Brazilian International Goldfields Limited: World Class Potential At the Cachoeira Gold Property, Brazil
VANCOUVER, British Columbia, April 23 /PRNewswire/ -- The following statement was issued today by Robin A. Slaughter, President & CEO, on behalf of the Board of Directors of Brazilian International Goldfields Limited (Vancouver: BGZ - news):
Management has completed an interim review of the potential of the Cachoeira Gold property in Para State, northern Brazil. The Company's experienced exploration team comprised of geologists' Jose Lenzi, Luis Neto, Antonio Ramos Bisneto, and Luis Navarro has concluded that favorable geological potential exists for the presence of a world class gold deposit at Cachoeira. This potential lies in a highly prospective structural corridor from which exploration work has been carried out on approximately forty percent of its total strike length of 13 km. This conclusion is based upon the results of an intensive six month exploration program including the completion of 130 line km of Transient Electromagnetic (TEM) and Induced Polarisation (IP) surveys; ground magnetic survey (300 line km in progress); geological mapping; review of previous data; and completion of a Phase 1 diamond drilling program (2,380 meters). Compilation and interpretation of geological data is on-going. All aspects of the campaign have yielded highly encouraging results and, in management's opinion, warrants the Cachoeira property to be upgraded to one of the most prospective bulk tonnage gold targets in Brazil.
Three geological models exist at Cachoeira for these gold targets summarized in the table below (revised from the News Release dated February 9). The first model, is the occurrence of laterally dispersed gold in the oxide zone formed near the surface by intense weathering and up to 50 meters deep which is typical of tropical weathering environments. These occurrences, representing an attractive gold target due to low exploration cost and ease of mining and treatment, dominate the landscape at Cachoeira. The second model is the occurrence of primary stockwork gold mineralization in dacitic porphyry below the oxide zone. These first two models represent a bulk tonnage gold target and are similar geologically to the Boddington gold deposit (+10 million ounces) in Western Australia. There is hard evidence to suggest that a gold bearing hydrothemal system of major dimensions exists at Cachoeira and has been intersected in drilling, notably in Holes CSD 1, 4, 5, 8, 9, 10, & 11. This system is characterized particularly by the Barbosa/Campinho gold target trend where the prospective mineralized envelope has been upgraded to a strike length of 2600 meters, a width of 400 meters, and a depth of 250 meters (see Fig.1). This trend is the Company's priority target for adding gold ounces by drilling evidenced by the coincidence of gold workings; gold intercepts in drill holes; favorable geology (dacitic porphyry); and a consistent geophysical anomaly. Other bulk tonnage gold targets have been defined at Pernalonga; Pepitinha West; Belarmino; Cansa Perna; Camp; and Braganca, all contained within a 5000 meter by 500 meter corridor (see Fig.2). The third model at Cachoeira is the occurrence of anomalous gold mineralization in black shales associated with graphite and quartz veining geologically similar to the Ashanti Goldfield (+40 million ounces) in Ghana. A strong geophysical anomaly has been recorded at Cachoeira at the Granitos area (Fig 2), and could represent this model type. The geophysical interpretation of this anomaly is a massive sulphide type or graphite occurrence in meta-sediments or a combination thereof. Due to the lack of outcrop and other information, the Company has ranked this anomaly as low priority for drilling until additional data has been gathered. Geological evidence reflecting all three model types has been observed in the core samples from the Company's diamond drilling program. Planning is well advanced for a phase two drilling program of 21,000 meters (14 sections @ 1500m per section) which is scheduled to commence in June, 1999.
DRILL TARGETS TABLE 1
TARGETS SIZE
Model Length Width Depth
M M M
BARBOSA/CAMPINHO I&II 2600 400 250
PERNALONGA I&II 500 200 250
PERNALONGA EAST I&II 900 200 250
PERNALONGA WEST I&II 800 800 250
BELARMINO I&II 1600 200 250
BRAGANCA I&II 900 300 250
CAMP I&II 400 200 200
CANSA PERNA I&II 600 300 200
CAMPINHO EAST III 800 400 100
GRANITOS EAST/SOUTH III 3400 800 300
TARGETS GOLD DRILL GEOPHYSICS
Workings Intersect Rank
Present Gold Anomaly
BARBOSA/CAMPINHO YES YES YES 1
PERNALONGA YES NO YES 2
PERNALONGA EAST YES NO YES 2
PERNALONGA WEST YES NO YES 2
BELARMINO YES YES YES 1
BRAGANCA YES NO YES 3
CAMP YES YES YES 1
CANSA PERNA YES YES YES 3
CAMPINHO EAST YES NO YES 4
GRANITOS EAST/SOUTH MINOR NO YES 4
Footnote:
Model I Boddington Laterite/Saprolite Gold.
