Brazil Resources Inc. Reports NI 43-101 Resource Estimates for its Recently Acquired São Jorge, Boa Vista and Surubim Gold Projects
January 21, 2014
Highlights
- The resource estimates confirm previously disclosed calculations completed by independent consultants for Brazilian Gold Corporation prior to the acquisition of the properties by Brazil Resources.
- São Jorge Project – Indicated mineral resource of 14.42 Mt grading 1.54 g/t gold (715,000 oz gold) and an inferred mineral resource of 28.19 Mt grading 1.14 g/t gold (1,035,000 oz gold) at a cut-off grade of 0.3 g/t.
- Boa Vista Project (VG1 Deposit) – Inferred mineral resource of 8.47 Mt grading 1.23 g/t gold (336,000 ounces) at a 0.5 g/t cut-off for the VG1 deposit.
- Surubim Project – Inferred mineral resource of 19.44 Mt grading 0.81 g/t gold (503,000 ounces gold) at a cut-off grade of 0.3 g/t gold.
FOR IMMEDIATE RELEASE
Vancouver, British Columbia – January 21, 2014 – Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce that it has received National Instrument 43-101 (“NI 43-101”) resource estimates for each of its São Jorge, Boa Vista and Surubim Gold Projects located in Pará State, Brazil. The projects were acquired by Brazil Resources through its acquisition of Brazilian Gold Corporation ("BGC") in November 2013. The resource estimates confirm the historical estimates completed by BGC as disclosed by the Company in its press release dated November 22, 2013.
São Jorge Gold Project
Brazil Resources engaged Coffey Mining Pty Ltd. ("Coffey") to prepare an NI 43-101 resource estimate on the São Jorge Project (the "São Jorge Estimate"). The São Jorge Estimate has an effective date of November 22, 2013 and provides the following estimates for the project (oxide and primary mineralization) at various cut-off grades (the oxide resource comprises a small part (approximately 9%) of the overall resource):
| São Jorge Gold Project Mineral Resource Estimates Summary |
||||
| Lower Cutoff Grade | Million Tonnes | Average Grade | Contained Gold (Kozs) |
|
| (g/t Au) | (g/t Au) | |||
| Indicated Mineral Resource | 0.3 | 14.42 | 1.54 | 715 |
| 0.4 | 12.15 | 1.77 | 690 | |
| 0.5 | 10.49 | 1.97 | 666 | |
| Inferred Mineral Resource | 0.3 | 28.19 | 1.14 | 1,035 |
| 0.4 | 22.43 | 1.35 | 971 | |
| 0.5 | 18.78 | 1.52 | 918 | |
The São Jorge Estimate was based on a block model of the deposit. Coffey classified the resource estimate as an indicated or inferred mineral resource based upon the confidence of the input data, geological interpretation and grade estimation. Indicated and Inferred Mineral Resources are reported at a cut-off grade of 0.3 g/t Au, which is estimated by Coffey based upon economic estimates, process recovery, government taxes, other expenses and a gold price of US$1,300/oz. The São Jorge Estimate is based on 37,154 m (145 holes) of diamond drilling completed by previous operators, including 14,708 m (37 holes) of diamond drilling completed by BGC since late 2010. Gold assays (19,590) were composited at 1 m lengths and interpolated into the block model using multiple indicator kriging. A three-dimensional solid model of the sulphide and oxide mineralization was constructed to constrain the resource estimate. The block model is comprised of individual blocks measuring 5 m by 5 m by 5 m and grade is interpolated into these blocks using multiple indicator kriging. The above estimates may not reconcile due to rounding. No additional material exploration work has been completed on the project by the Company.
The São Jorge Estimate was prepared for Brazil Resources by Porfirio Rodriquesz, B.Sc. (Min Eng.), MAIG and Leonardo de Moraes Soares, B.Sc (Geo), MAIG of Coffey, who are qualified persons as defined under NI 43-101, are independent of the Company and have reviewed and approved the disclosure regarding the São Jorge Estimate above.
