Business
Red Dragon Acquires Second Gold Property in the Tapajos Region of Northern Brazil
Red Dragon Acquires Second Gold Property in the Tapajos Region of Northern Brazil
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\nNov. 30, 2009 (Canada NewsWire Group) -- VANCOUVER, Nov. 30 /CNW/ -- Red Dragon Resources Corp. (\"Red Dragon\" or the \"Company\") is pleased to announce that it has signed a Letter Agreement (\"Agreement\") with Golden Tapajos Mineraçao Ltda. (\"Golden Tapajos\") on November 23, 2009 to acquire up to a 70% undivided interest in the Boa Vista Gold Property (\"Property\"). Golden Tapajos Ltda. is a company controlled by Octa Mineraçao Ltda., which in turn is owned by Majestic Diamonds & Metals, Inc. The Property is located in southern Para near the border with Mato Grosso and consists of two exploration concessions covering an area of 12,536 hectares. The Property is situated approximately 280 kilometres southeast of the Company's recently acquired properties in Amazonas that were described in News Release dated September 24, 2009.The Property occurs near the southern border of the Tapajos Mineral Province (\"TMP\"), which encompasses the Tapajos River and its drainages. The TMP underwent wide spread alluvial gold mining by local miners (garimpeiros) in the last 40 years resulting in the largest gold rush in the world in the latter part of the twentieth century. Many of the alluvial deposits are nearly exhausted, however since the early 1990's the primary source of these deposits have been explored by junior and senior mining companies. Exploration to date has identified a number of 1 million ounce or greater gold deposits that are amenable to low cost, bulk mineable open pit extraction.The Property covers a number of historic alluvial deposits (garimpos) that have been partially explored by Golden Tapajos. Exploration work to date includes mapping, soil and rock geochemistry and a geophysical survey (induced polarization) over selected garimpos (Jair and Almir). The Jair target coincides with a northwest trending drainage along which alluvial gold has been mined over a distance of 4 kilometres. Bed rock exposed in pits along this structure consists of quartz+/-sulphide veins and stockworks hosted in sericite+pyrite altered granite. Sulphides are predominantly pyrite with minor amounts of chalcopyrite, galena and sphalerite. Grab samples of the vein material reportedly grade several grams per tonne gold, whereas altered wall rock with disseminated sulphides commonly grade less than 2 grams per tonne gold. A soi...