Bravada Gold Corporation (TSX VENTURE: BVA)(FRANKFURT: BRT)
reported today that assays have been received from seven holes
drilled along the eastern and southern margins of the previously
mined Wind open pit. The holes successfully extend or upgrade
mineralization compared to the project's existing resource model.
The strongest mineralization occurs in hole WM11-058, which
intersected 12.2m averaging 1.222g Au and 30.8g/t Ag (1.661g/t
Au-eq @ 70Ag:1Au) within a 73.1m interval averaging 0.460g/t Au and
15.6g/t Ag (0.683g/t Au-eq) and ended in strong mineralization.
Mineralization in this hole is approximately 300m south of the open
pit designed for the Company's 2010 PEA. The drill site was chosen,
based on detailed mapping combined with historic drill data, to
test an approximately 60m-wide "feeder" zone, where Au/Ag-bearing
fluids are believed to have been focused when the deposit formed.
Such "feeder" zones may grade downward into much higher-grade vein
deposits that formed where underlying dense volcanic rocks further
constrained the flow of mineralizing fluids to permeable fault
zones.
Hole WM11-054 intersected a different "feeder" zone, located on
the eastern edge of the existing resource and outside of the
designed PEA pit. The hole intersected 6.1m of 0.607g/t Au and
108.6g/t Ag (2.158g/t Au-eq) within a 45.7m interval averaging
0.281g/t Au and 23.0g/t Ag (0.610g/t Au-eq).
Bravada is now more than halfway through its planned 70-hole
(+6,000m) reverse-circulation drilling program, which is designed
to test undrilled portions of the existing resource and to identify
new shallow oxide resources. New mineralization will be included in
an updated PEA for Wind Mountain, expected during the second
quarter of 2012 after the current program of drilling and
metallurgical test work has been completed and incorporated into a
new resource and mine model. Economic parameters should improve
dramatically as a result of expanding the resource and updating
3-year trailing average gold and silver prices. Thus far the
program has encountered shallow mineralization well outside of the
current resource area at the South End Target (13.7m of 1.26g/t
Au-eq starting at 29m depth in hole WM11-034, NR-10-11 dated July
25, 2011) and the North Hill Target (6.1m of 0.875g/t Au-eq
starting at surface in hole WM11-039, NR-12-11 dated August 2,
2011) where satellite pits may be economic to develop.
President Joe Kizis commented, "The holes released here are
important because they further expand the near-surface resource, as
this program was designed to do in part. But they also demonstrate
that metal grades in the "feeder" zones are several-fold higher
than average for the deposit, strengthening our belief that the
deeper, untested roots of this extensive system should contain
bonanza-grade gold and silver deposits, as have been discovered
beneath other disseminated, low-sulfidation deposits that have not
been deeply eroded."
2011 Wind Mountain Drill Intercepts
---------------------------------------------------------------------------
Inter-
Orien- T.D. From To val Au Ag Au-eq
Hole # tation (m) (m) (m) (m) (g/t) (g/t) (70:1) Comments
---------------------------------------------------------------------------
South Wind Pit Target
--------------------------------------------------------------
WM11-051 -50, 071 61.0 13.7 15.2 1.5 0.299 22.8 0.625
---------------------------------------------------------------------------
Wind Pit Extension
--------------------------------------------------------------
WM11-052 -90 121.9 12.2 32.0 19.8 0.436 9.4 0.569
--------------------------------------------------------------
Including 18.3 25.9 7.6 0.745 9.1 0.875
--------------------------------------------------------------
38.1 102.1 64.0 0.245 8.8 0.371
--------------------------------------------------------------
WM11-053 -90 109.7 53.3 59.4 6.1 0.394 13.1 0.581
--------------------------------------------------------------
incl. 1.5m
of 0.394g/t
Au &
93.0 108.2 15.2 0.382 21.4 0.688 102.2g/t Ag
--------------------------------------------------------------
WM11-054 -90 121.9 51.8 97.5 45.7 0.281 23.0 0.610
--------------------------------------------------------------
incl. 1.5m
of 1.49g/t
Au &
59.4 65.5 6.1 0.607 108.6 2.158 350.8g/t Ag
--------------------------------------------------------------
WM11-055 -90 121.9 0.0 7.6 7.6 0.270 10.0 0.412
--------------------------------------------------------------
32.0 35.1 3.0 0.403 1.6 0.425
--------------------------------------------------------------
54.9 76.2 21.3 0.378 10.7 0.531
--------------------------------------------------------------
WM11-056 -90 121.9 12.2 83.8 71.6 0.263 9.6 0.401
--------------------------------------------------------------
89.9 103.6 13.7 0.222 10.9 0.378
--------------------------------------------------------------
WM11-057 "waste" pile
test, lost
-90 7.6 0.0 4.6 4.6 0.166 10.5 0.316 hole at 4.6m
--------------------------------------------------------------
WM11-058 "waste" pile
in this
-90 121.9 0.0 13.7 13.7 0.356 11.1 0.514 interval
--------------------------------------------------------------
48.8 121.9 73.1 0.460 15.6 0.683
