VANCOUVER, Dec. 14 /CNW/ - Red Dragon Resources Corp. ("Red Dragon" or the "Company") is pleased to announce the signing of a 3,000 metre drill program for their Maués Project ("Project") in the Tapajos Region of Northern Brazil. The drill contract is with Energold Perfurações Ltda., a subsidiary of Energold Drilling Corp., a publically traded Canadian company based in Vancouver, British Columbia. Energold utilizes highly portable rigs that can be mobilized by men and can drill to the required depths to test the currently identified targets. The Company expects drilling to start the third week of December and will initially test gold geochemical targets on the Doze de Outubro property.
The Doze de Outubro target is a gold in soil and rock geochemical target that is about 850 metres long by 200 metres wide that trends east to northeast. The anomaly is coincident with a number of artisanal workings (garimpos) that expose quartz-sulphide vein stockworks hosted by felsic volcanic and volcaniclastic rocks. Grab samples of the vein material commonly grade several grams per tonne gold, whereas the pervasively altered wall rock adjacent to the veins commonly grades less than 1 gram per tonne. The initial drill holes will be collared north of the garimpos and drilled to the southeast to test the width and down dip extent of the steeply dipping mineralization exposed in the garimpos. Depending on results, 1,000 metres of drilling is planned for this target before moving the drill to test a large gold in soil anomaly on the Rosa de Maio property.
The Rosa de Maio gold in soil anomaly is approximately 5 kilometres in diameter and is underlain by altered granite containing disseminated sulphides and quartz-sulphide stockworks. Grab samples of this mineralization commonly grades several grams per tonne gold, and the style and tenor of mineralization is similar to many of the gold porphyry deposits currently being evaluated in the Tapajos Mineral Province. The soil anomaly is coincident with a flexure in a large northeast trending regional scale fault, as are a number of other soil anomalies on the property. Anta creek, which flows eastward into the Tapajos River, cuts the northern part of the anomaly. The creek and its tributaries were the focus of extensive alluvial mining in the 1980's and 1990's with un-official gold production estimated to be 0.5 million ounces.
Red Dragon is earning an 80% interest in the Maués Project by funding exploration and making cash payments to the owner of the properties; the details of the Agreement are outlined in the Company's News Releases dated September 24th and December 10th, 2009. The Project consists of four properties, which from north to south are Doze de Outubro, Rosa de Maio, Bandeirantes and Maués, and have a total area of 56,790 hectares.
Since signing the Agreement, the Company has established drill camps and up graded the airstrips at the Doze de Outubro and Rosa de Maio properties. Geophysical (ground magnetic) surveys are nearly completed at the Doze de Outubro property and once finished the crew will move to the Rosa de Maio property to survey that property. Soil sampling crews are currently extending and infilling the soil sampling survey at the Bandeirantes property to identify new targets and refine currently identified gold targets.
The Company recently completed an independent National Instrument 43-101 Technical Report on the Maués Project, which can be downloaded from the Company's website (www.reddragonresources.com) or from the System for Electronic Document Analysis and Retrieval ("SEDAR", www.sedar.com). The report summarizes the geology and previous exploration programs on the properties and identifies seventeen gold targets with recommendations for additional follow up exploration programs. The report was written by Mr. Hrayr Agnerian, M.Sc. (Applied), P.Geo. (Ontario), Associate Consulting Geologist with Scott Wilson RPA of Toronto, Ontario. Mr. Agnerian is an independent Qualified Person and is responsible for all of the sections in this Technical Report.
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 Red Dragon Resources Corp.
Red Dragon Resources Corp. is a Canadian based company with a focus on acquisition, exploration and development of mineral properties. The Company has a balance sheet of Cdn$9 million in cash and cash equivalents of Cdn$9.1 million in investments as of September 30, 2009.
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: Red Dragon Resources Corp., Alvin Jackson, Chairman and Chief Executive Officer, Tel: (604) 602-8188; Harbour Financial Inc., Brian N. Barbour, Tel: (403) 813-5832