Road Town, Tortola, British Virgin Islands (Sep 1, 2006) – BrazMin Corp. (“BrazMin„ or the “Company„) (TSX: BZM) is pleased to report that it has received preliminary results from two independent consultants regarding a mineral resource estimate and metallurgical test-work respectively, for the Wilton Zone on its 100% owned São Jorge Gold Project (“São Jorge„ or the “Project„), Pará State, Brazil.
Mineral Resource Estimate
SRK Consulting (Canada) Inc. (“SRK„), an independent mining consulting firm, has provided the Company with a mineral resource estimate to a depth of 100 metres below surface and data related to “mineralized material„ below 100 metres for the Wilton Zone at São Jorge. Gold mineralization has been demonstrated to be present to at least 200 metres below surface and the deposit is considered open below this depth and along strike in both directions. SRK has been analyzing data from the Project since March, 2006. A final technical report has not yet been received by BrazMin and will be filed on SEDAR within 45 days of this release.
The zone of mineralized material estimated by SRK for the Wilton Zone has been constrained to a depth of about 236 metres below surface by an envelope delimited by hanging wall and footwall boundaries of a structural-alteration zone associated with gold mineralization. This zone has been delineated for 700 metres along a strike direction of 290o, with a sub-vertical dip. The average estimated true thickness of this zone is 60 metres. Within this broader zone of mineralization, four main high-grade gold zones, as well as mineralized sub-zones are present. These main zones are sub-parallel to the strike of the deposit and have estimated average true thicknesses ranging from 1 to 7 metres (see attached Typical Cross Section). Scattered gold mineralization outside of the four discrete high-grade sub-zones exists within the 60 metre wide zone.
Using a 0.5 g/t gold cut-off, SRK has chosen to classify only that material in the Wilton Zone occurring within 100 metres of surface as a mineral resource. SRK‚s estimate of indicated mineral resources is presented in Table 1.
The mineral resource estimate presented herein does not discriminate between the four main high grade gold zones. The Company anticipates that if resources were to be estimated for these zones only, the overall grade may increase at the expense of losing a small number of ounces of contained gold. The Company is investigating this scenario.
Table 1: Wilton Zone Indicated Mineral Resource * (approximately 0 to 100 metres depth)
Saprolite + Unweathered Bedrock
*effective date: August 30, 2006
**gold cut-off grade of 0.5 grams per tonne (“g/t„) gold, all individual composite assays capped at 20 g/t gold
Note: numbers in columns above may not total due to rounding
Tony Ransom, BrazMin’s President and CEO commented: “These resource numbers are disappointing when compared to historical resources set by RTZ in the 1990’s. Due to the relatively high density of drilling, the level of continuity of mineralization and the Company’s good understanding of the geological controls involved, BrazMin regards the above estimate of resources as conservative in nature. We are currently following up on other gold mineralized zones, several geophysical targets and areas previously mined by garimpeiros outside of the Wilton Zone
Mineral Resource Estimate Parameters, Qualified Person and Methodology
A total of 10,890 metres of core in 55 diamond drill holes were used by SRK in their analysis. Of this total, 8,800 metres in 40 drill holes were drilled by BrazMin during a Phase I Exploration Program in 2005. The balance was drilled in the 1990’s by Rio Tinto Desenvolvimentos Minerais Ltda. (“RTDM„), a Brazilian subsidiary of Rio Tinto Plc (“RTZ„). Drill density is approximately 40 metres x 40 metres along the modeled 700-metre strike and down dip to the 50 metre elevation (approximately 150 metres below surface). Eleven drill intersections occur below the 50 metre elevation; the deepest gold mineralized intersection drilled to date is at -30 metre elevation (approximately 230 metres below surface). The mineral resource covers an area of 4.2 hectares.
Mineral resources have been classified according to “CIM Standards on Mineral Resources and Reserves: Definition and Guidelines „ (December, 2005) and prepared by G. David Keller, P. Geo. Mr. Keller is a Professional Geoscientist with the Association of Professional Geoscientists of Ontario and an employee of SRK. Mr. Keller is a Qualified Person within the meaning of National Instrument 43-101 (“NI 43-101„) and has prepared the data presented in this press release and verified the accuracy and authenticity of the contents relating to the mineral resources. SRK is not aware of any environmental, permitting, legal title, taxation, socio-political marketing or other issue that may materially affect this estimate of mineral resources.
