open pit gold projects building our first...
TRANSCRIPT
Corporate Presentation
TSX-V: BGC
January 2013
Open Pit Gold Projects – building our first mine….
…and increasing our resource base.
TSX-V: BGC
Investment Highlights
Global resources of 715,000 oz of indicated and 1,921,000 oz of inferred (0.3 g/t
cut-off)
São Jorge PEA update with new larger and higher grade resource, improved
metallurgy, more favorable exchange rates and a better gold price – Q1 2013
completion
Moving towards production at São Jorge – target 2015
All deposits (São Jorge, Surubim, and Boa Vista) in the Tapajós region and
Batistão deposit in the Alta Floresta region open for resource expansion
Near-surface gold resources at all deposits amenable to large scale open pit
extraction
One of the largest land positions in the Tapajós region of Brazil
Supportive, mining friendly jurisdiction – 1% NSR to state
Led by a proven management team & experienced board
Strong investment opportunity – EV/oz of ~$6/oz compared to industry
standard of approx. $50/oz
www.braziliangold.ca 2
TSX-V: BGC
Junior Gold Company’s – EV/Oz Gold
www.braziliangold.ca 4
0
50
100
150
200
250
Average - $48.46
EV
C$/o
z
BGC - $6
Source: Canaccord Genuity (June 29, 2012)
Junior Gold Comparables: Enterprise Value per ounce gold equivalent
TSX-V: BGC
Milestones
2012 Milestones – Completed
Earned an additional 19% in the Boa Vista project bringing Brazilian Gold’s ownership to
71% subject to a NSR – expect to be 85% in 2013
NI43-101 Technical Reports on resource estimates for two new discoveries: Jau (Surubim
project) and VG1 (Boa Vista) deposits – deposits open in three directions with potential for
additional resource growth
Amended NI43-101 Technical Report on the resource estimate for the São Jorge deposit –
overall 87% increase in the contained gold ounces and a 89% increase in the indicated
ounces from the previous estimate (PEA 2011)
BGC 2012 Resource Statement – increased gold inventory by 176% from 2011
2013 Q1 Milestones – to be Completed
NI43-101 Technical Report on the first resource estimate for the Batistão deposit
NI43-101 Technical Report on the updated Preliminary Economic Assessment (PEA) of the
São Jorge deposit
Sao Jorge Environmental Impact Assessment (EIA) underway
Surubim oxide evaluation and update
www.braziliangold.ca 5
TSX-V: BGC
BGC Resource Location
www.braziliangold.ca 6
São Jorge
Indicated: 715,000 oz gold
Inferred: 1,035,000 oz gold
Surubim (Jau)
Inferred: 503,000 oz gold
Boa Vista (VG1)
Inferred: 336,000 oz gold
Batistão
Resource Estimate in progress
Deposit Classification Cut-off
(g/t) Tonnage
Grade
(g/t) Ounces
Sao Jorge Indicated 0.3 14,420,000 1.54 715,000
Inferred 0.3 28,190,000 1.14 1,035,000
Indicated 0.5 10,490,000 1.97 666,000
Inferred 0.5 18,780,000 1.52 918,000
Jau Inferred 0.3 19,440,000 0.81 503,000
VG1 Inferred 0.5 8,470,000 1.23 336,000
All deposits Indicated 14,420,000 1.54 715,000
All deposits Inferred 56,100,000 1.04 1,874,000
TSX-V: BGC
Large land package in the Tapajós – synergy for
