Bravo Gold shares spike nearly 20% on high-grade gold discovery at Homestake Ridge

Bravo Gold (CVE:BVG) said Wednesday it discovered a new high-grade gold mineralization on the South Reef zone of its wholly-owned Homestake Ridge project, located in northwestern British Columbia, sending its shares up nearly 20 percent.

On the TSX-Venture Exchange, Bravo shares traded up 18.18 percent to $0.065, as of 11:40 am EDT.

The company had received assays from two of three core holes that intersected the target structure on the previously undrilled South Reef zone.

Notable assays from hole 11HR-232 intersected 8.7 metres grading 11.3 grams per tonne (g/t) gold, 1.6 g/t silver, and 0.1 percent copper, including 30.8 g/t gold, 3.3 g/t silver, and 0.3 percent copper over 3.1 metres.

Hole 11HR-234 intersected 3.0 metres grading 12.9 g/t gold and 3.0 g/t silver, including 1.0 metres at 37.3 g/t gold and 7.7 g/t silver.

This hole tested the zone to a 240-metre depth, where it remains open. Assays also returned 6.3 metres grading 3.4 g/t gold, 15.7 g/t silver, and 0.6 percent copper, including 1.95 metres at 4.5 g/t gold, 44.0 g/t silver, and 2.0 percent copper.

Assays for the third hole, which was drilled about 50 metres along strike from hole 11HR-234, are still pending.

To date, Bravo said it has received assays from 15 of the season's 23 holes drilled on the Homestake Ridge property. The company is awaiting results from five holes drilled on the southeast margin of the Homestake Silver zone, two holes drilled on the South Reef zone, which is open along strike for over 750 metres and at depth, and on hole on a peripheral target.

The large, 2,585 hectare Homestake project is being advanced as a potential high-grade underground mining operation, with a current NI 43-101 compliant indicated resource, at a 3.0 grams per tonne (g/t) gold equivalent cut-off, of 191,000 ounces gold and 1.35 million ounces of silver, plus an inferred resource of 530,000 ounces of gold and 13.47 million ounces of silver.

Aside from its B.C. projects, Bravo also holds an 11.7 percent interest in Bravada Gold Corporation (CVE:BVA), which is exploring 22 projects in Nevada.