Bravo Doubles the Resource of the Homestake Silver Deposit at Homestake Ridge
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/06/11 -- Bravo Gold Corp. (TSX VENTURE: BVG)(FRANKFURT: B6I) ('Bravo') reported today that Roscoe Postle Associates Inc. (RPA) have completed their resource update for the Homestake Silver deposit, one of two deposits discovered to date at Bravo's 2,585ha Homestake Ridge Project in northwestern British Columbia. The newly updated 43-101 compliant Inferred Mineral Resource estimate for the Homestake Silver deposit is:
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Cut Off Au Au Ag Ag
(g/t AuEq) Tonnes (g/t) (oz) (g/t) (oz)
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3.0 2,920,000 3.7 346,000 123 11,600,000
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The updated resource represents an approximate 100% increase over the previously estimated 2010 mineral resource estimate for the Homestake Silver deposit (164,000ozs Au and 6,120,000ozs Ag). This significantly increases the gold and silver ounces in the combined Main Homestake (previously reported in NR-07-10) and Homestake Silver deposits, which now total at a 3.0g/t AuEq cut-off:
Combined Main Homestake Homestake Silver Resources
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Au Au Ag Ag
Tonnes (g/t) (oz) (g/t) (oz)
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Indicated 888,000 6.7 191,000 47 1,350,000
Inferred 4,060,000 4.1 530,000 103 13,470,000
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RPA's preliminary engineering work indicates that an underground mining scenario is appropriate for the project and has recommended a 3.0g/t AuEq cut-off for the resource estimate. Also reported are 2.0g/t, 4.0g/t and 5.0g/t AuEq cut-offs (see Table 1), which demonstrate both a significant increase in tonnage and contained gold and silver ounces at the lower 2.0g/t AuEq cut-off and progressive increases in overall gold and silver grades at incrementally higher cut-offs. AuEq cut-off calculations utilized conservative metal values for gold (US$1050/oz Au) and silver (US$18/oz) to maintain consistency with the previously reported estimate. Utilizing current metal prices would result in higher overall AuEq values, and very likely a modest increase in Mineral Resources reporting above the cut-off. A NI43-101-compliant Technical Report will be posted on Sedar within 45 days.
Permitting and planning for the upcoming field season are underway with the goals of drill testing several remaining targets on the Homestake Ridge property, continuing in-house preliminary engineering and economic evaluations of the known deposits, and beginning an evaluation of the newly acquired 596-square-kilometre Kinskuch project, where numerous precious- and base-metal mineral occurrences are hosted in the same geologic setting as the Homestake Ridge deposits. Kinskuch is located adjacent to, and to the southeast of, the Homestake Ridge project, giving Bravo control over a large percentage of this evolving mineral district. A budget of $3.2 million is planned, which would include approximately 6,000 metres of diamond drilling, surface sampling and mapping, and ground and airborne geophysics over the two project areas. Favorable snow conditions should allow surface exploration to begin mid-June followed by drilling.
Exploration on the Homestake Ridge project will focus on the identification of new deposits on the property that would be accretive to the existing mineral resources at the Main Homestake and Homestake Silver deposits. Ground geophysics will target blind deposits on strike with the Homestake Silver deposit and Fox zone; and several other occurrences on the property, including the newly discovered 215 zone.
To view 'Figure 1: Location of Bravo's Kinskuch, Homestake Ridge and Silver Basin projects', please visit the following link: http://media3.marketwire.com/docs/bvg-figure1.pdf.
Initial exploration on the Kinskuch property will focus on two areas that host precious metal showings in the same stratigraphic section as the Homestake Ridge deposits: the area bordering the access road from Bravo's logistical center in Alice Arm and along the Illiance River. Airborne geophysics is planned to assist surface exploration and drill targeting in this under-explored area with very poor exposure.
President Joe Kizis commented, 'Our 2010 drilling has demonstrated that Homestake Silver is a significant deposit, of similar size and tenor as the Main Homestake deposit. We are confident that additional deposits will be found on our Homestake Ridge property and on our recently acquired Kinskuch property, located within the same precious-metal rich district.'
Table 1: Summary of Mineral Resources at Homestake Ridge
Main Homestake Deposit - Indicated Resources
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Grade AuEq
Cut Off Au Au Ag Ag AuEq total
(g/t AuEq) Tonnes (g/t) (oz) (g/t) (oz) (g/t) (oz)
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5.0 438,000 10.1 142,000 81 1,140,000 11.4 160,240
4.0 631,000 8.2 166,000 62 1,250,000 9.2 186,000
3.0 888,000 6.7 191,000 47 1,350,000 7.4 212,600
2.0 1,300,000 5.2 218,000 35 1,480,000 5.8 241,680
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Main Homestake Deposit - Inferred Resources
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Grade AuEq
Cut Off Au Au Ag Ag AuEq total
(g/t AuEq) Tonnes (g/t) (oz) (g/t) (oz) (g/t) (oz)
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5.0 508,000 7.3 120,000 94 1,540,000 8.9 144,640
4.0 745,000 6.2 149,000 70 1,680,000 7.3 175,880
3.0 1,140,000 5.0 184,000 51 1,870,000 5.8 213,920
2.0 1,850,000 3.8 224,000 38 2,260,000 4.4 260,160
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Homestake Silver Inferred Resources
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Grade AuEq
Cut Off Au Au Ag Ag AuEq total
(g/t AuEq) Tonnes (g/t) (oz) (g/t) (oz) (g/t) (oz)
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5.0 1,220,000 5.2 204,000 203 7,980,000 8.5 331,680
4.0 1,750,000 4.6 259,000 164 9,220,000 7.2 406,520
3.0 2,920,000 3.7 346,000 123 11,600,000 5.7 531,600
2.0 5,050,000 2.7 445,000 108 15,300,000 4.2 689,800
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Combined Main Homestake Homestake Silver Resources
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Grade AuEq
Au Au Ag Ag AuEq total
Tonnes (g/t) (oz) (g/t) (oz) (g/t) (oz)
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5.0g/t AuEq Cut Off
Indicated 438,000 10.1 142,000 81 1,140,000 11.4 160,240
Inferred 1,728,000 5.8 324,000 171 9,520,000 8.6 476,320
4.0g/t AuEq Cut Off
Indicated 631,000 8.2 166,000 62 1,250,000 9.2 186,000
Inferred 2,495,000 5.1 408,000 136 10,900,000 7.3 582,400
3.0g/t AuEq Cut Off
Indicated 888,000 6.7 191,000 47 1,350,000 7.4 212,600
Inferred 4,060,000 4.1 530,000 103 13,470,000 5.7 745,520
2.0g/t AuEq Cut Off
Indicated 1,300,000 5.2 218,000 35 1,480,000 5.8 241,680
Inferred 6,900,000 3.0 669,000 79 17,560,000 4.3 949,960
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Notes:
1. Homestake Main Indicated and Inferred Resources are restated from NR-07-
10
2. Homestake Main Resource at a 3.0g/t AuEq cutoff averages 0.21% Cu and
contains an estimated 9.22 million lbs of Cu.
