Bravada Cuts 13.7m of 1.26g/t Au-eq in New Shallow Zone at Wind Mountain, Nevada
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/25/11 -- Bravada Gold Corporation (TSX VENTURE: BVA)(FRANKFURT: BRT) ('The Company') is pleased to report that it has identified and partially delineated a new zone of near-surface mineralization at its wholly owned Wind Mountain Low-sulfidation Gold/Silver project, located within Nevada's Walker Lane Gold trend 160km northeast of Reno.
The South End Target is located approximately 800m south of the existing Wind Mountain resource, where nine holes were completed in this program for a total of 611m. The strongest mineralization was intersected in hole WM11-034, where 6.1m averaging 1.88g/t Au and 17.6g/t Ag (2.14g/t Au-eq @ 70Ag:1Au) occurs within a 13.7m interval averaging 1.050g/t Au and 14.9g/t Ag (1.26g/t Au-eq) starting at 29m depth. The hole was lost at the bottom of this interval due to drilling problems in the highly altered rock. Follow-up drilling is planned after other necessary holes have been completed.
The Wind Mountain project, a previous Amax Gold open-pit/heap-leach mine, contains an independent NI43-101-compliant resource estimate of 406,000 ounces of gold in the Measured plus Indicated Resource categories (33.7 million short tons averaging 0.411 g/t Au, using a cutoff grade of 0.257g/t Au), plus an additional 92,000 ounces of gold in the Inferred category (9.8 million short tons averaging 0.308g/t Au), using the same cut-off grade (see FRX news release dated January 8, 2008). An independent NI43-101-compliant Preliminary Economic Assessment (PEA) and associated Technical Report by Mines Development Associates (MDA) were conducted, modeling an open pit using $850 per ounce of gold and $14.50 per ounce of silver. MDA's PEA indicates a pre-tax NPV@ 5% of US$13.2million (IRR=15%) at $850 per ounce gold and, assuming a 20% increase in metal prices, a pre-tax NPV@5% of US$43.7million (IRR=38%) at $1,020 per ounce gold for the same pit design (see FRX news release NR-05-10 dated April 13, 2010).
The current, on-going reverse-circulation drilling program is planned to consist of 70 holes, 6,000m in total. Many of the holes will be in-fill within the Wind Mountain and Breeze deposits, with some of the holes testing structures that appear to host higher-than-average grade for the deposits. Currently, drill holes along these structures are too widely spaced to demonstrate continuity of the higher grades within the resource block model. Some of the drill holes will test areas of shallow mineralization previously intersected in widely scattered historic drill holes, such as at the South End Target, and some will test anomalies identified by the Company's January soil survey, where gold values ranged from nil to 1.4 g/t. Those holes that could expand the currently modelled open pit or delineate new areas for open pits are being tested first because successfully adding additional shallow, oxidized resource could significantly enhance the economics of the Wind Mountain property by reducing operating costs per tonne and increasing the mine life, while only marginally adding to capital costs.
The first hole in this on-going program, WM11-028, was drilled in the Wind Pit as an in-fill hole and intersected mineralization as predicted by the existing block model of mineralization.
President Joe Kizis commented, 'The South End target confirms our belief that additional shallow zones of mineralization can be delineated at Wind Mountain. We are encouraged by the attractive grade intersected in hole WM11-034, and mineralization at the South End target remains open along strike and at depth. Any additional surface-mineable ounces that we can delineate should have a very positive effect on the economics of the project.'
