Bravada and Fortune River Project Update, Manager of Development Hired for Wind Mountain
November 18 2010 - 1:40PM
Marketwired
Bravada Gold Corporation (TSX VENTURE: BVA)(FRANKFURT: 6BG) and
Fortune River Resource Corp. (TSX VENTURE: FRX)(FRANKFURT: RG7A)
provided an update of recently drilled exploration projects and
announced that a Manager of Development has been hired for Fortune
River's Wind Mountain project. The Companies are proposing a
friendly merger via amalgamation, which is subject to appropriate
approvals of shareholders and the Supreme Court of British
Columbia, and acceptance by the TSX Venture Exchange. The single
amalgamated company, which would retain the name Bravada Gold
Corporation, will then control 20 Nevada properties (approximately
13,000 hectares), located in the Battle Mountain-Eureka, Walker
Lane, and Northern Nevada Rift gold trends.
John Cox has joined Fortune River as Manager of Development in
order to advance the existing mineral resource at the Company's
Wind Mountain property, a previous Amax Gold open-pit/heap-leach
mine. The project contains an estimated 406,000 ounces of gold in
the Measured plus Indicated Resource categories(i), 30.6 million
tonnes (33.7 million short tons) averaging 0.411 g/t Au, using a
cutoff grade of 0.257 g/t Au, plus an additional 92,000 ounces of
gold in the Inferred category, 8.9 million tonnes (9.8 million
short tons) averaging 0.308 g/t Au, using the same cut-off grade
(see FRX news release dated January 8, 2008). Earlier this year,
the company commissioned an independent NI 43-101-Compliant
Preliminary Economic Assessment and associated Technical Report by
Mines Development Associates (MDA), a well-respected engineering
group based in Reno. MDA modelled an open pit using $850 per ounce
of gold and $14.50 per ounce of silver. MDA's report indicates the
project will have a pre-tax NPV@5% of US $13.2 million (IRR=15%) at
$850 per ounce gold and, assuming a 20% increase in metal prices, a
pre-tax NPV@5% of US $43.7 million (IRR=38%) at $1,020 per ounce
gold for the same pit design (see FRX news release NR-05-10 dated
April 13, 2010). Mr. Cox will manage the work required to optimize
economics and advance the project through pre-feasibility.
Mr. Cox earned M.S. and B.S. degrees in Geology and has more
than 30 years of experience in the mining industry. He has held
various senior management positions with USMX and Alta Gold, where
he assisted in the development and production of several gold mines
that were of a similar scale to that proposed for Wind
Mountain.
This season Bravada conducted 1,270 meters of core drilling in
two holes at the Signal project and 591 meters of core drilling in
one hole at the PH project. Both projects host Carlin-type
mineralization at the surface, and these drilling programs were
designed to search for deeper, high-grade mineralization. Signal is
located 5km west of the Ruby Hill gold mine, and PH is located 6km
east of the Tonkin Springs gold mine. Bravada's drilling at both
projects successfully intersected the projected host rocks with
strong alteration and with anomalous, but not economic,
concentrations of gold (0.0X to 0.X g/t) and pathfinder elements.
Computer 3D modelling shows targets remain at each property, and
additional drilling is planned.
Fortune River and partner Christopher James Gold Corp. completed
1,173 meters of reverse-circulation drilling in five holes at the
Buz project, a low-sulfidation-type exploration property. The holes
intersected zones of quartz veining; however, gold values were
generally disappointing and no further work is planned at this
time.
Status of Amalgamation
It is anticipated that Special meetings of both Companies will
be convened on December 17, 2010 for resolutions of the
shareholders of each Company followed by Court application and
submissions to the TSX Venture Exchange for listing of the shares
of the amalgamated Company.
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 Carlin-type gold holdings
strategically located within the Battle Mountain/Eureka "Cortez"
gold trend in Nevada. Bravo Gold Corp. (TSX VENTURE: BVG) owns 34%
of 32,519,218 Bravada common shares currently outstanding.
About Fortune River Resource Corp.
Fortune River Resource Corp. is a member of the Manex Resource
Group of companies with an exploration office in Reno, Nevada from
which it is exploring for high-grade, low-sulfidation-type gold
deposits, primarily in Nevada.
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
and Fortune River Resource Corp.
Joseph A. Kizis Jr., Director, President, Bravada Gold
Corporation and Fortune River Resource Corp.
(i)Ore Reserves Engineering ("O.R.E.") and Donald E. Ranta,
consulting geologist, prepared the resource estimate and technical
report. Alan C. Noble, P.E. is the Principal Engineer of O.R.E. and
is the Qualified Person for the technical report for the purpose of
Canadian NI 43-101, Standards of Disclosure for Mineral Projects.
The resource estimate was prepared utilizing a 3-D block model with
inverse-distance-power estimation of gold grades. Grade estimation
was controlled using three-dimensional wire-frame interpretations
of the gold-grade zoning. Grade estimation parameters were defined
based on variogram trends and further optimized so the grade
distribution in the mined-out portion of the resource matched
closely with a block model that was created from blasthole data.
Resource classes were defined based on the spacing of drill holes
around the blocks as measured by the kriging variance from a linear
variogram. A drill-hole grid spacing of 150 feet was required to
qualify as Measured and a spacing of 225 feet was required to
qualify as Indicated, with less dense drill spacing qualifying as
Inferred. Silver resources are not reported in the resource
estimate because of uncertainty regarding silver assays; however,
approximately 5.9 ounces of silver were recovered historically for
every one ounce of gold.
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 and Fortune River Resource Corp do 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 / Fortune River Resource
Corp. Liana Shahinian 604.641.2773 or Toll Free: 1.888.456.1112
liana@mnxltd.com www.bravadagold.com / www.fortuneriver.ca
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