Brazilian Gold Outlines 503,000 Ounces of Gold in the First Resource Estimate at the Jau Target(Surubim Group), Northern Brazil
Vancouver, British Columbia CANADA, Jun 05, 2012 (Filing Services Canada via COMTEX) -- Brazilian Gold Corporation (BGC - TSX Venture), is pleased to report the results of the first NI43-101 compliant mineral resource estimate on the Jau target (Surubim group) in the Tapajos region of northern Brazil. Brazilian Gold discovered gold mineralization at the Jau target in the first quarter of 2011.
The inferred mineral resource for the Jau mineralization is 19.44 Mt grading 0.81 g/t gold (503,000 contained ounces) at a 0.3 g/t cut-off. The mineral resource estimate was completed by Giroux Consultants Ltd. of Vancouver, B.C., Canada, and is documented in an independent NI43-101 Technical Report that will be posted on our website and SEDAR. The Jau target is located approximately 65 km southwest of the Company's advance stage Sao Jorge project and is accessed by the Transgarimpeiro Highway.
Highlights
* Initial independent NI43-101 compliant mineral resource estimate for the Company's new (2011) discovery at its 100% owned Jau target, Tapajos region, Brazil.
* Declared inferred mineral resource of 19.44 Mt grading 0.81 g/t gold (503,000 ounces) at a 0.3 g/t cut-off.
* At a higher cut-off grade of 0.8 g/t gold, the inferred mineral resource is 6.66 Mt grading 1.42 g/t gold (303,000 ounces).
* Mineralization is open at depth and to the west with potential to expand the existing resource.
* Small area of project explored to date with excellent potential for discovery of new gold mineralization.
* Jau target shares exploration and development synergies with nearby targets (Patoa, Colonia and Tucunare) as well as the Sao Jorge project.
* Builds on the Company's stated objective of identifying road accessible, near surface, bulk mineable deposits that could potentially be processed at a central processing facility or alternatively developed as a standalone operation.
Ian Stalker, CEO of Brazilian Gold, commented "We are delighted with the results of the first, independent NI43-101 mineral resource estimate on the Jau target completed only one-year after intersecting gold mineralization in our first holes on this target. This achievement highlights the quality of our work and diligence, and underlines the potential for large-scale gold mineralization across our extensive land package in Brazil.
The mineralization is open at depth and to the west, which will be the focus of future drill programs. The resources identified at Jau will further add to our overall gold inventory when resource estimates currently in progress on the Sao Jorge and VG1 (Boa Vista project) deposits are completed in Q3 2012."
A total of 20 drill holes containing 2,978 gold assays have been completed on the project. Gold assay were composited at 2.5 m lengths and interpolated into the block model using ordinary kriging. A three dimensional solid model of the mineralization was constructed to constrain the resource estimate. The block model is comprised of individual blocks measuring 20 m by 20 m by 5 m with the long dimensions of the block orientated east-west and north-south. The mineral resource estimate at various cut-off grades is shown in Table 1. At this time no economic studies have been completed on this property and as a result the economic cut-off is unknown. A gold cut-off of 0.3 g/t has been highlighted as a possible open pit cut-off. – Brazilian Gold Corp. press release continues at the link below.
Source: Brazilian Gold Corp. via MarketWatch.com
http://www.marketwatch.com/story/brazilian-golds-outlines-503000-ounces-of-gold-in-the-first-resource-estimate-at-the-jau-targetsurubim-group-northern-brazil-2012-06-05?reflink=MW_news_stmp
Disclosure: Brazilian Gold Corp. is a Vulture Bargain Candidate of Interest (VBCI). Members of the GGR team may hold long positions in BGC.V.
