The São Jorge deposit hosts an NI43-101 compliant indicated mineral resource of 11.365 Mt grading 1.0 g/t gold (379,000 ounces of gold) and an inferred mineral resource of 20.673 Mt grading 0.8 g/t gold (558,000 ounces of gold) at a 0.3 g/t gold cut-off (Coffey Mining, June 21, 2011).
The project has established infrastructure including road access and hydro electrical power.
Ownership
- Brazilian Gold Corporation owns 100% of the project, subject to a 1% NSR to Talon Metals Corp. for production from any of the 10 exploration concessions and 1% of the proven reserves demonstrated by a feasibility study to the underlying owner of exploration concession 275 and a 2% NSR to the underlying owner of exploration concession 627 that can be purchased for US$500,000.
Land
- Eleven exploration concessions for a total area of 50,602 Ha.
History
- Before 1990, informal garimpeiro mining of alluvials and saprolite.
- 1993-1995, Rio Tinto completes mapping, trenching, auger and diamond drilling (26 holes in 4,350 m).
- 1997-1998, Rio Tinto completes scoping study and drilling (16 holes).
- 2001-2005, Tapajós Mineração Ltda., mines surface oxides.
- 2005, Talon Metals completes Phase 1 diamond drilling program (48 holes in 10,104 m).
- 2006, Talon Metals completes Phase 2 diamond drilling program (34 holes in 7,952 m), airborne and ground geophysics.
- 2007, Talon Metals completes small program of reconnaissance soil sampling.
- 2010, Brazilian Gold signs agreement to acquire 100% of the project.
- 2011, Brazilian Gold completes exploration program consisting of soil geochemistry, geophysics and drilling (39 holes in 14,700 m). Positive Preliminary Economic Assessment (PEA) by Coffey Mining (July 2011) indicates project has robust economics (IRR of 23% and NPV5% of $99 million).
Description
- The São Jorge deposit consists of structurally controlled gold mineralization that is approximately 1.4 km long, up to 100 m wide and extends from surface to 350 m depth.
- The deposit has been delineated by 119 drill holes in 37,155 m.
- The deposit strikes AZ290° and dips near vertical.
- Alteration minerals include silica, potassium feldspar, sericite, chlorite, epidote and hematite.
- Preliminary metallurgical testwork indicates recoveries of 88 to 92% using direct carbon-in-pulp and carbon-in-leach cyanidation tests at P80=200 mesh (75 microns).
Resource
- NI43-101 compliant indicated mineral resource of 11.365 Mt grading 1.0 g/t gold (379,000 ounces of gold) and an inferred mineral resource of 20.673 Mt grading 0.8 g/t gold (558,000 ounces of gold) at a 0.3 g/t gold cut-off (Coffey Mining, June 21, 2011).