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Brazil Resources Inc. Identifies Large Copper-Gold Mineralized Zone at Artulândia Project in Goias State, Central Brazil


September 6, 2012

Vancouver, British Columbia September 6, 2012 – Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce that recent rock sampling, geophysical and soil geochemical surveys at its Artulândia project have identified an anomalous copper gold zone of approximately 1,000m by 250m, which is open in all directions.  The Artulândia project covers 12,000 acres within the Company´s 247,000 acre Pireneus district and is located in Goias state, one of the most prolific mining districts in Brazil.

Stephen Swatton, President and CEO, stated, “Our geological team believes Artulândia has the potential to be a significant discovery, made with a modest budget in an area that has not had previous mining or exploration activity.  Based on preliminary exploration data, similarities are being drawn with Yamana’s Chapada Copper-Gold Mine to the north.  However, we acknowledge that the Artulândia project is in the early stages of exploration and, therefore, more work, including drilling, needs to be done to fully realize and understand this project.”

Highlights from the new results obtained at Artulândia include:

  • Target ART-1; Further follow-up work completed on target area ART-1 has confirmed new mineralized outcrops, with increased copper values of up to 0.81%, gold values of up to 2.3 g/t and silver values of up to 344 g/t, plus additional anomalies of lead-zinc. A geophysical survey has identified a main IP anomaly trending along strike for approximately 400m, which coincides with the geochemically defined gold-copper zone identified by previous soil and rock chip sampling. ART-1 is considered a priority, and the next phase of exploration is expected to include diamond drilling of this target.  Geochemical sampling indicates that the mineralization extends for an additional 600m to the east of the main IP anomaly (Targets ART-2 and ART-3).
  • Target ART-5; A new zone located approximately 750m NE of ART-1 has been discovered comprising gossans trending along strike for approximately 700m.  These gossans are similar to those found at target area ART-1.  A total of 50 rock geochemical samples have been collected from target area ART-5 and sent to the laboratory to confirm the presence of mineralization.

In its news release dated April 26, 2012, Brazil Resources announced the first results of a geochemical sampling program at Artulândia and identified eight target areas (ART-1 to ART-8) with elevated copper, gold, lead and zinc values surrounding a large intrusive granitoid with rock grab sample results of up to 1.2 g/t gold, 0.7% copper and greater than 2% lead-zinc in separate samples.

Since May 2012, follow-up geochemical sampling and detailed geological mapping programs have been completed on target areas ART-1 and ART- 5.  In addition a geophysical IP/Mag ground survey has been completed and a trenching program has been initiated at ART-1.  To date, assay results are available for a total of 603 rock grab samples, 1,581 soil samples and 62 stream sediment collected from target areas ART-1 and ART-5.  

Based on petrographic and detailed geochemical and geophysical data interpretation, Company geologists believe the geology at Artulândia may be a porphyry copper deposit.  Therefore comparisons are being drawn with the Chapada Mine operated by Yamana Gold, which is located approximately 140 km north of the Artulândia project.  Chapada produced 135,000 oz of gold and 166 million pounds of copper in 2011 as publicly disclosed by Yamana.  Readers should be aware that the comparison to Chapada contained herein is based on preliminary exploration by the Company to date and substantial additional exploration is required to define the extension, continuity and geology of the mineralized zones at Artulândia, which does not currently have any defined resources, and, therefore, the results at Chapada are not necessarily indicative of the potential of the Artulândia project.
The geophysical survey was performed by Fugro Geophysics, and processed by Reconsult Geofísica. The IP-resistivity survey comprised 7.65 line kms, and the magnetics survey comprised 23.35 line kms.  The grid lines were oriented north-south and each line was 100 meters apart.

Future Work:

The Company plans to further its exploration efforts on all the remaining targets.  A diamond drill program to investigate Target 1, and possibly Targets 2 and 3, is currently under consideration.  Targets ART-4, ART-5 and ART-6 have been outlined by the recent geophysical survey and will be investigated by additional rock sampling and mapping. The current geochemical and geophysical results only represent the investigation of two targets (ART-1 and ART-5) of the eight geochemical targets initially identified by the Company.

FIGURES 1 and 2 – Geophysical  (IP-Magnetic) Targets ART-1 to ART-6  plotted over Mag Analytical Signal Grid Image (left) and IP anomalies trends over Cu in rock/soil geochemical anomaly (right).

 

Target 1 is defined by a 400m long high IP trend, the inversion sections show that this trend could be dipping from west to east, going from a superficial response to a deeper signature.  This possibility, if proven correct, could add another 600m to this target, effectively extending Target 1 to the eastern boundary of Target 2 (Figure 2).

