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Last updated on April 19, 2014 at 13:20 EDT

Brazil Resources Inc. Increases Indicated Resource by 77% to 786,737 Ounces Gold at 1.4 g/t and Inferred Resource by 184% to 628,035 Ounces Gold at 1.12 g/t at its Cachoeira Gold Project

March 4, 2013

VANCOUVER, March 4, 2013 /PRNewswire/ – Brazil Resources Inc. (TSX-V: BRI; OTCQX: BRIZF) (  the “Company” or “Brazil Resources”) is
pleased to announce the results of a recently completed National
Instrument 43-101 (“NI 43-101″) mineral resource estimate, which was
completed by Tetra Tech, Inc. (“Tetra Tech”) on the Company’s Cachoeira
do Piria Gold Project, located in the Pará state, Brazil. The resource
estimate has an effective date of March 1, 2013. Highlights include:

        --  Indicated Resource - 17,470,093 tonnes at 1.40 g/t gold
            (786,737 ounces);
        --  Inferred Resource - 15,666,580 tonnes at 1.12 g/t gold (628,035
            ounces);
        --  This new estimate represents a 77% increase in the indicated
            and a 184% increase in the inferred categories over the
            December 2010 Roscoe Postle Associates Inc. ("RPA") figures;
            and
        --  Resource expansion drilling program to be initiated 2Q 2013.

Stephen Swatton, President and CEO, stated: “This resource estimate from
Tetra Tech, one of the world’s leading mining consulting companies, is
a milestone for the Company. We are currently reviewing all options to
fully exploit the potential of the asset, including the possibility of
developing multiple pits in addition to further exploration of the
surrounding areas. The current drill spacing is approximately 60m,
therefore the Company will embark on further tighter drilling with
minimal cost to upgrade much of the inferred resource to the indicated
resource category.”

The Company recently signed a drilling contract with Servitec Foraco
Sondagem S.A. and expects to commence an initial drill program at the
Cachoeira Project in calendar Q2 2013, the size of which will be
determined by the outcome of ongoing studies. The Company will also
explore extensions of the currently known mineralized zones as in-house
district wide studies intimate that mineralization may not only be
constrained to the three zones identified on the property to date.

The difference in the total resources calculated by RPA and Tetra Tech
is explained by the application of an in-pit design resource estimate
incorporated in the technical report by RPA dated July 19, 2012 titled
“Techncial Report on the Cachoeira Project, Pará State, Brazil” (the
“RPA Estimate”). The preliminary Whittle pit optimization study
completed by RPA in 2010 reported an indicated resource of 12.5 million
tonnes grading 1.11 g/t gold and an inferred resource of 5.4 million
tonnes grading 1.27 g/t gold. The resources, as reported by RPA, were
constrained within an economic pit-shell with the following parameters:
gold price of US$1,250, pit slope angles of 45 degrees, 90% gold
recovery, mining cost between $2.50-2.60 per tonne and general and
administration costs of US$1.50.  The RPA Estimate therefore, by
definition, excluded many gold rich intersections which fell outside of
the RPA defined pits for Arara, Coruja and Tucano.  By comparison, the
Tetra Tech estimate was constrained only by the geological models of
the mineralized zones and by the lower threshold grade of 0.35 g/t
gold.

Tetra Tech has estimated the mineral resources in accordance with NI
43-101 – Standards of Disclosure for Mineral Projects and the Canadian
Institute of Mining, Metallurgy and Petroleum classification system,
using the Company’s dataset of 42,432 assays, which includes historical
diamond drilling, outcrop, underground channel samples, auger and
reverse circulation drilling.  Exploration at the Cachoeira Project was
initiated in 1985 by Companhia de Mineração e Participações and
Mineração CCO Ltda (“CCO”) and continued through the 1990′s with work
by Brazilian Goldfields Ltd (“BGZ”) and Goldfields Ltd (“Goldfields”).
Companhia Vale do Rio Doce (“Vale”) conducted an exploration program at
Cachoeira in 2003. Luna commenced exploration at the property after it
acquired it in 2007. The Company acquired the project in 2012. CCO
drill core assays were conducted at Geoser Laboratory, Belo Horizonte.
The BGZ and Goldfields drill core assays were conducted at Bondar Clegg
Laboratories, Vancouver. The Vale core assays were conducted at Geosol
Laboratories, Belo Horizonte. Luna used ALS Chemex Laboratories in Belo
Horizonte, Brazil and Lima, Peru for drill core assays.  The data from
such exploration programs utilized in the resource estimate met quality
assurance/quality control requirements, which are set forth in more
detail in the RPA Estimate. Both RPA and Tetra Tech applied a 0.35 g/t
gold cutoff in their analyses.

As part of the current study, Tetra Tech also investigated the influence
of high grade material and ran a model to apply a ‘cap’ to exclude
statistically anomalous values based on a distribution curve. The
potential risk in including statistically high values in a resource
estimate is that their contribution to the estimated grade will be
disproportionate to their contribution to the tonnage and therefore the
grade of the resource as a whole will be overstated.  The conclusion of
the study is that, if a cap is applied, it only reduces the resource by
13.7% in the indicated and 4.7% in the inferred category.