--------------------------------------------------------------
Including Hole
bottomed in
mineral-
100.6 112.8 12.2 1.222 30.8 1.661 ization
---------------------------------------------------------------------------
Western Heap Leach pile
--------------------------------------------------------------
WM11-059 -90 7.6 No samples,
lost hole in
heap
---------------------------------------------------------------------------
Intercepts calculated +0.2g/t Au &/or +10g/t Ag combined,
intervals of +0.3g/t Au-eq reported. Nothing above or below
intercept included if less than 0.3 Au-eq & no barren intervals
greater than 6m included internally
True thicknesses are estimated to be 70-90% in bedding
replacement; however, geometry uncertain adjacent to high-angle
faults
A ratio of 70Ag:1Au is used to reflect expected lower recoveries
of Ag relative to Au, although detailed metallurgy has not been
completed
Note: To view the map associated with this release, please click
the following link:
http://media3.marketwire.com/docs/0830bva.pdf
About Wind Mountain
The project is located approximately 160km northeast of Reno and
has good road access and a power line to the property. AMAX
Gold/Kinross Gold recovered nearly 300,000 ounces of gold and over
1,700,000 ounces of silver between 1989 and 1999 from the Wind
Mountain and Breeze open pit heap leach operations (based on
Kinross Gold files). Rio Fortuna Exploration (US) Inc., a wholly
owned US subsidiary of Bravada Gold Corporation, acquired 100% of
the property via an earn-in agreement with Agnico-Eagle (USA)
Limited, a subsidiary of Agnico-Eagle Mines Limited, who retains a
2% NSR royalty interest, of which 1% can be purchased for
$1,000,000 any time prior to production. In May 2010, Rio Fortuna
received and filed on SEDAR a Technical Report for the Preliminary
Economic Assessment (PEA) conducted by Mine Development Associates
(MDA) of Reno. The study assumed open-pit mining using conventional
trucks, shovels, run-of-mine leaching and utilized a base case gold
price of US$850 per ounce with a credit for silver at a price of
$14.50 per ounce. The base case economic model (1) in US dollars
indicates:
Resource inside pits = 26.9 million short tons (24.4 million
metric tonnes) @ 0.012 oz Au/t (0.411g/t), with 0.007 oz Au/t
(0.240g/t) cutoff (approx. 90% Measured + Indicated, approx. 10%
Inferred)
Gold Ounces mined = 320,000
Gold Ounces produced = 198,000
Waste: Ore Strip ratio = 0.7:1
Capital = Initial capital of US$41.8 million with $4.4 million
sustaining capital
Mine Life = 4 years active mining with 2 additional years of
residual leaching and rinsing of leach pads
Life-of-mine cash cost per Au ounce = $497 after a silver credit
of $86 per ounce of gold is applied
Total Pre-Tax cost per Au ounce = $719 after a silver credit of
$86 per ounce of gold is applied
IRR = 15%
Pre-tax NVP @ 5% = $13.2 million
(1)Note that Canadian NI 43-101 guidelines define a PEA as
follows: "A preliminary economic assessment is preliminary in
nature and it includes inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied that would enable them to be classified as
mineral reserves, and there is no certainty that the preliminary
assessment will be realized."
Sensitivity studies by MDA indicated that gold and silver prices
20% higher in the same modeled pit ($1,020/oz Au and $17.40/oz Ag)
will increase the IRR to 38% and the NPV@5% to $43.7 million. Gold
and silver prices that are 10% lower ($765/oz Au and $13.05/oz Ag)
result in the model becoming uneconomic at an NPV@5%. Sensitivities
of the model to capital and operating costs are also provided by
MDA.
Mine Development Associates, Ore Reserves Engineering ("O.R.E.")
and Debra Struhsacker, Environmental Permitting and Government
Relations Consultant, compiled the technical report. Thomas Dyer,
P.E. is a Senior Engineer for MDA and is responsible for sections
of the technical report involving mine designs and the economic
evaluation; Alan C. Noble, P.E. is the Principal Engineer of O.R.E.
and is responsible for sections of the technical report involving
resource modeling and information taken from the 2007 Technical
Report completed entitled "Technical Report on the Wind Mountain
Gold Project"; and Debra Struhsacker is responsible for the section
of the technical report involving environmental issues. These are
the Qualified Persons of the technical report for the purpose of
Canadian NI 43-101, Standards of Disclosure for Economic Analyses
of Mineral Projects.
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 (22 properties covering over 20,000
hectares) Carlin-type and low-sulfidation-type gold holdings
strategically located within numerous productive gold trends in
Nevada. The Company has several projects available for joint
venture with qualified groups.
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
Joseph A. Kizis Jr., Director, President, Bravada Gold
Corporation
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 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: Bravada Gold Corporation Liana Shahinian 604.641.2773
or toll free: 1.888.456.1112 liana@mnxltd.com
www.bravadagold.com
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