- Company Now Controls More Than 50,000 Acres (200 Square Km) in One of Brazil's Most Rapidly Emerging Gold Belts
- New Project Is Highly Prospective With Known Gold Occurrences and Historical Artisanal Gold Production
VANCOUVER, Sept. 15, 2011 /PRNewswire/ - Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI) is pleased to announce the acquisition of the 24,678 acre Maua Project in the emerging Gurupi Gold Belt located in Maranhão State, Brazil. The project is located approximately 2.5 km. west of the Company's Montes Áureos Gold Project. This is the Company's third acquisition in the Gurupi Gold Belt, and increases the total land package here to 53,263 acres.
Most known gold mineralization within the Gurupi Gold Belt is situated along the Cipoeiro, Chega Tudo or Sequeiro Trends as shown in the map below. Recognized gold occurrences and historical production on the Maua property are located on-trend with other gold occurrences and artisanal workings along the Sequeiro Trend.
The project area is being acquired by the Company through an application by an agent to the Brazilian National Department of Mining Production (the DNPM) for a new exploration license, which has been approved and is pending formal publication. The Company's plan at Maua is to perform detailed soil sampling, trenching and auger drilling, starting with historical artisanal production sites, with the objective of delineating initial drill targets. The initial $120,000 program, to commence immediately, includes geological mapping and geochemical reconnaissance sampling over the entire property, with detailed soil sampling over a selected area.
President and CEO Stephen Swatton stated, "The acquisition of the Maua Project is exciting for the geological team here, and advances the Company's strategy of exploring a number of highly prospective properties located in emerging gold belts, each with major historical and/or current artisanal production. We continue to actively evaluate acquisition terms for both early-stage and advanced projects as part of our growth plan."
The initial term of the exploration license is three years from the date of official publication. Under the terms of the license, in addition to its exploration programs and other requirements under the license and applicable law, the Company will be responsible for the annual land fees.
About the Gurupi Gold Belt
The Gurupi Gold Belt is an underexplored and emerging geological region that hosts several large gold deposits. At present, recognized mining companies including Kinross Gold, Jaguar Mining and Luna Gold are active with exploration programs, and are putting mines into production. The assets of these miners are located within 20 km of the Company's Montes Áureos, Trinta and Maua Projects. The Gurupi Gold Belt is part of the same geological provenance as the West African Shield which has produced more than 30 million ounces of gold.
Paulo Pereira, a member of the Company's technical team, has supervised the preparation of the technical information contained in this news release. Mr. Pereira holds a Bachelor degree in Geology from Universidad 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 mineral exploration company with a focus on the acquisition, exploration and development of mineral properties in the emerging gold districts of Brazil and in additional prolific areas of South America. Currently, the Company's principal property is the Montes Áureos Gold Project, located within the Gurupi Gold Belt in the state of Maranhão, Brazil.
FORWARD LOOKING STATEMENTS
This news release 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 plans in respect of its Montes Áureos, Trinta and Maua projects and its future acquisition strategy. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and 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; the Company's ability to obtain required licenses and permits; general business and economic conditions will not change in a material adverse manner; financing will be available if and when needed on reasonable terms; the Company will not experience any material accident; and the Company will be able to identify and acquire additional mineral interests on reasonable terms or at all. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. 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 or may fail to receive necessary licenses and permits; that the Company's properties are in the exploration stage and are 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; competition; potential inability to find suitable acquisition opportunities and/or complete the same; and other risks and uncertainties listed in the Company's public filings. 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, which are qualified in their entirety by this cautionary statement. 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.
SOURCE Brazil Resources Inc.
Image with caption: "Figure 1 - The Sequeiro, Chega Tudo and Cipoeiro Trends of the Gurupi Gold Belt. (CNW Group/Brazil Resources Inc.)". Image available at: http://photos.newswire.ca/images/download/20110915_C3594_PHOTO_EN_3318.jpg