every 40 samples and a sieve test for crushing (90%-2mm) and pulverizing (95%-150#) is performed every 20 samples. The pulps (150 grams) were then air freighted to the Lakefield Geosol analytical laboratory in Belo Horizonte for Fire Assay/AAS analysis. LGL is an ISO9001/2000-certified mining and environmental analysis laboratory, and, in addition, participates in various inter-laboratory proficiency testing programs.

In addition to the laboratory quality control, Brazauro has added its own check samples every 10th sample.

The Tocantinzinho and Mamoal projects lie along a major WNW-ESE striking mineralized trend in the Tapajos that hosts several significant productive garimpos including Sao Jorge, Cuiu Cuiu and Bom Jardin, all of which host extensive primary gold mineralization.

The exploration program is being carried out under the direction of Steve Zahony, VP Exploration, and Elton Pereira, Exploration Manager for Brazil.

Mark E. Jones III


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The news release includes certain "forward-looking statements." All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results and future plans and objectives of Brazauro Resources, 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 Brazauro's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

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