Vancouver, British Columbia – January 17, 2013 – Brazil Resources Inc. (the “Company” or “BRI”) (TSX-V: BRI OTCQX: BRIZF) today issued a Letter to Shareholders. The following is the full report from President and CEO, Stephen Swatton.
Dear Shareholder,
On behalf of the team at BRI, I am pleased to report to you on the status of the Company at the start of the new year.
First and foremost, we very much appreciate your continuing support as a shareholder of the Company. Your trust in the Company and its management team is greatly appreciated.
During 2012, the Company acquired its most advanced project, the Cachoeira Project, in the prolific Gurupi Gold Belt in northern Brazil and filed a National Instrument 43-101 technical report (the “NI 43-101 Report”) dated July 19, 2012, which estimated an indicated resource of 446,000 oz. gold and an inferred resource of 221,300 oz gold. Based on information to date, we believe that Cachoeira has similar geological attributes to producing mines in the region. We have plans to fast-track development at Cachoeira in 2013, which will include expansion drilling and confirmatory metallurgical work. Concurrently, a near-term initial drilling program is being scheduled to focus on the two large zones recently discovered at BRI’s Artulândia Project in central Brazil.
With more than $7.2 million in cash as of the most recent financial statements dated August 31, 2012, no debt and less than 40 million shares outstanding, BRI is well funded to advance its project portfolio, including continuing its strategy of identifying additional acquisitions of advanced-stage projects with qualified resources.
Company Highlights from 2012
Acquisition of first NI 43-101 Compliant Gold Resource: The Company acquired the Cachoeira Project from Luna Gold Corp. and issued the NI 43-101 Report, disclosing an indicated resource of 12.5 million tonnes grading 1.11 g/t Au or 446,000 ounces of gold, plus an inferred resource of 5.4 million tonnes grading 1.27 g/t Au, or 221,300 ounces of gold.
Discovery at Artulândia: In its press releases dated September 6 and December 11, 2012, the Company announced that BRI’s technical team had discovered two high-grade gold, copper, lead, zinc, and silver mineralized zones with five additional mineralized areas to be targeted for follow-up exploration on its 100% owned Artulândia Project. Trenching over geophysical induced polarized (IP) anomalies confirmed the close relationship found earlier in the year between surface rock samples, soil geochemistry and geophysics. The Company has acquired 247,000 acres of ground in the surrounding area.
Exploration Project Acquired in Paraguay: On October 4, 2012, the Company announced the acquisition of the Apa High Project, a mineral concession acquired from the Republic of Paraguay, covering 198,068 hectares (489,426 acres) in Concepcion State, Paraguay. The Apa High project area is contiguous with the Brazilian border and is located along the southern extension of the Cuiaba Gold Belt, Mato Grosso State Brazil.
Exploration Update Provided for the Company’s Other Projects: As disclosed in its press release dated April 26, 2012, a mineralized zone, typical of greenstone belts in the district, has been identified at the Company’s Montes Áureos Project. Exploration work during the year included soil sampling, auger drilling and diamond drilling.
At the Company’s Trinta Project, which is in close proximity to the Montes Áureos Project, Brazil Resources' geological team completed additional exploration resulting in the identification of three gold targets with seven anomalies within two prospective geophysical corridors. Grab sample results returned values of up to 60 g/t gold from a local identified source as set forth in the Company’s April 26, 2012 press release.
Plans for 2013
Building on the progress made in 2012, BRI’s management is commencing 2013 with a focus on continuing its strategy to acquire additional advanced projects, while progressing its current projects, including completing initial drilling at Artulândia, continuing exploration at the Montes Áureos and Trinta Projects, and narrowing the search for initial mineralized gold zones at the Apa High Project in Paraguay.
Advancement of the Cachoeira Project: For 2013, BRI’s top priorities at the Cachoeira Project are environmental permitting, in-fill and extension drilling and the completion of other work to better understand the project from a structural and economic standpoint.
Drilling at Artulândia: A diamond drill program on the Artulândia Project is expected to commence shortly and we currently anticipate disclosing initial results in the first half of 2013.
We look forward to fast-tracking the growth of the Company and building on the foundation we have established in the past year by delivering on these exploration and development milestones, and advancing key acquisition prospects, in 2013. Thank you again for your confidence in management and the BRI team. We welcome your ongoing support of as we move forward in the new year.
Please stay in touch by calling us anytime at 1-855-630-1001or emailing [email protected].
Sincerely,
Stephen Swatton
President and CEO
Brazil Resources Inc.
For further information, please contact:
Stephen Swatton or Patrick Obara
Telephone: (855) 630-1001
[email protected]
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, the Company is advancing its Cachoeira, Montes Áureos, Trinta and Maua gold projects located in the Gurupi Gold Belt in the state of Maranhão, northeastern Brazil, and its Artulandia Copper-Gold Project in central Brazil.
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.
Further detailed technical information on the Cachoeira Project can be found in the NI 43-101 Report, which was completed by Roscoe Postle Associates Inc. and titled “Technical Report on the Cachoeira Project, Pará State, Brazil"., a copy of which is available under the Company's profile on SEDAR at www.sedar.com.
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 its projects, future acquisition opportunities and exploration plans. 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; 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.
