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Brazil Resources Announces NI 43-101 Gold Resource For The Raintree West Deposit Within The Whistler Project, Alaska
URL: http://goldmining.com/news/index.php?content_id=156&page_number=1

Highlights:

  • The district-scale Whistler Project is a 170 square kilometre land package that hosts the Whistler, Raintree West and Island Mountain porphyry deposits as well as several porphyry targets;
     
  • A new resource estimate on the Raintree West deposit provides for a total inferred resource of 1.991 Moz gold equivalent comprised of 1.428 Moz gold equivalent (51.76 Mt grading 0.68 g/t gold, 3.74 g/t silver, 0.10 % copper or 0.86 g/t gold equivalent at a 0.6 g/t gold equivalent cut-off) below the 100 metre elevation (Zone A) and 0.563 Moz gold equivalent (31.68 Mt grading 0.40 g/t gold, 5.39 g/t silver, 0.06 % copper or 0.55 g/t gold equivalent at a 0.3 g/t gold equivalent cut-off) above the 250 metre elevation (Zone B);
     
  • The Raintreee West resource estimate is in addition to the previously reported resource estimates for the Whistler and Island Mountain deposits. The combined resource for the three deposits is 2.797 Moz gold equivalent in the indicated category (110.28 Mt grading 0.50 g/t gold, 1.72 g/t silver, 0.14 % copper or 0.79 g/t gold equivalent) and 6.731 Moz gold equivalent (311.26 Mt grading 0.47 g/t gold, 2.26 g/t silver, 0.11 % copper or 0.68 g/t gold equivalent) in the inferred category;
     
  • Over C$50 million spent on prior exploration work on the Whistler project, which included approximately 70,000 metres of diamond drilling with 7,078 metres (14 holes) of this total completed at the Raintree West deposit; and
     
  • The deposits are open in several directions and future drill programs will focus on delineating higher grade, near-surface zones, adding to these existing resources and testing adjacent porphyry targets.

FOR IMMEDIATE RELEASE

Vancouver, British Columbia – May 17, 2016 – 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") mineral resource estimate for the Raintree West deposit, one of several porphyry centers identified on the Whistler Project, Alaska. The 100%-owned district-scale Whistler Project (170 sq km) is located 150 kilometres northwest of Anchorage, Alaska.

Garnet Dawson, CEO, stated: "We are pleased to report this maiden NI 43-101 resource estimate for the Raintree West deposit, which builds on the multi-million ounce gold resource reported over the last year on the Whistler Project. This estimate increases BRI’s indicated resource to 3.2 Moz gold (4.2 Moz gold equivalent) and our inferred resource to 7.0 Moz gold (9.1 Moz gold equivalent; Table 4). In conjunction with advancing our existing project portfolio, the Company continues to evaluate resource-stage projects in the Americas for potential acquisition."

Raintree West Resource Estimate

Brazil Resources engaged Giroux Consulting Ltd. to prepare an independent NI 43-101 technical report for the Whistler Project, including the first-time resource estimate on the Raintree West deposit. The resource estimates for the inferred resource at various cut-off grades are shown in Tables 1 and 2, respectively. The technical report documenting the procedures and results of this estimate will be filed on SEDAR in due time.

Table 1: Raintree West NI 43-101 inferred resource estimate below 100 metre elevation (Zone A).

Cut-off
AuEq
(g/t)		 Tonnes
(Mt)		 Grade Contained Metal
Au
(g/t)		 Ag
(g/t)		 Cu
(%)		 AuEq
(g/t)		 Au
(Moz)		 Ag
(Moz)		 Cu
(Mlbs)		 AuEq
(Moz)
0.50 64,460,000 0.63 3.76 0.09 0.80 1.295 7.792 127.92 1.652
0.55 57,470,000 0.65 3.77 0.10 0.83 1.208 6.966 126.72 1.534
0.60 51,760,000 0.68 3.74 0.10 0.86 1.130 6.224 114.13 1.428
0.65 46,360,000 0.70 3.71 0.10 0.89 1.048 5.530 102.22 1.321
0.70 40,780,000 0.73 3.70 0.11 0.91 0.954 4.851 98.91 1.198
0.75 35,290,000 0.75 3.72 0.11 0.94 0.855 4.221 85.60 1.071
0.80 29,750,000 0.78 3.76 0.11 0.98 0.746 3.596 72.16 0.933


Table 2: Raintree West NI 43-101 inferred resource estimate above 250 metre elevation (Zone B).