central process plant
www.braziliangold.ca 7
Cuiu-Cuiu (1.3M oz) Magellan Tocantinzinho (2.5M oz) Eldorado
São Jorge (1.75M oz) Brazilian Gold
Palito (0.7M oz) Serabi
X1 (0.4M oz) Rio Novo
Coringa (1.1M oz) Magellan
Ouro Roxo (0.5M oz) Albrook
Itaituba
Moraes Almeida
Novo Progresso
Guaranta
Matupa Peixoto de Azevedo
Terra Novo
Tapajos River
Jamanxim River
Rio Novo
VG1 (0.3M oz) Brazilian Gold
Jau (0.5M oz) Brazilian Gold
BR163 Hwy & Power line
Tapajos Gold Province
Sao Jorge Group
Surubim Group
Boa Vista
BGC Regional Group
Alta Floresta Gold Province
Batistao
Colider
Pará
Mato
Grosso
9,500,000mN
25
0,0
00
mE
9,250,000mN
9,000,000mN
50
0,0
00
mE
Batistão Brazilian Gold
Bulk of BGC projects
TSX-V: BGC
São Jorge – Open Pit Mining Project
www.braziliangold.ca 8
9,290,000N
9,280,000N
9,270,000N
650,0
00E
660,0
00E
Property Boundary
São Jorge
Deposit
Riozinho
Jamanxim River
Area Explored
BR163 Hwy & Power line
100% ownership
Total Resource (0.3 g/t cut-off) Indicated: 715,000 oz @ 1.54 g/t
Inferred: 1,035,000 oz @ 1.14 g/t
Drilling: 37,000 m in 148 holes
Oxide Resource (0.3 g/t cut-off) Indicated: 81,000 oz @ 1.42 g/t
Inferred: 70,000 oz @ 1.10 g/t
Exploration Large untested IP and magnetic anomaly on strike
with deposit
Small area of property explored to date
Infrastructure Abundant water
Easy access with paved highway
Inexpensive Power ($0.06/kWh)
Skill work force in Novo Progresso – camp site
facilities not necessary
Metallurgy +88% recoveries in oxides (CIL); limited testwork
to date
94% recoveries in sulphides (CIL)
Taxes No VAT on machinery and consumables (15 years)
6.25% income tax (10 years)
RECAP– exemption of PIS and COFINS
TSX-V: BGC
São Jorge – mineralized solid with pit shell
www.braziliangold.ca 9
Bottom of pit shell
-50 masl
Surface approx.
215 masl
Primary
mineralization
TSX-V: BGC
São Jorge – Section 657300E
www.braziliangold.ca 10
Gold Block Grade (g/t)
>1.0
0.5 – 1.0
0.3 – 0.5
0 – 0.3
TSX-V: BGC
EIA in progress – permit early 2014
Environmental Impact Assessment (EIA)and Permitting
www.braziliangold.ca 12
Preliminary License (LP) Water, flora, fauna, etc. studies
Installation License (LI) Construction
Operating License (LO) Production
Stage 1 Stage 2 Stage 3
• Exploration completed
• Feasibility approved
• EIA/RIMA approved
• Public hearings
• Granting of LP
• Request of LI
• SEMA Review
• Granting of LI
• Construction
• Request of LO
• Inspection by
• DNPM &SEMA*
• Granting of LO
• Production
+/- 18 Months End of Construction
*DNPM – Departmento Nacional de Producão Mineral; SEMA – Secretariat of Environment of the State of Pará
TSX-V: BGC
São Jorge – resistivity target
www.braziliangold.ca 13
Soils (ppb)
>1,000
100 – 1,000
50 – 100
25 – 50
0 – 25
9,284,000mN
9,283,000mN
9,282,000mN
9,281,000mN
656,0
00m
E
657,0
00m
E
658,0
00m
E
659,0
00m
E
661,0
00m
E
Gold anomaly
Gold anomaly
Drill holes
52.5m @ 0.4 g/t gold
2.9m @ 3.8 g/t gold
(SJD-074-06)
TSX-V: BGC
Surubim – Patoa, Tucunare, Colonia and Jau targets
