Duncastle Acquires Option on Bravada's Drayton Property in Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/16/12 -- 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
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
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
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.
Bravada Gold Corporation/Duncastle Gold Corp.
604.641.2773 or Toll Free: 1.888.456.1112
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