Boa Vista Gold Project
The Company has received an NI 43-101 resource estimate respecting the VG1 deposit (Boa Vista Gold Project), located in Pará State in northern Brazil (the "Boa Vista Estimate"), with an effective date of July 3, 2012. The following tables set out the Boa Vista Estimate (oxide and primary mineralization) at various cut-off grades (the oxide resource comprises a small part (approximately 1.3%) of the overall resource):
| Boa Vista Gold Project – VG1 Deposit Inferred Mineral Resource Estimates Summary |
|||
| Au Cut-off (g/t) |
Tonnes > Cut-off (tonnes) |
Grade > Cut-off Au (g/t) |
Contained Metal Au (ozs) |
| 0.50 | 8,470,000 | 1.23 | 336,000 |
| 0.60 | 6,980,000 | 1.38 | 310,000 |
| 0.70 | 5,930,000 | 1.51 | 288,000 |
| 0.80 | 5,090,000 | 1.64 | 268,000 |
| 0.90 | 4,580,000 | 1.73 | 254,000 |
| 1.00 | 4,150,000 | 1.81 | 241,000 |
The Boa Vista Estimate was based on shallow (<150m depth) and limited drilling (15 holes in 3,007m) and 14 trenches (2,299 m) containing 3,399 assays. The drill holes intersected a west-northwest striking, steeply dipping mineralized zone that is up to 85 m in thickness and extends at least 150 m below surface based on existing drilling. The mineralized zone consists of quartz-pyrite stockwork and silicified zone(s) that are hosted within a foliated, mixed mafic volcanic and intrusive unit at or adjacent to granite rocks. Gold assays were composited at 5 m lengths and interpolated into the block model using ordinary kriging. A three-dimensional solid model of the primary and oxide mineralization was constructed to constrain the resource estimate. 12 of the 15 diamond drill holes and 6 of the 14 trenches penetrated these solids over a strike length of 500 m and were used in the resource estimate. The block model is comprised of individual blocks measuring 20 m by 20 m by 5 m with the long dimensions of the block orientated east-west and down dip. At the time of the Boa Vista Estimate no economic studies have been completed on the project and, as a result, an economic cut-off is unknown. No additional material exploration work has been completed on the project by the Company.
The Boa Vista Estimate was prepared for Brazil Resources by Jim Cuttle, B.Sc., P. Geo, Gary Giroux, MAsc., P. Eng. and Michael Schmulian, Bsc (Hons), Msc, FAusIMM, who are qualified persons as defined under NI 43-101, are independent of the Company and have reviewed and approved the disclosure regarding the Boa Vista Estimate above.
Surubim Gold Project (previously called Rio Novo project)
Brazil Resources has received an NI 43-101 resource estimate (the "Surubim Estimate") respecting the Surubim Gold Project, located in Pará State in northern Brazil, with an effective date of April 15, 2012. The following table sets out the Surubim Estimate at various cut-off grades:
| Surubim Gold Project – Jau Prospect Inferred Mineral Resource Estimates Summary |
|||
| Au Cut-off (g/t) |
Tonnes > Cut-off (tonnes) | Grade > Cut-off Au (g/t) |
Contained Metal Au (ozs) |
| 0.30 | 19,440,000 | 0.81 | 503,000 |
| 0.40 | 15,230,000 | 0.93 | 456,000 |
| 0.50 | 11,960,000 | 1.06 | 409,000 |
| 0.60 | 9,520,000 | 1.20 | 336,000 |
| 0.70 | 7,750,000 | 1.32 | 329,000 |
| 0.80 | 6,660,000 | 1.42 | 303,000 |
| 0.90 | 5,790,000 | 1.50 | 279,000 |
| 1.00 | 4,880,000 | 1.60 | 252,000 |
| 1.10 | 3,910,000 | 1.74 | 219,000 |
| 1.20 | 3,080,000 | 1.90 | 188,000 |
| 1.30 | 2,510,000 | 2.05 | 165,000 |
The Surubim Estimate was based on a total of 20 drill holes containing 2,978 gold assays. Gold assays were composited at 2.5 m lengths and interpolated into the block model using ordinary kriging. A three dimensional solid model of the mineralization was constructed to constrain the resource estimate. The block model is comprised of individual blocks measuring 20 m by 20 m by 5 m with the long dimensions of the block orientated east-west and north-south. No economic studies have been completed on this property and, as a result, the economic cut-off is unknown. A gold cut-off of 0.3 g/t was highlighted in the estimate as a possible open pit cut-off. No additional material exploration work has been completed on the project by the Company.
The Surubim Estimate was prepared for Brazil Resources by Jim Cuttle, P. Geo and Gary Giroux, P. Eng., who are qualified persons as defined under NI 43-101, are independent of the Company and have reviewed and approved the disclosure regarding the Surubim Estimate above.
Technical reports respecting each of the above resource estimates will be filed under the Company's profile on SEDAR in due course. There is no new material scientific or technical information respecting each of the above projects since the effective date of their respective resource estimates.
About Brazil Resources Inc.
Brazil Resources 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 parts of South America. Currently, Brazil Resources is advancing its Cachoeira and São Jorge Gold Projects located in the State of Pará, northeastern Brazil.
Paulo Pereira, Brazil Resources' Vice President of Exploration has reviewed and approved the technical information contained in this news release. Mr. Pereira holds a Bachelor 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.
For additional information, please contact:
Brazil Resources Inc.
Stephen Swatton, Chief Executive Officer
Patrick Obara, Chief Financial Officer
Telephone: (855) 630-1001
Cautionary Note
Investors are cautioned not to assume that any part or all of 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. 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 uncertainties respecting historical resource estimates, 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.