Cut-off
AuEq
(g/t)		 Tonnes
(Mt)		 Grade Contained Metal
Au
(g/t)		 Ag
(g/t)		 Cu
(%)		 AuEq
(g/t)		 Au
(Moz)		 Ag
(Moz)		 Cu
(Mlbs)		 AuEq
(Moz)
0.25 38,620,000 0.36 5.09 0.05 0.50 0.452 6.320 42.58 0.625
0.30 31,680,000 0.40 5.39 0.06 0.55 0.409 5.490 41.91 0.563
0.35 26,980,000 0.43 5.66 0.07 0.59 0.376 4.910 41.64 0.514
0.40 22,940,000 0.46 5.93 0.07 0.63 0.341 4.374 35.41 0.465
0.45 18,920,000 0.50 6.21 0.07 0.68 0.303 3.777 29.20 0.411
0.50 15,340,000 0.54 6.45 0.08 0.72 0.264 3.181 27.06 0.356
0.55 12,310,000 0.58 6.67 0.08 0.77 0.228 2.640 21.71 0.305
0.60 9,800,000 0.62 6.85 0.08 0.82 0.196 2.158 17.29 0.259
0.65 7,840,000 0.67 7.02 0.09 0.87 0.168 1.769 15.56 0.220
0.70 6,210,000 0.71 7.17 0.09 0.92 0.142 1.432 12.32 0.184
0.75 4,780,000 0.77 7.24 0.09 0.98 0.118 1.113 9.49 0.151
0.80 3,650,000 0.83 7.22 0.09 1.05 0.097 0.847 7.24 0.123

Table 1 and 2 Notes:

  1. Gold-equivalent grade assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold, 85% for copper and 75% for silver.
  2. A 0.60 g/t gold equivalent cut-off has been highlighted for material below the 100 metre elevation (Zone A) as a possible block cave cut-off based on New Afton Mines in southern British Columbia, while a 0.30 g/t gold equivalent cut-off has been highlighted for material above 250 metre elevation (Zone B) based on the nearby Whistler deposit.
  3. Totals may not represent the sum of the parts due to rounding.
  4. The Mineral Resources have been prepared by Giroux Consulting Ltd. in conformity with "CIM Definition Standards for Mineral Resources and Mineral Reserves 2014

Table 3: Whistler, Island Mountain and Raintree West NI 43-101 resource estimates, Whistler Project.

Deposit Class. Cut-off Tonnes Grade Contained Metal
AuEq.
(g/t)		  (Mt) Au
(g/t)		 Ag
(g/t)		 Cu
(%)		 AuEq.
(g/t)		 Au
(Moz)		 Ag
(Moz)		 Cu
(Mlb)		 Au Eq.
(Moz)
Whistler Indicated 0.3 79.20 0.51 1.97 0.17 0.88 1.280 5.030 302.00 2.25
IM Indicated 0.3 31.080 0.49 1.10 0.06 0.55 0.49 1.10 41.12 0.55
      110.280 0.50 1.72 0.14 0.79 1.77 6.13 343.12 2.80
                       
Whistler Inferred 0.3 145.80 0.40 1.75 0.15 0.73 1.850 8.210 467.00 3.350
IM Inferred 0.3 82.020 0.47 1.02 0.05 0.53 1.24 2.69 90.43 1.39
RW (Zone A) Inferred 0.6 51.760 0.68 3.74 0.10 0.86 1.13 6.22 114.13 1.43
RW (Zone B) Inferred 0.3 31.680 0.40 5.39 0.06 0.55 0.41 5.49 41.91 0.56
      311.260 0.47 2.26 0.11 0.68 4.63 22.61 713.47 6.73

