VANCOUVER, May 16 /CNW/ - Brazil Resources Inc. ("Brazil Resources" or
the "Company") (TSX-V:BRI) is pleased to announce that it has commenced
trading on the TSX Venture Exchange.
With $8,000,000 cash on hand and no debt, the Company has started a work
program on its Montes Áureos gold project in the State of Maranhão,
Brazil, and is assessing other projects of merit in Brazil and
elsewhere in South America.
Amir Adnani, Chairman, stated, "We are very pleased to introduce this
new company, Brazil Resources Inc., to the capital markets. Over the
last two years, we've assembled an aggressive and Brazil-experienced
team who share a vision of the significant potential emerging in
several gold districts in South America and, in particular, in Brazil.
We have a plan to acquire and explore a pipeline of advanced projects
and to rapidly build a strong base of gold resources for further
Stephen Swatton, President and CEO, added, "The Company is initially
focusing on the ongoing development of its first property, the Montes
Áureos gold project, located in the emerging Gurupi gold belt.
Management looks forward to reporting further on our progress."
Management and Technical Team
Brazil Resources has drawn together strong management and technical
teams with extensive and relevant experience in the exploration,
development and production of mineral properties, as well as in
corporate finance and the administration of private and public
companies. Members of the Company's technical team have been involved
in the discovery and development of more than 10 million ounces of gold
in Brazil, including the development of six different gold projects,
two of which are producing mines today, including Paracatu, the largest
gold mine in Brazil. Individual bios are included below.
Montes Áureos Gold Project, Maranhão State, Brazil
The Company's Montes Áureos gold project, a 4,942-acre exploration
license, is located within the Gurupi gold belt, a gold-producing area
in the Pará and Maranhão states in northeastern Brazil. The project
area lies 20 kilometers south of Jaguar Mining's Chega Tudo and
Cipoeiro gold projects, which have combined proven and probable gold
reserves of more than 2.3 million ounces as reported in its National
Instrument 43-101 ("NI 43-101") technical report dated January 31,
2011. The Montes Áureos project is located on strike from Jaguar
Mining's Chega Tudo deposit and is hosted in similar rock lithologies.
Luna Gold's operating Aurizona Mine and its Cachoeira gold project are
also nearby, and host measured and indicated resources of 1.35 million
gold ounces, on a combined basis, as reported in its NI 43-101
technical reports dated September 1, 2010 and February 7, 2011,
respectively. Company geologists believe the Gurupi gold belt is an
underexplored region. It was discovered and put into production by
early Portuguese and English miners and, in recent decades, by informal
artisanal miners who are still active today.
In September 2010, the Company conducted its first exploration program,
which included channel sampling, logging and sampling of previous
artisanal miners' works from pits, drifts and previous excavations, and
a systematic surface soil sampling program complemented with an auger
drilling program over a selected area with anomalous gold soil sample
Initial results indicate the potential for a high-tonnage/low-grade type
of deposit at Montes Áureos. Last month a follow-up auger drilling
program initiated the start of a $1.7 million exploration program which
will include diamond drilling.
Further detailed technical information on the Montes Áureos project and
the Company's planned work program can be found in the NI 43-101
technical report authored by Mario Conrado Reinhardt, BSc (Geo) MAIG of
Coffey Mining, who is independent of Brazil Resources, and dated March
16, 2011, a copy of which is available under the Company's profile at www.sedar.com.
Amir Adnani, Chairman and Director, is a founder of Brazil Resources Inc., and since 2005 has served as
Chief Executive Officer, President and a director of Uranium Energy
Corp., an NYSE Amex-listed company which he co-founded. Under his
leadership, Uranium Energy Corp has become one of North America's
newest uranium-producing companies. Mr. Adnani is an entrepreneur with
a background in business development and marketing. In 2004, he
founded Blender Media Inc. where he served as President and a director
until 2006. Blender Media Inc. provides strategic marketing and
financial communications services for public companies in the mineral
exploration, mining and energy sectors. Mr. Adnani is recognized by a
qualified resource industry investment advisory, Casey Research, as one
of the sector's leading entrepreneurs, a list researched and known as
"Casey's NexTen." He holds a Bachelor of Science degree from the
University of British Columbia.
