Bravo cheered on by bonanza gold intercept

Vancouver–A whopper hole out of Homestake Ridge, in northern B. C., more than doubled Bravo Venture Group’s (BVG-V, BVGIF-o) share price at the start of October.

On Oct. 2, Bravo announced assay results from hole 87, which was drilled to test the western edge of the main Homestake deposit. The core returned 20.99 grams gold per tonne over 73 metres (52 metres true width), starting 65 metres down-hole and including 15.1 metres of 69.22 grams gold.

The upper portion of the intercept hosted grades similar to the blanket-style mineralization that is widespread in the Main Homestake deposit. The lower zone of bonanza- grade mineralization was more of a surprise.

“It was unexpected, but we have been saying for some time that we believe this project is analogous to Eskay Creek, since we’re in the same stratigraphy, and we thought there was the possibility of encountering Eskay Creek grades,” says Robert Swenarchuk, a Bravo director and vice-president of corporate development.

Eskay Creek was one of the richest gold-silver deposits in the world and was mined by owners Barrick Gold (ABX-T, ABX-n) and Homestake Mining from 1995 until March of this year. It is located some 25 km north of Bravo’s Homestake Ridge property.

The high-grade portion of the intercept is strongly silicified. Though the company does not yet understand the geology of the high-grade zone, it is interpreting it to be a feeder zone of some sort.

The intercept is supported by results from holes drilled 25 metres to the south and east. Hole 30 previously returned 66.8 metres grading 2.4 grams gold, including 5.9 metres of 10.79 grams gold; hole 50 hit 45.3 metres averaging 2.6 grams gold, including 5 metres of 14.3 grams gold.

In response to the results from hole 87, Bravo has extended its drilling program to include two holes to test 25-metre lateral and vertical offsets. In addition, the company is still awaiting results from 21 of the 31 holes it drilled this summer. Some of those holes were drilled near hole 87.

“We were devastated by the markets, along with just about everyone else in the sector,” Swenarchuk says. “But this remarkable hole — the market did pay attention.”

On news of the intercept, Bravo gained 30 or 130%, bringing its share price to 53. Over the next few days, the overbearing market uncertainty stole some of that gain; At presstime, the junior’s shares traded at 45. Bravo has a 52-week trading range of 18-$1.33 and has 91.2 million shares issued.

In early 2007, an estimate pegged resources within the Main Homestake zone at 11.9 million tonnes grading 2.36 grams gold and 15 grams silver.

Bravo earned a 100% interest in the property from Teck (TCK. B-T, TCK-n) and a private owner. Both hold 2% net smelter return (NSR) royalties; Bravo can buy 1% of each for $1 million each.

For a property in northwestern B. C., Homestake Ridge is well situated. A private power company called Anyox is busy building two run-of-river power projects in the area (one in the middle of Homestake Ridge) while also refurbishing the old Kitsault River dam, which was built to power the Hidden Creek mine. Those projects could power an operation at Homestake Ridge.

Anyox is also converting an old rail line that used to connect Hidden Creek to Alice Arm. When complete, the road will connect Homestake Ridge to the deep sea tidal port at Alice Arm.