Brazauro lines up $9.5-million financing

Vancouver – Brazilian gold hunter Brazauro Resources (BZO-V) is recharging its treasury with a planned $9.5-million private placement.

The financing, arranged through London-based Ocean Equities, is comprised of 5 million units (share plus a half-warrant) priced at $1.90 apiece with each full warrant exercisable at $3.80 for one year.

Funds are earmarked for further drilling and exploration programs on the Tocantinzinho and Mamoal projects located in north-central Brazil’s Tapajs region.

Initial drill results from the 3,000-metre Tocantinzinho Phase 3 program returned wide intercepts of significant gold mineralization. Hole 05-21 intersected 234 metres (from 80 metres depth) grading 1.3 grams gold per tonne, including 23 metres of 3.3 grams gold with a 2-metre interval of 27 grams gold near the bottom of the hole where mineralization remains open to depth.

Hole 22 cut 226 metres averaging 1.5 grams gold, including higher-grade sections of 83 and 47 metres grading 2.3 and 2.2 grams gold respectively. A 2.5-metre interval averaging 28 grams gold was encountered at 70 metres depth.

Brazauro’s drilling is aimed at proving a potential open pittable gold deposit at Tocantinzinho. Mineralization is disseminated throughout the coarse-grained and fractured granite with a stockwork of quartz-chlorite-sulphide stringers. The large Tocantinzinho shear zone, associated with most of the major gold mineralization in the region, runs through the company’s project area.

The 283 sq. km property sits within the site of a major alluvial gold rush that occurred in the 1960s and 70s. A number of large, hand-dug open pits cover sections of the project where artisanal miners (garimpeiros) exploited highly weathered saprolites and laterites beneath the eluvial gold deposits.