Bravo Arranges $5.0 Million Flow-Through Financing; Updates Pre-Development and Exploration Plans
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/02/11 -- Bravo Gold Corp. (TSX VENTURE: BVG)(FRANKFURT: B6I) reported today that the company proposes to issue up to a total of 39 million Units at a price of $0.13 per Unit for gross proceeds of $5.0 million. Each Unit consists of one flow-through common share and one-half non flow-through transferable share purchase warrant; each whole share purchase warrant is exercisable to purchase one additional non flow-through common share at a price of $0.20 for a period of two years. Finder's fees may be payable. The private placement and finder's fees are subject to regulatory approval.
Net proceeds from the financing will be used to fund the 2011 exploration programs on the Homestake and the newly acquired 596 sq. km Kinskuch projects, and to continue with pre-development work on the Main Homestake and Homestake Silver deposits. Crews will mobilize in mid-June with drilling to begin in mid-July initially on identified targets at the Homestake Project and then continuing in early September on the Kinskuch project after surface work on several specific historic mineral occurrences further refines drill targets.
Exploration will focus on the identification of new deposits that will be accretive to the existing mineral resources at the Main Homestake and Homestake Silver deposits, which contain a current NI43-101 compliant Indicated Resource, at a 3.0g/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).
Homestake Project
Exploration on the Homestake project will include surface exploration and detailed mapping. Ground geophysics will target potential blind deposits on strike with the Homestake Silver deposit and Fox zone, as well as several other occurrences on the property. Up to 5000 metres of diamond drilling will test multiple targets.
Drilling on the Homestake Project will initially focus on the 215 target, a zone of silver-enriched silicification located 150 metres to the northeast of the Homestake Silver deposit. The 215 zone was intersected late in the 2010 exploration program and contains thick intervals of strongly anomalous silver (up to 40g/t silver) and pathfinder elements (arsenic-antimony) which are analogous to those found in 2008 drilling at the top of the Homestake Silver deposit, and which led to the ultimate discovery of that mineral resource.
Exploration will also target the southeast extension of the Homestake Silver deposit and further extensions of the Fox zone, which is located 600 metres to the southwest of the Homestake Silver deposit.
Kinskuch Project
The Kinskuch project is a strategic acquisition which contains much of the access road to Homestake Ridge and several highly prospective areas that have not been explored with modern technology. Current exploration plans include an airborne DIGHEM survey over much of the project area, aggressive surface exploration of the main mineralized trends throughout the property, and an anticipated 2000 metres of diamond drilling on several targets identified through detailed data review and compilation. Initial exploration on the Kinskuch property will focus on two portions of the property that contain the same stratigraphic section that hosts the mineralization at the Homestake Ridge deposits.
Bravo has developed five priority target areas within the Kinskuch project for the 2011 field season, including the Esperanza Mine where chip samples of narrow veins (0.05 to 0.5 metres) in the historic workings of this small-scale past-producer contain multiple assays between 111g/t and 1,913g/t silver and between 1.5g/t and 159g/t gold. Sampling of historic drill core from 1969 assayed up to 5,583g/t silver and 6.0g/t gold over a 0.25 metre interval. Historic production from the Esperanza Mine totaled 4,660 tonnes mined between 1911 and 1948 at an average grade of 994g/t silver, 1.8g/t gold and 0.14% lead(2).
The historic work at the Esperanza Mine provides an excellent basis for fast-track targeting at Kinskuch for drilling during the 2011 season.
The Illiance River trend includes multiple mineral occurrences that occur along an 8 kilometre-long belt of altered and mineralized felsic volcanics located about 15 kilometres east-northeast of Alice Arm. Drilling in the late 1980's within a 1.6 kilometre long portion of this trend returned several high-grade silver-enriched intercepts of up to 1.8 metres of 297g/t silver, 2.89% lead and 9.56% zinc(2). More recent chip and grab samples in the area returned assays of up to 11,485g/t silver, 5.34% lead and 24.6% zinc(2). Airborne geophysics, mapping, and sampling are expected to provide high-quality drill targets for follow-up during 2011.
Engineering Update
Engineering work is proceeding under the guidance of Fred Sveinson, P. Eng, who has been retained as a Consultant Mining Engineer for the Homestake Project. Mr. Sveinson is directing in-house Scoping work to provide guidance to the company with respect to economic and engineering parameters, environmental studies, and permitting requirements necessary to advance the project to feasibility as quickly as possible. Mr. Sveinson has commissioned independent consultants with expertise in mining, power generation, and tailings design/management to complement his own experience as part of this effort.
-- Micon International Limited is evaluating various mining methods,
preparing a mine plan, determining operating costs, and developing a
financial model.
-- Knight & Piesold is determining power alternatives and related costs.
-- Knight & Piesold is also determining the best location for a plant and
tailings facilities and associated costs.
-- Initial metallurgy for the Main Homestake deposit was directed by Melis
Engineering.
-- Bravo has initiated further metallurgical work on the Homestake Silver
deposit under the guidance of Roscoe Postle and Associates Inc.
-- Baseline environmental studies necessary to permit road access to the
project and to permit an eventual bulk sample of the Main Homestake zone
will continue during the 2011 exploration season.
-- Scoping and more detailed engineering work will continue over the next
year toward assessing the economic viability of the Homestake Project.
About Bravo
Bravo Gold Corp. owns 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 3.0g/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 also holds an option to acquire a 100% interest in the 596-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Bravo's Homestake Ridge project. Bravo also holds an 11.67 percent equity interest in Bravada Gold Corporation (TSX VENTURE: BVA), which is exploring 22 projects in Nevada.
ON BEHALF OF THE BOARD
Joseph A. Kizis Jr., President
(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.
(2) Bravo advises that grades, thicknesses and tonnages are from historic
records, primarily BC ARIS Assessment Reports, and remain unverified;
thus, should not be relied upon. Grab and select chip samples may not
be representative of all mineralization on the property.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Bravo Gold Corp.
Liana Shahinian
1-888-456-1112 or 604-641-2773
liana@mnxltd.com
www.bravogoldcorp.com