- Increases Recently Acquired Pireneus Land Package To 259,000
Acres
- Two Parallel Gold Trends Identified, Each Approximately 11
km Long
VANCOUVER,
Dec. 8, 2011 /PRNewswire/ - Brazil
Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI ;
OTCQX: BRIZF) is pleased to announce that its wholly-owned
subsidiary has entered into an option agreement (the "Option
Agreement") to acquire an 100%-interest in the 12,000-acre
Artulandia Property located in Goias State, Brazil. The Artulandia Property is contiguous
to the Company's recently announced Pireneus Project, a
247,000-acre project area located approximately 150 km west of
Brasilia. Goias State is an
emerging gold-producing district with major miners, including
Kinross, AngloGold Ashanti and
Yamana Gold active in the region.
Initial stream sediment sampling has identified
two parallel gold-anomalous trends on the property that are each
approximately 11 km in length and are open laterally in both
directions. The distribution of the gold mineralization suggests
the possibility of a local source. The Company's current plan at
Artulandia is to perform detailed geological mapping and soil
sampling to define targets for further work and drilling.
President and CEO Stephen Swatton stated: "The Artulandia
Property, combined with our adjacent Pireneus Project, represents
an exciting opportunity to establish a significant presence in
Goias State. We will immediately seek to increase our understanding
of the source of these gold anomalies."
The initial stream sediment sampling program
identified an 11 km long gold trend, which was defined by the
distribution of samples with visible gold above 50 colours
collected using a constant sample volume of 10 liters in stream
sediment samples. The Company spot re-sampled the gold trend to
verify the initial stream sediment sampling program, which was
conducted by Vila Rica Consultoria Ltda and provided to the Company
by the vendor. The gold trends are located north and south of a
prominent structural feature that is well delineated on regional
geophysical data sets.
Pursuant to the Option Agreement, a wholly-owned
subsidiary of Brazil Resources was
granted the option in consideration for an initial payment of
approximately R$100,000 (CDN$57,000) paid to Rodrigo Vasconcellos De
Moraes E Silvia. Under the option, the Company may acquire a 100%
interest in the mineral licences underlying the Artulandia Property
by making additional payments of approximately: (i) R$50,000 (CDN$28,500) within 6 months; and (ii)
R$200,000 (CDN$114,000) within 12 months of the date of the
Option Agreement. If the option is exercised, an additional
R$1,000,000 (CDN$570,000) will be payable by the Company upon
completion of a positive National Instrument 43-101-compliant
pre-feasibility study. The vendor will retain a 1.5% net smelter
return royalty on gold production from the property, which may be
reduced to 0.5%, at the option of the Company, for a further
payment of R$1,200,000 (CDN$685,000). Amounts payable by the Company
under the Option Agreement are in Brazilian Reias and Canadian
dollar amounts referenced herein are based on current exchange
rates and have been provided for reference only.
Paulo Pereira,
the Company's Vice President of Exploration has supervised the
preparation of the technical information contained in this news
release and supervised the spot re-sampling conducted by the
Company to confirm the exploration data provided to the Company by
the vendor. 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.
About Brazil Resources Inc.
Brazil Resources is a publicly listed mineral
exploration company with a focus on the acquisition and development
of projects in emerging producing gold districts in Brazil and other parts of South America. Currently, the Company is
advancing its Montes Áureos, Trinta and Maua Gold Projects located
in the Gurupi Gold Belt in the state of Maranhão in northeastern
Brazil, and its newly acquired
Pireneus Gold Project in Goias State, in central Brazil. Brazil Resources is also seeking to
acquire and develop additional gold properties within Brazil and other locations in South America.
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 the Artulandia and Pireneus
Projects, 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; the Company will be able to obtain required
exploration licences and other permits; 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 or may fail to
receive necessary licences and permits; that the Company's
properties are in the exploration stage and are 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.
SOURCE Brazil Resources Inc.