Bravo Starts Drilling on Homestake Ridge Project; Closes Second Tranche of $5 Million Flow-Through Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/04/11 -- Bravo Gold Corp. (TSX VENTURE: BVG)(FRANKFURT: B6I) reported today that diamond drilling has started on the Homestake Ridge Project, located in north-western British Columbia. A program of surface IP geophysics is currently being conducted on the property to assist drill targeting.
Drilling 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 in drilling beneath cover 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.
Additional drilling will target: the south-eastern extension of the Homestake Silver deposit; lateral extensions of the Fox zone, first tested in 2010; the connector area between the Homestake Main deposit and the Homestake Silver deposit; and several other targets located on the property. Bravo anticipates completion of up to 25 drill holes for 5000 metres of drilling on multiple targets throughout the property. One hole has been completed to date.
The Homestake Ridge 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 this season on the 2585 hectare property.
Kinskuch Project
The company also reported that a planned 3800 line-kilometre airborne DIGHEM survey is now underway on Bravo's 59,600 hectare Kinskuch project, which is located adjacent and to the south of the Homestake Ridge project in north-western British Columbia.
The Airborne survey is one part of a multi-phase program on this newly acquired project, which contains much of the access road to Homestake Ridge from the base at Alice Arm and several highly prospective areas that have not been explored with modern technology.
Field crews have been active on the Kinskuch project since mobilization in June and continue to map and prospect priority targets located primarily within two portions of the property that contain the same stratigraphic section that hosts the mineralization at the Homestake Ridge deposits. A drill program of approximately 2,000 metres on the Kinskuch project is scheduled for mid-September.
Financing News
Bravo announces that it has closed the second tranche of its previously announced non-brokered unit private placement by issuing 15,585,000 units at a price of $0.13 per unit for gross proceeds of $2,026,050. Each unit consists of one common share and one-half share purchase warrant, with each whole warrant exercisable to purchase one additional common share at a price of $0.20 per share for a period of two years. Bravo issued 23,076,923 units in a first tranche closing on June 8, 2011, which together with the second tranche raised total gross proceeds of $5,026,050.
Proceeds from the private placement will be used to fund exploration programs on the Homestake Ridge, Kinskuch, and Silver Basin Properties in British Columbia. All securities issued pursuant to this tranche of the private placement, including common shares, share purchase warrants and finders' warrants issued as finders' fees, carry a legend restricting trading of the securities until October 29, 2011. The private placement and finders' fees are subject to regulatory approval.
Stock Options
The Company reports that it has granted 6,135,000 incentive stock options to Directors, Officers, Employees and Consultants, each exercisable at $0.13 per share and for a period of five years.
Additionally, the Company intends to re-price the exercise price in existing option agreements with Consultants and Employees in the aggregate amount of 4,774,583 stock options at the price of $0.13 per share.
The granting and re-pricing of the stock options are subject to the approval of regulatory authorities.
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. Bravo also holds an option to acquire a 100-percent interest in the 596-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Bravo's Homestake Ridge project. Bravo also holds a 13 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.
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