www.braziliangold.ca 14
100% ownership
Patoa, Tucunare, Colonia Targets
Large (4 by 2.5 km) gold-in-soil
anomaly
Auger holes (511 holes in 5,863
m) outlines extensive oxide
mineralization
Diamond drill holes (48 holes in
7,968 m) intersect multiple
mineralized gold lenses
Metallurgy - visible gold suggests a
significant amount of gold will be
recovered by gravity
Near term oxide production
potential
Jau Target
Inferred: 503,000 oz @ 0.81 g/t Au
at 0.3 g/t cut-off
Drilling: 6,203 m in 20 holes
All targets are amenable to open pit
extraction
Road accessible from Trans-garimpeiro
Hwy
9,270,000mN
580,0
00m
E 9,250,000mN
590,0
00m
E
600,0
00m
E
610,0
00m
E
620,0
00m
E
Tucunare Colonia
Mariazinha
Jau Patoa
Property Boundary
Property Boundary
Access by river
to São Jorge
TSX-V: BGC
Patoa, Tucunare and Colonia: upper 20% of oxide
mineralization (up to 60 m) tested by auger drilling
www.braziliangold.ca 15
67 auger holes: average 0.3 g/t over 8.8 m;
collared over an area of 180,000 m2
57 auger holes: average 1.4 g/t over 7.2 m;
collared over an area of 20,000 m2
Major northwest and east-west
fractures untested; garimpeiros
mined alluvial and laterite gold
Patoa
Tucunare
Colonia Central
Colonia North
Colonia South
Auger Holes (g/t x m)
5 to 100
2.5 to 5
1.5 to 2.5
0.1 to 1.5
<0.1
TSX-V: BGC
Jau deposit – toll treatment via Rio Novo River
www.braziliangold.ca 16
Inferred resource of 19.44Mt grading 0.81 g/t gold (503,000 ounces) at a 0.3 g/t cut-off
Amenable for open pit extraction
TSX-V: BGC
Boa Vista Project
www.braziliangold.ca 17
9,135,000mN
9,125,000mN
9,130,000mN
530,0
00m
E
535,0
00m
E
540,0
00m
E
Pistinha Jair
Ze de Leicha
Planalto
VG1
Camp
Almir
Airstrip
Drill holes
red = gold-in-soil
anomaly (>100 ppb)
71% ownership
VG1 Resource (0.5 g/t cut-off)
336,000 oz @ 1.2 g/t Au
Drilling: 3,007 m in 15 holes
Trenching: 2,224 m
Exploration
VG1 deposit open at depth and
along strike (2,000 m) for
further resource expansion
Numerous targets (Jair, Ze da
Leicha, Almir, Pistinha and
Planalto) require follow-up
exploration
Road accessible from Novo Progresso
Potential for open pit extraction
Visible gold and preliminary gold size
classification suggests a significant
amount of gold will be recoverable by
gravity
Boa Vista
(VG1) Inferred
0.30 12,130,000 0.98 383,000
0.40 10,410,000 1.09 364,000
0.50 8,470,000 1.23 336,000
TSX-V: BGC
9,130,000mN
9,129,500mN
9,130,500mN
530,5
00m
E
532,0
00m
E
532,5
00m
E
5330,0
00m
E
531,5
00m
E
red = gold-in-soil
anomaly (>100 ppb)
VG1 deposit – 600 m out of +2 km drilled
www.braziliangold.ca 18
Hole ID From (m) To (m) Length (m) Gold (g/t)
Diamond Drill Holes
VGDD001 0.00 102.30 102.30 1.43
VGDD003 24.25 96.08 71.83 0.22
VGDD004 7.84 137.84 130.02 0.48
VGDD005 0.00 14.84 14.84 0.83
VGD-006-11 50.00 54.00 4.00 1.05
VGD-006-11 158.00 186.00 28.00 0.41
VGD-007-11 34.00 42.00 8.00 0.42
VGD-007-11 74.00 72.00 8.00 2.11
VGD-007-11 230.00 261.00 31.30 1.06
VGD-008-11 58.50 65.00 6.50 0.75
VGD-009-11 92.00 170.00 78.00 0.97
VGD-010-11 89.00 101.00 12.00 0.53