Table 3 Notes:

  1. Island Mountain abbreviated to "IM" and Raintree West abbreviated to "RW".
  2. Gold equivalent grade for the Whistler resource assumes metal prices of US$990/oz gold, US$15.40/oz silver and US$2.91/lb copper.
  3. Gold equivalent grade for the Island Mountain resource assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 90% for gold (cyanide), 80% for copper (flotation) and 25% silver (recovery in copper concentrate).
  4. The Island Mountain resource estimate was previously announced in a News Release on April 18, 2016.
  5. Gold equivalent for the Raintree West resource assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold, 85% for copper and 75% for silver.
  6. Totals may not represent the sum of the parts due to rounding.
  7. The Mineral Resources for the Whistler deposit have been prepared by Moose Mountain Technical Services in conformity with "CIM Definition Standards for Mineral Resources and Mineral Reserves 2014". The resource estimate is contained in the amended and restated technical report titled "NI 43-101 Resource Estimate for the Whistler Project" authored by Robert J. Morris, M.Sc., P.Geo., Susan C. Bird, P.Eng., and Alan Riles, B.Met, M.AIG, who are each qualified persons within the meaning of NI 43-101 and independent of the Company with an effective date of August 15, 2015 (amended and restated as of November 12, 2015).
  8. The Mineral Resources for the Island Mountain and Raintree West deposits have been prepared by Giroux Consulting Ltd. in conformity with "CIM Definition Standards for Mineral Resources and Mineral Reserves 2014".

The Raintree West deposit is one of several porphyry centers identified on the Whistler Project (Fig. 1).  The deposit is located 1500 metres east of the Whistler deposit and has been drilled over a strike length of 500 metres and to a depth of 700 metres; the deposit is up to 400 metres in width. The deposit is open along strike to the north and south, and at depth. Gold-copper mineralization is associated with quartz + magnetite stockwork zones hosted in potassic altered diorite intrusive rocks.

The Raintree West deposit was modelled on a series of east-west cross-sections and a grade shell (0.1 g/t AuEq) representing the mineralization was constructed to constrain the resource estimate. Fourteen diamond drill holes totaling 7,078 metres were used to define the model. Erratic high grade outliers for gold, silver and copper were capped within the mineralized and waste solids. Composites 5 metres in length were formed within each of the domains that honoured the domain boundaries. Variography was used to model the grade continuity and to determine the search ellipse orientations and dimensions for interpolation. Ordinary kriging was used to estimate gold, silver and copper into blocks measuring 10 x 10 x 10 metres in dimension. A total of 39 samples within the mineralized solid had specific gravity measurements, which were used to convert volumes to tonnes. The blocks were classified as Inferred based on the limited amount of drilling. For the near surface mineralization above 250 m elevation (Zone B), a 0.30 g/t gold equivalent cut-off grade was chosen as a possible open pit cut-off based on studies completed at the nearby Whistler deposit. For the deeper mineralization below 100 m elevation (Zone A), a 0.60 g/t gold equivalent cut-off grade was chosen as a possible block cave cut-off based on the New Afton mine in British Columbia that is currently in production and using a similar mining method. Validation of the model was completed by comparison of the block model and drill hole grades by visual inspections in section and plan across the deposit. There are no known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources.

An updated technical report on the Whistler Project including the new resource estimates on the Raintree West and Island Mountain deposit will be filed on SEDAR in due course.

Figure 1: Whistler Project showing location of Whistler, Raintree West and Island Mountain deposits.

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 Gary Giroux, MASc., P.Eng. of Giroux Consultants Ltd, who is a Qualified Persons as defined in NI 43-101, is independent of the Company and has reviewed and approved the disclosure regarding the Raintree West 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 Project 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.

Table 4: Brazil Resources Inc. Mineral Resource Statement (May 2016).

