Brigus Gold
Dominican Republic Projects
Brigus has a purchase option agreement with Everton Resources whereby Everton has acquired the option to purchase Brigus' remaining 50% interest in the Ampliación Pueblo Viejo II ("APV"), Ponton and La Cueva concessions in the Dominican Republic ("the Concessions").
The binding agreement requires Everton to issue 15 million treasury common shares to Brigus to acquire the option.Pursuant to the option, Everton can acquire Brigus’ remaining interest in the Concessions by paying Brigus CAD$500,000 cash and an additional CAD$500,000 in cash or common shares with a value of $500,000 by December 31, 2012.
Brigus will also receive a sliding scale net smelter return royalty on the Concessions equal to 1.0% when the price of gold is less than US$1,000 per ounce, 1.5% when the price of gold is between US$1,000 and US$1,400 per ounce, and 2% when the price of gold is above US$1,400 per ounce.
Everton will also issue Brigus a promissory note equal to the greater of CAD$5 million or 5,000,000 common shares of Everton.The promissory note will be subject to completion of a National Instrument 43-101.
Current Work
Recent Exploration by Brigus has uncovered gold and silver mineralization in the La Lechoza area. An initial soil sampling program outlined areas of elevated mineralization identifying five separate zones of gold, silver, copper and zinc mineralization. Follow-up trenching within several of these zones has produced significant results, in particular from trench LT-10 where a zone of 18 metres graded 11.3 g/t gold and 310 g/t silver. A 1500 metre diamond drilling program has commenced to explore these targets.
Previous Brigus Exploration
Historical Exploration
Previous Brigus Exploration
During November 2003, the Company completed a trench and surface rock sampling program at the La Lechoza prospect on its Ampliacion Pueblo Viejo concession in the Dominican Republic and obtained results indicating an extension of near-surface gold mineralization 450 metres southeast of previous drilling and trenching.
Two rock samples taken from float material immediately past the end of the trench contained values of 0.8 grams per tonne gold and 4.0 grams per tonne silver, respectively. Trench samples were taken at a depth of 1.8 metres in saprolite (weathered rock) material with continuous chip channel samples taken at 2-metre intervals along the base of the trench wall.
The results indicate the extension of near-surface gold mineralization on an additional 400 metres in the updip direction from previous trenching and drilling by MIM and Rosario. The higher gold values in float-rock material at one end of the trench suggest the potential for additional grades in the subsurface below the saprolite (weathered) zone. The La Lechoza target area remains open in three directions.
Additional geologic mapping, soil geochemistry, rock chip geochemistry and a dipole-dipole induced polarization survey at the La Lechoza prospect indicate an anomalous area of 600 metres by 800 metres, which remains open to the south and northwest. Other targets also remain in other areas of the Ampliacion Pueblo Viejo concession where gold mineralization has been identified with little or no follow-up exploration.
Historical Exploration
Minera Mount Isa Panama won the rights to the Ampliacion Pueblo Viejo Fiscal Reserve as part of a privatization process held by the government of the Dominican Republic in 2001. Previously, this area surrounding the north and western sides of the Pueblo Viejo mining leases had been held under a fiscal reserve status which restricted exploration for the government due to its high potential for discovery of additional gold deposits.
Work by the government mining company, Rosario Dominicana, in 1981 on Brigus's Ampliacion Pueblo Viejo concession consisted of a program of 61 shallow (average depth 18m) holes in the La Lechoza prospect area.
During 2002-2003, Minera Mount Isa Panama conducted a program of stream sediment sampling, geologic mapping, soil sampling, and trenching at the La Lechoza prospect. Results indicated that the strike and dip extent of the zone of mineralization is larger than anticipated by the Rosario drilling (in excess of 800x600 meters) and is open to the south and northwest. Trench results along the most anomalous soil line show the following values:
| Width | Cu | gAu |
|
154 m including 54 m including 26m including 12m |
0.2 0.3 0.4 0.5 |
1.6 3.3 5.2 9.8 |
A program of nine diamond drill holes was completed by Minera Mount Isa Panama in the anomalous areas during 2002-2003.
A dipole-dipole IP survey was conducted over the anomalous trend and indicates a strong correlation of mineralization proximal to zones of high chargeability. The chargeability trend remains open to the south and northwest as does the gold anomaly from soil sampling.
Source: http://www.brigusgold.com/projects/dominican_republic/
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