Company Plans Immediate Exploration and Development of Property
in Prodigious Tapajos Region Of Brazil
Trading Symbol: BZO-TSX.V
HOUSTON, May 14 /PRNewswire-FirstCall/ - Brazauro
Resources Corp. (TSX.V: BZO) today announced the renewal and
publication of mineral exploration licenses comprising the Agua
Branca Project being acquired under the previously disclosed Option
Agreement from the Brazilian subsidiary of Talon Metals Corp TSX:
TLO ("Talon").
Agua Branca consists of approximately 15,008 hectares of
Exploration Licenses and is one of the largest and oldest alluvial
and hard-rock garimpos, or informal mining camps, in the Tapajos
region of Para State, Brazil. The
property is accessible by road year-round and is located
approximately 35 kilometers south of Brazauro's flagship
Tocantinzinho (TZ) gold deposit in the well-known
Tocantinzinho-Cuiu Cuiu gold belt. Like TZ, Agua Branca is located
in the gold-fertile Parauari granite system.
Brazauro plans to carry out an initial soil-sampling program
over Agua Branca Property targets in the second quarter of 2010,
followed immediately by a comprehensive drilling program. A camp is
in place and a team of professionals is now executing these
development plans.
"We have completed planning our activities, and are very excited
to enter the field and begin the work in earnest. The camp has all
the amenities necessary to allow our technical team to quickly
assess this property," said Elton
Pereira, Brazauro's Vice President of Exploration. "Within
the Agua Branca claim block, we have several important targets we
will focus on. These include the Serra da Abelha area, a zone
currently being exploited by shallow garimpo underground operations
and where the hydrothermal and mineralization styles are very
similar to Tocantinzinho."
Brazauro paid Talon an additional US$60,000 upon renewal of the Agua Branca
Exploration Licenses by the Brazilian National Department of
Mineral Production ("DNPM") which occurred on April 28, 2010. Two subsequent option payments of
US$130,000 and US$1,870,000 are due on December 31, 2010 and September 30, 2011, respectively. Brazauro has
also committed to expend a minimum of US$500,000 in exploration activity per year for
each of the first two years following renewal of the exploration
licenses by DNPM, including at least 2,000 meters of diamond
drilling in the first year. The development expenditure obligations
are cumulative and aggregate against the overall US$1 million obligation. Talon retains a 2% net
smelter royalty which Brazauro can purchase for US$2,000,000.
"Completion of this agreement is an important step forward in
furthering the development of the Tapajos region as a significant
gold mining district," said Brazauro Chairman and CEO Mark Jones III.
About Brazauro:
Brazauro Resources is an established and well-financed gold
exploration company focused on high-potential properties in the
Tapajos region of Brazil. As well
as its most advanced property, Tocantinzinho, Brazauro is also
actively exploring other properties including the nearby Bom
Jardim, Piranhas, Agua Branca and Andorinhas projects. The
Company's shares are listed on the TSX Venture Exchange under the
symbol BZO-V. Further information is available at
www.brazauroresources.com.
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. No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein.
Forward-Looking Statements
Certain statements contained in this press release may
constitute forward-looking statements under Canadian securities
legislation which are not historical facts and are made pursuant to
the "safe harbour" provisions under the United States Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based upon the Company's reasonable expectations and
business plan at the date hereof, which are subject to change
depending on economic, political and competitive circumstances and
contingencies. Readers are cautioned that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause a change in such assumptions and the actual
outcomes and estimates to be materially different from those
estimated or anticipated future results, achievements or position
expressed or implied by those forward-looking statements. Risks,
uncertainties and other factors that could cause the Company's
plans to change include changes in demand for and price of gold and
other commodities (such as fuel and electricity) and currencies;
changes or disruptions in the securities markets; legislative,
political or economic developments in Brazil; the need to obtain permits and comply
with laws and regulations and other regulatory requirements; the
possibility that actual results of work may differ from
projections/expectations or may not realize the perceived potential
of the company's projects; risks of accidents, equipment breakdowns
and labour disputes or other unanticipated difficulties or
interruptions; the possibility of cost overruns or unanticipated
expenses in development programs; operating or technical
difficulties in connection with exploration, mining or development
activities; the speculative nature of gold exploration and
development, including the risks of diminishing quantities of
grades of reserves and resources; and the risks involved in the
exploration, development and mining business. The Company disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise.
SOURCE Brazauro Resources Corp.