BrazMin Announces Discovery of New Mineralized Zone & Exploration Update on the São Jorge Gold Project
Jul 24, 2006
Road Town, Tortola, British Virgin Islands (Jul 24, 2006) - BrazMin Corp. (“BrazMin” or the “Company”) (TSX: BZM) is pleased to announce the results of the first three holes from a Phase II Exploration Program and an update on exploration at the Company's 100%-owned São Jorge Gold Project (“São Jorge” or the “Project”), located in the TapajÓs Gold District, ParÁ State, Brazil.
Diamond drill hole SJD-055-06 represents the first hole drilled in the Kite Zone, a newly discovered gold mineralized zone at São Jorge. The discovery hole intersected three main mineralized zones of 1.93 g/t Au over 1.64 metres, 1.42 g/t Au over 5.66 metres, and 2.56 g/t Au over 3.00 metres, as well as several other narrow zones grading >1 g/t Au. Drill hole SJD-055-06 is located 250 metres northwest of the Wilton Pit. The Wilton Zone was the principal focus of previous exploration on the property. Additional drill holes are planned for the current program to further assess the extent of mineralization in the Kite Zone.
Diamond drill holes SJD-049-06 and SJD-050-06 were collared along the northwestern end of the Wilton Pit to target the down dip extent of the west-northwest trending Wilton Zone. These holes represent in-fill drilling to the Company's 2005 Phase I Exploration Program.
Four main gold mineralized zones were intersected in drill hole SJD-049-06, including 1.07 g/t Au over 4.00 metres, 3.70 g/t Au over 2.00 metres, 1.06 g/t Au over 4.00 metres, and 1.18 g/t Au over 3.00 metres. Drill hole SJD-050-06 was collared 40 metres to the east of SJD-049-06, and was collared to test the down-dip extension of mineralization intersected in holes SJD-006-05 (1.28 g/t Au over 11.43 metres) and SJD-034-05 (1.12 g/t Au over 13.62 metres), reported by the Company in news releases dated October 6, 2005 and February 16, 2006, respectively. Three main zones were intersected in drill hole SJD-050-06, including 1.18 g/t Au over 9.08 metres, 5.02 g/t Au over 4.00 metres, and 1.46 g/t Au over 13.32 metres. A comprehensive list of results from the three holes reported in this release is presented on the following page.
To date a total of 4,566 metres have been drilled in 17 holes in the Phase II Program at São Jorge, including the three holes reported in this release. The balance of the holes are either on-site being logged and sampled, or are at the assay laboratory for analysis. Assay results will be released when received by the Company.
Currently two diamond drill rigs have been mobilized to São Jorge. One rig is being utilized to conduct in-fill drilling on the Wilton Zone and a second rig is testing new target areas on the Project, including the Kite Zone. The allocation of the two rigs will continue to be assessed by the Company throughout the Phase II Program, based on results.
Tony Ransom, President and CEO of BrazMin, states “We are very pleased with the discovery of the auriferous Kite Zone and look forward to continuing to drill test this and other new target areas within the northwest trending mineralized corridor which hosts the Wilton Zone at São Jorge”.
SJD-049-06 - Wilton Zone (inclination: -55°, azimuth: 180°, length: 202.10 metres)
SJD-055-06 - Kite Zone (inclination: -55°, azimuth: 360°, length: 310.10 metres)
SJD-055-06 - Kite Zone (inclination: -55°, azimuth: 360°, length: 310.10 metres)
* widths are drill intersected and do not represent true widths** Au grades are uncut.
A ground-based geophysical program has recently been completed at São Jorge. This program included 28.55 line kilometres of Induced Polarization (“IP”) and 33.26 line kilometres of Magnetometer (“Mag”) surveys. Line spacing for the ground surveys varied from 200 to 500 metres, based on access and geology. The surveys were centered on the Wilton Zone and covered new target areas, including the Wilton West Pit and the Kite Zone. Data from these surveys is currently being processed and interpreted by a geophysicist, independent of BrazMin and who is a qualified person within the meaning of National Instrument 43-101.
An airborne Mag geophysical survey commenced on July 17, 2006 and is currently in progress. A total of 2,284 line kilometres at 100 to 400 metre spacing is planned and will cover the entire 57,450 hectare Project area.
