BrazMin Commences Exploration on the Água Branca Gold Project; Exploration Update on the Serrita Gold Project
Aug 1, 2006
Road Town, Tortola, British Virgin Islands (Aug 1, 2006) - BrazMin Corp. (“BrazMin” or the “Company”) (TSX: BZM) is pleased to announce the commencement of exploration on its 13,100 hectare Água Branca Gold Project (“Água Branca” or the “Project”), located in the Tapajós Gold District, ParÁ State, Brazil.
Água Branca is situated approximately 70 kilometres west-northwest of the Company's São Jorge Gold Project and 30 kilometres northwest of the Transgarimperia Highway. A recently completed road from the highway to the nearby community of Água Branca facilitates access to the Project for personnel and equipment.
The Tapajós Gold District is the site of significant alluvial gold production over the last forty years, with an estimated 19 million ounces of gold produced from a 168,000 square kilometre area*. Mineralization at Água Branca is associated with granitic intrusives and linear zones of hydrothermal alteration within a northwest-trending crustal-scale deformation zone characteristic of the Tapajós Gold District. The Project is the site of widespread historic “garimpos” (artisanal workings), in the form of hand dug pits and trenches up to 35 to 40 metres deep from which “garimpeiros” (artisanal miners) extracted gold from saprolite, the in-situ weathered rock overlying the primary bedrock. In 1996, TVX Gold Inc. conducted limited exploration activities at Água Branca, including channel and auger sampling of saprolite in five zones, as well as bedrock testing of one of these zones via two diamond drill holes. These two holes returned results of 1.1 g/t Au over 40 metres and 0.9 g/t Au over 32 metres, respectively*.
* The estimate of gold production from the Tapajós Gold District and the two holes drilled in 1996 pre-date National Instrument 43-101 and are of historic significance only.
In July, BrazMin mobilized a field crew to Água Branca to conduct a program of geological mapping and systematic channel sampling. A total of 173 channel samples have been collected to date from saprolite exposures, shafts and galleries over an area measuring approximately 120 by 150 metres. This area of detailed sampling lies within the larger, 750 by 260 metre Camarão Hill area covered by extensive garimpo workings. Samples have been shipped to SGS-Lakefield-Geosol Laboratorio Ltda (“Lakefield”) and analyses are pending. Lakefield is ISO14001 and ISO 9001:2000 accredited and is independent of BrazMin. Mapping and channel sampling at Água Branca is ongoing.
Concurrent with surface exploration, a 474.51 line-kilometre airborne Magnetometer and Radiometric geophysical survey was flown over Água Branca by Fugro-Geomag, an ISO9001:2000 accredited company, independent of BrazMin. Line spacing for the survey ranged from 200 to 400 metres. The survey is now complete and results are pending.
Based on positive results from geological mapping, sampling and the geophysical survey, drill targets will be delineated for a proposed 2,000 metre Phase I Drill Program. This program is anticipated to commence following confirmation from the Brazilian Mining Department (“DNPM”) that conversion of mineral title to exploration licences in the name of BrazMin's 100%-owned Brazilian subsidiary is complete. The property is subject to a 2% net smelter return royalty, with a buyout of US$2 million.
Serrita Gold Project Update
BrazMin is pleased to provide an update on the 19,364 hectare Serrita Gold Project (“Serrita”), where Troy Brasil ExploraÇao Mineral Ltda, a subsidiary of Troy Resources of Australia (“Troy”), is earning up to a 75% interest in Serrita, which is currently 65%-owned by BrazMin and 35%-owned by a group of Brazilian citizens, independent of BrazMin. In the event that Troy completes its earn-in to 75%, BrazMin will retain a 16.25% interest in the project. Serrita is located 27 kilometres from a paved highway in Pernambuco State and is accessible year-round via secondary gravel roads.
Ongoing exploration activities by Troy include geological mapping and channel sampling focused on the nine largest garimpos at Serrita. The best gold grades received to date from channel sampling of veins exposed in the old workings include 56.48 g/t Au over 0.13 metres, 28.52 g/t Au over 0.2 metres, 25.01 g/t Au over 0.3 metres, 24.25 g/t Au over 0.5 metres, 14.33 g/t Au over 0.3 metres, 7.88 g/t Au over 0.45 metres and 15.29 g/t Au over 0.3 metres. The mapped workings are clustered within a 1.7 x 3.0 kilometre area, where nine parallel, shear-hosted quartz veins have been mapped. These lines of workings remain open to the northeast and southwest and require further mapping and delineation. All the quartz veins occur in east-northeast trending shear zones, with north-northwest dips varying from -40° to vertical. The gold mineralization is associated with boxwork sulphides and iron oxides that occur along quartz vein margins.
Troy has informed the Company that they plan to commence a 3,600 metre reverse circulation (“RC”) drill program in Q4/2006. The planned program will focus on assessing the lateral and vertical extent of mineralization, targeting the five highest priority areas as defined by the current surface exploration.
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.
BrazMin's exploration programs are being managed by the Company'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. Geological mapping and sampling at Agua Branca are being conducted under the supervision of Mr. Ilidio.
BrazMin has a treasury of approximately CDN$ 13.9M. 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.com or 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 the Água Branca Gold Project and exploration results) 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, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting drilling results and other geological 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.