Bravada and Coeur Begin Core-Drilling Program 

 

VANCOUVER, BC - Bravada Gold Corporation and a wholly-owned subsidiary of Coeur Mining, Inc. have begun the previously announced 1,200m core-drilling program on the Russ Target at the Quito Property. Russ is one of three drill targets developed to date at the Quito property.

Quito is a past-producing, Carlin-type gold property consisting of 342 claims and is located along the Austin Gold trend in central Nevada. From 1986 through 1989, Quito reportedly produced 174,460 ounces of gold from 1.7 million short tons at an average grade of 6.34 grams per ton, which was approximately 60% of the originally published reserve. However, Bravada has not independently confirmed either the past production or any possible remaining resources, and these historic figures should not be relied upon.

The geological setting at Quito is very similar to many of Nevada's largest and richest Carlin-style gold deposits. Gold mineralization is widely dispersed over the property; however, the highest grades are associated with a series of N20E faults, and secondarily with N40W faults, which formed along the axis of a property-scale anticline in Paleozoic-age sediments. The Russ target is located down the projected axis of the anticline and is down the plunge of an historic resource that has been defined by drilling in unfavorable Upper Plate rocks. The core holes will test more-favorable Lower Plate carbonates, which host the bulk of the historic reserve at Quito and at many other Nevada mines. The Q4 and Aspen targets at Quito are undrilled projections of historically drilled mineralization along N20E faults in favorable Lower Plate carbonates.

President Joe Kizis commented, "Quito is Bravada's second property being drilled this season, with 2nd-phase drilling also underway currently at our Baxter property. In addition to drilling at the Russ target, permitting is progressing well for drill testing of the Q4 and Aspen targets at Quito next season."

Coeur may earn into Bravada's interest in the Property, which can range from 49% to 100% over a period of five years by funding Bravada's earn-in work commitment, making certain cash payments to Bravada, and paying Bravada an option purchase price of US$2 million if the option is exercised. If Coeur acquires Bravada's interest in the Property, Bravada will retain a 2% NSR royalty on Coeur's percentage of production from the Property.