Brazilian Gold Signs Letter of Intent to Acquire Regent Brazil
VANCOUVER, June 15 /CNW/ - Brazilian Gold Corporation ("Brazilian Gold" or "Company") is pleased to announce they have signed a Letter of Intent ("LOI") to acquire a 100% interest in Regent Brazil Holdings Limited ("Regent Brazil"). Regent Brazil holds title through option agreements to a number of gold projects in southern Para (Jamanxim Project) and northern Mato Grosso (Peixoto Project) state of Brazil and Region III of northern Chile (Vallenar Project). The terms of the LOI require Brazilian Gold to issue ten million shares to acquire 100% of the outstanding shares of Regent Brazil. The proposed transaction is a non-arm's length transaction under the rules of the TSX Venture Exchange as a significant shareholder of Regent Brazil is also a owns or controls directly or indirectly over 10% of the common shares of the Company and it is subject to satisfactory due diligence by the Company, execution of a Definitive Agreement, Toronto Venture Stock Exchange and any other regulatory approvals.
Alvin Jackson, Chairman and CEO of Brazilian Gold commented, "We are delighted to have signed a LOI to acquire this extensive land package (97,060 Ha) from Regent Brazil. The extensive garimpeiro activity on the Brazilian properties suggests they have a high potential to host primary gold mineralization. Combined with the Company's existing nearby projects (Sao Jorge and Boa Vista) and the gold-copper project in Chile, the Company now has an extensive portfolio of high quality exploration projects, as well as a significant gold resource at Sao Jorge that is open for expansion (See News Release 7/10 for details)".
Jamanxim Project
The Jamanxim Project comprises 6 properties (Piranhas, Anta, Tucunaré, Circular Structure, Rio Novo, Mariazinha and Pista Sao Paulo) for a total area of 73,314 hectares. The Project is located in the Tapajos Mineral Province (TMP) in southern Para state. The properties are road accessible and adjacent to the Transgarimpeiro Highway, except for Piranhas and Anta, which can be accessed by a small plane to landing strips on the properties. The properties have extensive garimpeiro workings, but except for Tucunaré have undergone limited systematic exploration work by mining companies. Tucunaré was the focus of an exploration program from 2005 to 2008 that included soil and rock sampling, geophysics (induced polarization and magnetometer) survey, and diamond drilling (4,621m in 36 holes). The drill holes tested coincident chargeability and gold in soil anomalies, which outlined three mineralized zones, as well as some regional targets; selected intersections from these drill holes are shown in Table 1. Gold mineralization is associated with structurally controlled quartz stockwork zones hosted in silica-sericite-chlorite altered granitic rocks; the stockwork zones strike east-west and have a steep dip. Some of these stockworks zones are open along strike and down dip, and a number of the regional chargeability and geochemical targets remain untested and require follow-up drilling.
Table 1: Selected Drill Intersections from the Tucunaré property.
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Hole Number From (m) To (m) Interval (m) Gold (g/t) Zone
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DD05SB01 82.29 93.05 10.76 1.27 Zone 1a
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DD05SB02 63.22 67.94 4.72 2.43 Zone 1a
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DD05SB04 13.71 25.90 12.19 12.22 Zone 1a
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DD05SB04 60.22 70.18 9.96 0.97 Zone 1a
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DD05SB06 19.80 24.38 4.58 1.63 Zone 1a
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DD05SB06 146.30 152.40 6.10 1.26 Zone 1a
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DD05SB08 47.24 65.53 18.29 1.89 Zone 2
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DD05SB09 60.86 67.70 6.84 1.79 Zone 2
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DD05SB12 39.62 56.10 16.48 1.72 Zone 3
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DD06SB13 77.00 105.00 28.00 1.04 Zone 2
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DD06SB15 111.00 117.00 6.00 1.83 Zone 2
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DD06SB18 7.20 41.20 34.00 2.71 Zone 2
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DD06SB20 59.60 65.60 6.00 2.86 Zone 1b
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DD06SB20 71.60 80.70 9.10 1.27 Zone 1b
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DD06SB21 122.41 131.80 9.39 0.67 Zone 3
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DD06SB23 199.30 205.67 6.37 2.07 Zone 3
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DD07SB25 48.10 60.10 12.00 6.97 Zone 2
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DD07SB26 97.00 103.65 6.65 2.80 Zone 2
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DD08SB29 77.00 83.00 6.00 1.58 Zone 1a
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DD08SB31 41.85 48.00 6.15 1.42 Zone 1b
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DD08SB35 47.00 51.00 4.00 5.29 Regional
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Note: Drill hole database was supplied by Regent Brazil and has not been
verified by Brazilian Gold Corporation.