Figure 3 – Detailed Geological Map with soil anomalies, selected rock sample results and location of geophysical Targets 1, 2 and 3

TABLE 1 – Anomalous Rock Samples Results for Cu-Au-Zn-Pb-Ag at Artulândia Project as of August 31, 2012

Sample
Lithology
Cu (ppm)
Au
(ppb)
Zn (ppm)
Pb
(ppm)
Ag (ppm)
11904
Gossan
8123
513
2512
8047
5
11161
Volcanic
7116
79
781
42000
147
11907
Gossan
6991
2329
6551
>10000
344
11145
Gossan
6813
129
2152
1907
-1
11144
Gossan
6628
335
2538
1375
18
11141
Gossan
6350
1250
4075
747
13
11848
Gossan
4897
128
1212
1248
15
11834
Gossan
4182
84
697
695
8
11847
Gossan
4126
210
894
1737
198
11829
Gossan
3872
1646
1372
1620
19
11905
Gossan
3728
792
3453
5885
12
11444
Laterite
3623
97
1482
1619
9
11919
Gossan
3458
247
1965
1011
13
11906
Gossan
3421
364
3093
5003
10
11469
Volcanic
3329
31
35300
3900
16
11897
Breccia
3315
768
1194
2287
10
11835
Gossan
3275
36
668
630
-1
3001
Quartz Vein
2946
154
1652
802
-1
11928
Gossan
2914
116
1836
1072
-1
11895
Breccia
2892
219
1239
3219
1
11925
Gossan
2828
198
2751
1018
-1
11828
Gossan
2762
46
828
802
-1
11927
Gossan
2636
170
3547
5321
-1
11933
Gossan
2630
199
1979
967
16
11931
Gossan
2591
176
2324
502
4
11924
Gossan
2460
99
2529
1346
-1
11912
Gossan
2373
262
1843
1367
1
11930
Gossan
2340
295
2059
470
8
11900
Breccia
2332
495
522
1729
6
11923
Gossan
2297
148
1392
1182
-1
11898
Breccia
2274
406
892
1761
5
11914
Gossan
2272
1149
2092
854
-1
11899
Breccia
2261
556
713
1544
4
11929
Gossan
2257
61
1430
1311
-1
11932
Gossan
2152
76
1828
534
5
11911
Gossan
2146
186
1336
805
-1
11910
Gossan
2142
148
1160
829
-1
1191
Laterite
2075
1168
1078
1547
-1
11467
Quartzite
1908
71
1213
4302
6
11934
Gossan
1884
32
2326
411
123
11120
Quartzite
1874
61
4203
553
7
11922
Gossan
1868
109
857
1390
-1
11926
Gossan
1847
122
1895
874
19
11121
Volcanic
1787
138
856
5456
11
11921
Gossan
1774
81
1659
1369
-1
11844
Gossan
1711
32
693
919
-1
11167
Volcanic
1620
49
1233
688
-1
11896
Breccia
1604
316
549
1670
4
11833
Gossan
1568
41
1172
483
-1


About Brazil Resources Inc.

Brazil Resources is a publicly listed 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 Montes Áureos, Trinta and Maua Gold Projects located in the Gurupi Gold Belt in the state of Maranhão in northeastern Brazil, and its Pireneus Gold Project in Goias State, in central Brazil.  Brazil Resources is also seeking to acquire and develop additional gold properties within Brazil and other locations in South America.

For further information, please contact:
Patrick Obara
Telephone: (855) 630-1001
info@brazilresources.com

Note Regarding Scientific and Technical Information

Paulo Pereira, the Company's Vice President of Exploration has supervised the preparation of and reviewed the technical information and verified the data contained in this document. Mr. Pereira holds a Bachelor 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.

The reconnaissance sampling at the Artulândia project was performed using stream sediment sampling to cover the entire area of the claim block. Streams sediment samples were collected using 10 liters constant volume samples and the collected material was panned in the field for gold color counts. Follow-up sampling was completed on anomalous areas defined by the results of the stream sediment sampling. Soil samples were collected on regular grids (200m x 50m) at 0.30 m depth. The material excavated in each soil sampling location was homogenized and a 2 kg representative sample was collected.  Rock samples (hand-specimen size) were collected during geological mapping over the entire area and on target area ART-1 rock samples were collected over regular grid (100m x 25m) and on representative mineralized outcrops.  

Brazil Resources operates QA/QC controls of sampling and analytical procedures.  For geochemical sampling (stream sediment, soil, rock) duplicates are inserted in the sample batches at a reason of one duplicate for every ten samples.  Samples from the Artulândia project are transported by the company staff from the project by road to SGS-Geosol Labs in Goiania, Goias for preparation and pulps are sent to SGS-Geosol Labs in Vespasiano, Minas Gerais, Brazil in secured and sealed sample bags for analysis. Samples are assayed by the lab for gold using a 50 gram fire assay with AAS finish and ICP for 37 elements. 

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 Artulândia project and exploration plans in respect of its 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 new


September 6, 2012

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