Brazilian Gold Corporation. : Brazilian Gold Outlines 8.47 Mt Grading 1.23 G/T Gold for 336,000 Contained Ounces in the First Resource Estimate on the VG1 Deposit (Boa Vista Project), Brazil
Brazilian Gold Corporation (TSXV: BGC) is pleased to report the results of the first NI43-101 compliant mineral resource estimate for the VG1 gold deposit (Boa Vista project) located in the Tapajós region of northern Brazil. Brazilian Gold and their joint venture partners, Octa Mineração Ltda. and D'Gold Mineral Ltda., reported the VG1 discovery in the first quarter of 2011 and have completed two phases of diamond drilling (15 holes in 3,007 m) since that time.
The inferred mineral resource for the VG1 gold deposit is 8.47 Mt grading 1.23 g/t gold at a 0.5 g/t cut-off for 336,000 contained ounces. 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 VG1 deposit is road accessible and is located approximately 170 km southwest of the town of Novo Progresso, which is located on the recently paved BR-163 highway.
- Maiden resource estimate on the VG1 gold deposit completed shortly (16 months) after discovery was reported in March 2011 (News Release 5/11 and 6/11).
- Resource estimate is based on shallow (<150 m depth) and limited drilling (15 holes in 3,007 m) and trenching (14 trenches in 2,229 m) of the eastern 600 m of an overall 2,000 m long gold-in-soil anomaly.
- Mineralization forms a coherent deposit that is not significantly affected by changes in the cut-off grade near the declared resource grade of 0.5 g/t gold.
- Deposit is open at depth and along strike with a high potential to expand the existing resource.
- Mineralization starts at surface, is up to 85 m in thickness and may be amenable to open pit extraction with a relatively low strip ratio.
- Gold grade appears to be increasing with depth and to the east based on limited drilling completed to date.
- Coarse gold visible in some drill cores and trench samples and in screened metallic analysis of selected trench samples indicates the overall grade of the deposit could be higher when larger samples are mined and processed.
- VG1 is one of four highly prospective targets (Jair, Ze do Leicha, Almir and Planalto) identified on the Boa Vista project and together they represent approximately 25 % of the property that has been explored to date.
- Large property (12,889 Ha) with extensive historic alluvial and lateritic workings that is largely unexplored by modern systematic exploration.
Ian Stalker, CEO of Brazilian Gold, commented "We are delighted with the results of the first independent NI43-101 mineral resource estimate on the VG1 gold deposit based on the limited amount of drilling (15 holes in 3,007 m) completed to date. The deposit has been intersected from surface to relatively shallow depths (150 m) and remains open down dip. Along strike, the gold-in-soil anomaly that overlies the VG1 deposit extends for an additional 1,400 m to the west and will be the focus of trenching and drilling in future exploration programs, and we are confident that we will add further ounces to this maiden resource estimate.
The resources identified at VG1 will further add to our overall gold inventory including a recently announced resource at Jau (inferred resource of 19.440 Mt grading 0.81 g/t gold at a 0.3 g/t cut-off for 503,000 oz) and the Sao Jorge resource (indicated resource of 11.365 Mt grading 1.0 g/t gold at a 0.3 g/t cut-off for 379,000 oz and an inferred resource of 20.673 Mt grading 0.8 g/t gold at a 0.3 g/t cut-off for 558,000 oz) that is currently being updated and expected to be completed in Q3 2012."
The VG1 deposit has been tested by 15 diamond drill holes (3,007 m) and 14 trenches (2,299 m) containing 3,399 assays. Gold assays were composited at 5 m lengths and interpolated into the block model using ordinary kriging. A three dimensional solid model of the primary and oxide mineralization was constructed to constrain the resource estimate; 12 of the 15 diamond drill holes and 6 of the 14 trenches penetrated these solids over a strike length of 500 m and were used in 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 (oxide and primary mineralization) at various cut-off grades is shown in Table 1; the oxide resource comprises a small part (1.2 %) of this overall resource. At this time, no economic studies have been completed on this property and as a result the economic cut-off grade is unknown. A gold cut-off of 0.5 g/t has been highlighted as a possible open pit cut-off.
The Phase One and Two drill programs were designed to test beneath auriferous quartz-sulphide stockwork mineralization exposed in surface trenches that were excavated across the eastern 600 m of a 2,000 m long gold-in-soil anomaly. Fifteen drill holes (3,007 m) were completed on 7 sections spaced 100 m apart; the holes were drilled to the northeast at -55° to -90°.
Table 1: VG1 inferred mineral resource* at various cut-off grades.
|Au Cut-off||Tonnes > Cut-off||Grade>Cut-off||Contained Metal|
|(g/t)||(tonnes)||Au (g/t)||Au (ozs)|
*According to National Instrument 43-101 and CIM (2005) an 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, workings and drill holes. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.
The drill holes intersected a west-northwest striking, steeply dipping mineralized zone that is up to 85 m in thickness and extends at least 150 m below surface based on existing drilling. The mineralized zone consists of quartz-pyrite stockwork and silicified zone(s) that are hosted within a foliated, mixed mafic volcanic and intrusive unit at or adjacent to granite rocks.
Brazilian Gold will have effectively earned a 71% interest in the Boa Vista project following the final option payment of US$200,000 due on August 15, 2012.
Jim Cuttle, B.Sc., P.Geo., Gary H. Giroux, M.A.Sc., P.Eng., and Michael Schmulian, B.Sc. (Hons.), M.Sc., Fellow of AusIMM are the Qualified Persons for the NI43-101 Report on the Resource Estimate of the VG1 gold deposit and have reviewed and approved the contents of this press release.
August 9, 2012 (Source: 4-Traders.com)
Disclosure: Brazilian Gold Corp. is a Vulture Bargain Candidate of Interest (VBCI). Members of the GGR team may hold long positions in BGC.V.