The Jamanxim Project has the potential to host vein and stockwork style deposits in an epithermal to porphyry environment as well as shear veins. Brazilian Gold plans an initial exploration program to evaluate and prioritize the properties for further exploration work.
Peixoto Project
The Peixoto Project comprises two exploration properties (Batistao and Colider) for a total area of 20,000 hectares. The Project is located in northern Mato Grosso state, which has similar geology as the TMP to the north. The projects are located in a farming region and are road accessible. The Batistao property was explored by Western Mining Company (WMC) in the 1990's. They reportedly completed geochemical and geophysical surveys, auger and reverse circulation drilling (RC), however the Company does not have access to the reports that detail this work at this time. The Colider property was explored by WMC in the 1990's and more recently by Codelco; details of their exploration programs are unknown. The two properties have potential to host vein and stockwork zones in an epithermal to porphyry environment as well as shear veins similar to deposits in the TMP. Brazilian Gold plans an initial exploration program of data compilation of previous exploration work to evaluate and prioritize targets for further exploration work.
Vallenar Project
The Vallenar gold-copper project is located in Region III of northern Chile. It is located approximately 100 kilometres southeast of Vallenar city and 25 kilometres northeast of Barrick Gold Corporation's Pascua-Lama gold-silver deposit, which is host to a proven and probable mineral reserve of 17.8 million ounces (Dec. 31, 2009, Barrick Gold Corporation Annual Report). The property is situated at about 4,000 to 4,500 metres above sea level adjacent to the Chile-Argentina border.
The project consists of 15 exploitation concessions for a total area of 3,750 hectares.
The property was explored by Exxon (1983-1984), Rayrock (1988), Phelps Dodge (1990-1991), Newmont (1993) and Barrick (1995-1997). Exploration programs included geological mapping, rock geochemistry (2,924 samples), induced polarization survey (15.3 km), magnetic surveys (83.7 km), diamond drilling (2,902.5 m in 9 holes) and reverse circulation drilling (9,673 m in 38 holes). This work has outlined five zones of significant alteration and gold-copper mineralization known as the North, East, Central, Yellow and Breccia zones. The Central zone contains the preserved upper level of a high-sulphidation epithermal system. Twelve wide spaced drill holes have tested this mineralization with the best intercept grading 1.37 grams/tonne gold and 0.36% copper over 100 metres. South of the Central Zone, the Breccia Zone contains quartz-sulphide stockworks and hydrothermal breccias hosted in a quartz diorite stock. This porphyry style mineralization has been tested by 8 short drill holes with the best intercept grading 0.6 grams/tonne gold and 0.32% copper over 44 metres. The North, East and Yellow targets have had limited exploration to date and require additional work to better understand these exposed alteration systems.
Previous exploration programs on the Vallenar Project were focused on epithermal systems after the discovery of El Indio, Tambo, Pascua-Lama and Veladero in the 1980's and 1990's. More recently, the deeper level porphyries of these shallow level epithermal systems have been explored with a number of multi-million ounce gold discoveries including El Morro (New Gold Inc./Xstrata), Capishe (Exeter Resource Corporation), Volcan (Andina Minerals Inc.) and others. The Vallenar Project has a high potential for discovery of both shallow epithermal and deeper porphyry style gold-copper mineralization.
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 the Tapajos region of Northern Brazil. The Company has approximately Cdn$10 million in cash, which will be used to explore their five gold projects (Maues, Boa Vista, Sao Jorge, Jamanxim and Peixoto) in Brazil and their gold-copper project (Vallenar) in Chile.
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 Toronto Stock Exchange 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.
For further information: Brazilian Gold Corporation, Alvin Jackson, Chairman and Chief Executive Officer, Tel: +1 604 602-8188; Investor Relations, Tom Hart, Tel: +1 403 701-4278
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