Cachoeira Project Resource Table


       INDICATED VEINS      TONNES  GOLD  GOLD CAP   GOLD  GOLD CAP

                         @ 0.35 G/T  G/T     G/T   OZ TROY OZ TROY

          ARARA VEINS      528,435  1.805   1.740  30,658   29,554

          CORUJA VEINS      84,272  2.026   2.016   5,490    5,463

          TUCANO VEINS   4,051,741  2.160   1.846  281,365 240,514

          TOTAL VEINS    4,664,448  2.12     1.84  317,514 275,531

    INDICATED ALTERATION    TONNES  GOLD  GOLD CAP   GOLD  GOLD CAP

                         @ 0.35 G/T  G/T     G/T   OZ TROY OZ TROY

           ARARA HALO    1,592,239  1.623   1.056  83,098   54,081

          TUCANO HALO    11,213,406 1.071   1.004  386,124 362,064

       TOTAL ALTERATION  12,805,645 1.14     1.01  469,223 416,145

       TOTAL INDICATED   17,470,093 1.40     1.23  786,737 691,676

         ALL INDICATED      TONNES  GOLD  GOLD CAP   GOLD  GOLD CAP

                         @ 0.35 G/T  G/T     G/T   OZ TROY OZ TROY

    ARARA  VEINS + HALO  2,120,674  1.67     1.23  113,757  83,635

          CORUJA VEINS      84,272  2.03     2.00   5,490    5,415

     TUCANO  VEINS+HALO  15,265,147 1.36     1.23  667,490 602,578

       TOTAL INDICATED   17,470,093 1.40     1.23  786,737 691,628

        INFERRED VEINS      TONNES  GOLD  GOLD CAP   GOLD  GOLD CAP

                         @ 0.35 G/T  G/T     G/T   OZ TROY OZ TROY

          ARARA VEINS      631,690  2.41     2.38  40,883   40,399

          CORUJA VEINS     139,835  1.62     1.61   4,386    4,367

          TUCANO VEINS   2,207,256  2.01     2.00  262,465 259,905

          TOTAL VEINS    2,978,781  2.08     2.06  311,817 308,679

    INFERRED ALTERATION     TONNES  GOLD  GOLD CAP   GOLD  GOLD CAP

                         @ 0.35 G/T  G/T     G/T   OZ TROY OZ TROY

           ARARA HALO    1,757,048  1.17     0.80  59,687   40,780

          TUCANO HALO    10,930,751 0.85     0.84  305,916 303,273

       TOTAL ALTERATION  12,687,799 0.89     0.84  367,451 343,794

        TOTAL INFERRED   15,666,580 1.12     1.07  628,035 599,662

          ALL INFERRED      TONNES  GOLD  GOLD CAP   GOLD  GOLD CAP

                         @ 0.35 G/T  G/T     G/T   OZ TROY OZ TROY

    ARARA  VEINS + HALO  2,388,739  1.49     1.21  101,860  82,825

          CORUJA VEINS     139,835  1.62     1.61   4,386    4,367

     TUCANO  VEINS+HALO  13,138,007 1.04     1.04  512,619 508,005

        TOTAL INFERRED   15,666,580 1.12     1.07  628,035 599,662

The resources were estimated by inverse distance squared (ID2) weighting
and grades were interpolated into blocks in a single pass.  A minimum
of two and a maximum of 12 composites within the volume of the search
ellipse were necessary for a grade to be interpolated into a block.  A
maximum of two composites was permitted per drill hole so that a grade
could be interpolated into a block on the basis of a single drill hole.
Composites could only be drawn from the geological model for which a
grade was being estimated to avoid over- or underestimation of grades
within a given geological domain.

In addition to capped and uncapped gold grades, the number of drill
holes and composites used for each estimated value was recorded as well
as the mean distance of those composites from the centroid of the
block.

Resources were classified as indicated or inferred.  In order for a
block to be classified as indicated, it was necessary that the grade
that it contained was based on a minimum of four drill holes and that
the mean distance of the composites from those holes was 50 meters or
less from the centroid of the block.  All blocks that failed to meet
the criteria for indicated classification, but had an estimated grade
of at least 0.001 g/t gold were classified as inferred.

Qualified Person

The resource estimate was prepared by Greg Mosher, M.Sc. P.Geo.  Mr.
Mosher is a qualified person and a Senior Geologist with Tetra Tech and
is independent of the Company, as defined by section 1.5 of NI 43-101.
Paulo Pereira, the Company’s Vice President of Exploration, has
supervised the preparation of, and reviewed, the technical information
contained in this document. 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 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 Ãureos,
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.

Cautionary Note 

This news release utilizes the terms “indicated” and inferred” mineral
resources in accordance with NI 43-101. While those terms are
recognized by Canadian securities regulatory authorities, they are not
recognized by the U.S. Securities and Exchange Commission (the “SEC”)
and the SEC does not permit U.S. companies to disclose resources in
their filings with the SEC. U.S. investors are cautioned that the
mineral resource information contained herein is not comparable to
information regarding mineral reserves disclosed in accordance with SEC
requirements.

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. 

Forward Looking Statements

This press release contains certain forward-looking statements,
including statements regarding future exploration plans at the
Cachoeira Project, potential mineralization and resource estimates.
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. 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
the Company’s expectations, accidents, equipment breakdowns, title
matters, labor 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,
currency fluctuations, regulatory restrictions, including environmental
regulatory restrictions 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 news
release.

 

 

Stephen Swatton or Patrick Obara
Telephone: (855) 630-1001
E-mail: info@brazilresources.com

SOURCE Brazil Resources Inc.


Source: PR Newswire