Beadell hits more gold at Brazil project

Beadell Resources has announced further high grade drill results from its Tucano gold project in Brazil.

In a statement to the Australian Securities Exchange, Beadell said the results included 16.4 metres at 11.2 grams per tonne of gold including seven metres at 23.9 g/t from the Trough Zone at the Taperebá AB deposit.

The company also found further significant results at the base and below the previous optimized pit including 14.4 metres at 3.8 g/t gold and 3.5 metres at 14.9 g/t gold.

Beadell said the discovery highlighted the potential of the pit to extend deeper into the orebody.

Numerous approximate true width results from RC drilling of Taperebá AB1 were received including 10 metres at 3.3 g/t gold and 6 metres at 4.9 g/t gold and 9 metres at 2.8 g/t gold.

Beadell expects to release an updated gold resource statement for the Tucano project in November.

See company statement below:

Beadell Resources Limited ("Beadell") is pleased to announce further high grade drill results from the Tucano gold project in Brazil of 16.4 m @ 11.2 g/t gold including 7 m @ 23.9 g/t gold from the Trough Zone at the Taperebá AB (Tap AB) deposit.

Further significant results were also received from the base and below the previous optimized pit including 14.4 m @ 3.8 g/t gold and 3.5 m @ 14.9 g/t gold highlighting the potential of the pit to extend deeper into the orebody.

Numerous approximate true width results from RC drilling of Taperebá AB1 were received including 10 m @ 3.3 g/t gold, 6 m @ 4.9 g/t gold and 9 m @ 2.8 g/t gold.

The results highlight the growing potential of the Taperebá AB deposit to deliver high grade mill feed in the initial years of the operation.

An updated gold resource statement for the Tucano project is expected be released in
November this year, followed by a maiden gold reserve upon completion of the Definitive Feasibility Study (DFS) anticipated in December this year.

Drilling continues to be expedited with six drill rigs operating on site, drilling out the resource as part of the DFS in the lead up to recommencement of gold mining at Tucano. An additional four Anglo American drill rigs are drilling out the iron ore resource on Beadell's tenements.

Tap AB2 - High Grade Trough Zone
The new result in FD1266 of 16.4 m @ 11.2 g/t gold from 35.6 m including 7.0 m @ 23.9 g/t gold from 44 m confirms continuity of the high grade shoot at the Trough Zone and is 50 m up dip of a previously released result of 6 m @ 20.8 g/t gold. The result in FD1266 contains numerous high grade assays with individual 1 m results up to 59.1 g/t gold and is all oxide mineralisation.

Results from additional RC drilling are pending and extension drilling is planned to test the down dip plunge of the high grade shoot. The Trough Zone represents a genuine high grade shoot showing excellent continuity. Accelerated mining of the Trough Zone during the first few years of operation will have a material impact on the head grade delivered to the mill.

Tap AB3 - High Grade Results from the Saddle
The Taperebá AB3 zone is separated from the Taperebá AB2 zone by a saddle or ridge from previous mining for the heap leach operation (Figure 1). However new results in FD1302, 5.1 m @ 8.2 g/t gold from 162.9 m and FD1303, 3.5 m @ 14.9 g/t gold from 100.9 m, 11.8 m @ 1.2 g/t gold from 130.2 m from the base and below the previously optimised pit are likely to have a significant positive impact. Further drilling is being planned to test the lateral extensions of this mineralisation where only sparse drilling is currently present.

The saddle and particularly the western side of the saddle also contain high quality friable iron ore. Economic evaluation of a combined iron ore and gold resource will take place in early 2011.

The Taperebá AB3 zone is the northernmost of the 3 contiguous zones which make up the 1.5 km long Taperebá AB deposit. New results from the base of the previous optimised open pit include FD1083, 14.5 m @ 3.8 g/t gold from 87.9m including 0.5 m @ 51.2 g/t gold from 91.5 m.

Tap AB1 - Approximate True Width RC Drill Results
A significant resource definition drilling program is underway at Taperebá AB1 utilising the RC rig. The drilling has targeted the western lobe of Taperebá AB1 which is characterised by gently west dipping shoots at the southern end of the Taperebá deposit.
Numerous new results have been received and are listed in Table 1. The results from this area generally approximate true width results due to the gentle dip of the lodes. Results include F893, 10 m @ 3.3 g/t gold from 0 m including 4 m @ 7.2 g/t gold from 6 m and F941, 6 m @ 4.9 g/t gold from 21 m including 2 m @ 11.5 g/t gold from 23 m. Additional results will be received shortly.

Extensional drilling of the south east lode of Taperebá AB has recommenced with several holes planned to test south and below a previous result in FD1056, 9.9 m @ 8.2 g/t gold, 4.0 m @ 27.0 g/t gold and 14.0 m @ 2.0 g/t gold.

Urucum - First Drill Results Received
Resource delineation drilling has commenced at Urucum with results received from the first two drill holes intersecting multiple zones of gold mineralisation FD1272, 5 m @ 2g/t gold from 58 m, 7.8 m @ 1.7 g/t gold from 67 m and 4.7 m @ 1.5 g/t gold from 107.8 m. Urucum represents the largest of the known deposits at Tucano and further results are expected shortly.