3. CIM definitions were followed for Mineral Resources.
4. Mineral Resources are estimated using an average long-term gold price of
US$1,050 per ounce Au, US$18.00 per ounce Ag, and US$3.25 per pound Cu,
with an exchange rate of C$1.00=US$0.90.
5. Gold equivalence was calculated for the Main deposit using Au, Ag and Cu
and and metallurgical recoveries of 85% Au, 75% Ag, 90% Cu.
6. Gold equivalence for the Homestake Silver deposit was based on Au and Ag
only, with no provision for metallurgical recoveries.
7. A Ag:Au ratio of 62.5:1 was used to calculate the AuEq total (oz).
Homestake Silver Resource Update Parameters
The current estimate was carried out using 2D block models, comprising arrays of 10 m x 10 m blocks, oriented as vertical longitudinal projections. Models were constructed for nine individual parallel zones, each representing an identifiable mineralized horizon within the Homestake Silver deposit.
Values for accumulated metal (grade x thickness) for silver and gold, as well as true thickness were estimated into the blocks using Inverse Distance to the Third Power weighting (ID(3)). Gold and silver grades were back-calculated by dividing the estimated block accumulated metal value by the estimated true thickness. The interpolations were carried out in two passes, the first using a maximum search of 100 m with a minimum requirement of two drillholes, the second using a range of 75 m and a minimum of one drillhole. Block volumes were estimated by multiplying the area (ie. 100 m(2)) by the estimated thickness.
Bulk densities were based on a total of 821 measurements taken by Bravo field personnel from the mineralized zones. Where enough measurements were available, average densities were estimated for the individual zones. These density values ranged from 2.60 t/m(3) to 2.81 t/m(3). For zones with too few measurements to determine a reliable mean, the average for the entire dataset, 2.75 t/m(3), was used.
The mineralized zones were defined by Bravo personnel in consultation with RPA. The mineralized intercepts were identified using a nominal grade cut-off of 2.0 g/t AuEq, and a minimum horizontal width of 2.0m.
High assays were capped, prior to compositing, at 50 g/t Au and 1500 g/t Ag.
The Homestake Silver estimate was entirely classified as Inferred Mineral Resources. Blocks qualified as Inferred if they fell within 75 m of a drillhole intercept.
About Bravo
Bravo Gold Corp has a 100 percent interest in the Homestake Ridge project, which is located in a prolific mineral belt in northwestern British Columbia. The project is being advanced as a potential high-grade underground mining operation with a current NI43-101 compliant Indicated Resource, at a 3.0 g/t AuEq. cut-off, of 191,000 oz gold and 1,350,000 oz silver plus an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver(1). Two deposits have been identified to date and multiple exploration targets remain to be tested on the large 2585 hectare property. Bravo recently acquired an option to acquire the 596-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Bravo's Homestake Ridge project. Bravo also holds a 17 percent interest in Bravada Gold Corporation (TSX VENTURE: BVA), which is exploring 22 projects in Nevada.
Rob Macdonald (P.Geo.) is the Qualified Person responsible for reviewing the technical results in this release. Independent Qualified Person responsible for preparation and review of the Mineral Resource Estimate is David Rennie, P. Eng., Principal Geologist, Roscoe Postle Associates Inc.
On behalf of the Board of Directors
Joseph A. Kizis Jr., Director, President, Bravo Gold Corp.
(1) The current estimate was prepared by Roscoe Postle Associates Inc. (RPA). Mineral Resources on the Main Homestake deposit were estimated previously in 2010 using a block model constrained by 3D wireframes of the mineralized zones. Mineral Resources on the Homestake Silver deposit were estimated in 2011 using a block model constrained by pierce points projected to 2D surfaces. The Main Homestake block model comprised an array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and Cu interpolated using ID(3) weighting. The Homestake Silver block model comprised an array of blocks measuring 10 m x 10 m. At a 3.0g/t AuEq. cut-off, the models identified an indicated resource of 888,000 tonnes averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Bravo Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Contacts:
Bravo Gold Corp.
Liana Shahinian
1-888-456-1112 or 604-641-2773
liana@mnxltd.com
www.bravogoldcorp.com