Road Town, Tortola, British Virgin Islands (May 14, 2007) – BrazMin Corp. (“BrazMin” or the “Company”) (TSX: BZM) is pleased to provide an update on exploration on the Company’s Agua Branca and Campo Grande projects in Brazil and the pursuit of potential new acquisitions for the Company.
The road-accessible 20,306 hectare Água Branca Project (“Água Branca”) is located in the Tapajós Gold District. BrazMin holds option agreements to acquire a 100% interest in the Água Branca from several vendors, with net smelter return royalties of 1 to 2%.
In late 2006, BrazMin proceeded with a limited Phase One exploration program which included an airborne magnetometer survey, channel sampling and diamond drilling (2,416 metres in 13 holes), focusing on the Camarão Hill target, which represents the most developed of several target areas at Água Branca. The drill program was successful in intercepting mineralization in all holes drilled, several of which contained bonanza grades (see BrazMin news releases dated January 9 and February 13, 2007).
Property-wide reconnaissance exploration at Água Branca began in late 2006 and new target areas were identified based on high-grade gold assays in grab and/or channel samples; results from rock sampling ranged from below detection limit to 22 g/t Au. Soil grids were established over the Serra de Abelha and Heaven areas. A total of 159 soil samples were collected from the Heaven soil grid with no significant values found. A total of 207 soil samples were collected at 50 metre spacing over a 750 by 800 metre area on the Serra da Abelha soil grid, which is located 1.5 kilometres southeast of Camarão Hill. Gold in soil results from Serra da Abelha defined an 800 by 250 metre wide northwest trending gold anomaly, as defined by the +100 ppb gold in soil contour. Anomalous gold values range from 100 to 521 ppb Au and the anomaly is open to the northwest.
In February to March, 2007 BrazMin conducted a nine hole (1,456 metre) Phase One diamond drill program on the Company’s Campo Grande project (“Campo Grande”). The road accessible Campo Grande lies approximately 20 kilometres northwest of the Turmalina mine, owned by Jaguar Mining Inc., and 100 kilometres west of Belo Horizonte. Campo Grande consists of three exploration licences totaling 2,611 hectares. Two of the licences are held by a wholly-owned subsidiary of BrazMin; the third is wholly-owned by a subsidiary of BrazMin and held in the name of a third party, with a production royalty of 1.5% payable to the third party.
Past work by previous operators outlined a 1.8 kilometre by 250 metre semi-coincident gold, arsenic and antimony soil anomaly which is open in one direction. In early 2007, BrazMin conducted a detailed geological mapping program, accompanied by rock sampling over the main geochemical anomaly at Campo Grande. Sulphide-bearing siliceous rocks which may suggest epithermal style gold mineralization were identified for the first time at Campo Grande.
Highlights of the Phase One drill program included hole CGD-002, which intersected 1.03 g/t Au over 7.98 metres from a depth of 20.90 metres, and 1.18 g/t Au over 20.55 metres from a depth of 45.20 metres, including 3.02 g/t Au over 4.47 metres. A summary of results from the nine holes is presented in Table 1. Exploration to date suggests a structural control to gold mineralization; additional fieldwork is being conducted to further define these controls.
Table 1. Campo Grande Phase One drill program assay summary.
|Hole #||total depth (m)||from (m)1||to (m)||length (m) 2||Au (g/t) 3|
1 NSV = no significant values
2 widths are drill intersected and do not represent true widths
3 Gold (“Au”) grades are uncut
New Acquisitions Currently the Company is actively reviewing several potential acquisitions, both within and outside of Brazil. The Company is focusing on the identification of previously under-explored regions considered by management to have potential for large-scale base and/or precious metal deposits.
Quality Assurance/Quality Control and Qualified Person
The drill holes reported in this release 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 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, 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 Belo Horizone, Minas Gerais State, Brazil. The entire half-core is crushed and two kilograms is pulverized and homogenized. 150 Gram pulps. 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 duplicate and blank samples within the sample batches submitted to Lakefield. In addition, Lakefield inserts its own blanks and standards into each sample batch. The results from these control samples indicate acceptable consistency of analysis.
BrazMin’s exploration programs are being managed by BrazMin’s VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), a qualified persons within the meaning of National Instrument 43-101. Mr. Ilidio de Brito, who is responsible for the technical material in this release, has verified the data disclosed 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 de Brito.
BrazMin is a TSX-listed company focused on the acquisition, exploration and advancement of high quality resource projects. BrazMin has a well-qualified exploration and management team with extensive experience in exploration and project management.
BrazMin has a treasury of approximately CDN$10.1M and holds 13,150,000 common shares of Brazauro Resources Corporation, (TSX-V:BZO). The Company has 27,054,222 shares outstanding and 32,088,722 shares fully diluted. For additional information on BrazMin please visit the Company’s website at www.brazmin.com or contact:
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
BrazMin Exploration UpdateThis 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 and objectives) 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, 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.