Brazauro Announces Final Results of 2008 Drilling Campaign at Tocantinzinho

Wed Oct 22, 11:49 AM

HOUSTON--(BUSINESS WIRE)--Brazauro Resources Corporation is pleased to announce the results of the last 18 drill holes of its 2008 drilling campaign at its Tocantinzinho Gold Project (TZ) in the Tapajos region of Para state, Brazil. The entire 2008 campaign consisted of 26 drill holes totaling 8,497 meters. Since the start of exploration at TZ, the Company has completed a total of 97 holes totalling 25,735 meters of core drilling at TZ. Of this total, 23,607 meters (85 holes) delineate the mineralization itself and 2,128 meters (12 holes) were step-out holes to assist in defining zones and boundaries.

The 2008 drilling campaign at TZ had two objectives: first, an in-fill core drilling program designed to upgrade inferred resources to the indicated category, and, second, to probe deeper into the mineralized zone to increase the total resources down to the level of 300 meters below surface.

Mark Jones, chairman and CEO, said, “Management is very pleased with the results of this campaign. In addition to confirming the lengthy intercepts and strong grades of previous drilling campaigns, these assays extend the mineralization to depth in the north and west, both to the depth of the postulated open pit, and much lower as well. We are confident that the overall resource will increase based on these results, in addition to upgrading much of the resource from the inferred category to the indicated category.”

With the completion of this drilling phase, the 700-meter strike length of the mineralized zone at TZ has drilling sections based on 30-meter spacing, with each section having received five drill holes in the areas near the middle of the ore zone and at least two drill holes each in the extremities.

Holes 81 to 86 were located in the northwestern portion of the mineralized zone, where grades, for the first 300 meters, tend to be lower and more variable than in the rest of the deposit. This northwestern zone represents approximately ¼ of the entire deposit.

Holes 80 and 87 to 96 were located in the main area of the deposit extending to the southeast, which represents approximately ¾ of the entire deposit. The longer and higher-grade intercepts of these holes confirm the continuity and extension of this main and larger portion of the mineralized zone at TZ.

Holes 91, 93, 94A, 95 and 96 probed the continuity of the mineralization down to 300 meters below surface, to the likely depth of an open-pit. Holes 93, 94A, 95 and 96 confirm that the higher-grade zone does extend to the likely bottom of the postulated open-pit at 300 meters. These holes also confirm that the high-grade mineralization plunges to the northwest and continues below 300 meters depth. Management believes the overall resource has been increased by this campaign, and is planning to contract an updated independent NI 43-101-compliant resource estimate at the end of this year.

The following table shows the mineralized intercepts from these eighteen holes:

Hole     Intercept (Au)     From (m)     To (m)     Final Depth (m)
TOC-08-80

Including

    168.61 m at 1.54 g/t

61.85 m at 2.82 g/t

    6.09

107.10

    174.70

168.95

    210.31
TOC-08-81     280.06 m at 0.51 g/t     3.04     283.10     338.32
TOC-08-82     92.60 m at 0.73 g/t     86.30     178.90     330.70
TOC-08-83     145.20 m at 0.72 g/t     104.75     249.95     347.47
TOC-08-84

and

    36.65 m 0.83 g/t

56.10 m at 0.46 g/t

    29.05

141.55

    65.70

197.65

    352.96
TOC-08-85

and

    71.15 m at 0.81 g/t

82.00 m at 0.91 g/t

    0.00

181.40

    71.15

263.40

    359.66
TOC-08-86

and

    50.60 m at 0.93 g/t

36.25 m at 0.48 g/t

    0.00

154.20

    50.60

190.45

    359.64
TOC-08-87

Including

    170.25 m at 1.92 g/t

96.20 m at 2.71 g/t

    24.40

97.55

    194.65

193.75

    213.36
TOC-08-88

Including

    193.25 m at 1.67 g/t

81.70 m at 2.87 g/t

    65.25

103.05

    258.50

184.75

    286.51
TOC-08-89     126.45 m at 1.09 g/t     114.35     240.80     341.33
TOC-08-90     No significant assays
TOC-08-91

Including

    225.32 m at 1.53 g/t

109.90 m at 2.13 g/t

    104.25

183.50

    329.57

293.40

    329.57
TOC-08-92

Including

    220.61 m at 1.74 g/t

21.35 m at 2.52 g/t

50.60 m at 3.19 g/t

19.45 m at 3.98 g/t

23.06 m at 2.41 g/t

    56.30

81.25

123.30

207.15

253.85

    276.91

102.60

173.90

226.60

276.91

    276.91
TOC-08-93

Including

    163.53 m at 1.37 g/t

35.40 m at 2.45 g/t

40.10 m at 1.90 g/t

    156.97

211.10

274.40

    320.50

246.50

314.50

    353.26
TOC-08-94

and

    44.40 m at 0.79 g/t

49.32 m at 1.70 g/t

    123.25

221.95

    167.65

271.27

    271.27
TOC-08-94A

Including

    126.75 m at 1.20 g/t

44.70 m at 2.16 g/t

    192.00

241.50

    318.75

286.20

    391.66
TOC-08-95     282.67 m at 1.24 g/t

89.55 m at 2.35 g/t

    106.55

140.55

    389.22

230.10

    389.22
TOC-08-96

Including

    272.67 m at 1.60 g/t

40.30 m at 2.74 g/t

84.75 m at 2.10 g/t

    142.70

198.00

314.00

    415.37

238.30

398.75

    434.34

Mineralized intervals are determined using a cut-off of 0.20 g/t Au. All intercepts are “down the hole” and do not represent true widths. All holes are inclined from 52° to 76° from horizontal. Hole 94A is a twin hole of 94.

