VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2012) - Bravada Gold Corporation (TSX VENTURE:BVA)(FRANKFURT:BRT) ("Bravada") has signed a Letter of Understanding with Duncastle Gold Corp. (TSX VENTURE:DUN)(FRANKFURT:5D3) ("Duncastle") to option Bravada's Drayton Archean gold property in Ontario. Bravada will receive 250,000 shares of Duncastle upon approval from the TSX Venture Exchange and annually to an aggregate of 2,500,000 common shares over a six-year period in order to earn 100% interest in the property. In addition, Bravada will retain a 1.0% net smelter return royalty from any production at the property. Bravada and Duncastle have several directors and officers in common including: Lawrence Page, Michael Rowley, Derek Page and Arie Page. The Letter of Understanding is subject to TSX Venture Exchange acceptance on behalf of both Bravada and Duncastle.
The Drayton Property is located in Drayton Township, Patricia Mining Division, Ontario, approximately 10kms east-southeast of the town of Sioux Lookout. Mineral rights include seven mining claims totaling approximately 1,584 hectares. The claims are 100% owned by Bravada, subject to a 3.0% net smelter return royalty payable to the original optionor. Bravada has the right to purchase 1.5% of such net smelter return royalty by paying the optionor $3,000,000.
Two styles of gold mineralization occur on the property: lode-type associated with quartz +/- iron carbonate veins and stockwork zones, and copper/gold/molybdenum-type associated with feldspar porphyry. Although exposure is very poor due to soil cover, three mineral occurrences on the Drayton Gold property have received previous attention.
The Shaft occurrence is located at a small historic shaft where grab samples from the adjacent dump contain encouraging gold values. Trenching and limited outcrops reveal auriferous quartz veins in a variety of orientations and lithologic units, including various volcanic and volcaniclastic units and intrusions of various compositions. Veins contain disseminated or patchy sulphides, chiefly pyrite with minor chalcopyrite, sphalerite and galena, together with calcite, +/- ilmenite, +/-tourmaline and fuchsite, with local native gold and telluride minerals. Host rocks adjacent to the veins are variably sheared, carbonatized, silicified and sulphidized.
Bravada's predecessor, Fortune River Resource Corp., conducted several phases of surface exploration and diamond drilling at the Shaft occurrence, including trenching, soil sampling, magnetic and IP surveys. Fortune River identified at least three generations of quartz-carbonate veins and veinlets, with visible gold identified in the latest cross-cutting veins. Fortune River partially tested approximately 800m of strike with 21 core holes, totaling 4,015m. Mineralization of greater than 0.5g/t gold was intersected in most of the holes, with several holes containing multiple intervals of mineralization. Higher grade intervals contain visible gold. Significant gold intercepts include 13.5g/t Au over 1.5m and 1.0g/t Au over 9.1m. Mineralization is open along strike and at depths below 115m.
The FP61 occurrence was partially tested prior to 1990 by Noranda Mines Limited, Rio Tinto Canadian Exploration, and Norlode Resources Inc. These companies conducted geophysics, trenching and drilling programs in search of porphyry-related Cu-Au-Mo mineralization along a northeast-trending contact zone between quartz porphyry and diorite intrusive rocks. Mineralization consists of disseminations, patches and stringers of chalcopyrite, pyrrhotite and pyrite, with rare specks of molybdenite. Host rocks are variably silicified, sericitized, and chloritized.
The WG16 occurrence was partially tested in the early 1990's by Teck Exploration Limited, who conducted ground geophysics (magnetic, VLF electromagnetic, and Induced Polarization) followed by trenching and diamond drilling. Auriferous quartz veins occur at the sheared contact of quartz+carbonate altered volcanic and sedimentary rocks.
Bravada President Joe Kizis commented, "Drayton is an intriguing property. Our work concentrated on only one of the mineral showings; however, soil covers most of this large property and very likely hides additional significant mineralization. Although we were encouraged by our results at the Shaft target, we intend to concentrate on our Nevada properties. Moving the property to Duncastle allows Bravada shareholders to participate in future success with a company that intends to make Ontario a major focus of its exploration efforts."
Duncastle President Michael Rowley commented, "Duncastle is excited to acquire a 100% interest in the Drayton project as a first move into Ontario. The project has great potential for additional high-grade gold discoveries due to the highly focused nature of the past work and the extensive ground cover over the claims. Bravada's predecessor Fortune River conducted high-quality work and has provided an excellent database from which to further advance the project. We expect to create the first 3D models of the data and conduct geophysics to rapidly generate new drill targets to complement existing targets."
About Bravada Gold Corporation
Bravada is a member of the Manex Resource Group of companies with an exploration office in Reno, from which it is exploring its extensive Carlin-type and low-sulfidation-type gold holdings strategically located within numerous productive gold trends in Nevada. Bravada recently announced signing a letter-of-intent with Argonaut Gold Inc., a well-respected gold miner, to further exploration and development of the company's Wind Mountain property. Bravada is advancing its other properties with a combination of self-funding and partner-funding. Currently three of Bravada's 18 Nevada properties are being funding by partners. Homestake Resource Corporation (HSR.V) owns 10.19% of Bravada's 114,834,282 outstanding common shares.
About Duncastle Gold Corp.
Duncastle Gold Corp is based in Vancouver BC and is a member of the Manex Resource Group of companies. The company owns, or has 100% option agreements to own, mineral exploration properties covering or surrounding past producing mines in northwest and southeast British Columbia, Canada. Duncastle has assembled contiguous claim blocks totaling more than 210 sq km (21,000 hectares) in these two historic and productive regions including the large polymetallic Porphyry Creek project near Smithers BC, where the company has identified a copper-molybdenum porphyry system among other priority targets. In southeast BC the company has consolidated most of the historic Ymir Mining camp near Salmo which was once the largest silver producer in the British Commonwealth, producing over $500 million in gross mineral value at today's values before mine closures in the 1940s.
Joseph Anthony Kizis, Jr. (AIPG CPG-11513, Wyoming PG-2576) is the Qualified Person responsible for reviewing Bravada's technical results in this release.
Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing Duncastle's technical results in this release.
On behalf of the Board of Directors of Bravada Gold Corporation
Joseph A. Kizis Jr., Director, President, Bravada Gold Corporation
On behalf of the Board of Directors of Duncastle Gold Corp,
Michael Rowley, President & Director, Duncastle Gold Corp.
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 companies' projects, and the availability of financing for the companies' 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. Bravada Gold Corporation and Duncastle Gold Corp. do not assume any obligation to update or revise their forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.