Bravo Drills 1024g/t Silver and 3.7g/t Gold Over 4.0 Metres, Expanding the Homestake Silver Deposit; Announces Financing
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/08/11 -- Bravo Gold Corp. (TSX VENTURE: BVG)(FRANKFURT: B6I) ('Bravo') reported today encouraging drill results that extend mineralization along the southeastern margin of the Homestake Silver deposit at its 100% owned Homestake Ridge project, located in northwestern British Columbia. Initial drilling during the 2011 exploration program targeted this portion of the Homestake Silver deposit as well as the 'Connector zone', between the Main Homestake and Homestake Silver deposits, two separate zones in the hangingwall of the Homestake Silver deposit, and a peripheral exploration target.
Highlights from these initial drill holes include:
-- a 4.0 metre interval averaging 1024g/t silver and 3.7g/t gold within a
broader 14.2 metre interval averaging 338g/t silver and 1.2g/t gold from
drill hole 11HR-228,
-- a 3.1 metre interval averaging 262g/t silver and 0.2g/t gold from drill
hole 11HR-226 and,
-- a 10.3 metre interval averaging 118g/t silver and 0.4g/t gold from drill
hole 11HR-227.
Drill holes HR11-226, -227, and -228 tested a 100 metre strike-length of the Homestake Silver deposit approximately 100 metres down-dip of drill hole 09HR-156 (11.7m of 0.3g/t Au and 335g/t Ag, see NR-32-09), which previously defined the southeastern margin of the deposit. Current results successfully extended this boundary through the identification of high-grade silver mineralization. Follow-up drilling in 2011 tested this zone a further 150 metres down plunge from hole HR09-156 (see Figure 1). Assay results from those holes are pending.
Assays from drill holes HR11-218, -221, and -223 (see attached table) extend the projection of silver-enriched mineralization through the 'Connector zone' between the Main Homestake and Homestake Silver deposits. Drill hole HR11-225 intersected an interval of high-grade silver (1.3 metres averaging 521g/t Ag) in a hangingwall zone at the Homestake Silver deposit. Several other holes that tested hangingwall zones returned sub-economic values. All mineralized intervals are reported as estimated true thickness.
President Joe Kizis said, 'With its 2011 drill program, Bravo continues to grow the resource potential of the Homestake Ridge project through the expansion of the known mineral deposits on the property and the identification of new target areas that may ultimately add to the existing resource base. Assay results received to date and results expected from the remaining core that is currently being assayed will provide data for the preparation of an updated resource calculation, which will be incorporated into the ongoing Engineering studies of the overall project.'
To view Figure 1: Longitudinal Section of the Main Homestake and Homestake Silver Deposits, visit the following link: http://media3.marketwire.com/docs/NR1211_Figure1.jpg
To date, the Company has received assays from portions of thirteen of this season's 23 holes from the Homestake Ridge property. Five additional holes from the southeast margin of the Homestake Silver zone, four holes from the previously untested South Reef zone, which occurs 750 metres to the southwest of the Homestake Silver deposit, and a single hole on a peripheral target are still pending.
The 2011 drill plan and a compilation of the 2011 assay summaries received to date are available on Bravo's website at bravogoldcorp.com.
Kinskuch Project
The Company also reported that drilling partially tested two surface occurrences along a 2.5 kilometre section of the Illiance River Trend, located on the adjacent Kinskuch Property. Four drill holes totaling 855 metres were completed at the United Metals and the Silver Bar North occurrences. Samples from these holes and surface channel sampling taken later in the field season have been submitted for analyses, with assays pending.
Table 1: Select Assays from 2011 Drilling at the Homestake Ridge Project
Homestake Silver Zone
------------------------------------------------------------------------
Est.
