Bravo Arranges $5.0 Million Flow-Through FinancingVANCOUVER, BRITISH COLUMBIA--(Marketwire - June 2, 2011) -Bravo Gold Corp. (TSX VENTURE:BVG)(FRANKFURT:B6I) reported today thatthe company proposes to issue up to a total of 39 million Units at aprice of
.13 per Unit for gross proceeds of $5.0 million. Each Unitconsists of one flow-through common share and one-half non flow-throughtransferable share purchase warrant; each whole share purchase warrantis exercisable to purchase one additional non flow-through common shareat a price of
.20 for a period of two years. Finder's fees may bepayable. The private placement and finder's fees are subject toregulatory approval.
Net proceeds from the financing will be used to fundthe 2011 exploration programs on the Homestake and the newly acquired596 sq. km Kinskuch projects, and to continue with pre-development workon the Main Homestake and Homestake Silver deposits. Crews will mobilizein mid-June with drilling to begin in mid-July initially on identifiedtargets at the Homestake Project and then continuing in early Septemberon the Kinskuch project after surface work on several specific historicmineral occurrences further refines drill targets.
Exploration will focus on the identification of newdeposits that will be accretive to the existing mineral resources at theMain Homestake and Homestake Silver deposits, which contain a currentNI43-101 compliant Indicated Resource, at a 3.0g/t AuEq. cut-off, of191,000 oz gold and 1,350,000 oz silver plus an Inferred Resource of530,000 oz gold and 13,470,000 oz silver(1).
Homestake Project
Exploration on the Homestake project will includesurface exploration and detailed mapping. Ground geophysics will targetpotential blind deposits on strike with the Homestake Silver deposit andFox zone, as well as several other occurrences on the property. Up to5000 metres of diamond drilling will test multiple targets.
Drilling on the Homestake Project will initiallyfocus on the 215 target, a zone of silver-enriched silicificationlocated 150 metres to the northeast of the Homestake Silver deposit. The215 zone was intersected late in the 2010 exploration program andcontains thick intervals of strongly anomalous silver (up to 40g/tsilver) and pathfinder elements (arsenic-antimony) which are analogousto those found in 2008 drilling at the top of the Homestake Silverdeposit, and which led to the ultimate discovery of that mineralresource.
Exploration will also target the southeast extensionof the Homestake Silver deposit and further extensions of the Fox zone,which is located 600 metres to the southwest of the Homestake Silverdeposit.
Kinskuch Project
The Kinskuch project is a strategic acquisition whichcontains much of the access road to Homestake Ridge and several highlyprospective areas that have not been explored with modern technology.Current exploration plans include an airborne DIGHEM survey over much ofthe project area, aggressive surface exploration of the mainmineralized trends throughout the property, and an anticipated 2000metres of diamond drilling on several targets identified throughdetailed data review and compilation. Initial exploration on theKinskuch property will focus on two portions of the property thatcontain the same stratigraphic section that hosts the mineralization atthe Homestake Ridge deposits.
Bravo has developed five priority target areas within the Kinskuch project for the 2011 field season, including the Esperanza Minewhere chip samples of narrow veins (0.05 to 0.5 metres) in the historicworkings of this small-scale past-producer contain multiple assaysbetween 111g/t and 1,913g/t silver and between 1.5g/t and 159g/t gold.Sampling of historic drill core from 1969 assayed up to 5,583g/t silverand 6.0g/t gold over a 0.25 metre interval. Historic production from theEsperanza Mine totaled 4,660 tonnes mined between 1911 and 1948 at anaverage grade of 994g/t silver, 1.8g/t gold and 0.14% lead(2).
The historic work at the Esperanza Mine provides an excellent basis for fast-track targeting at Kinskuch for drilling during the 2011 season.
The Illiance River trend includesmultiple mineral occurrences that occur along an 8 kilometre-long beltof altered and mineralized felsic volcanics located about 15 kilometreseast-northeast of Alice Arm. Drilling in the late 1980's within a 1.6kilometre long portion of this trend returned several high-gradesilver-enriched intercepts of up to 1.8 metres of 297g/t silver, 2.89%lead and 9.56% zinc(2). More recent chip and grab samples in the area returned assays of up to 11,485g/t silver, 5.34% lead and 24.6% zinc(2). Airborne geophysics, mapping, and sampling are expected to provide high-quality drill targets for follow-up during 2011.
Engineering Update
Engineering work is proceeding under the guidance ofFred Sveinson, P. Eng, who has been retained as a Consultant MiningEngineer for the Homestake Project. Mr. Sveinson is directing in-houseScoping work to provide guidance to the company with respect to economicand engineering parameters, environmental studies, and permittingrequirements necessary to advance the project to feasibility as quicklyas possible. Mr. Sveinson has commissioned independent consultants withexpertise in mining, power generation, and tailings design/management tocomplement his own experience as part of this effort.
- Micon International Limited is evaluating various mining methods, preparing a mine plan, determining operating costs, and developing a financial model.
- Knight & Piesold is determining power alternatives and related costs.
- Knight & Piesold is also determining the best location for a plant and tailings facilities and associated costs.
- Initial metallurgy for the Main Homestake deposit was directed by Melis Engineering.
- Bravo has initiated further metallurgical work on the Homestake Silver deposit under the guidance of Roscoe Postle and Associates Inc.
- Baseline environmental studies necessary to permit road access to the project and to permit an eventual bulk sample of the Main Homestake zone will continue during the 2011 exploration season.
- Scoping and more detailed engineering work will continue over the next year toward assessing the economic viability of the Homestake Project.
About Bravo
Bravo Gold Corp. owns a 100 percent interest in theHomestake Ridge project, which is located in a prolific mineral belt innorthwestern British Columbia. The project is being advanced as apotential high-grade underground mining operation with a currentNI43-101 compliant Indicated Resource, at a 3.0g/t AuEq. cut-off, of191,000 oz gold and 1,350,000 oz silver plus an Inferred Resource of530,000 oz gold and 13,470,000 oz silver(1). Two depositshave been identified to date and multiple exploration targets remain tobe tested on the large 2585 hectare property. Bravo also holds an optionto acquire a 100% interest in the 596-square-kilometre Kinskuch projectlocated adjacent to, and to the southeast of, Bravo's Homestake Ridgeproject. Bravo also holds an 11.67 percent equity interest in BravadaGold Corporation (TSX VENTURE:BVA), which is exploring 22 projects inNevada.