Bravo Gold announces approval of share consolidation; gives a corporate and exploration update
VANCOUVER, BRITISH COLUMBIA–(Marketwire – March 26, 2012) – Bravo Gold Corp (TSX VENTURE:BVG)(FRANKFURT:B6I) ("Bravo" or the "Company") announces that at the Annual General Meeting of the Shareholders, held on Thursday, March 22, 2012, an ordinary resolution authorizing the approval of a proposed share consolidation of the issued common shares of the Company, to be implemented at the discretion of the Board of Directors, was passed. At a subsequent meeting of the Board of Directors, approval was given for the consolidation of the issued common shares of the Company on basis of one (1) post-consolidation common share for every ten (10) pre-consolidation Common Shares (the "Share Consolidation"). An aggregate of 74,545,039 shares were represented at the Meeting either in person or by proxy, representing approximately 34.61% of the issued and outstanding Common Shares, with approximately 94% of the votes being cast in favour of approving the Share Consolidation.
The principal reasons for the Share Consolidation include management's belief that the Company will benefit from: greater investor interest; improved trading liquidity; and an ability to raise additional capital at a higher price per share. The change in the number of issued and outstanding Common Shares that will result from the Share Consolidation will cause no change in the capital attributable to the Common Shares and will not materially affect any shareholder's percentage ownership in the Company, even though such ownership will be represented by a smaller number of Common Shares. As at the date hereof, there are an aggregate of 215,411,092 Common Shares issued and outstanding. It is expected that, upon completion of the Share Consolidation, there will be an aggregate of approximately 21,541,109 Common Shares issued and outstanding.
The completion of the Share Consolidation is subject to the approval of the TSX Venture Exchange (the "Exchange"). Materials are being submitted to the Exchange requesting such approval and a further announcement will be made once such approval is obtained. Once approved, a letter of transmittal will be sent by mail to shareholders advising them that the Share Consolidation has taken effect and instructing them to surrender the certificates evidencing their pre-consolidation Common Shares for replacement certificates representing post-consolidation Common Shares.
The Company also reports that the following directors were re-elected: Joseph A. Kizis, Jr., Terrence Eyton, Lawrence P. Page, Q.C., Stephen Beardslee, Declan J. Costelloe and Scott B. Hean. Mr. Ken Thorsen has retired from the Board at the Annual General Meeting. Our thanks and appreciation for the assistance provided by Mr. Thorsen during his term as a Director are extended. Mr. Fred Sveinson has been elected as a new Director of the Company. Mr. Sveinson, P. Eng. has a stellar career as a mining engineer internationally and his services will be welcome and vital to development of the Company's Homestake Ridge property as a potential mine.
In addition, the shareholders approved the Company's rolling incentive stock option plan pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. The stock option plan is subject to the approval of the TSX Venture Exchange.
2012 Exploration Update
The company plans an aggressive 2012 exploration and development program on the Homestake Ridge and Kinskuch properties located in northwestern British Columbia that will concentrate on the drill delineation of the newly discovered South Reef deposit at Homestake Ridge and follow-up drilling of a potential mineral deposit at Kinskuch. In addition, the program is expected to include additional exploration drilling, ground geophysics and further evaluation of several other encouraging exploration targets. A defined resource at South Reef and possibly at Kinskuch, plus any new discoveries will be accretive to the NI43-101 compliant resources at the two deposits already discovered and delineated by Bravo at the Homestake Ridge property, which should significantly enhance the potential development of this strongly mineralized district.
Homestake Ridge Project
Drilling on the Homestake Ridge Project in 2012 will delineate the extent of mineralization discovered in 2011 at the South Reef deposit, which is located about 800 metres to the southwest of the Homestake Silver deposit. The planned holes will offset three holes from the 2011 program that tested a 75 metre strike-length of the mineralized trend to depths of 260 metres and intersected +30g/t gold in each hole, including a 3.1m interval averaging 30.8g/t Au and 3.3g/t silver within a 8.7 metre interval averaging 11.3g/t gold and 1.6g/t silver from drill hole HR11-232 (see NR-14-11).
Drilling will test a 1.2 kilometre strike length of this newly identified, mineralized zone, which represents the third high-grade gold/silver deposit discovered in this evolving district. Mineralization is open at depth and along the full strike-length of the target horizon, which is equal to the cumulative strike-length of the previously delineated Main Homestake and Homestake Silver deposits. Combined, these two deposits contain a current NI43-101 compliant Indicated Resource, at a 3.0 g/t AuEq cut-off, of 191,000 oz gold and 1,350,000 oz silver (215,100 oz AuEq) plus an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver (770,500 oz AuEq)(1).
The company believes that there is a strong potential to significantly increase the mineral resources of the property through the continued delineation of the South Reef deposit.
Exploration on the Kinskuch Project in 2012 will focus on offset drilling of the silver-rich, polymetallic VMS-style mineralization intersected by Bravo in 2011 at the Illiance River trend located in the eastern part of the property.
The Illiance River trend is a five kilometre strike length of strongly altered volcanic stratigraphy that is an important host at the nearby Homestake Ridge project. High-grade silver-enriched polymetallic mineralization occurs within a series of sub-vertical horizons along the altered trend. Initial drilling will target a 700 metre strike length of this trend where 2011 drilling returned high-grade, silver-polymetallic assay results, including a 2.8 metre interval averaging 318g/t Ag, 0.4g/t Au, 2.2% Pb and 6.5% Zn (582g/t AgEq) from drill hole KN11-02; and a 3.9 metre interval averaging 268g/t Ag, 0.2g/t Au, 3.4% Pb and 6.5% Zn (491g/t AgEq) from drill hole KN11-03 (see NR-04-12).
An expanded program of geological prospecting, sampling and ground geophysics is also planned for other target areas throughout the property.
Bravo Gold Corp. has a 100 percent interest in the Homestake Ridge project, which is located in a prolific mineral belt in northwestern British Columbia. The project is being advanced as a potential high-grade underground mining operation with a current NI43-101 compliant Indicated Resource, at a 3.0g/t AuEq cut-off, of 191,000 oz gold and 1,350,000 oz silver (215,500 oz AuEq) plus an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver (775,900 oz AuEq)(1). Two deposits have been delineated to date, with a third, South Reef, discovered late in 2011. Multiple exploration targets remain to be tested on the large 2585 hectare property. Bravo holds an option to acquire the 596-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Bravo's Homestake Ridge project. Bravo holds a 9.76 percent interest in Bravada Gold Corporation (TSX VENTURE:BVA), which is exploring 21 projects in Nevada.
Robert Macdonald (P.Geo) is the Qualified Person as defined by National Instrument 43-101 for the Homestake Ridge project and has reviewed and approved the technical contents of this release.
On behalf of the Board of Directors,
Joseph A. Kizis Jr., Director, President, Bravo Gold Corp.
- The current estimate was prepared by Roscoe Postle Associates Inc. (RPA). Mineral Resources on the Main Homestake deposit were estimated previously in 2010 using a block model constrained by 3D wireframes of the mineralized zones. Mineral Resources on the Homestake Silver deposit were estimated in 2011 using a block model constrained by pierce points projected to 2D surfaces. The Main Homestake block model comprised an array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and Cu interpolated using ID3weighting. The Homestake Silver block model comprised an array of blocks measuring 10 m x 10 m. At a 3.0g/t AuEq cut-off, the models identified an indicated resource of 888,000 tonnes averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Bravo Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
We seek safe harbor.
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