From To Interval Tr. Thck Au Ag Cu AuEq
Hole # (m) (m) (m) (m) (g/t) (g/t) (ppm) (g/t)
------------------------------------------------------------------------
HR11-226 321.1 325.1 4.0 3.1 0.2 262 94 4.9
------------------------------------------------------------------------
HR11-227 346.9 361.8 14.9 10.3 0.4 118 82 2.5
inc. 355.2 361.8 6.6 4.5 0.5 137 74 3.0
inc. 355.2 358.1 2.9 2.0 0.6 175 72 3.7
------------------------------------------------------------------------
HR11-228 316.1 338.4 22.3 14.2 1.2 338 219 7.3
inc. 332.1 338.4 6.3 4.0 3.7 1024 570 21.9
inc. 334.4 338.4 4.0 2.5 5.4 1457 831 31.4
and 343.8 345.5 1.7 1.0 1.0 242 124 5.3
------------------------------------------------------------------------
Connector Zone
------------------------------------------------------------------------
HR11-218 86.3 87.7 1.4 1.1 0.8 49 87 1.7
------------------------------------------------------------------------
HR11-221 19.5 25.1 5.7 4.5 0.0 97 76 1.8
inc. 19.5 20.7 1.2 1.0 0.1 332 136 6.0
and 29.2 30.1 1.0 0.8 0.1 259 119 4.7
------------------------------------------------------------------------
HR11-222 NSV NSV NSV NSV NSV NSV
------------------------------------------------------------------------
HR11-223 20.5 30.7 10.2 8.1 0.1 43 54 0.8
inc. 23.6 25.1 1.5 1.2 0.1 153 91 2.8
and 37.0 38.1 1.2 0.9 0.0 116 34 2.1
------------------------------------------------------------------------
Hangingwall Targets
------------------------------------------------------------------------
HR11-225 292.6 294.4 1.8 1.3 0.1 521 107 9.4
------------------------------------------------------------------------
------------------------------------------------------------------------
Analyzed by FA-ES/AA for gold and ICP-MS by Acme Labs, Vancouver BC; Samples
greater than 10g/t Au re-assayed with FA-Grav - check assays are pending;
Silver overlimits (greater than 100g/t Ag) re-assayed with FA-Grav. AuEq
calculations used a 56:1 conversion from gold to silver, based on the three
year trailing average of gold and silver and relative metallurgic
recoveries. greater than 0.5g/t Au or 15g/t Ag cut-off used for compositing
intervals, less than 25% internal dilution unless otherwise indicated.
Financing
The Company is proposing to sell by way of non-brokered private placement up to 14 million flow-through units (the 'Units') to Canadian resident investors, each flow-through Unit priced at $0.07 to raise gross proceeds of up to $980,000. Each flow-through Unit is comprised of one common share and one-half transferable share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.10 per share for 24 months.
The Company intends to use the gross proceeds from the sale of the flow-through shares for Canadian exploration expenses, within the meaning of the Income Tax Act (Canada), with the Company using its best efforts to ensure that such CEE qualify as a flow-through mining expenditures for purposes of the Income Tax Act (Canada), related to the exploration during 2011-2012 of the Company's mineral exploration projects located in British Columbia, Canada. The Company expects to renounce such CEE with an effective date of Dec. 31, 2011.
The Company is also proposing to sell by way of non-brokered private placement up to 6,000,000 non-flow-through Units, each Unit priced at $0.07 to raise gross proceeds of up to $420,000. Each Unit is comprised of one common share and one-half transferable share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.10 per share for 24 months. The proceeds from the non-flow through private placement will be utilized for working capital.
In connection with the private placements, the Company is proposing to pay finders' fees in cash and issue Finder's Warrants each having the same terms and conditions as the Warrants.
The private placements and payment of finders' fees are subject to regulatory approval.
About Bravo
Bravo Gold Corp. has 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 3.0 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 on the large 2585 hectare property. Bravo also holds an option to acquire the 596-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Bravo's Homestake Ridge project. Bravo also holds a 9.76 percent interest in Bravada Gold Corporation (TSX VENTURE: BVA), which is currently exploring 21 projects in Nevada.
Robert Macdonald (P.Geo) is the Qualified Person as defined by National Instrument 43-101 for the Homestake Ridge project and has reviewed and approved the technical contents of this release.
On behalf of the Board of Directors
Joseph A. Kizis Jr., Director, President, Bravo Gold Corp.
(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.
We seek safe harbor.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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