43-101 Compliant Tocantinzinho Resource Estimate

 

 

HOUSTON, TX - Brazauro Resources Corp. reported an NI 43-101-compliant resource update at its 100%-owned Tocantinzinho Gold Project (TZ) in the Tapajos region of Para state, Brazil. Total mineral definition drilling at TZ is represented by 40,960 meters developed in 139 diamond drill holes. Not considered in this resource estimate are 12 holes drilled by Brazauro to explore other targets in the vicinity of TZ, totalling 2,215 meters.

The new estimate demonstrates that approximately 28% of the resources, 629,000 ounces, are measured (15.834 Mt at 1.23 g/t Au); 55% are indicated, 1,264,000 ounces, (35.572 Mt at 1.10 g/t Au); and 17%, 389,000 ounces, are inferred (12.400 Mt at 0.98 g/t Au). The denser drilling pattern has created a more robust database, resulting in a significant increase in the confidence and accuracy of this new resource estimate.

Chairman and CEO Mark Jones said, This new resource indicates the significant production potential of TZ. We will incorporate this data into our new economic evaluation of this deposit which is due to be completed in January 2010.

This estimate was based on a grade shell of 0.20 g/t Au. The samples contained within this solid were selected, transformed to 2 meters composites and used to study the variography. Ordinary kriging was used to interpolate gold grades into 10mx10mx5m blocks. The categorization was undertaken based on number of samples adjacent to each block. To define blocks with reasonable prospects of economic extraction, a Whittle envelope was estimated, based on economic and technical parameters considered feasible to occur along the life of the project. Resources were defined as the blocks contained within this envelope and above the marginal cut-off of 0.254 g/t Au.

The company’s address is 16360 Park Ten Place, Suite 217, Houston, TX 77084, (281) 579-3400, fax: (281) 579-9799, email: [email protected].