THE LATIN BEAT — TVX options Brazilian gold play

TVX Gold (TSE) can acquire the Natividade gold property 550 km north of Brasilia, the capital of Brazil.

The property comprises 230,000 hectares and hosts numerous gold occurrences that have been worked previously by garimpeiros (regional miners). It is underlain by a greenstone belt that hosts multiple shear zones with associated hydrothermal alteration. TVX will explore the property for high-tonnage, low-grade gold deposits, as well as for gold-bearing quartz vein deposits.

As consideration for the option, TVX will pay US$320,000 over the next 24 months and grant a 1.2% net smelter return royalty to the optioner. In addition, TVX will pay another US$300,000 to the optioner for each deposit it discovers that could justify the implementation of a metallurgical plant. The plant would produce at least 4 tonnes (64,302 oz.) of gold annually. TVX has embarked on a program of soil and stream geochemical surveys and 1,500 metres of trenching.