BrazMin Update on the Água Branca Gold Project
Sep 19, 2006
Road Town, Tortola, British Virgin Islands (Sep 19, 2006) - BrazMin Corp. (“BrazMin” or the “Company”) (TSX: BZM) is pleased to provide an update on its Água Branca Gold Project (“Água Branca” or the “Project”), located within the TapajÓs Gold District in ParÁ State, Brazil.
Geological mapping, channel sampling and airborne geophysical surveys commenced on the Project in July 2006. Results have been received for 384 samples from a total of 141 channels of predominantly saprolite, with lesser mottled zone, exposures, shafts and adits distributed in five target areas, known as Camarão Hill, Serra da Abelha, Ouro Branco, Mata o Velho and Vila Sul. Camarão Hill constitutes the main exploration target and is characterized by a 750 by 300 metre area of historic “garimpos” (artisanal workings) (see Company website at www.brazmin.com for map). Highlights of this sampling include:
- 9.0 metres of 3.25 g/t Au in channel C-01 (Camarão Hill) *
- 3.0 metres of 7.82 g/t Au in channel C-45D (Camarão Hill) **
- 1.0 metre of 9.43 g/t Au in channel C-24 (Camarão Hill)
- 3.3 metres of 2.34 g/t Au in channel C-37 (Ouro Branco) *
- 2.0 metres of 2.50 g/t Au in channel C-16(Camarão Hill)
- 1.0 metre of 5.63 g/t Au in channel C-13 (Camarão Hill)
(* = open in one direction; ** = open in two directions)
Vertical channels (open in all directions, sample length limited by adit height):
- 2.1 metres of 6.12 g/t Au in channel C-49G (Camarão Hill)
- 1.6 metres of 7.89 g/t Au in channel C-38E (Ouro Branco)
- 1.8 metres of 6.04 g/t Au in channel C-06E (Camarão Hill)
- 1.5 metres of 6.22 g/t Au in channel C-44B (Camarão Hill)
- 1.8 metres of 3.32 g/t Au in channel C-01C (Camarão Hill)
- 2.0 metres of 2.88 g/t Au in channel C-206 (Mata o Velho)
- 1.8 metres of 2.91 g/t Au in channel C-06G (Camarão Hill)
Mineralization at Camarão Hill is related to a series of predominantly northeast-trending quartz+pyrite veins hosted within a granitic intrusion. Sericite+silica alteration haloes commonly occur around the veins and a broad zone of widespread kaolinite-sericite-(?)ankerite alteration occurs within the main host intrusive.
Exploration on the Project by previous operators focused on a limited area of garimpos. Regional exploration and airborne geophysical surveys conducted as part of the current program will form a basis for a comprehensive property-wide evaluation of the gold potential of Água Branca. As announced in a BrazMin news release dated August 1, 2006, a 475 line-kilometre airborne Magnetometer and Radiometric geophysical survey was flown over Água Branca by Fugro-Geomag, an ISO9001:2000 accredited company, independent of BrazMin. Results of this survey have been received by the Company and are currently being interpreted.
Title Conversion Finalized
Notification has been received from the Brazilian Mining Department (“DNPM”) that conversion of mineral title to exploration licences at Água Branca is complete. Exploration licences for the 9,356 hectare property are in the name of a third party with whom a wholly-owned Brazilian subsidiary of BrazMin has a prior agreement to acquire a 100% interest in the property, subject to a 2% net smelter return (“NSR”) royalty. The NSR royalty in favour of the third party has a buyout of US$2 million.
Proposed Drill Program
A drill rig will be mobilized to the Project once upgrades to the access road are complete. Mapping, channel sampling and interpretation of results are ongoing while roadwork takes place and targets are being delineated for a proposed 2,000 metre diamond drill program at Água Branca. This program is scheduled to commence in October, 2006.
Tony Ransom, President and CEO of BrazMin, states “We are pleased with the initial results from recent channel sampling in areas of historic workings on the Project. Now that title conversion is complete we plan to move forward with drill-testing of prospective gold targets at Água Branca”.
Quality Assurance/Quality Control and Qualified Person
The channel samples reported in this release were collected by BrazMin geologists, prepared for analysis at SGS-Lakefield-Geosol Laboratorio Ltda's (“Lakefield”) sample-preparation laboratory in Itaituba, Brazil and 150 gram pulps were 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 5 ppb 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. Lakefield inserts its own standards and blanks into each sample batch. The results from these control samples indicate acceptable consistency of analysis.
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. Mr. Ransom, who is responsible for the technical information in this release, has verified the data disclosed in this release. Geological mapping and sampling at Agua Branca are being conducted 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.
BrazMin has a treasury of approximately CDN$ 13.1M. The Company has 27,054,222 shares outstanding and 33,403,018 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.
VP Corporate Communications
Tau Capital Corp.
Tel: (416) 361-9636 x 227
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, changes in gold prices, changes in equity markets, political developments in Brazil, changes to the regulations affecting the Company's activities, delays in obtaining or failure 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 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.