There would appear to be variance in mineralization between the twin holes 94 and 94A, however, a closer review demonstrates that they are quite similar. In hole 94, the reported intercept of 44.40m at 0.79g/t (123.25m to 167.65m) could be correlated to the non-reported, low-grade intercept in hole 94A of 57.80m at 0.30g/t (121.60m to 179.40m). The additional intercept in hole 94 -- 49.32m at 1.70g/t (221.95m to 271.27m) -- correlates to the high-grade intercept of 44.70m at 2.16g/t (241.50m to 286.20m) in hole 94A. It is important to note that hole 94 stopped at 271.27 meters, whereas hole 94A stopped at 391.66 meters so, beyond 271.27 meters, the two are not able to be compared.

It should be noted that holes 91, 92, 94 and 95 could not continue to depth due to mechanical problems with the drill rig, and did not reach the targeted wall rock contact.

The above results complete the Company’s 2008 drilling program at TZ. The Company earlier reported the following results from the same campaign (see News, May 15 and June 10, 2008):

Hole     Intercept (Au)     From (m)     To (m)     Final Depth (m)
TOC-08-72     303.90 m at 0.63 g/t     30.90     334.80     335.88
TOC-08-73     192.10 m at 1.20 g/t     70.10     262.20     329.88
TOC-08-74

Including

    161.90 m at 1.33 g/t

42.05 m at 2.98 g/t

    6.10

50.10

    168.00

92.15

    313.94
TOC-08-75

Including

    227.45 m at 1.60 g/t

125.00 m at 2.31 g/t

    46.85

115.80

    274.30

240.80

    312.42
TOC-08-76     171.40 m at 1.00 g/t     138.30     309.70     327.66
TOC-08-77

Including

    200.25 m at 1.47 g/t

106.80 m at 2.21 g/t

    102.50

121.00

    302.75

227.80

    356.92
TOC-08-78

Including

    234.00 m at 1.81 g/t

110.45 m at 2.24 g/t

    88.10

92.55

    322.10

203.00

    358.14
TOC-08-79     56.81 m at 3.24 g/t     15.24     72.05     234.69

Based on the Company’s Option Agreement with Eldorado Gold Corporation (see News, July 9, 2008), Eldorado will now commence the management of the ongoing in-fill drilling and pre-feasibility activities at TZ.

Sampling Procedures

The recovered NTW and BTW-size cores are split in half by a standard rock saw. One-half is sent to the laboratory in intervals not greater than 2 meters in length and cut depending on geologic parameters. The remaining half-core is stored on site. The samples were bagged in lots of fifty (50) and flown from the project site to Itaituba, where SGS-Geosol Ltda. has a sample prep facility. Samples are dried at 105°C, crushed to 2mm, homogenized, and then a 1.0 kg split is taken from approximately 3kg of material. The 1.0 kg split material is pulverized to minus 150 mesh and a 150g split is then taken from this portion for the fire assay. At Itaituba SGS-Geosol prep lab, one "blank" (pure pulverized quartz) is inserted every 40 samples and a sieve test for crushing (90%-2mm) and pulverizing (95%-150#) is performed every 20 samples. The pulps (150 grams) were then air freighted to the SGS-Geosol analytical laboratory in Belo Horizonte for Fire Assay/AA analysis on 50g split. SGS-Geosol is an ISO9001/2000-certified mining and environmental analysis laboratory, and, in addition, participates in various inter-laboratory proficiency testing programs. In addition to the laboratory quality control, Brazauro has added its own check samples each 10 samples.

Mr. Rodrigo Mello, a qualified person as defined in NI 43-101 and Senior Consultant of Belo Horizonte, Brazil, based NCL Brasil Ltda., has read and approved the technical portions of this release.

Mark E. Jones III

Chairman, CEO Brazauro Resources Corporation

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements contained in this press release constitute forward-looking statements which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. When used in this release, words like "anticipate", "believe", "estimate", "expect", "will", "intend" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are inherently subject to significant business, economic, political and competitive uncertainties and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance, achievements or position of the parties to be materially different from the estimated or anticipated future results, performance, achievements or position expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future results, performance, position or achievements. The risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities (such as fuel and electricity) and currencies;; changes or disruptions in the securities markets; legislative, political or economic developments in the jurisdictions in which the companies carry on business; the occurrence of natural disasters, hostilities, acts of war or terrorism; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the company’s projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated.

Brazauro Resources Corporation
Chairman
Mark Jones, 281-579-3400
info@brazauroresources.com
www.brazauroresources.com