Vancouver – Brazauro Resources (BZO-V) is flush with Brazilian gold after drill results confirmed continuous high-grade mineralization within the main deposit at Tocantinzinho, including a core zone expected to bump up the sites resource estimate.
Five infill holes returned strong gold grades at open-pittable depths. Hole TOC-57 intersected 2.45 grams gold per tonne over 115.5 metres, starting 69 metres downhole and included 51.4 metres grading 4.32 grams gold. Hole TOC-60 also intersected the higher-grade core, returning 2.02 grams gold over 258 metres starting at 38 metres depth.
The news pushed Brazauro up 10% to 0.85 on almost 500,000 shares in June 4th trading.
Three other holes explored an area to the southeast of the main deposit but came back without any significant results. Three holes to the northwest are now testing for extensions.
These eight cores are part of an 18-hole campaign intended to explore southeasterly extensions of the main resources area and to better outline the resources in the main deposit. Prior to the current campaign 46 core holes outlined a mineralized body that extends from the surface to a depth of at least 350 metres, still open. The deposit has a horizontal strike extent of about 650 metres and an average width of 120 metres. Gold occurs in a sheeted stockwork of quartz-chlorite veinlets, mixed with ubiquitous pyrite.
Brazuaro releases a resource estimate in November 2006 that estimated indicated resources of 16.65 million tonnes grading 1.48 grams gold, plus inferred resources of 19.38 million tonnes grading 1.34 grams gold.
With the latest results in hand, Brazauro is now commissioning an independent scoping study at Tocantinzinho to examine the economics of mining in the area and to estimate the costs of improving the infrastructure that would be necessary for power and access to the site, which is situated in the Tapajs district of north-central Brazil.
There is a rich history of alluvial gold production in the area. The 40,500-hectare Tocantinzinho project was the site of a major gold rush that started in the 1960s. During the 1970s and 1980s the Tapajs area produced 30 to 40% of Brazils annual gold output. Total alluvial gold production in the area up to 1993 was 10 million oz. officially, and perhaps considerably more.
Today roughly 80,000 garimpeiros local alluvial miners work the districts streams, producing 200,000 to 300,000 oz. of gold annually. Brazauras site covers a number of large open pits that were hand dug by local miners taking advantage of highly weathered saprolites and laterites beneath the alluvial gold.