Eldorado Gold reported on July 20, 2010, it had completed its friendly acquisition of Brazauro Resources, initially announced in mid-May 2010. Brazauro’s principal asset is its Tocantinzinho late-stage exploration project in the Tapajós region of Brazil, which has current measured and indicated resources of 1.9 million oz of gold. Eldorado will also acquire Brazauro’s Agua Branca and Piranhas exploration properties, which are located in close proximity to Tocantinzinho. Other Brazauro exploration properties are being spun out into a new company. The transaction was valued at about C$122.4 million.
Eldorado held an option to purchase a majority interest in Tocantinzinho for two years and, as project operator, has been actively exploring the property. Drilling has delineated a gold zone approximately 700 m long by 150 to 200 m wide by more than 300 m deep, averaging 1.11 g/mt gold. The mineralization is open at depth. A preliminary economic assessment has outlined a project that would produce an average of 145,000 oz/y of gold over a period of about 12 years.
(www.eldoradogold.com and www.brazauroresources.com)