Corporate Profile

Brazauro Takes Lead Position in Prolific TZ Gold Trend

Brazauro holds a keystone land position comprising 124,617 hectares (481square miles) in the heart of one of Brazil's hottest gold areas, the Tapajós Gold District, a 350-km. by 300-km. area in the southwest part of Brazil's northerly Pará State and eastern-central Amazonas State.

Modern exploration of the Tapajós District is just beginning, and Brazauro's discovery at TZ is leading the way.  Brazauro is positioned for significant growth in the near future!

Widespread alluvial gold deposits in the Tapajós are a strong indicator of the area's exploration potential, resulting from primary hard-rock gold deposits that lie along the major intrusive-fed structural corridors running through the area.

Most of this alluvial gold production has been along the TZ structural trend. Since the gold discovery in the Sixties, the Tapajós region has produced anywhere from an official 10 million to an unofficial 50 million ounces. Even today, with modern gold exploration basically just starting in the Tapajós Gold District, some 80,000 garimpeiros (local alluvial miners) are reported to be at work in the area's gold-rich streams, producing an officially reported 200,000 to 300,000 ounces of gold annually.

Brazauro's Success

Brazauro's achievement at Tocantinzinho has attracted the interest of several other junior exploration companies and several majors have a close eye on developments. Since the inception of the project in 2003, four diamond drilling campaigns have been utilized to outline the known gold mineralization at TZ and in December 2007 the Company reported a 43-101 compliant indicated and inferred resource of 52 million tones @ 1.25 g/t gold combined with a positive scoping study.

Brazauro's 43,840-hectare TZ gold project was the site of a major alluvial gold rush that started in the Sixties and Seventies, and continued up through the Nineties. The Company's drilling activities are located directly over a zone of preexisting large placer pits, hand-dug or hydraulically excavated by local miners, workings that are the result of the extraction of gold-bearing alluvial deposits at the surface and in the weathered and decomposed primary gold mineralization directly below.

In addition to drilling, Brazauro is also embarked on a broader exploration program at TZ to determine the hard-rock source of alluvial gold occurrences in other parts of the property, using geologic recconnaissance, auger soil sampling, rock-chip sampling and airborne magnetic and radiometric surveys.  An area 12 km to the SW of TZ showed anomalous rock-chip results and auger soil sampling is following. The Company is confident that other areas of surface mineralization or zones or geochemical and/or geophysical anomalies at TZ will become drill targets.

Other Properties – Brazauro’s persistent regional exploration program within the Tapajós Region has identified other properties that we believe have excellent potential to contain mineable gold deposits. Brazauro has recently been issued four exploration licenses on 37,653 hectares at Bom Jardim and is finalizing an agreement with Gold Fields on an adjacent 22,694 hectares.  Brazauro recently announced that it had entered into an option agreement on the 20,688 hectares at Piranhas. At this site, situated approximately 20 km southwest of TZ, unofficial artisanal gold output has been reported as more than 836,000 ounces in the last fourty years.