Both the ground-based and airborne geophysical surveys are being carried out by Fugro-Geomag, an ISO9001:2000 accredited company, independent of BrazMin. Results of the geophysical surveys will be used to further direct exploration and gain a better understanding of the geology, structure and mineralization at São Jorge.
Mineral Resource Estimate and Metallurgical Testwork
BrazMin has been informed by SRK Consulting, the independent engineering firm preparing a mineral resource estimate on the Wilton Zone, that, after several delays, they are currently finalizing the mineral resource estimate. The results of this work will be released once they have been received by the Company.
Three 50-kilogram composite samples consisting of quarter-core from representative drill holes throughout the entire Wilton Zone were submitted by BrazMin to SGS/Lakefield (“SGS”) for initial metallurgical testwork. SGS is independent of BrazMin. The Company will release results of this testwork as soon as they have been received.
Quality Assurance/Quality Control and Qualified Person
Drill holes SJD-049-06, SJD-050-06 and SJD-055-06 were collared using HQ (63.5mm)-sized core in the oxidized saprolite zone and NQ (47.6mm)-sized core in the fresh (sulphide) bedrock. The core is logged and photographed by BrazMin professional staff and then split using a diamond saw. Half the core is stored on-site in a secure core shed and the other half is sampled, bagged and secured and stored on-site until several holes are ready for transporting by road to SGS-Lakefield-Geosol Laboratorio Ltda's (“Lakefield”) sample-preparation laboratory in Itaituba, Brazil. The entire half-core is crushed and two kilograms is pulverized and homogenized. 150 Gram pulps are then air-freighted by Lakefield to their main assay laboratory in Belo Horizonte, Minas Gerais State, Brazil. Lakefield is ISO14001 and ISO 9001:2000 accredited and is independent of BrazMin. Gold is determined by fire assay/atomic absorption with a detection limit of 5ppb Au using 50 gram aliquots. Lead fire assays use silver as a co-collector to facilitate easier handling of prills as well as to minimize losses during the cupellation process. Selected samples will later be analyzed for other elements such as silver, copper, lead, zinc, etc. by ICP spectrometry/multi-acid digestion. The laboratory is instructed to automatically reanalyze abnormally high gold values. Specific gravity determinations are done using a gas picnometer. QA/QC procedures include the submission by BrazMin of systematic duplicates, blanks and standard samples within the sample batches submitted to Lakefield. In addition, Lakefield inserts its own standards into each sample batch. The results from these control samples indicate acceptable consistency of analysis. Selected representative pulverized sample duplicates are submitted for referee analyses to ALS Chemex's laboratory in Vancouver, an ISO 9001:2000 and ISO 17025 accredited laboratory which is independent of BrazMin.
BrazMin's exploration programs are being managed by BrazMin's President and CEO, Mr. Tony Ransom (Pr.Sci.Nat.), and, on-site, by BrazMin's VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), both of whom are qualified persons within the meaning of National Instrument 43-101. The data disclosed in this release has been verified by Mr. Ransom, who is responsible for the technical material in this release including the sampling, analytical and test data underlying the information. Geological logging, sampling and core handling procedures were carried out under the supervision of Mr. Ilidio.
BrazMin is a TSX-listed company focused on the acquisition, exploration and advancement of high quality gold projects, primarily in Brazil. BrazMin has a well-qualified exploration and management team with extensive experience and expertise in gold exploration and project management, both within Brazil and worldwide.
Mineral rights to São Jorge are held 100% by BrazMin's wholly-owned subsidiary, Brazilian Resources MineraÇão Ltda. A technical report dated March 31, 2006 and entitled “Technical Report on Sao Jorge Project, ParÁ State, Brazil for BrazMin Corp.” can be obtained from SEDAR at www.sedar.com.
BrazMin has a treasury of approximately CDN$ 14.1M. The Company has 27,042,540 shares outstanding and 35,551,245 shares fully diluted. For additional information on BrazMin and its projects visit the Company's website at www.brazmin.comor contact:Fiona Childe, Ph.D., P.Geo.
This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the Company's exploration plans with respect to São Jorge, exploration results and potential mineralization and resources) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in gold prices, changes in equity markets, political developments in Brazil, changes to regulations affecting the Company's activities, delays in obtaining or failures to obtain required regulatory approvals, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other ecological data, and the other risks involved in the gold exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of buy . Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.