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Bravada Headlines

September 18, 2012
Bravada Enters into Wind Mountain Property LOI with Argonaut

Bravada Gold Corporation (BVA.V, “Bravada”) and Argonaut Gold Inc. (AR.T, “Argonaut”) have signed a Letter of Intent (LOI) for the continued exploration and development of Bravada’s Wind Mountain gold and silver property in northwestern Nevada, where Bravada has outlined a NI-43-101 resource of 570,000 ounces of gold and 14.7 million ounces of silver in the Indicated category and an additional 354,000 ounces of gold and 10.1 million ounces of silver in the Inferred category (see NR-06-12, dated April 11, 2011).

Under terms of the LOI, Argonaut can fund staged expenditures totalling US$7.5million over a three-year period to earn the option to purchase the project by paying Bravada a price of $30 per ounce of gold-equivalent contained within Measured and Indicated resource categories as determined by independent Qualified Persons. The purchase price will be paid 50% in cash and 50% in shares in Argonaut. Bravada would also retain a one percent net smelter return royalty for any production from the property in excess of the purchased ounces.

Argonaut has made a firm commitment of $250,000 under the LOI to conduct a drilling program this fall that will test two exploration targets beneath shallow alluvial cover: the undrilled Zephyr target and the down-dip extension of shallow oxide mineralization that Bravada drilled at the North Hill target during 2011. For example, previously announced WM11-038 at North Hill intersected 6.1m of 0.619g/t Au and 17.9g/t Ag beginning at surface.

In the event that the LOI leads to a full option agreement, the minimum expenditure for year one will be $1.15 million.  Bravada will be operator initially.  The minimum expenditures for years two and three are $2.35 million and $4.0 million, respectively. Timing for expenditures may be extended where they result from permitting delays.

President Joe Kizis commented, “Argonaut is a highly respected and well funded mine operator with two active mines in Mexico and a third nearing production. They produced 72,000 ounces of gold in 2011 and are projecting to produce 88,000-97,000 ounces of gold during 2012. Their experience in open-pit mining and heap leaching of disseminated gold in Mexico should be directly applicable to Wind Mountain and we are pleased to work with them to advance Wind Mountain as their first project outside of Mexico.”


About Wind Mountain

The past-producing Wind Mountain gold/silver project is located approximately 160km northeast of Reno, Nevada in a sparsely populated region with excellent logistics, including county-maintained road access and a power line to the property. A previous owner, AMAX Gold recovered nearly 300,000 ounces of gold and over 1,700,000 ounces of silver between 1989 and 1999 from two small open pits and a heap-leach operation (based on files obtained from Kinross Gold, successor in interest to AMAX Gold). Rio Fortuna Exploration (U.S.) Inc., a wholly owned US subsidiary of Bravada Gold Corporation, acquired 100% of the property through an earn-in agreement with Agnico-Eagle (USA) Limited, a subsidiary of Agnico-Eagle Mines Limited, which retains a 2% NSR royalty interest, of which 1% may be purchased. A Technical Report for an independent Preliminary Economic Assessment (PEA) and resource estimate was conducted by Mine Development Associates (MDA) of Reno and has been posted on SEDAR, as previously reported (see NR-07-12 dated May 1, 2012).

The PEA assumes open-pit, contract mining with conventional trucks and shovels, run-of-mine leaching, and a base-case price of US$1,300 per ounce of gold and $24.42 per ounce of silver. The base-case economic model (1) is summarized below in US dollars and Imperial units (some values rounded):

Resource inside the pits = 42.1 million short tons of Indicated Resource @ 0.011 oz Au/t & 0.26 oz Ag/t, and 2.2 million short tons of Inferred Resource @ 0.008 oz Au/t & 0.18 oz Ag/t, both utilizing a 0.006 oz Au/t cutoff

Gold & Silver Ounces mined = 465,000 oz Au & 11,198,000 oz Ag (516,000 oz Au-eq(2))

Gold & Silver Ounces produced = 288,000 oz Au & 1,680,000 oz Ag (320,000 oz Au-eq(2))

Waste: Ore Strip ratio = 0.71:1

Capital = Initial capital of $45.4 million with $18.4 million sustaining capital

Mine Life = approximately 7 years of mining with 2 additional years of residual leaching & rinsing

Payback Period = 2.2 years

Life-of-mine cash cost(3) = $859 per ounce Au

Total Pre-Tax cost(3) = $1,080 per ounce Au

IRR = 29%

Pre-tax NVP@5% = $42.9 million

(1) Canadian NI 43-101 guidelines define a PEA as follows: “A preliminary economic assessment is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.”

(2)Expected recoveries were incorporated to convert silver to gold equivalent (Au-eq) at 220Ag:1Au ($1,300 x 62% divided by $24.42 x 15%)

(3)Costs include estimated Nevada Net Proceeds taxes, property taxes, but not corporate income tax, and treats silver as a by-product credit.


Sensitivity studies by MDA indicate that gold and silver prices 30% higher in the same modeled pit and at the same recovery rates ($1,690/oz Au and $31.75/oz Ag) would increase the IRR to 74% and the NPV@5% to $136.2 million. Gold and silver prices that are 20% lower ($1,040/oz Au and $19.54/oz Ag) would result in the model being uneconomic at an NPV@5%. Sensitivities of the model to capital and operating costs are also provided. MDA notes that additional studies such as additional metallurgical studies to evaluate crushing higher-grade portions of the deposit and grid drilling to delineate economic portions of the previously mined “waste rock”, which are given no value in the current model, could further enhance the economics of known mineralization. Approximately 43% of the pre-mining strip in the PEA model consists of “waste rock”, and MDA is optimistic that with further drilling and sampling a portion of this material’s grade and tons could be quantified for economic evaluation.

Mine Development Associates compiled the technical report. Thomas Dyer, P.E. is a Senior Engineer for MDA and is responsible for sections of the technical report involving mine designs and the economic evaluation, and Steven Ristorcelli, C.P.G., is a Principal Geologist for MDA and is responsible for the sections involving the Mineral Resource estimate. These are the Qualified Persons of the technical report for the purpose of Canadian NI 43-101, Standards of Disclosure for Economic Analyses of Mineral Projects.


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. Homestake Resource Corporation (HSR.V) owns 9.76% of Bravada’s 114,264,282 outstanding common shares.


Joseph Anthony Kizis, Jr. (AIPG CPG-11513, Wyoming PG-2576) is the Qualified Person responsible for reviewing the technical results in this release.


On behalf of the Board of Directors of Bravada Gold Corporation

“Joseph A. Kizis, Jr.” 

Joseph A. Kizis Jr., Director, President, Bravada Gold Corporation

For further information, please visit Bravada Gold Corporation’s websites at  or contact Liana Shahinian at 604.641.2773 or toll free at 1.888.456.1112 or by email at

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.

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 company’s projects, and the availability of financing for the company’s 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 does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.