Model II Boddington Primary Zone Gold
Model III Ashanti Black Shale Gold Model.
ECONOMIC MODEL
Brazilian gold deposits are dissimilar in comparison, both in a geological and an economical sense, to the Andean gold deposits of Argentina, Chile and Peru. For example, the Morro do Ouro mine (Brasilia) operated by RTZ and TVX in central Brazil has a head grade of 0.47 g/t gold, gold recovery of 74% and a cash operating cost of US$215 per gold ounce, 1998 estimated cost $US190/oz (TVX Annual Report 1997), and located in a region of excellent infrastructure. Annual throughput for 1997 was about 15 million tonnes of ore and the total resource was estimated 600 million tonnes at 0.41 g/t gold. This figure is up from the 1985 estimate by Watts Griffith Mcquat of mineable ore reserves of 86 million tonnes at 0.56 g/t gold. This type of operation is open pit and conventional mill treatment. Heap leaching method is often not used in Brazil due to rainfall intensity and high clay content of the oxide zones. The infrastructure at Cachoeira, including access to the sites, is outstanding. Cachoeira has the main northern highway passing through the property. The excellent infrastructure in Brazil can lower the capital and operating costs in $US terms compared to the Andean counterparts. This reinforces the importance of the Company's plan of focussing on Brazil and having exclusive access to the Dodd transportable modular plant in that country.
DRILL COMPANY ACQUISITION
The Directors are pleased to report that the Company has secured an exclusive option to purchase a Brazilian diamond drill organization comprising three companies namely Esperancas Grande Ltda, Minercao Tuchaua Ltda; and Tuchaua Sondagem Ltda for purchase consideration of US$140,000. The Agreement calls for payment of US$75,000 in cash and the balance in common stock of the Company, valued at Cdn $0.85 per share. This Agreement is conditional upon completion of due diligence and regulatory approval. The assets to be acquired acquisition include: one Diakore VIII diamond drill (1996/97 model) fully equipped with spare parts and drill rods; mobile workshop; and a 15 tonne truck with crane; accounts receivable of US$100,000 from which the Company estimates it can recover US$25,000. The drill is capable of drilling 500 meter NQ holes. Replacement cost of the equipment assets is estimated to be $US350,000. Although the equipment is reported to be in good mechanical condition, the Company recognizes that the key to an efficient drill organization is experienced personnel. The Company will seek to retain the previous experienced personnel as part of its plan to proceed. The acquisition will be an addition to the Company's mobile reverse circulation rig located at Cachoeira. The objective is to improve diamond drill performance and lower diamond drill unit costs at Cachoeira from US$60 per meter to an estimated US$30 per meter, with a capacity of 2000 meters per month for the company owned machine. This is consistent with the Company's objective of implementing cost effective capital expenditure programs and thereby minimizing shareholder dilution.
FOCUS
The Company will continue to focus on resource asset development with its principal target being the Cachoeira Gold Property in Brazil. This course presents the best path to add shareholder value and asset value to the Company. Any non-resource based activities the Company proceeds with will be spun-off into a public vehicle with separate funding and management. This strategy recognizes Company success is directly related to having the necessary management expertise to implement and execute the appropriate Business Plan. This is, in management's view, the key element that translates into building shareholder value.
The Company has 6,574,564 common shares issued and 9,987,903 outstanding on a fully diluted basis.
For further information, and to view the figures referenced above, please contact the Company at 604-681-8429, toll free at 877-465-3245 or visit the company's website at www.braziliangoldfields.com.
NOTE: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Brazilian International Goldfields Limited
#750-625 Howe Street
Vancouver, B.C.
CANADA V6C 2T6
Tel: 604-681-8429
Fax: 604-681-2000
Toll Free: 877-465-3245
E-mail: info@braziliangoldfields.com
Web site: www.braziliangoldfields.com
SOURCE: Brazilian International Goldfields Limited
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