VANCOUVER, Jan. 27, 2016 /CNW/ - Brazil Resources Inc.
("Brazil Resources", "BRI", or "the Company") (TSX-V: BRI; OTCQX:
BRIZF) today issued a Letter to Shareholders regarding the
Company's plans for 2016. The full report from the Company's
Chairman, Amir Adnani,
follows.
Dear Fellow Shareholder,
On behalf of the board of directors and management of Brazil
Resources, I am pleased to provide this update and outlook for
2016.
First, we sincerely appreciate your continued support of BRI and
management's strategic growth plans. Thank you!
As you know, our growth strategy is premised on taking advantage
of historically low valuations in the commodity business to make
accretive acquisitions of resource projects, primarily in the gold
sector. This strategy is focused on identifying and acquiring
projects that present compelling value to our shareholders.
Our project portfolio gives us meaningful optionality and
leverage with, what we believe to be, high quality gold projects in
Brazil, uranium exploration with
JV partner Areva Resources Canada Inc. ("Areva") in the western
Athabasca Basin and the Whistler
gold-copper project in Alaska. In
2015, with the acquisition of the Whistler project, we grew our
resource base to 3.7 million ounces gold and gold equivalent in the
indicated category and 5.9 million ounces gold and gold equivalent
in the inferred category. The mineral resource table at the end of
the letter provides details of the resource estimates, including
grades, tonnage and gold equivalents for each of our
properties.
The Whistler Gold-Copper Project had approximately 70,000
metres of drilling completed historically and, with several
gold-copper porphyry deposits identified over an area of 170 square
kilometres, it is truly a district-scale project, which we believe
has good potential for resource expansion. The Company acquired the
project for share consideration resulting in less than 5% dilution
to our existing shareholders.
In 2016, we plan to continue to expand our asset base by taking
advantage of the ongoing challenges in the resource markets. We are
assessing opportunities in superior mining jurisdictions for
acquiring resource projects at prices far below their replacement
drilling and development costs. We expect to have more to report on
this as the year develops.
Advances in Brazil
The Company has had a good year with our core projects in
Brazil, Sao Jorge and
Cachoeira. Both gold projects are now at the permitting stage
and the Company's expenditures moving forward on the projects are
minimal. Concurrently, the Brazilian Real has fallen from
52 cents Canadian in 2012, to
40 cents Canadian in 2015, and we
benefit by getting more done at less cost. Similarly, the
strengthened United States dollar
has resulted in the Brazilian Real denominated costs trending lower
in relation to gold prices, which are generally quoted in U.S.
dollars. We continue to advance both projects without major
expenditures.
At the Sao Jorge Gold Project in Para State, the Company
has submitted a comprehensive final report to the DNPM for the
exploration concession overlying the deposit recommending that it
be converted to a mining concession. With DNPM approval, we plan to
initiate environmental and engineering studies and apply for the
necessary permits to further advance the project.
For the Cachoeira Gold Project in Para State, we have
commenced environmental and mine permitting for the project,
including having submitted the EIA/RIMA (Environmental Impact
Assessment Report) to the state environmental agency and completed
the public hearings that were validated by the state environmental
agency in order to continue with the licensing process. The
EIA/RIMA report is now under review and the Company is waiting to
hear back from the agency.
Uranium Exploration Planned in 2016
We also anticipate developments in 2016 with the Company's
Rea Uranium Project. This project gives BRI a very unique
exposure to the uranium market in addition to our gold focus.
We acquired a 75% interest in the Rea project as part of our
acquisition of Brazilian Gold Corporation in November 2013. The project covers approximately
88,400 hectares and is located in the western portion of the
Athabasca Basin, one of the most
exciting areas for uranium exploration in the world today due to
recent, large, high-grade, near-surface discoveries. Areva, with
exceptional experience in exploration and production within the
Athabasca Basin, is our partner
holding a 25% interest.
Prior operators have expended over $10
million in exploration on the project. In 2014, we completed
a NI 43-101 technical report based on drilling and ground
geophysics, which identified a number of targets that have
potential to host unconformity-type uranium mineralization. The Rea
uranium project surrounds Areva's high-grade Maybelle deposit.
In 2016, we plan to complete a winter geophysical program to
refine drill targets for a future drill program. Since mid-2014,
uranium prices have increased by approximately 25%. If this trend
continues in 2016, as most energy analysts anticipate, highly
prospective exploration projects such as the Rea project could
benefit.
