Brazil Resources Inc. Announces the Acquisition of the Trinta Project in the Gurupi Gold Belt
June 20, 2011
- At 23,643 Acres, the Project Greatly Increases the Company’s Land Holdings in One of Brazil’s Most Rapidly Emerging Gold Belts
- Initial Exploration to Target Gold Occurrences Previously Mined by Artisanal Miners
- Located 10 km On Strike Southeast of Jaguar Mining’s Advanced-Stage Gurupi Gold Project
FOR IMMEDIATE RELEASE
Vancouver, British Columbia – June 20, 2011 – Brazil Resources Inc. (the “Company” or “Brazil Resources”) (TSX-V: BRI) is pleased to announce the acquisition of the 23,643-acre Trinta Project situated in the emerging Gurupi Gold Belt located in Maranhão State, Brazil. The property consists of an exploration license located approximately 13 km northeast of the Company’s Montes Áureos Gold Project. The addition of the Trinta Project increases the Company's total land package in the Gurupi Gold Belt to 28,585 acres.
The Trinta property has distinctive structural features that are consistent with the regional geology of the Gurupi Gold Belt and the control of gold mineralization within the belt. An exploration permit for the Trinta Project is already in place and Brazil Resources plans to conduct an initial $150,000 exploration program, which includes geological mapping and geochemical reconnaissance sampling over the entire property and detailed soil sampling/auger drilling over selected areas. Initial bedrock exploration targets will be located close to historical artisanal alluvial gold workings. This exploration program is in addition to Brazil Resources’ previously announced $1.7 million initial exploration program on its primary Gurupi Gold Belt project, the Montes Áureos Gold Project.
President and CEO Stephen Swatton stated “Our technical and management teams have been diligently working together to assess prospective regions for acquisition and exploration related activities. We are extremely pleased to be able to announce this low-risk transaction that provides the company with significant upside through controlling the prospective Trinta Project, which is located 10km from Jaguar Mining’s advanced-stage Gurupi Gold Project.”
The acquisition of the Trinta Project has been completed by amendment to the terms of the Option and Joint Venture Agreement between the Company and Apoio Engenharia e Mineração dated effective September 30, 2010 (the “Agreement”). In addition to its previously disclosed obligations under the Agreement, Brazil Resources will be responsible for the annual land fees payable to the Brazil National Department of Mineral Production.
About the Gurupi Gold Belt
The Gurupi Gold Belt is an underexplored and emerging geological region that hosts several million ounces of gold resources within 100 km of the Company’s Montes Áureos and Trinta Projects. At present, recognized mining companies including Kinross Gold, Jaguar Mining and Luna Gold are active with exploration programs, development of established deposits and production. The Gurupi Gold Belt is believed to be part of the same geological structure as the West African Shield which has produced millions of ounces of gold production.
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 NI 43-101 and is a member of the Association of Professional Geoscientists of Ontario.
About Brazil Resources
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.
For additional information, please contact:
Telephone: (604) 227 1124
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 project, including the Trinta Area, 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; 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; that the Company's property is in the exploration stage and is 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.