2011 Wind Mountain Drill Intercepts
----------------------------------------------------------------------------
Inter-
Orient- T.D. From To val Au Ag Au-eg
Hole # ation (m) (m) (m) (m) (g/t) (g/t) (70:1) Comments
----------------------------------------------------------------------------
Wind Pit
----------------------------------------------------------------------------
WM11-028 -90 182.9 36.6 47.2 10.7 0.163 11.6 0.329
----------------------------------------------------------------------------
54.9 73.1 18.3 0.297 8.0 0.412
----------------------------------------------------------------------------
83.8 89.9 6.1 0.167 13.1 0.355
----------------------------------------------------------------------------
103.6 150.9 47.2 0.255 13.4 0.446
----------------------------------------------------------------------------
South End
Target
----------------------------------------------------------------------------
WM11-029 -70, 090 51.8 15.2 21.3 6.1 0.097 19.2 0.372
----------------------------------------------------------------------------
29.0 32.0 3.0 0.322 7.9 0.615
----------------------------------------------------------------------------
WM11-030 -50, 090 61.0 10.7 21.3 10.7 0.227 20.2 0.517
----------------------------------------------------------------------------
WM11-031 -70, 090 70.1 24.4 30.5 6.1 0.231 14.9 0.444
----------------------------------------------------------------------------
WM11-032 -50, 090 68.6 0.0 0.0 0.0 NSV
----------------------------------------------------------------------------
WM11-033 -50, 271 106.7 0.0 0.0 0.0 NSV
----------------------------------------------------------------------------
Lost hole,
no sample
WM11-034 -70, 090 45.7 29.0 42.7 13.7 1.050 14.9 1.262 below 42.7m
----------------------------------------------------------------------------
Including 36.6 42.7 6.1 1.883 17.6 2.135
----------------------------------------------------------------------------
no sample
48.8-50.2m,
poor
recovery
WM11-035 -50, 090 76.2 42.7 48.8 6.1 0.341 9.2 0.473 below
----------------------------------------------------------------------------
WM11-036 -70, 085 71.6 0.0 0.0 0.0 NSV
----------------------------------------------------------------------------
WM11-037 -50, 085 59.4 42.7 45.7 3.0 0.391 2.2 0.421
----------------------------------------------------------------------------
Intercepts calculated 0.2g/t Au &/or 10g/t Ag combined, intervals of
0.3g/t Au-eq reported. Nothing above or below intercept included if less
than 0.3 Au-eq & no barren intervals greater than 6m included internally
True thicknesses are approximately 90% for the hole in the Wind Pit and
uncertain for holes in the South End Target
A ratio of 70Ag:1Au is used to reflect expected lower recoveries of Ag
relative to Au, although detailed metallurgy has not been completed
Bravada also reported that metallic screen assays have been received for the remaining mineralized intervals of the Company's recently completed holes at the East Manhattan project. Metallic screen assays average 12% higher values than original fire assays (total of 41 paired samples compared) demonstrating a minor 'nugget' effect. A new permit is being prepared with the U.S. Forest Service for additional drilling.
In addition, modelling is underway for the Quito Gold project in order to select initial drill sites for core drilling that is expected to begin at Quito in September. The 3,700ha Quito Carlin-type gold project is a past-producing high-grade open-pit mine. The Quito mine was operated by Austin Gold venture, a joint venture between Inspiration Gold and FMC Gold companies, from 1986 to 1989 and was reported to have produced 174,460 ounces of gold (historic company reports). Published reports of the original deposit stated an initial reserve of 1,700,000 short tons at an average grade of 6.34g/t gold. There is a small historic resource reportedly remaining on the property; however, Bravada has not independently confirmed either the past production or remaining resource, and these historic figures should not be relied upon. Post-mining exploration efforts were directed at discovering additional shallow, open pit resources; however, historic drill holes contain numerous intercepts of relatively high-grade gold ( 3 to 10g/t) that are below likely levels of open-pit mining that may be amenable to underground mining. The core drilling program is designed to provide an initial test of these high-grade zones.
About Bravada Gold Corporation
Bravada Gold Corporation is a member of the Manex Resource Group of companies with an exploration office in Reno, Nevada from which it is exploring its extensive (22 properties covering over 20,000 hectares) Carlin-type and low-sulfidation-type gold holdings strategically located within numerous productive gold trends in Nevada. The Company has several projects available for joint venture with qualified groups.
Joseph Anthony Kizis, Jr. (P.Geo.) is the Qualified Person responsible for reviewing the technical results in this release.
On behalf of the Board of Directors of Bravada Gold Corporation
Joseph A. Kizis Jr., Director, President, Bravada Gold Corporation
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. Bravada Gold Corporation 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:
Bravada Gold Corporation
Liana Shahinian
604.641.2773 or Toll Free at 1.888.456.1112
liana@mnxltd.com
www.bravadagold.com