In 2004, Brazauro made a major gold discovery at its 100% controlled 44,525 hectares Tocantinzinho Gold Project in the gold rich Tapajós Mineral Province in Brazil.

As of October 2009, 159 drill holes for a total of 45,065 meters were completed. Of these, 139 holes delineated a gold zone that is approximately 700 meters long by 150 to 200 meters wide by more than 300 meters deep, averaging 1.11 grams gold per tonne. The mineralization is still open at depth.

The gold mineralization is hosted in a brecciated hydrothermally altered granite. The non altered granite is medium to coarse grained, isotropic and not deformed. The brecciated zone lies along the contact between the granite and an intrusive andesite dyke. The contact zone, due the rheological contrast between the granite and the andesite, is the site of a fault zone which is responsible for the brittle deformation which provided the channelways to the mineralization fluids. A rhyolite dyke intrudes both, the granite and the andesite. The deformation, hydrothermal alteration and mineralization affect all these lithologies in varying degrees of intensity but the ore is primarily hosted in the granite due its brittle response to the deformation.

Main hydrothermal alteration is comprised by silicification and chloritization followed by hematitization. Although the alteration is ubiquitous in the mineralization zone, the parent granite is still recognizable. Typical of the mineralized granite is the widespread occurrence of milimetric quartz-chlorite veins in a sheeted array. These veins carry the bulk of the mineralization which is intimately associated with pyrite. Pyrite also occurs disseminated, usually replacing the chlorite. A late phase of mineralization is associated with centimetric quartz veins with chalcopyrite, galena and carbonate. These base metal veins carry the high grade gold mineralization in the deposit and visible gold is frequently seen on it. The overall sulfide content of the mineralized body is in the range of 1-3%. Gold is free, occurring as inclusions and filling fractures in the sulfides.

In December 2009, the Company released an update to the 43-101 Compliant Resource Estimate of 15.834 million tonnes of Measured Resources at an average grade of 1.23 grams per tonne gold, 35.572 million tonnes of Indicated Resources at an average grade of 1.10 grams per tonne gold, and 12.400 million tonnes of Inferred Resources at an average grade of 0.98 grams per tonne gold. As no tailings were included in the study the resource can be further increased.

Metallurgical testing by Lakefield Research (Canada) and Hazen Research of Golden-CO indicated that the best process in this instance will be Grinding, Flotation and Cyanidation of the concentrate with an estimated final recovery of 91%. Based on the above, NCL do Brasil Ltda. completed in December 2007 a positive "Scoping Study" that included a preliminary economic evaluation, infrastructure and energy studies using the available information. This study resulted in the following observations:

In July of 2008 Brazauro signed an option agreement with Eldorado Gold Corporation, where Eldorado can earn up to 75% of the TZ project and a share position in Brazauro for a total of C$ 123 million in expenditures and cash payments. That included a Private placement of 8.8 million Brazauro shares @ C$0.95 for C$8.36 million. Also includes a warrant priced at C$1.00, which, if exercised, would have an aggregate purchase price of C$4.4 million. Eldorado has funded the project for an amount in excess of C$9.5 million since July 2008 over a two year period. Completing the above and making a Payment of C$40 million before July 2010 will earn Eldorado a 60% share of the TZ project. A further 10% can be acquired by paying Brazauro C$30 million and this can increase to C$40 million if the resource proves to be more than 2.5 million ounces of gold. On top of that an additional 5% for a total of 75% can be purchased by paying another C$20 million.