The SRK resource estimate is based on drilling by RTDM and BrazMin completed by October 15, 2005 and does not include subsequent or current drilling undertaken by BrazMin. The estimate is based on an envelope which encloses the hangingwall and footwall of a structural-alteration zone containing four main high grade zones. The envelope strikes 290o and has a sub-vertical dip. The estimate does not discriminate between the high grade zones, sub-zones or other scattered gold mineralization that is present in the deposit. Mineral resources have been estimated separately for saprolite and unweathered rock. All gold grades have been capped to 20 g/t. Mineral resources are reported to an approximate depth of 100 meters below surface (100 meter elevation) with a cut-off grade of 0.5 g/t gold and are considered reasonably economic for an open pit operation. An inverse distance methodology was used for estimation. Indicated resources were defined by a range of influence of 60 meters along strike, 45 metes along the dip direction (sub-vertical) and a 30 meter perpendicular. A minimum of two samples for making a block estimate was also used. Mineral reserves for the deposit were not estimated.
Three composite samples representative of the different grades and depths along the mineralized trend within unoxidized Wilton Zone mineralization were prepared for initial metallurgical testwork. Samples were analyzed and tested by SGS Lakefield Research Limited (“SGS„) in Lakefield, Ontario under the direction of Mr. John R. Goode, P.Eng. The calculated weighted grades for the three samples were 8.6 g/t gold, 1.3 g/t gold, and 0.5 g/t gold. The grades determined by SGS were comparable to the calculated grades, at 6.5 g/t gold, 1.8 g/t gold, and 0.6 g/t gold, respectively.
SGS performed a mineralogical study of the high grade sample and found that pyrite was the only significant sulphide present. Gold was observed as native gold, with grain sizes in the 1 to 212 micrometre (“µm„) range.
SGS determined the Bond ball mill work index, which is a measure of the energy required for grinding, on a blend of the three São Jorge composites. The test yielded a value of 16.8 (metric) which is typical of many gold ores and indicates normal grinding requirements.
Following grinding to a nominal 80% passing through a 90 µm screen, the three samples yielded between 33% and 43% gold recovery by gravity concentration alone. Mr. Goode commented “These are favourable values and indicate that gravity concentration can be used ahead of leaching or flotation to maximize overall gold recovery and reduce plant costs.
SGS conducted a carbon-in-leach test on the gravity tailings from each of the three samples. Overall recovery varied from 91% for the low grade sample to 98% for the high grade sample. Reagent consumption values were very low, at less than 0.3 kg/t of NaCN and about 0.6 kg/t of lime. Preliminary rougher flotation tests on gravity tailings showed that flotation could be developed as an alternative process approach. Overall rougher recovery for the high grade sample was 99% to a concentrate containing 35 g/t gold. The medium and low grade samples gave 97 and 94% recovery respectively to a 14 g/t concentrate. Mr. Goode anticipates that all three concentrates could be upgraded, albeit with some loss in overall gold recovery.
Mr. Goode commented: “These are excellent results and show that the São Jorge samples examined by SGS are very responsive to standard gold recovery techniques. Given the very satisfactory results from the gravity-leach approach, further development of the gravity-flotation route has been deferred. Future tests will optimize leaching parameters and study the variability of other samples from within the deposit.
Metallurgical Test-Work Parameters, Qualified Person and Methodology
SGS is an internationally recognized analytical and metallurgical laboratory, independent of BrazMin, and working to recognized quality assurance and quality control standards. Mr. John R. Goode, P.Eng., a Professional Engineer with the Professional Engineers of Ontario and principal of J.R Goode and Associates, Toronto, Ontario was contracted by BrazMin to coordinate and interpret the metallurgical test work performed by SGS. Mr. Goode is independent of BrazMin and a Qualified Person within the meaning of NI 43-101. Mr. Goode is responsible for the interpretation of the metallurgical test-work and has prepared and verified all the data pertaining to the metallurgical test-work in this press release. The three samples reported herein were 50-kilogram composite samples obtained from 158 individual quarter-sawn drill core pieces. Each composite sample included intervals distributed along the mineralized trend and representing all depths within the primary mineralized zone. Saprolitic or oxidized material was not included. All samples were prepared on site at São Jorge by BrazMin’s staff, bagged, sealed and shipped by air to SGS. Mr. Goode inspected the samples on arrival at SGS and found them to be in excellent condition.
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$ 13.3M. The Company has 27,054,222 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.
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 São Jorge, exploration results, estimation of mineral resources and metallurgical 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, the preliminary nature of metallurgical results, changes in gold prices, changes in equity markets, failure to establish estimated mineral resources, 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. The mineral resource figures disclosed in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimate included in this press release is well established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.