Analyst Coverage
BRI is covered by several mining analysts and has been featured
in industry publications such as the Northern Miner over the last
year. Cantor Fitzgerald and Rodman & Renshaw (a division of
H.C. Wainwright & Co., LLC)
provide regular coverage on the Company's activities.
Outlook
Management is very excited about 2016. There are unprecedented
acquisition opportunities in the markets today and we are in a
position to take full advantage of highly accretive transactions.
We continue to evaluate potential acquisitions of select gold
projects and with such acquisitions, our goal is to realize on
their value when markets improve, through joint venture, sales or
advancing exploration and development.
In the longer term, we will continue to be an aggressive
explorer and developer with a portfolio of six projects that offer
upside potential. The mineral resources for five of these deposits
are set out in the table below.
Thank you for being a part of the Brazil Resources family. We
welcome your continued participation in the Company. Please call us
at 1-855-630-1001, or email info@brazilresources.com with any
questions or comments. Please visit www.brazilresources.com to keep
current.
Yours truly,
Amir Adnani
Chairman
Brazil Resources Inc.
Mineral Resources
Deposit
|
Classification
|
Cut-off*
|
Tonnage
|
Grade
|
Contained
Metal
|
Gold
|
Silver
|
Copper
|
Gold
Eq.**
|
Gold
|
Silver
|
Copper
|
Gold
Eq.
|
|
|
g/t
|
Mt
|
g/t
|
g/t
|
%
|
g/t
|
Moz
|
Moz
|
Mlb
|
Moz
|
Whistler1
|
Indicated
|
0.30
|
79.2
|
0.51
|
1.97
|
0.17
|
0.88
|
1.28
|
5.03
|
302
|
2.25
|
Inferred
|
0.30
|
145.8
|
0.40
|
1.75
|
0.15
|
0.73
|
1.85
|
8.21
|
467
|
3.35
|
Sao
Jorge2
|
Indicated
|
0.30
|
14.4
|
1.54
|
-
|
-
|
-
|
0.72
|
-
|
-
|
-
|
Inferred
|
0.30
|
28.2
|
1.14
|
-
|
-
|
-
|
1.04
|
-
|
-
|
-
|
Cachoeira3
|
Indicated
|
0.35
|
17.5
|
1.23
|
-
|
-
|
-
|
0.69
|
-
|
-
|
-
|
Inferred
|
0.35
|
15.7
|
1.07
|
-
|
-
|
-
|
0.54
|
-
|
-
|
-
|
Surubim4
|
Inferred
|
0.30
|
19.4
|
0.81
|
-
|
-
|
-
|
0.50
|
-
|
-
|
-
|
Boa
Vista5
|
Inferred
|
0.50
|
8.47
|
1.23
|
-
|
-
|
-
|
0.34
|
-
|
-
|
-
|
*Gold cut-off for all
projects except Whistler, which is gold equivalent
cut-off.
|
** Gold equivalent
grade calculation for the Whistler Project resource was based on
75% recovery for gold and silver, 85% recovery for copper,
US$990/oz gold, US$15.40/oz silver and US$2.91/lb
copper.
|
Technical Reports
1"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.
2"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.
3"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.
4"Technical Report on the Rio Novo Gold
Project and Resource Estimate on the Jau Prospect, Tapajos Area,
Para State, Northern Brazil"
prepared by Jim Cuttle and Gary
Giroux, with an effective date of November 22, 2013.
5"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.
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
with a focus on the acquisition and development of projects in
emerging producing gold districts in Brazil, Paraguay 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 and its Rea Uranium Project in the
western Athabasca Basin in
northeast Alberta, Canada.
Paulo Pereira, Brazil Resources'
President, has reviewed and approved the technical information
contained in this news release. Mr. Pereira holds a Bachelor 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.
Cautionary Note
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. Under
Canadian rules, estimates of Inferred Mineral Resources may not
form the basis of feasibility or other economic studies.
Forward Looking Information
This document contains certain forward-looking information
that reflect the current views and/or expectations of Brazil
Resources with respect to its business and future events, including
the potential to identify, execute and successfully integrate
additional acquisitions, the Company's ability to realize benefits
of its current acquisition strategy, the Company's future
exploration plans and the prospects of the Company's existing
projects. Forward-looking statements and information 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 forward-looking
statements and information 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, the timing of any recovery in
resource markets, 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.
SOURCE Brazil Resources Inc.