Vancouver — Brazilian gold hunter
The financing, arranged through London-based Ocean Equities, is comprised of 5 million units priced at $1.90 apiece. Each unit comprises a share plus a half-warrant, with each full warrant exercisable at $3.80 for one year.
Funds are earmarked for further drilling and exploration on the Tocantinzinho and Mamoal projects in north-central Brazil’s Tapajas region.
Initial drill results from the 3,000-metre Tocantinzinho Phase 3 program returned wide gold intercepts. Hole 05-21 intersected 234 metres (from 80 metres depth) grading 1.3 grams gold per tonne, including 23 metres of 3.3 grams gold with a 2-metre interval of 27 grams gold near the bottom of the hole, where mineralization remains open at depth.
Hole 22 cut 226 metres averaging 1.5 grams gold, including higher-grade sections of 83 and 47 metres grading 2.3 and 2.2 grams gold, respectively. A 2.5-metre interval averaging 28 grams gold was encountered at 70 metres depth.
Brazauro’s drilling is aimed at proving a potential open-pittable gold deposit at Tocantinzinho. Mineralization is disseminated throughout the coarse-grained and fractured granite with a stockwork of quartz-chlorite-sulphide stringers. The large Tocantinzinho shear zone, associated with most of the major gold mineralization in the region, runs through the company’s project area.
The 283-sq.-km property witnessed an alluvial gold rush in the 1960s and 70s. A number of large, hand-dug open pits cover sections of the project where artisanal miners (garimpeiros) exploited highly weathered saprolites and laterites beneath the eluvial gold deposits.
Brazauro, formerly named Jaguar Resources, posts a $91-million market capitalization based on its 45.6 million shares outstanding and recent $2.00 per share trading level.