VGD-011-12 105.00 202.00 97.00 1.72
VGD-012-12 17.50 70.40 52.90 0.46
VGD-013-12 151.35 242.00 90.65 0.65
VGD-014-12 113.00 125.00 12.00 0.31
VGD-014-12 326.00 334.00 8.00 0.31
TSX-V: BGC
Batistão Project (Alta Floresta Region)
www.braziliangold.ca 19
BGC 100%
Paved road access & power lines
Exploration
1,287 m (24 holes) RC holes
1,655 m (11 holes) diamond drill
holes
Batistão deposit is coincident with
a 2,000 m long gold-in-soil
anomaly
Anomaly open in all directions
Eastern 600 m of soil anomaly drill
tested to 150 m depth
Mineralized zone is +30 m thick
and grades approximately 1 g/t
gold
Gold mineralization may be related
to porphyry system similar to X1
and Colider
Guaranta
Matupa
Peixoto de Azevedo
X1 (0.4M oz) Rio Novo
Colider
Batistão
8,800,000mN
8,900,000mN
700,0
00m
E
Terra Novo
50 km
TSX-V: BGC
Batistão deposit
www.braziliangold.ca 20
A
A’ Gold-in-soil
anomaly
8,856,000mN
692,0
00m
E
8,855,000mN
693,0
00m
E
694,0
00m
E
RC holes
Diamond drill holes
Soils (ppb)
>1,000
100 – 1,000
50 – 100
25 – 50
0 – 25
A A’
TSX-V: BGC
Why Brazil – the Next Big Mining District
• Politically mature and economically stable
• World’s 6th largest economy
• Rapidly growing population with emerging middle class
• Pro-mining culture
• Clear and well understood mining code and legal framework
• Large underexplored country with favorable geology
• Only 1% royalty on production
• Tapajós – underexplored mineral province with unofficial artisanal production
of 20 to 30M ounces
• Companies such as Newmont, AngloGold Ashanti, Kinross, and Eldorado Gold
actively exploring, developing and investing in gold projects in Brazil
www.braziliangold.ca 21
TSX-V: BGC
Board & Management
www.braziliangold.ca 22
Ian (John) Stalker (B.Sc.)
CEO, Director
Former CEO of Berkeley Resources Ltd., CEO of UraMin Inc. (sold to Areva for US$2.5
billion), VP of Gold Fields of S.A., MD of Ashanti Goldfields.
Joanne Yan
President, Director
Former Managing Director of Golden China Resources Corporation and Vice President of
Apac Minerals Inc.
Christian Bué (Ph.D.)
Chairman
Former senior executive of Penarroya, Executive Director of Metaleurop, Vice Chairman of
the International Zinc Association.
Glen Dickson (B.Sc., P.Geo.)
Director
Former Chairmen and CEO of Gold-Ore Resources, CEO and Director of Cumberland
Resources Ltd.
James Mellon (M.A.)
Director
Chairman and co-founder of Regent Pacific Group Limited, Chairman of Manx Financial
Group, Chairman of Speymill PLC, Director of Polo Resources Ltd. and Director of
Charlemagne Capital.
Luis de Azevedo (B.Sc., LLB.)
Director
Founder and partner of FFA Legal & Support Mine/Oil Companies and previous senior roles
with Western Mining and Barrick.
Garnet Dawson (M.Sc., P.Geo.)
Vice President, Exploration
Former VP, Exploration for EuroZinc Mining Corporation. Qualified person for Brazilian
Gold.
Mike Schmulian (B.Sc., MBA)
Technical Manager – Brazil Former Brazil country manager for Western Mining and exploration manager for AngloGold.
