Brigadier to acquire Incamayo option, arrange financing

2010-08-24 13:51 PT - News Release
Shares issued 4,129,527
BRG Close 2010-08-23 C$ 0.195

Mr. Herb Kokotow reports

BRIGADIER GOLD (TSX-V: BRG) ANNOUNCES ARGENTINA PROPERTY TRANSACTION AND PRIVATE PLACEMENT OF $2.0 MILLION

Brigadier Gold Ltd. has signed a letter of intent to acquire an option in a gold property known as the Incamayo project consisting of 3,495 hectares located in Salta province in northwestern Argentina. The option is held by 1534185 Alberta Inc. Brigadier will acquire all the issued and outstanding shares of 1534185 in exchange for the treasury issuance of three million common shares and the payment of $100,000 cash to the current shareholders of the company, subject to regulatory approval and successful completion of a private placement.

The option was issued to 1534185 Alberta by Salta Exploraciones SA and SESA Holdings LLC. It calls for the issuance of an additional 500,000 treasury shares of Brigadier and $1-million over a 36-month period. The option calls for the expenditure of a total of $2-million over the next three years on the property and, upon completion of those requirements, Brigadier would acquire a 70-per-cent interest in the property.

Incamayo is a high-sulphidation gold-copper prospect that forms the southeasterly part of the Argentine epithermal precious metal-tin systems. Mineralization appears structurally controlled in vein and stockwork systems trending northeast. It is located at approximately 3,500 metres in elevation in Salta, northwestern Argentina, and can be easily accessed by road. Past trenching, sampling and drilling have identified significant Au and Cu mineralization associated with an alteration zone that extends for several kilometres. The alteration zone is quite evident from satellite imagery.

The best intersection from a total nine shallow reverse circulation holes is 150 m grading 0.68 per cent Cu, six grams per tonne silver and 0.61 g/t gold (including 57 m of 1.01 per cent Cu, 10.1 g/t Ag and 1.06 g/t Au). Results of up to 9.55 g/t Au, 6.98 per cent Cu and 75.8 g/t Ag were obtained from separate intersections. The best result from trenches is 72 m grading 1.40 g/t Au (including 18 m of five g/t Au). A results of up to 876.6 g/t Au over two m was obtained from trenching. Surface grab samples yielded up to 14.06 g/t Au and 157 g/t Ag in separate samples. Surface oxidation and leaching are apparent. The prospect is hosted in hydrothermally altered metasedimentary rocks.

Historic work includes a single diamond drill hole for 303 m, nine RC holes totalling 2,413 m, 21 trenched for a total of 5,067 m, and surface grab sampling and mapping. No geophysical methods have been applied to the prospect. The work was concentrated over a two-kilometre area of the eight-kilometre striking alteration zone. Highlights from the historic work are included in the table.

Type                            Width (m)    Au (g/t)    Ag (g/t)      Cu (%)

Hole RC-7                            150        0.61         6.0        0.68
includes                              57        1.06        10.1        1.01
and                                    2        9.15        72.1        6.02
Hole RC-1                              9        2.30
Hole RC-6                              2        1.12                    1.40
Trench                                72        1.40
includes                              18        5.00
Grab AF9660                                    14.06       45.87
Grab AF9657                                     3.26      157.00
      

Concurrent with and conditional upon completing the proposed purchase of the option, Brigadier proposes to raise $2-million by way of a private placement, to finance the first portion of the exploration program for the option and general corporate purposes. The private placement will consist of the issuance of units at a price of 15 cents per unit, where each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one common share over a one-year period at a price of 25 cents per common share. In the event that the common shares close at a price over 70 cents for 20 consecutive trading days, Brigadier may reduce the exercise period to 30 days after giving notice of same.

William Dynes, PEng, a qualified person under National Instrument 43-101, has reviewed and approved the contents of this news release.