Brazil Resources Inc. Commences Trading on the TSX Venture Exchange, Provides Overview of Operations and Introduces Team
Vancouver, British Columbia – May 16, 2011 – 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 development.”
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 results.
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.
For additional information, please contact:
Telephone: (604) 227 1124
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 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.