                     
Project Cut-off Tonnes Gold Silver Copper Gold Eq Gold Silver Copper Gold Eq
  (g/t) (Mt) (g/t) (g/t) (%) (g/t) (Moz) (Moz) (Mlbs) (Moz)
Sao Jorge 0.3 14.420 1.54 - - 1.54 0.715 - - 0.715
Cachoeira 0.35 17.470 1.23 - - 1.23 0.692 - - 0.692
Whistler 0.3 79.200 0.51 1.97 0.17 0.88 1.280 5.03 302.00 2.250
IM 0.3 31.080 0.49 1.10 0.06 0.55 0.485 1.10 41.12 0.547
Total   142.170 0.70 1.34 0.11 0.92 3.172 6.13 343.12 4.204
                     
Sao Jorge 0.3 28.190 1.14 - - 1.14 1.035 - - 1.035
Cachoeira 0.35 15.667 1.07 - - 1.07 0.538 - - 0.538
Boa Vista 0.5 8.470 1.23 - - 1.23 0.336 - - 0.336
Surubim 0.3 19.440 0.81 - - 0.81 0.503 - - 0.503
Whistler 0.3 145.800 0.40 1.75 0.15 0.73 1.850 8.21 467.00 3.350
IM 0.3 82.020 0.47 1.02 0.05 0.53 1.237 2.69 90.43 1.390
RW (shallow) 0.3 31.680 0.40 5.39 0.06 0.55 0.409 5.49 41.91 0.563
RW (deep) 0.6 51.760 0.68 3.74 0.10 0.86 1.130 6.22 114.13 1.428
Total   383.027 0.57 1.84 0.09 0.75 7.038 22.61 713.47 9.143

Table 4 Notes:

  1. Gold cut-off for all projects except for Whistler, Raintree West and Island Mountain, which is gold equivalent cut-off.
  2. Gold equivalent grade for the Whistler resource assumes metal prices of US$990/oz gold, US$15.40/oz silver and US$2.91/lb copper and recoveries of 75% for gold and silver and 85% for copper.
  3. Gold equivalent grade for the Island Mountain resource assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 90% for gold (cyanide), 80% for copper (flotation) and 25% silver (recovery in copper concentrate).
  4. Gold equivalent for the Raintree West resource assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold, 85% for copper and 75% for silver.
  5. "Technical Report and Resource Estimate on the São Jorge Gold Project, Pará State, Brazil" prepared by Porfirio Rodriguez and Leonardo de Moraes, with an effective date of November 22, 2013.
  6. "Technical Report and Resource Estimate on the Cachoeira Property, Pará State, Brazil" prepared by Gregory Z. Mosher, P.Geo., with an effective date of April 17, 2013 and amended and re-stated October 2, 2013.
  7. "Technical Report and Resource Estimate for the Whistler Project" prepared by Robert J. Morris, M.Sc., P.Geo., Susan C. Bird, P.Eng., and Alan Riles, B.Met., M.AIG, with an effective date of August 15, 2015 and amended and re-stated November 12, 2015.
  8. "Technical Report on the Rio Novo Gold Project and Resource Estimate on the Jau Prospect, Tapajos Area, Para State, Northern Brazil" (Surubim Project) prepared by Jim Cuttle and Gary Giroux, with an effective date of November 22, 2013.
  9. "Technical Report on the Boa Vista Project and Resource Estimate on the VG1 Prospect, Tapajos Area, Para State, Northern Brazil" prepared by Jim Cuttle, Gary Giroux and Michael Schmulian, with an effective date of November 22, 2013.
  10. An updated technical report on the Whistler Project including the Whistler, Raintree West and Island Mountain resource estimate will be file on SEDAR in due course.
  11. For further information regarding the Company's projects, please refer to each of the technical reports set forth above, copies of which are filed under the Company’s profile on SEDAR.

About Brazil Resources Inc.

Brazil Resources Inc. is a public mineral exploration company focused on the acquisition and development of gold projects in Brazil 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, its Whistler Gold-Copper Project located in the state of Alaska, United States of America, 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

Cautionary Note

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.


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