Brazil Resources Inc. Acquires Large Exploration Concession in Concepcion State, Paraguay
- District-scale Land Package, 198,068 Hectares (489,426 Acres)
- Along Southern Extension of the Prolific Cuiaba Gold Trend, Mato Grosso State Brazil
- One of Only Two Precambrian Rock Exposures in the Republic of Paraguay
VANCOUVER, Oct. 4, 2012 /PRNewswire/ - Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSXV: BRI) (OTCQX: BRIZF) is pleased to announce that it has acquired through its wholly owned Paraguayan subsidiary, a mineral concession from the Republic of Paraguay, covering 198,068 hectares (489,426 acres) in Concepcion State, Paraguay, (the "Apa High Project" or the "Project"). The Project area is contiguous with the Brazilian border and is located along the southern extension of the Cuiaba Gold Belt, Mato Grosso State Brazil.
Stephen Swatton, President and CEO, stated, "We are very pleased to announce our first Project in Paraguay. It is a natural fit for the Company to leverage our team's understanding of the geology in Brazil with the similar geology in bordering Paraguay. Paraguay has shown through government policy that it is determined to establish itself as a leading mining jurisdiction in South America, which we believe has created a frontier opportunity."
In the Brazilian portion of the Cuiaba Belt, also known as Apa Shield, there are a number of well known large and mid-size mining companies exploring for gold and base metal deposits, including Votorantim (Nickel), Kinross (Gold) and MMX (Copper).
The Project area contains one of the two exposed areas in Paraguay where Precambrian-age rocks occur and it is believed that this package of rocks may be prospective for gold mineralization. To our knowledge the only mining company to have explored in this area is Yamana Gold Inc. which initiated gold exploration at Apa High in the mid-1990s, however, much of the Project area remains underexplored.
Company geologists have compiled and reviewed available exploration data and geological literature. A structural and geochemical analysis of the Project is planned through available Landsat imagery to potentially identify prospective target areas for reconnaissance field mapping and sampling.
The area was acquired by the Company through Resolution 1692 issued by the Paraguayan Ministry of Public Works and Communication (MOPC), which includes the Vice Ministry of Mines and Energy. The resolution will allow the Company to conduct initial prospecting and exploration activities over the concession area for a period of eight years subject to acquiring the required licenses.
The Company will need an environmental license through MOPC and pay annual land fees to the Ministry of Mines and Energy.
In other business the Company also announces that it has completed the scheduled issuance of 100,000 common shares under the terms of its mineral property option and joint venture agreement with respect to its Montes Áureos and Trinta Projects. The share issuance is in relation to the Company's option to earn an initial 51% interest in the projects upon satisfying the conditions thereof, including issuing an additional 100,000 common shares on or before September 30, 2013 and incurring certain additional expenditures on the projects. The Company also has an option to earn an additional 46% interest in the Montes Áureos and Trinta Projects by satisfying certain conditions prior to September 30, 2015.
Paulo Pereira, the Company's Vice President of Exploration, has supervised the preparation of the technical information contained in this news release. Mr. Pereira holds a Bachelor's degree in Geology from Universidade do Amazonas in Brazil, is a qualified person as defined in National Instrument 43-101 and is a member of the Association of Professional Geoscientists of Ontario.
About Brazil Resources Inc.
Brazil Resources is a newly public mineral exploration company with a focus on the acquisition and development of projects in emerging producing gold districts in Brazil and other parts of South America. Currently, the Company is advancing its Cachoeira, Montes Áureos, Trinta and Maua Gold Projects located in the Gurupi Gold Belt in the state of Maranhão, northeastern Brazil, and its Artulandia Copper-Gold Project in central Brazil. Brazil Resources is also seeking to acquire and develop additional gold properties within Brazil and in additional emerging gold districts in South America.
Forward Looking Statements
This document contains certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events, including statements regarding the Company's beliefs regarding future exploration of the Project and exploration plans in respect of the Apa High Project and its other projects. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which the Company operates, including that: the current price of and demand for minerals being targeted by the Company will be sustained or will improve; the Company's current exploration programs and objectives can be achieved; financing will be available if and when needed on reasonable terms; and the Company will be able to identify and acquire additional mineral interests on reasonable terms or at all. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: that the Company has a limited operating history; that resource exploration and development is a speculative business; that the Company may lose or abandon its property interests; that the Company's properties are in the exploration stage and without known bodies of commercial ore; that the Company may not be able to obtain all necessary permits and approvals on any of its properties; that environmental laws and regulations may become more onerous; that the Company may not be able to raise additional funds when necessary; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; potential inability to find suitable acquisition opportunities and/or complete the same and other factors listed in the Company's public filings, including its Management's Discussion and Analysis for the year ended November 30, 2011. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Telephone: (855) 630-1001
SOURCE Brazil Resources Inc.