Stephen Swatton, President, CEO and Director, is a field geologist by training who migrated to senior corporate
positions through his 28-year career. He initially worked for Rio Tinto
as a field geologist (1984-91). His last major corporate role was as
Global Head of Business Development for BHP Billiton's Exploration
Division. He also served as Chief Executive Officer of Fortress
Minerals Corp. and Southern Rio Resources Ltd. in the late 1990's and
was a mining analyst for Yorkton Securities in the early to mid-1990's.
Mr. Swatton holds a Masters of Science degree from the University of
Alberta in Edmonton.
Mario Garnero, Director, is Chairman and the principal shareholder of the Brasilinvest Group, a
private merchant bank established in 1975. He became director of
Volkswagen Brazil in 1979, chaired the National Automakers Association
and subsequently chaired the National Confederation of Industries.
Brasilinvest is a strategic partner of Brazil Resources and is a
leading merchant bank in Brazil having structured and initiated
projects valued at +$6 billion, and having attracted investments in the
range of $12 billion to Brazil. He is recognized as one of Brazil's
most accomplished entrepreneurs. Mr. Garnero holds a law degree from
the Pontifical Catholic University of São Paulo.
Enzio Garayp earlier served as the Exploration Manager for Kinross Gold Corporation
in Brazil where he oversaw the delineation of an 8-million-ounce
expansion of the 15-million-ounce Paracatu gold mine. He has over 25
years of experience in the various stages of the mining industry, from
grass-roots exploration to underground and open-pit mines. During his
career, he has worked with numerous multinational mining companies
including Teck Cominco where he served as Country Manager-Brazil, CVRD,
Anschutz, Falconbridge and Goldfields. Mr. Garayp holds a Bachelor
degree in geology from the University of Minas de Gerais in Brazil and
a diploma in Structural Geology from Ouro Preto University in Brazil.
Paulo Pereira has over 25 years of experience in exploration and development of
mining projects in Brazil and Canada. He worked as a geologist for the
De Beers Group for twenty years and served for more than ten years as
Senior Project Manager and Divisional Manager for Canada. Mr. Pereira
holds a Bachelor degree in Geology from Universidad Do Amazonas in
Brazil and is a Qualified Person as defined in NI 43-101 and a member
of the Association of Professional Geoscientists of Ontario.
Walter Yamaoka has over 30 years of experience in the exploration and mining of gold
in Brazil. His career has involved holding senior roles with AngloGold
Ashanti, and has included the discovery and development of the
four-million-ounce Crixas mine and the Mina 3, Mina Nova, Mina
Palmeiras and Mina Pequizao gold projects.
Ricardo Magno Laet Rafael has ten years of experience as an exploration geologist. He has
developed and executed exploration projects in Brazil for Kinross Gold
Corporation, Brazauro Resources Corp. and Rio Tinto. Mr. Magno holds a
Bachelor degree in Geology from the University of Brasilia in Brazil
and a post-graduate degree from the Federal University of Bahia-UFBA.
Antonio Sales has 30 years of experience in mineral exploration of gold, nickel,
potash, bauxite and base metals. He worked for 12 years with METAGO,
Metais Goias SA, in gold exploration of the greenstone belts of Goias
and Tocantins, which resulted in the discovery of the Almas gold
deposit in the region of Natividade Dianapolis, subsequently acquired
by Vale and more recently by Rio Novo Gold.
About Brazil Resources Inc.
Brazil Resources is a mineral exploration company with a focus on the
acquisition, exploration and development of mineral properties in the
emerging gold districts of Brazil and in additional prolific areas of
South America. Currently, the Company's principal property is the
Montes Áureos project, located within the Gurupi Gold belt in the state
of Maranhão, Brazil.
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 its Montes
Áureos project 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; 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; that the Company's property is in the
exploration stage and is 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
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
SOURCE Brazil Resources Inc.
For further information:
Telephone: (604) 227 1124