Updated Resource for Bravo's Homestake Ridge, Drilling to Resume Mid June
18.05.2010 | Marketwire
VANCOUVER,05/14/10 - Bravo Gold Corp. (TSX VENTURE: BVG)(FRANKFURT: B6I) announced today that Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) have completed their resource update and preliminary engineering work on the company's 2761ha Homestake Ridge Project in NW British Columbia. This geologically complex but high-grade project hosts two known deposits, the Main Homestake deposit and the Homestake Silver deposit. Scott Wilson RPA's preliminary engineering work indicates that an underground mining scenario should be pursued and recommends that Bravo delay commissioning a more rigorous Preliminary Economic Assessment until the currently open mineralization at the Homestake Silver deposit has been fully delineated and the six high-priority exploration targets have been tested as planned for 2010.At a cut-off of 3.0g/t (Au)eq (the current Mineral Resource estimate is as follows: )
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Au Au Ag Ag Cu Cu
Tonnes (g/t) (oz) (g/t) (oz) (%) (lb)
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Main Homestake
Indicated 888,000 6.69 191,000 47.2 1,350,000 0.15 3,030,000
Inferred 1,140,000 5.02 184,000 50.9 1,870,000 0.25 6,300,000
Homestake Silver
Inferred 1,200,000 4.25 164,000 158 6,120,000 0.02 661,000
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Permitting and planning for the upcoming field season is well underway with the dual goal of expanding the Homestake Silver deposit and discovering additional new deposits at six high-priority exploration targets identified in large part from the 630-line km airborne geophysical program conducted last season. The company plans a +$6 million, +12,000 metre drill program. Favorable snow conditions should allow drilling to begin mid June.
Scott Wilson RPA draws the following conclusions:
1. Recent interpretive work conducted by Bravo personnel has resulted in improvements to the understanding of the geometry of the mineralized zones, and in turn, to the controls to the resource estimate.
2. Statistical and geostatistical analyses indicate that significant changes to the estimation parameters from the last estimate are warranted. These are:
- Application of capping.
- Introduction of a metal equivalence to the cut-off for both the wireframes and the block modeling.
- Reduction of the maximum search radius to 75m from 100m.
- Upgrading of some of the Mineral Resources from Inferred to Indicated.
3. A very preliminary review of the project economics on an order of magnitude basis indicated the following:
- The Homestake Ridge deposits are more amenable to underground mining than open pit.
- The cut-off grade should be increased to reflect an underground mining scenario. Scott Wilson RPA recommends that the cut-off grade be 3.0 g/t Aueq.
- Preparation of a Preliminary Assessment is not recommended at this time, although this could be revisited if certain assumptions change.
4. The project would benefit from an increase in Mineral Resources, and it is recommended that exploration work continue.
Table 1: Indicated and Inferred resources for the Main Homestake and
Homestake Silver Deposits
Main Zone Indicated Resources
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Cut Off Au Au Ag Ag Cu Cu
(g/t AuEq) Tonnes (g/t) (oz) (g/t) (oz) (%) (lb)
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10.0 160,000 17.88 92,200 155.0 799,000 0.13 470,000
5.0 438,000 10.12 142,000 81.2 1,140,000 0.17 1,590,000
3.0 888,000 6.69 191,000 47.2 1,350,000 0.15 3,030,000
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Main Zone Inferred Resources
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Cut Off Au Au Ag Ag Cu Cu
(g/t AuEq) Tonnes (g/t) (oz) (g/t) (oz) (%) (lb)
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10.0 146,000 12.77 60,000 198.0 931,000 0.45 1,460,000
5.0 508,000 7.33 120,000 94.2 1,540,000 0.34 3,760,000
3.0 1,140,000 5.02 184,000 50.9 1,870,000 0.25 6,300,000
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Homestake Silver Inferred Resources
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Cut Off Au Au Ag Ag Cu Cu
(g/t AuEq) Tonnes (g/t) (oz) (g/t) (oz) (%) (lb)
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10.0 175,000 9.53 53,619 390.0 2,194,287 0.04 162,000
5.0 696,000 5.99 134,038 186.0 4,162,104 0.03 470,000
3.0 1,200,000 4.25 163,969 158.0 6,095,777 0.02 661,000
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Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at an average cut-off grade of 3.0 g/t
Au Equivalent (AuEq).
3. 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.
4. Gold equivalence was calculated for the Main deposit using Au, Ag and
Cu and for the Homestake Silver deposit using Au, Ag, Cu, Pb, and Zn.
A NI43-101 compliant Technical Report will be posted on Sedar within 45 days.
President Joe Kizis commented, 'We now have clear guidance from Scott Wilson RPA's work that the best economic path for Homestake will be via underground mining, which requires higher grades than an open pit, but which also requires far less surface disturbance. Although the total number of ounces was not what we had hoped for at this stage, we do have a substantial resource at underground-mineable grades that is open for expansion with further drilling. For example, one of our last holes of the 2009 season was also our best hole to date at the Homestake Silver deposit. That hole is HR09-165 and included 24 metres of 12.1 grams gold per tonne. The mineralization is open down dip, up dip, and along strike to the northwest towards the Main Homestake deposit. Expansion of the Homestake Silver deposit and initial exploration of six newly identified targets will be the major focus of our 2010 program.'
Rob Macdonald (P.Geo.) is the Qualified Person responsible for reviewing the technical results in this release. Independent Qualified Persons responsible for preparation and review of the Mineral Resource Estimate are David Rennie, P. Eng., Principal Geologist, Scott Wilson RPA; Kevin Scott, P. Eng., Principal Metallurgist; and Dennis Bergen, P. Eng., Associate Principal Mining Engineer.
On behalf of the Board of Directors
Joseph A. Kizis Jr., Director, President
Bravo Gold Corp.
We seek safe harbor.
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.
Jeff Stuart
1-888-456-1112
jstuart@mnxltd.com
Bravo Gold Corp
Liana Shahinian
1-888-456-1112
liana@mnxltd.com
www.bravogoldcorp.com