VANCOUVER, Aug. 9 /CNW/ - Brazilian Gold Corporation ("Brazilian Gold" or "Company") is pleased to announce they have signed a Definitive Agreement ("Agreement") to acquire a 100% interest in Regent Brazil Holdings Limited ("Regent Brazil"), a transaction first announced by Brazilian Gold on June 15, 2010 (See News Release 8/10). The completion of the transaction is subject to completion of satisfactory due diligence on Regent Brazil and its assets, and the approval of the TSX Venture Exchange. Regent Brazil holds title through option agreements to a number of gold projects in southern Para (Jamanxim Project) and northern Mato Grosso (Peixoto Project) states of Brazil and Region III of northern Chile (Vallenar Project). The management team of Regent Brazil, which individually have twenty-five to forty years of experience working in the mining business of Brazil, have agreed to work with Brazilian Gold and to continue managing the company and its exploration programs.
The terms of the Agreement require Brazilian Gold to issue ten million shares to the shareholders of Regent Brazil to acquire 100% of the company. 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 also owns or controls directly or indirectly over 10% of the common shares of the Company.
Brazilian Gold is extremely pleased to have signed the Definitive Agreement to acquire this extensive land package (97,000 Ha) and work with the experienced management team of Regent Brazil. The wide spread garimpeiro workings on the Brazilian properties suggest they have a high potential to host primary gold mineralization. Combined with the Company's nearby projects (São Jorge and Boa Vista), the Company now has a portfolio of high quality exploration projects in the Tapajos Mineral Province (TMP), as well as a significant gold resource at São Jorge that is open for expansion (See News Release 7/10). The gold-copper project in Chile has a number of significant drill intersections and its close proximity to a number of multi-million ounce gold deposits suggests the property has a high potential for discovery of a gold-copper deposit with additional drilling.
Jamanxim and Peixoto Projects, Brazil
The Jamanxim Project comprises 6 properties (Piranhas, Anta, Tucunaré, Circular Structure, Rio Novo, Mariazinha and Pista São Paulo) for a total area of 73,314 hectares. The Project is located in the 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.
The Peixoto Project comprises two exploration properties (Batistão 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 properties were explored by Western Mining Company (WMC) in the 1990's and Batistão was explored more recently by Codelco.
The Jamanxim and Peixoto Projects have the 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, Chile
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 project situated at about 4,000 to 4,500 metres above sea level adjacent to the Chile-Argentina border and is comprised 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 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. Brazilian Gold plans an initial exploration program consisting of geological mapping, geophysics and diamond drilling (2,500 m) in the first year of work.
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, São 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 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.
SOURCE Brazilian Gold Corporation
For further information: 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