TSX-V: BGC
Summary
www.braziliangold.ca 23
• São Jorge Project • Indicated resource of 14.42 Mt @ 1.54 g/t (715,000 oz) and inferred resource of 28.19 Mt @ 1.14
g/t (1,035,000 oz) at a 0.3 g/t cut-off
• Metallurgical recoveries of 94% and low power cost of $0.06/kWh
• Open pit project moving towards production
• IP and magnetic anomaly on strike and southeast of deposit suggesting potential for resource
growth
• Surubim Project – Patoa, Colonia, Tucunare and Jau • Patoa-Colonia-Tucunare oxide target – auger drilling (511 holes in 5,863 m) outlines extensive
oxide mineralization
• Metallurgy – gravity studies in progress
• All targets at surface and amenable to open pit extraction
• Jau inferred resource of 19.44 Mt @ 0.81 g/t (503,000 oz) at a 0.3 g/t cut-off
• Boa Vista Project • VG1 inferred resource of 8.47 Mt @ 1.23 g/t (336,000 oz) at a 0.5 g/t cut-off
• VG1 resource amenable to open pit extraction
• High potential to increase VG1 resource along strike and at depth
• Numerous targets to explore
• Batistão Project • NI43-101 Resource Estimate in progress
TSX-V: BGC
Important Regulatory Notice Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the
Ontario Securities Act, including statements concerning our plans at our mineral projects, which involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or achievements expressed or implied by such
forward-looking information.
Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to
differ from those reflected in the forward-looking information, including, without limitation, failure to establish mineral
resources; delays in obtaining or failure to obtain required governmental, environmental or other project approvals;
changes in national and local government legislation or regulations regarding environmental factors, royalties, taxation
or foreign investment; political or economic instability; terrorism; inflation; changes in currency exchange rates;
fluctuations in commodity prices; delays in the development of projects; shortage of personnel with the requisite
knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other
exploration and development services; dependency on equity market financings to fund programs and maintain and
develop mineral properties; risks associated with title to resource properties due to the political risk in Brazil and
difficulties of determining the validity of certain tenures and other risks and uncertainties, including those described in
each management discussion and analysis.
In addition, forward-looking information is based on various assumptions including, without limitation, the expectations and
beliefs of management; the assumed long-term price of various minerals; the availability of permits and surface rights;
access to financing, equipment and labour and that the political environment within Brazil will continue to support the
development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-
looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except
as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise
forward-looking information, whether as a result of new information, future events or otherwise.
Garnet Dawson, M.Sc., P.Geo. (British Columbia), Vice President, Exploration for the Company and a Qualified Person, as
defined by National Instrument 43-101 has reviewed the technical contents of this presentation.
www.braziliangold.ca 24
TSX-V: BGC
Contact:
Brazilian Gold Corporation
Suite 308, 595 Howe Street
Vancouver, British Columbia
Canada V6C 2T5
T: 604 602-8188
John (Ian) Stalker
CEO and Director
Joanne Yan
President and Director
www.braziliangold.ca
www.braziliangold.ca 25
Share Structure:
TSX Venture Symbol BGC
Share Price (Jan. 17, 2013) $0.175
Issued Shares 103,233,796
Fully Diluted Shares 113,533,796
Market Cap. (Jan. 17, 2013) + C$18 million
Working Capital (Sept 30, 2012) +C$4.0 million
Institutional Shareholders: +20%
Management and Insiders: +25%
TSX-V: BGC
Appendix 2 – Global Gold Mines & Deposits
• Gold deposits with >1M oz of gold resources (all categories) • 189 producing mines – average grade of 1.06 g/t
• 250 undeveloped deposits – average grade of 0.66 g/t
• 439 total – average grade of 0.82 g/t
• Grades of undeveloped deposits 37% lower than producing mines
• Ownership • 189 producing mines owned by companies with an average market capital of $1.8B
• 250 undeveloped gold deposits
• 84 owned by miners
• 166 owned by juniors
• Undeveloped gold production could add 42M oz/year over 25 years assuming: • mine recoveries of 90%
• metallurgical recoveries of 80%
• three year start up and production of 25,000 tonnes/day
• Current gold production is 90M oz/year
• Summary: • Supply: Undeveloped deposits insufficient to replace current gold production
• Demand: Current government fiscal policies will continue the demand for gold as a form of currency and safe
haven
• Price: Diminishing resources and increasing demand will insure the current or higher price for gold
Source: Natural Resource Holdings, July 2012
“Brazilian Gold with a large resource base and above average grades compared to world
wide undeveloped gold deposits has excellent potential for significant share price
appreciation from the current depressed share prices seen in the junior gold sector.”
www.braziliangold.ca 26