Brazil Resources Reports Independent Ni 43-101 Resource Estimate For Its Recently Acquired Whistler Project, Alaska
September 9, 2015
- The Whistler deposit hosts an indicated resource of 79.2 Mt grading 0.51 g/t gold, 1.97 g/t silver, 0.17 % copper or 0.88 g/t gold equivalent (2.25 Moz gold equivalent) and an inferred resource of 145.8 Mt grading 0.40 g/t gold, 1.75 g/t silver, 0.15 % copper or 0.73 g/t gold equivalent (3.35 Moz gold equivalent);
- This resource estimate confirms the previously disclosed historic estimate completed by Kiska Metals Corporation prior to the acquisition of the project by Brazil Resources;
- The Whistler project (170 sq km) hosts several nearby gold-copper porphyry targets similar to the Whistler deposit with excellent potential to increase the existing resource base; and
- Approximately 70,000 metres of drilling have been completed on the Project with 19,870 m (48 holes) completed at the Whistler deposit.
FOR IMMEDIATE RELEASE
Vancouver, British Columbia – September 9, 2015 – Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce the results of a National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Whistler deposit, one of several gold-copper porphyry deposits identified on the Whistler Project, Alaska. As previously announced, the Whistler project was acquired by Brazil Resources from Kiska Metals Corporation ("Kiska") pursuant to an asset purchase agreement. The resource estimate confirms the historical estimate completed for Kiska as disclosed by the Company in its press releases dated July 21 and August 6, 2015.
Garnet Dawson, CEO, stated: "We are pleased to report this multi-million ounce resource estimate for the Whistler deposit from a very small portion of our 170 sq km, 100% owned project. The Whistler deposit is one of several porphyry centers (Raintree West, Raintree East, Rainmaker and Island Mountain) identified on the property and future exploration programs will focus on developing a better understanding of their size potential. The close proximity (<3 km) of the Raintree and Rainmaker mineralization to Whistler will substantially enhance the value of the ounces already identified at Whistler. The Company continues to progress our long-term strategy and is reviewing projects in the Americas for potential acquisition during this low point in the commodity cycle."
Whistler Resource Estimate
Brazil Resources engaged Moose Mountain Technical Services to prepare an independent NI 43-101 technical report, including the resource estimate on the Whistler deposit. The resource estimate is based on 48 diamond drill holes (19,870 m) and has an effective date of August 15, 2015 (Table 1).
Table 1: Whistler deposit NI 43-101 pit constrained resource estimate.
|Tonnes & Grade||Contained Metal|
- 1Gold equivalent grade calculation for the Whistler Project resource was based on 75% recovery for gold and silver, 85% recovery for copper, US$990/oz gold, US$15.40/oz silver and US$2.91/lb copper.
- Totals may not represent the sum of the parts due to rounding.
- The Mineral Resources have been prepared by Moose Mountain Technical Services in conformity with "CIM Definition Standards for Mineral Resources and Mineral Reserves 2014".
- Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.
The Whistler deposit is a structurally controlled porphyry deposit with gold, copper and silver as the primary economic metals. There have been three major intrusive episodes that define the mineralization at Whistler with the earliest diorite phase being associated with the majority of the mineralization. A major northwest trending fault ("Divide Fault") separates the mineralization into two domains, which were modeled separately.
The resource was modeled utilizing a block model with individual blocks measuring 20x20x10 m. Compositing of gold, silver and copper grades was completed over 5 m intervals, honoring the domain boundaries, with composite statistics compiled for comparison with assay and block model data. The composites were used to create variograms for gold, copper and silver, in order to help define rotation and search parameters for the block model interpolation. Interpolation of gold, silver and copper grades was done by ordinary kriging in two passes based on the variogram parameters. Interpolation was restricted by the diorite solid with composites also restricted within each diorite domain. The conceptual pit delineated resource is reported within a conceptual pit shell with 45 degree pit slope angles resulting in a strip ratio of 1.3:1 (waste to ore) using a $7.50/t cut-off or approximately a 0.3 g/t gold cut-off. Specific gravity values were based on 21 laboratory measurements by ALS Chemex to give an average density of 2.72 for ore and 2.60 for waste.
Validation of the model was completed by comparison of the block model values with de-clustered composite values, with values interpolated by inverse distance, by comparison with swath plots, grade-tonnage curves and by visual inspections in section and plan across the deposit.
Quality Control – Quality Assurance Program
The above resource estimate was based on drill programs completed by previous operators that incorporated control samples including blanks, duplicates and standards as part of their Quality Control – Quality Assurance Program. The control samples from these programs have been reviewed and verified by the Qualified Persons and the assay results were deemed suitable for resource estimation.
Qualified Person Statement
The resource estimate disclosed herein was prepared for Brazil Resources by Susan Bird, P.Eng. and Robert J Morris, P.Geo. of Moose Mountain Technical Services and Alan Riles, B.Met., MAIG, who are Qualified Persons as defined in NI 43-101, are independent of the Company and have reviewed and approved the disclosure regarding the Whistler resource estimate.
A technical report respecting the above resource estimate will be filed under the Company’s profile on SEDAR in due course. There is no new material scientific or technical information respecting the Whistler deposit since the effective date of the resource estimate.
Paulo Pereira, Brazil Resources' President has reviewed and approved the technical information contained in this news release. Mr. Pereira holds a Bachelors degree in Geology from Universidade do Amazonas in Brazil, is a Qualified Person as defined in NI 43-101 and is a member of the Association of Professional Geoscientists of Ontario.
About Brazil Resources Inc.
Brazil Resources Inc. is a public mineral exploration company with a focus on the acquisition and development of projects in emerging producing gold districts in Brazil, Paraguay and other regions of the Americas. Brazil Resources is advancing its Cachoeira and São Jorge Gold Projects located in the State of Pará, northeastern Brazil and its Rea Uranium Project in the western Athabasca Basin in northeast Alberta, Canada.
For additional information, please contact:
Brazil Resources Inc.
Amir Adnani, Chairman
Garnet Dawson, CEO
Telephone: (855) 630-1001
Investors are cautioned not to assume that any part or all of the mineral deposits in the "indicated" and "Inferred" categories will ever be converted into mineral reserves with demonstrated economic viability or that inferred mineral resources will be converted to the measured and/or indicated categories through further drilling. In addition, the estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies.
Forward Looking Statements
This document contains certain forward-looking statements that reflect the current views and/or expectations of Brazil Resources with respect to its business and future events, including statements regarding the estimation of mineral reserves and the Company’s expectations respecting the Whistler project. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which Brazil Resources operates. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with Brazil Resources' expectations, accidents, equipment breakdowns, title and permitting matters, labour disputes or other unanticipated difficulties with or interruptions in operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, commodity price fluctuations, regulatory restrictions, including environmental regulatory restrictions, or any failure to integrate acquired companies and projects into the Company's existing business as planned. These risks, as well as others, including those set forth in Brazil Resources' filings with Canadian securities regulators, 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. Brazil Resources 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.