Bravo Reports Status of Engineering, Scoping, and Exploration at Homestake Ridge
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/08/11 -- Bravo Gold Corp. (TSX VENTURE: BVG)(FRANKFURT: B6I) ('Bravo') reported today on the status of engineering, scoping work and exploration on the Homestake Ridge project located in north-western British Columbia.
Bravo is currently advancing the Homestake Ridge deposits as a potential high-grade underground mining operation and, since 2003, has expended $30 million on the project, resulting in the discovery and delineation of two significant mineral deposits. The basis for the engineering work is Bravo's NI 43-101 compliant Indicated Resource, using a 3.0 g/t AuEq. cut-off, of 888,000 tonnes grading 6.69g/t Au and 47.2g/t Ag for 191,000oz gold and 1,350,000 oz silver, plus an Inferred Resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag for an additional 530,000 oz gold and 13,470,000 oz silver (1). The engineering work utilizes the total resource tonnage in its considerations.
Fred Sveinson, P.Eng., 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. Their preliminary mine design is based on 3-dimensional models of the mineralized lenses that were used to constrain the resource model and invokes Sub Level Retreat mining ('SLR') as a potential mining method for both of the Homestake deposits. SLR is a low cost method that can be completely mechanized. The initial design envisages a mine plan for both of the deposits and includes three access adits and two ramps, with multiple development headings for mining with sub level intervals of 20m.
Mr. Sveinson stated: 'The Company's initial goal is annual production of 100,000 ounces of gold-equivalent per year from a processing plant with a capacity of 2,000 tonnes per day over a 10-year mine life. The engineering studies are being directed to such an annual production and the current drilling program is designed to increase the existing resource in order to attain this goal.'
Knight Piesold Ltd. has developed preliminary alternatives for providing power to the site including connecting to the main power grid at two possible locations, developing run-of-river power and rejuvenating historic hydro power in the area.
Knight Piesold Ltd. is also determining the best location for plant and tailings facilities and associated costs, and has located two suitable sites and provided preliminary drawings. Definitive locations and costs will be developed as the project proceeds.
Metallurgical Results
Metallurgical work on the Homestake Silver deposit is being carried out by SGS Mineral Services (SGS) in Vancouver, B.C. under the supervision of Kevin Scott, P.Eng., Principal Metallurgist with Roscoe Postle Associates Inc. (RPA). Testing on the Homestake Main deposit was previously conducted in 2009 and 2010 at SGS Lakefield under the supervision of Melis Engineering.
Mineralized intersections comprised of quartered core from eight diamond drill holes from the 2010 drill program were selected to provide material which is representative of the Homestake Silver mineralized zone. A total of 77 kg of individual samples were sent to SGS in June 2011 and combined to form a representative composite sample grading 3.43 g/t Au and 119 g/t Ag.
Preliminary batch testing of the composite sample using conventional gravity and flotation processes indicated that an overall gold recovery of 85% to 90% to a saleable concentrate can be consistently obtained. Silver recovery to the concentrate was 83% to 87%. Locked cycle testing is expected to get underway shortly to provide further confirmation of the results and to provide input for future studies. Cyanide leaching tests and a mineralogical study using QEMSCAN analysis of the composite sample are also planned to be completed over the next few weeks at SGS.
These current results from the Homestake Silver deposit compare very favorably to 2010 test results from the Main Homestake Deposit (see NR-03-10) which RPA evaluated and concluded would produce recoveries of 85-90% for gold, 75%-80% for silver and 85%-90% for copper.
Baseline Studies
Baseline environmental studies necessary to permit road access to the project and to permit an eventual bulk sample of the Main Homestake zone are underway utilizing several consultants and will continue during the 2011 exploration season. The access road from Alice Arm includes 29.2 kilometres of road to be upgraded and extended to the Homestake site. Engineering for the upgraded road has been done in considerable detail and the road is anticipated to service multiple users.
A series of baseline environmental studies are being advanced by Bravo in 2011. Consultants have been retained to conduct Metal Leaching-Acid Rock Drainage (ML-ARD) geochemical analyses of the proposed ore material and along access points. As well, several surveys involving water, flora-fauna, avalanche hazards, and archaeology are anticipated during Q2/Q3.
Exploration Update
IP Survey
Approximately 15 line-kilometres of surface IP geophysics have been completed on the property. Two orientation lines were completed over the known Main Homestake and Homestake Silver deposits. Five additional lines were completed in other parts of the property where known mineralization may extend beneath cover or where surface geology and geochemistry indicate additional deposits may be discovered. Results from this work have been incorporated into targeting for the current drill program, and are particularly encouraging in the area to the southeast of the Homestake Silver deposit.
Diamond Drilling
11 core holes totaling 2,765m of a planned 5,000 metre program have been completed, with assays pending. Four holes have tested several shallow targets in the connector zone between the Homestake Silver and the Main Homestake deposits, five holes have tested hangingwall structures of the Homestake Silver deposit, including the 215 zone. A single hole has tested the Rambler zone, located 4 kilometres to the southwest of the Homestake Silver deposit.
Drilling is currently testing offsets of previously reported holes from the 2010 program, HR10-156 (15.6m of 1.3g/t Au and 335g/t Ag) and HR10-153 (2.9m of 175g/t Ag), both located along the southeast margin of the Homestake Silver deposit where an IP anomaly has been identified. One hole has been completed and four additional holes are planned for this area.
Logging and sampling of the core is ongoing. To date 845 core samples have been submitted for analyses. Assay results are pending. Drilling will continue through the month of September, when drilling efforts will shift to the adjacent Kinskuch project.
Airborne geophysics, surface mapping and sampling continue on the Kinskuch project in order to refine identified drill targets and discover new ones. Drilling is scheduled to begin mid-September.
About Bravo
Bravo Gold Corp owns a 100 percent interest in the Homestake Ridge project, located in a prolific mineral belt in northwestern British Columbia, where it has developed a significant precious metals resource to date and which it continues to explore while proceeding with mine development plans. Bravo also holds an option to acquire a 100 per cent interest in the 596-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Bravo's Homestake Ridge project, which is currently the subject of an exploration program designed to add incremental resources to the Homestake deposits. Bravo also holds a 13 percent equity interest in Bravada Gold Corporation, which is exploring 22 projects in Nevada and developing its 100% owned Wind Mountain mine.
Rob Macdonald (P.Geo.) is the Qualified Person responsible for reviewing the technical results in this release.
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 ID3 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.
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